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Investor Presentation – Peyto Exploration & Development Corp

Peyto Exploration & Development Corp · Nov 1, 2014 · 51 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Investor Presentation – Peyto Exploration & Development Corp – slide 1
  2. Investor Presentation – Peyto Exploration & Development Corp – slide 2
    The Peyto Strategy What We Believe PEYTO Exploration & Development Corp. N We believe natures gas is the fuel for the future. N We believe we can make a real profit by being the lowest cost, most efficient producer in the…
  3. Investor Presentation – Peyto Exploration & Development Corp – slide 3
    The Peyto Strategy How We Do It PEYTO Exploration & Development Corp. Invest in our own ideas Build it ourselves Operate it ourselves Focus on maximum return Stay concentrated, lean & efficient 4 12/23/2014
  4. Investor Presentation – Peyto Exploration & Development Corp – slide 4
    The Peyto Strategy Superior Shareholder Returns PEYTO Exploration & Development Corp. 60 700,000 14 50 20% so far 12 40 45% Total Return 2013 Shareholder IRR 10 30 8 Future strip 20 6 10 4 1,000 0 2 1998 1999…
  5. Investor Presentation – Peyto Exploration & Development Corp – slide 5
    The Peyto Strategy Profitably Grow Our Assets PEYTO Exploration & Development Corp. Production Growth Reserves Growth PDP FD&A Operating Costs (MMcfe/mm sh) (2P Bcfe/mm sh) (/Mcfe) w/transportation 18.9 2.95 2.88 (/Mcfe) 872…
  6. Investor Presentation – Peyto Exploration & Development Corp – slide 6
    The Peyto Strategy Growth per Share PEYTO Exploration & Development Corp. NEW 2015 YE Target Production per Unit or Share (boe/d per million) 600 100,000 boe/d 15 75 500 12 60 Gas Price (/GJ) 400 PEY+ Cum Div…
  7. Investor Presentation – Peyto Exploration & Development Corp – slide 7
    Peyto Profile PEYTO Exploration & Development Corp. N TSX Listing: PEY N Shares Outstanding: 153.7 million, 4.4% insiders (as of Feb. 5/14) N Monthly Dividend: 0.11/share (incr. from 0.10 effective Nov/14) N Current Production:…
  8. Investor Presentation – Peyto Exploration & Development Corp – slide 8
    Third Quarter 2014 Highlights PEYTO Exploration & Development Corp. YoY Production/share YoY FFO/share Q3/14 Operating margin YoY Share price YoY Dividend/share* increase (incl. div.) As at Sept. 30 Q3/14 Profit margin…
  9. Investor Presentation – Peyto Exploration & Development Corp – slide 9
    Peytos Profitable Business PEYTO Exploration & Development Corp.
  10. Investor Presentation – Peyto Exploration & Development Corp – slide 10
    Peytos Profitable Business Build it for less than we sell it PEYTO Exploration & Development Corp. PEY 2014 to Q3 PEY 2013 Land/Acq 9MM Seismic 3MM Drilling 254MM (2.35)* (2.35) PDP FD&A Compl. 152MM Wellsite 48MM /mcfe…
  11. Investor Presentation – Peyto Exploration & Development Corp – slide 11
    Peytos Profitable Business Profitable Even Through The Lows PEYTO Exploration & Development Corp. AECO Monthly 10 Peyto Realized Gas Price (/mcfe) /GJ 37% Ave. Profit Cum To Date 8 6 Bonus 1.02 4 Cash Costs…
  12. Investor Presentation – Peyto Exploration & Development Corp – slide 12
    Peytos Profitable Business Profitability Challenges for the Canadian Gas Industry PEYTO Exploration & Development Corp. 2013 2012 2011 20101 PDP FD&A /mcfe (2.93) (3.43) (3.68) (3.11) Cash Costs /mcfe (3.13) (2.98) (3.31)…
  13. Investor Presentation – Peyto Exploration & Development Corp – slide 13
    Peytos Profitable Business Competitive In The North American Marketplace PEYTO Exploration & Development Corp. 14 12/23/2014
  14. Investor Presentation – Peyto Exploration & Development Corp – slide 14
    Peytos Profitable Business Profitability By Basin 5 yr. Average* PEYTO Exploration & Development Corp. 100% Deep Basin PEY 80% Marcellus Cabot* 75% Rockies Ultra* 70% Haynesville Exco** PD FD&A /mcfe (2.21) (3.08) (3.47) (2.89)…
  15. Investor Presentation – Peyto Exploration & Development Corp – slide 15
    Peytos Unique Assets PEYTO Exploration & Development Corp.
  16. Investor Presentation – Peyto Exploration & Development Corp – slide 16
    Peytos Assets Geographically Focused Core Areas PEYTO Exploration & Development Corp. 450,000 net acres R10 R5W6 R27 R22 R17 9 operated R12 R7W5 gas plants Cutbank ---(610 mmcf/d net capacity) 1000+ km pipelines 900+ producing…
  17. Investor Presentation – Peyto Exploration & Development Corp – slide 17
    Peytos Assets Deep Basin Permeability Segregation PEYTO Exploration & Development Corp. Ante Ck FOOTHILLS STRUCTURES Elmworth GAS AS ING INCRE BILITY EA PERM WATER Kaybob TRANSITION ZONE WATER Kakwa GAS Gas INCREAH…
  18. Investor Presentation – Peyto Exploration & Development Corp – slide 18
    Peytos Assets Multi Zone Stacked Sandstone Reservoirs PEYTO Exploration & Development Corp. Detailed Petrophysical work on the Spirit River sands revealed 30% more reserves per section Up to per section* 19…
  19. Investor Presentation – Peyto Exploration & Development Corp – slide 19
    Peytos Assets Production By Formation PEYTO Exploration & Development Corp. 100,000 90,000 80,000 70,000 36% 60,000 BOE/D Wilrich 50,000 40,000 14% Notikewin 30,000 24% Falher 20,000 13% 10,000 Cardium 7%…
  20. Investor Presentation – Peyto Exploration & Development Corp – slide 20
    Peytos Assets Deep Basin Lands Go A Long Way PEYTO Exploration & Development Corp. 450 425 Peyto Lands 400 Net Lands (000's acres) 350 300 250 200 150 Net Peyto Sections 100 50 - Net Sections of Cardium,…
  21. Investor Presentation – Peyto Exploration & Development Corp – slide 21
    Peytos Assets Large Hz MSF Inventory PEYTO Exploration & Development Corp. To Do Done1 Total Total Hz Hz Locations Total Total Locations Unbooked Vertical Hz Booked* Wells Wells 56 432 63 200 356 5 1 5 1 14 90 56 87…
  22. Investor Presentation – Peyto Exploration & Development Corp – slide 22
    Peytos Assets 3-Dimensional Land Base Holds Large Potential PEYTO Exploration & Development Corp. Cardium (368,433 net acres) 9.1% of land developed in 474 Vt/Hz producers (70 acres/well) 4.9% of land booked in 200 Hz locations…
  23. Investor Presentation – Peyto Exploration & Development Corp – slide 23
    Peytos Assets Spirit River Group Potential Land Expiries PEYTO Exploration & Development Corp. AB Land Sales 5 yr Term 6,000,000 5,000,000 4,000,000 24 Month Expiries 3,000,000 Earliest Expiry Date 2,000,000 out to 2016-09-30…
  24. Investor Presentation – Peyto Exploration & Development Corp – slide 24
    Peytos Assets Greater Sundance Area PEYTO Exploration & Development Corp. GC F F AF FFF G CF FFF CF CF AK FF C FF A AF AF ACFF AF FF F CFAF CF AF F AFF A FFF GF GCF F FC F FFG F J F K AI FC L FG C G G FF F FF AFA A FC GA CF CF F…
  25. Investor Presentation – Peyto Exploration & Development Corp – slide 25
    Peytos Assets Brazeau River Area PEYTO Exploration & Development Corp. F U JM LE F F F S F F GG L K G K G GE J EE E E GK GV WM CG E G A G F S FF A F C U K C F F A G G J VF V Keyera Brazeau A EE E A A A A E V E E EE UU F U F F…
  26. Investor Presentation – Peyto Exploration & Development Corp – slide 26
    Peytos Assets Facility Ownership and Control PEYTO Exploration & Development Corp. R9 R4W6 R26 R21 R16 R11 R6W5 Cutbank Waskahigan W Chicken T60 W Smoky/Kakwa Cutpick Leland/Berland Oldman North T55 Wildhay W W Nosehill W…
  27. Investor Presentation – Peyto Exploration & Development Corp – slide 27
    Peytos Assets Longest Reserve Life PEYTO Exploration & Development Corp. 10.0 8.7 7.6 7.2 6.9 6.3 6.1 6.0 6.0 5.8 5.7 5.6 5.5 5.4 5.1 5.0 5.0 4.6 4.5 4.4 Peyto 2013 PP RLI (yrs) 3.9 3.6 3.4 3 3 0.0 NVA…
  28. Investor Presentation – Peyto Exploration & Development Corp – slide 28
    Peytos Assets Low FD&A Costs = High Recycle Ratio PEYTO Exploration & Development Corp. Proved Producing 50 Total Proved Proved + Probable 40 Field Netback 30 20 Peyto PP Recycle Ratio 10 (14 yr average) 0 2002 2003…
  29. Investor Presentation – Peyto Exploration & Development Corp – slide 29
    Peytos Assets Lowest Operating Costs Gas Producers PEYTO Exploration & Development Corp. How We operate Full facilities No water No sour Chemical recycle Nat gas fuel Continuous innovation Flat for 8 yrs 30 BOE…
  30. Investor Presentation – Peyto Exploration & Development Corp – slide 30
    Peytos Assets Deep Gas Drilling Royalty Incentives PEYTO Exploration & Development Corp. 3,500-4,000 m MD Trigger depth for Natural Gas Deep Drilling Program 2,200 m reduced from TVD 2,500m TVD to 2,000m TVD 3,700-4,000 m…
  31. Investor Presentation – Peyto Exploration & Development Corp – slide 31
    Peytos Incredible Returns PEYTO Exploration & Development Corp.
  32. Investor Presentation – Peyto Exploration & Development Corp – slide 32
    Peytos Returns Focus on Returns Drives Capital Discipline PEYTO Exploration & Development Corp. 2014 - /boe/d 90,000 2013 - 15,100/boe/d 900 2012 - 17,600/boe/d ONR Acq - 38,600/boe/d Annual Production Wedge (boe/d) 80,000…
  33. Investor Presentation – Peyto Exploration & Development Corp – slide 33
    Peytos Returns Hypothetical Returns PEYTO Exploration & Development Corp. Upper Middle Brazeau Brazeau Species Cardium Notikewin Falher Falher Wilrich Bluesky Falher Wilrich Well Costs D&C (M) (M) 3,500 4,300 4,100 4,200 4,300…
  34. Investor Presentation – Peyto Exploration & Development Corp – slide 34
    ROR, % 0 20 40 60 80 100 120 140 160 100/01295421W5/0 HZ 100/11325421W5/0 HZ 102/04335421W5/0 HZ 100/16165621W5/0 HZ 102/16295421W5/0 HZ 102/13325421W5/0 HZ 103/05045521W5/0 HZ 100/01055119W5/0 HZ…
  35. Investor Presentation – Peyto Exploration & Development Corp – slide 35
    Peytos Returns Returns Driven Organic Activity PEYTO Exploration & Development Corp. 80,000 70,000 60,000 2013 50,000 Boe/d 40,000 30,000 Net Capital (after NOI) to PV5 20,000 10,000 0 2013 Capital Program…
  36. Investor Presentation – Peyto Exploration & Development Corp – slide 36
    Peytos Returns High Returns On Your Capital And Equity PEYTO Exploration & Development Corp. 60% 10 50% 8 40% 6 30% 15 yr Average ROE 4 20% 10% 2 0% 0 Return On Capital Employed (%) Return On Equity (%)…
  37. Investor Presentation – Peyto Exploration & Development Corp – slide 37
    Peytos Returns Shareholder Returns = NAV Growth + Income PEYTO Exploration & Development Corp. 60 Cum Div/Dist P+P 50 PV5 debt adj./share TP 40 PDP 30 20 10 Compound Annual - Growth Rate (14 yr) 38 PV5…
  38. Investor Presentation – Peyto Exploration & Development Corp – slide 38
    Peytos Future PEYTO Exploration & Development Corp.
  39. Investor Presentation – Peyto Exploration & Development Corp – slide 39
    2014 Outlook Biggest Year Ever (again) PEYTO Exploration & Development Corp. Drill 125 Hz Wells (100% Hz-MSF, Liquids Rich Natural Gas) Expand & Extract Increase Processing Capacity & NGL Yield 100 mmcf/d Increase…
  40. Investor Presentation – Peyto Exploration & Development Corp – slide 40
    2015 Outlook Larger, but with the same result PEYTO Exploration & Development Corp. Drill 130 Gross Hz Wells (100% Hz-MSF, Liquids Rich Natural Gas) Expand & Extract Increase Processing Capacity & NGL Yield 120 mmcf/d…
  41. Investor Presentation – Peyto Exploration & Development Corp – slide 41
    2015 Outlook Drill Our Way To 100,000 BOE/D PEYTO Exploration & Development Corp. 3% annual yield 120,000 +25%/sh CAGR growth 96,000-100,000 120,000 28% CAGR total return boe/d exit over last 5 years 100,000 85,000 boe/d exit…
  42. Investor Presentation – Peyto Exploration & Development Corp – slide 42
    2015 Outlook Continuously Improve Profitability PEYTO Exploration & Development Corp. 2015 Goals* Pad drilling CNG powered rigs PDP FD&A…
  43. Investor Presentation – Peyto Exploration & Development Corp – slide 43
    Peytos Future Where to from here PEYTO Exploration & Development Corp. 150,000 125,000 boed 100,000 boed 85,000 boed 100,000 16,000 /boe/d BOED 17,200 /boe/d 17,200 /boe/d 50,000 15,100/boe/d 17,600/boe/d…
  44. Investor Presentation – Peyto Exploration & Development Corp – slide 44
    Appendix PEYTO Exploration & Development Corp. N Quarterly Track Record N Tax Pools N Payout N Hedging Strategy N Gas Marketing N Liquids Marketing N FAQ 45 12/23/2014
  45. Investor Presentation – Peyto Exploration & Development Corp – slide 45
    Quarterly Track Record PEYTO Exploration & Development Corp. 2014 2013 2012 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Total Q4 Operations Production Oil & NGLs (bbl/d) 7,502 7,568 7,375 6,376 6,984 6,295 6,374 5,840 4,778 5,286…
  46. Investor Presentation – Peyto Exploration & Development Corp – slide 46
    Organic Business Model Peytos Tax Pools PEYTO Exploration & Development Corp. 1,600 1,400 1,200 1,000 Federal Tax Pools Millions 800 Q2/14 600 400 200 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011…
  47. Investor Presentation – Peyto Exploration & Development Corp – slide 47
    Peytos Payout Dividend Sustainability PEYTO Exploration & Development Corp. Peyto Dividend Sustainability 2,000 1,800 1,600 1,400 1,200 Peyto Cum. Earnings 1,000 Q3/14 800 600 400 200 0 Cum Dist/Div (before DRIP) Cum…
  48. Investor Presentation – Peyto Exploration & Development Corp – slide 48
    Successful Hedging Strategy Peyto Realized Price History PEYTO Exploration & Development Corp. 2003 2004 2006 2010 2012 2013 16.00 2005 2007 2008 2009 2011 Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto…
  49. Investor Presentation – Peyto Exploration & Development Corp – slide 49
    Gas Marketing Future Sales (1 of 3) PEYTO Exploration & Development Corp. Financial Hedges - Gas Pricing 2013 2014 2015 2016 Da te contra cte d GJ/d (/GJ) A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J…
  50. Investor Presentation – Peyto Exploration & Development Corp – slide 50
    Gas Marketing Future Sales (2 of 3) PEYTO Exploration & Development Corp. Financial Hedges - Gas Pricing 2013 2014 2015 2016 Da te contra cte d GJ/d (/GJ) A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J…
  51. Investor Presentation – Peyto Exploration & Development Corp – slide 51
    Gas Marketing Future Sales (3 of 3) PEYTO Exploration & Development Corp. Financial Hedges - Gas Pricing 2013 2014 2015 2016 Da te contra cte d GJ/d (/GJ) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M…

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