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FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp

Bonavista Energy Corp · Dec 5, 2013 · 50 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. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 1
    FirstEnergy Capital Societe Generale Montreal Energy Conference December 5, 2013
  2. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 2
    Strategic Overview
  3. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 3
    CORPORATE IDENTITY Our foundation 3.5B Enterprise Value PEOPLE RESERVES PRODUCTION OPPORTUNITIES 376 Employees 372 mmboe* 74,000 boe/d 1,650 Locations 13% Insider Ownership 14 year RLI 90% Operated 89% Horizontal 4 * 2P at…
  4. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 4
    BUSINESS PLAN A total return investment thesis 5+% GROWTH ANNUAL GROWTH TARGET + 5% INCOME DIVIDEND YIELD TARGET = 10+% VALUE CREATION TOTAL SHAREHOLDER RETURN TARGET 5
  5. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 5
    BUSINESS PLAN A delicate balance 10% 20% 10% 10% 5% 10% 5% SPENDING 0% 0% 0% Income Return Target Total Return Target Growth Return Target 6
  6. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 6
    CORPORATE STRATEGY The right ingredients CONCENTRATE OPERATIONS ON EXCELLENT ASSETS TOP QUALITY RESERVOIRS + IDENTIFY AND EXECUTE WITH EXCELLENT PEOPLE EFFICIENCY AND PRECISION = VALUE CREATION 7
  7. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 7
    CONCENTRATION Five years of focus Deep Basin 2008 Multi zone potential Substantial untapped resource West Central Year round accessibility Existing infrastructure provides access to markets Deep Basin Close proximity to…
  8. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 8
    CONCENTRATION Concentration of production and reserves 80,000 400 70,000 350 60,000 300 Production (boe/d) Reserves (mmboe) 50,000 250 40,000 200 30,000 150 20,000 100 10,000 50 0 0 2008 2009 2010 2011…
  9. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 9
    CONCENTRATION Concentration of E&D expenditures 100% 90% 80% 82% Expenditures (% of total) 70% 76% 76% 60% 63% 50% 51% 40% 30% 29% 20% 10% 0% 2008 2009 2010 2011 2012 2013E Focus Areas Other 240% spending…
  10. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 10
    CONCENTRATION Lower cost production 20-30% lower in focus areas 12.00 10.00 Operating Costs (/boe) 8.00 6.00 4.00 2.00 0.00 2008 2009 2010 2011 2012 2013E Bonavista Focus Areas 11
  11. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 11
    CONCENTRATION Concentration of asset value 100% 90% 80% 70% 75% % of 10% NPV 68% 60% 63% 59% 50% 40% 30% 20% 27% 10% 0% 2008 2009 2010 2011 2012 Focus Areas Other 12
  12. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 12
    EFFICIENCY FD&A* (proved + probable) performance 35.00 30.00 3-year Average (/boe) 25.00 20.00 15.00 10.00 5.00 0.00 BNP Bonavista Peer Group Avg 13 *Includes FDC
  13. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 13
    EFFICIENCY Cash cost performance 30.00 25.00 Q3 2013, Cash costs (/boe) 20.00 15.00 10.00 5.00 0.00 BNP Bonavista Peer Group Avg 14 *Includes transportation, operating, G&A and interest or financing…
  14. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 14
    EFFICIENCY Cycle time efficiency 120 37% faster Avg Days (Spud to On Production) 100 80 60 40 20 0 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 Bonavista Peer Group Avg 15 * Includes…
  15. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 15
    EFFICIENCY Drilling cost 160,000 YTD 14% lower than 2012 800 Operated Meters Drilled (meters) 140,000 700 120,000 600 100,000 500 /meter 80,000 400 60,000 300 40,000 200 20,000 100 - 0 2011Q1 2011Q2…
  16. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 16
    EFFICIENCY Completion cost YTD 23% lower than 2012 140,000 700 Interval Completion Cost (/interval) 120,000 600 100,000 500 Interval Count 80,000 400 60,000 300 40,000 200 20,000 100 0 0 2010 2011 2012 2013…
  17. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 17
    EFFICIENCY Overall, adding production more efficiently 40% more efficient than last year E&D efficiency (/boed, trailing 12-mos) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2011Q1 2011Q2 2011Q3…
  18. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 18
    VALUE CREATION Total drilling inventory 2009 2013 Improved from 57% HZ in 2009 to 89% today 23% 41% Focus areas inventory 55% grew from 59% of the 12% total in 2009 to 77% in 65% 2013 4% Key plays grew to 1,019 horizontal…
  19. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 19
    VALUE CREATION Building value with liquids rich natural gas plays 70 bbls/mmcf 90 bbls/mmcf 38 bbls/mmcf 155 bbls/mmcf 0% C2 22% 23% 35% 35% 29% 29% C3 42% C4 18% 52% C5 37% 29% 13% 10% 20% 6% 9.00 Revenues*…
  20. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 20
    VALUE CREATION Economics of key plays in focus areas Recycle Ratio On-stream Cost IP12* (/boed) 4 25,000 20,000 3 15,000 2 10,000 1 5,000 0 0 Glauconite Glauconite Montney Ellerslie Bluesky Montney…
  21. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 21
    VALUE CREATION Solid foundation for growth in focus areas MONTNEY, 49 gross wells / 319 million spending ELLERSLIE, 138 gross wells / 552 million spending WILRICH, 103 gross wells / 314 million spending BLUESKY, 42 gross wells…
  22. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 22
    VALUE CREATION Spending for growth 900 800 700 600 millions 500 400 300 200 100 0 2014 2015 2016 2017 2018 Support Glauconite Cardium Ellerslie Deep Basin Montney Other 23
  23. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 23
    VALUE CREATION Growth 120,000 2018 110,000 boe/d 110,000 100,000 Production (boe/d) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 1/01/2014 1/01/2015 1/01/2016 1/01/2017 1/01/2018 Base Glauconite…
  24. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 24
    Key Plays
  25. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 25
    GLAUCONITE Near-term growth 40,000 35,000 Double production by H2 2015 Production (boe/d) 30,000 25,000 300 sections of land 20,000 15,000 At year end, will have drilled 190 10,000 5,000 horizontal wells 0 2011 2012…
  26. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 26
    GLAUCONITE Hoadley type curve Current With Deep Cut 600 Capital ( millions) 3.1 3.1 IP12 (boe/d) 254 278 500 EUR (mboe) 480 513 IRR (%) 49 50 Production (boe/d) 400 F&D (/boe) 6.36 6.10 P/I 0.89 0.91 300 Recycle Ratio 3.75…
  27. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 27
    GLAUCONITE Infrastructure advantage G Expenditures 60 G G 50 Proposed pipeline G G G 40 millions G Ferrybank W W Keyera 1513 C.S. Rimbey G 30 Penn West G G Willy Green W 20 G G G G G GG 328 C.S. 10…
  28. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 28
    GLAUCONITE Glauconite drilling 2-mile horizontal depths Drilling Completion E&Ti Total F&D /boed (000s) (000s) (000s) (000s) (/boe) Avg of First 3,285 2,330 200 5,815 5.93 10,385/boed Two Wells 2 times the 3,400 2,300 500 6,200…
  29. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 29
    CARDIUM Near-term growth 6,000 5,000 Production (boe/d) 300 sections of land 4,000 3,000 At year end, will have drilled 115 2,000 horizontal wells 1,000 40 API oil 0 2011 2012 2013 2014 2015 2016 2017 2018 Base…
  30. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 30
    CARDIUM Lochend type curve 800 Type Curve Capital ( millions) 3.4 700 IP12 (boe/d) 194 600 EUR (mboe) 176 Production (boe/d) IRR (%) 148 500 F&D (/boe) 19.30 400 P/I 1.0 Recycle Ratio 3.16 300 Payout (years) 0.8…
  31. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 31
    ELLERSLIE Mid-term growth 18,000 16,000 Production (boe/d) 14,000 12,000 10,000 135 sections of land 8,000 6,000 At year end, will have drilled 9 4,000 Significant growth 2,000 horizontal wells 0 2014 2015 2016 2017…
  32. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 32
    ELLERSLIE Ellerslie 700 Solid production performance Type Curve Actuals 600 Capital ( millions) 5.4 5.4 IP12 (boe/d) 348 496 Production (boe/d) 500 EUR (mboe) 542 650 400 IRR (%) 40 100 F&D (/boe) 9.90 8.23 300 P/I 0.68…
  33. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 33
    Building a second core area DEEP BASIN Starting assembling land with our Rosevear/Pine Creek acquisition in 2010 In 2012, purchased the Marlboro / McLeod properties In 2013, purchased assets in the Edson area and Ansell farm-in…
  34. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 34
    BLUESKY Near-term growth 10,000 8,000 Production (boe/d) 6,000 At year end, will have drilled 24 horizontal 4,000 wells 2,000 0 Liquids yield of 38 bbls/mmcf 2011 2012 2013 2014 Base 2015 Growth 2016 2017 2018…
  35. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 35
    BLUESKY Bluesky type curve Type Curve 700 Capital ( millions) 4.5 IP12 (boe/d) 395 600 EUR (mboe) 515 IRR (%) 66 Production (boe/d) 500 F&D (/boe) 8.79 400 P/I 0.9 Recycle Ratio 2.9 300 Payout (years) 1.5 200…
  36. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 36
    WILRICH Mid-term growth 20,000 Production (boe/d) 15,000 10,000 60 sections of land 5,000 At year end, will have drilled 36 horizontal 0 wells 2013 2014 2015 Base 2016 Growth 2017 2018 Owned and operated…
  37. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 37
    WILRICH Marlboro type curve Type Curve Actuals 900 Capital ( millions) 4.7 4.7 IP12 (boe/d) 332 506 800 EUR (mboe) 517 520 700 IRR (%) 26 51 Production (boe/d) 600 F&D (/boe) 9.09 9.04 P/I 0.39 0.62 500 Recycle Ratio 2.2…
  38. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 38
    WILRICH Ansell type curve New well tested at 2,500 boe/d 1,400 Type Curve Restricted rate of new well Capital ( millions) 6.0 1,200 IP12 (boe/d) 659 EUR (mboe) 872 Production (boe/d) 1,000 IRR (%) 55 800 F&D (/boe)…
  39. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 39
    MONTNEY Long-term growth 12,000 10,000 Production (boe/d) 8,000 6,000 4,000 55 sections of land 2,000 0 Stabilized condensate yield of 1/01/2014 1/01/2015 1/01/2016 1/01/2017 1/01/2018 Base Growth 75 bbls/mmcf…
  40. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 40
    MONTNEY Economic impact of a condensate rich Montney play Oil/Condensate Play Typical NGL Play IP(1) (mcf/d) 1,820 5,500 Natural gas EUR (Bcf) 1.8 5.4 Liquids (bbls/mmcf) 155 18 F&D (/boe) 12.96 7.97 Netback (/boe) 29.43 16.71…
  41. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 41
    MONTNEY Montney type curve 700 Type Curve Hybrid Capital ( millions) 6.5 6.5 600 IP12 (boe/d) 284 377 EUR (mboe) 502 555 Production (boe/d) 500 IRR (%) 19 42 400 F&D (/boe) 12.96 11.71 P/I 0.3 0.7 300 Recycle Ratio 2.5…
  42. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 42
    2014 BUDGET Capital allocation Expenditures % Drilling Gross Wells ( millions) Expenditures Glauconite 58 161 39% Cardium 21 53 13% Ellerslie 11 44 11% Bluesky 8 21 5% Wilrich 11 42 10% Montney 2 13 3% Total (Key Plays) 111…
  43. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 43
    Financial Strategy and Guidance
  44. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 44
    FINANCIAL STRATEGY Senior Debt Composition (as at September 30, 2013) ( millions) Senior Notes (CAD) 70 Unutilized Bank Capacity 412 Bank Credit Facility - 600 million 11 banks in Bonavista bank credit facility Unsecured,…
  45. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 45
    FINANCIAL STRATEGY Senior notes average 7.6 years 4.1% Bank credit facility 3 years 3.25% Average term approximately 6.7 years 3.9% 46
  46. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 46
    GUIDANCE 2014 Guidance 2012 2013 2014 Actual Estimate Forecast Capital expenditures ( millions): Exploration and development 402 437 500 550 Acquisitions and divestitures (11) 23 - Total 391 460 500 550 Production (boe/d) 69,250…
  47. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 47
    Appendix
  48. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 48
    HEDGING STRATEGY Hedging Strategy Manage Risk Ensure natural gas, liquids and oil production moves to markets in an orderly manner Stabilize pricing from volatile commodity prices Safeguard cash flow to fund our capital budget and…
  49. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 49
    HEDGING STRATEGY NATURAL GAS 200 5.00 180 4.50 Hedged Volumes (thousand GJ/d) 160 4.00 140 3.50 120 3.00 C/GJ 100 2.50 80 2.00 60 1.50 40 1.00 20 0.50 58% 36% 42% 52% 37% 44% 41%…
  50. FirstEnergy Capital Societe Generale Montreal Energy Conference – Bonavista Energy Corp – slide 50
    HEDGING STRATEGY CRUDE OIL 12 120 10 100 Hedged Volumes (mbbls/d) 8 80 C/bbl 6 60 4 40 2 20 40% 50% 50% 46% 39% 43% 45% 51% 0 0 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3…

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