Corporate Presentation November 2013 www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
Corporate Overview Parallel Energy Trust is an oil and natural gas Income Trust Distribution has a favourable tax treatment as all assets are located in the mid- continent U.S. (not subject to specified investment flow-through SIFT…
Objective and Strategies Objective To provide our unitholders with a sustainable monthly distribution while strategically growing the base level of our operations Strategies Acquire, operate and manage long-life, low decline rate,…
Location of Assets Greater Panhandle / Hugoton Field U.S. Mid-Continent Oil and Gas Areas Kansas Oklahoma Kansas Texas Oklahoma Texas Parallels Assets Location Estimated % of Total Production SE Roberts Carson…
Operating Areas Carson (Total of approximately 91,000 net acres) Produces natural gas liquids and natural gas from 205 wells targeting the Granite Wash & Brown Dolomite formations Texas (100% Operated) Sneed (Total of…
Infrastructure Parallel has a solid foundation of infrastructure in place to support long- term production growth Pipeline, drip tanks, cooling equipment and compressors in place Primary and back-up processing agreements in place at…
Operator of Assets Parallel is the operator of its Texas assets Led by Tony Swindell, VP Mid-Continent U.S. office is located in Tulsa, Oklahoma Fully-staffed with 14 Tulsa office employees Field offices and operations are…
Drilling Summary Low-Risk, Efficient Drilling Type of Drilling Air No Mud Completion Open Hole No Fracturing Average Depth* True Vertical Depth 800 metres Measured Depth 1,500 metres Timing Spud to Rig Release 10 days Rig Release…
Reserve Summary Summary of Reserves at December 31, 2012 (100% interest) Reserves PV10 (mboe) % (USMM) % Proved Developed Producing (PDP) 30,309 64 366 74 Proved Undeveloped 9,290 20 61 12 Total Proved 39,705 84 429 86 Probable…
Actuals & Outlook www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
Production History & Forecast Parallel has demonstrated historical growth in its quarterly production Gross production growth of 25% from IPO to Q3-2013 (production growth per unit 50%) On track to exceed 2013 annual production…
Production Mix & Revenue Split Production Mix Condensate and NGLs have accounted for 66% of total production to date in 2013 Revenue Split Condensate and NGLs have accounted for 81% of total revenue to date in 2013…
NGL Production Breakdown & Pricing 2013E NGL Production Split & the weighted average price at Conway in Q3-2013 Weighted Average NGL Production Split Price in Q3-2013 2013E (/boe at Conway) Ethane 21% 8.76 Propane 34% 41.71…
Revenue & Operating Netback Breakdown of Gross Revenue (Before Realized Hedges) Parallels operating netbacks have steadily improved for four consecutive quarters (Q3-2012 to Q3-2013) www.parallelenergy.ca TSX: PLT.UN 15
2014 Capital Expenditure Plans 2014 Drilling Program 9.5 million Drill, complete and tie-in 14 gross wells in the Carson operating area Single lateral wells with an average drilling cost of 675,000 per well Estimated average 30 day…
2014 Outlook 2014 full year average daily production forecast of 7,100 7,300 boe/day Production mix to average 24% condensate, 42% natural gas liquids (NGLs) and 34% natural gas 2014 full year cash flow forecast of 46 million…
Long-Term Debt Reduction Goal Parallels long-term debt reduction goal is to have sufficient availability under the bank facility to fund the convertible debentures when they mature on June 30, 2017 (in 3 years) Additional Amount…
Industry Comparisons www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
Payout Ratios Parallels 2014 estimated total payout ratio is expected to be less than 100% (pre-drip) In terms of its total payout ratio Parallel has one of the most sustainable business models relative to other dividend paying E&P…
Capital Efficiencies & Decline Rates Parallel realized capital efficiencies of 16,000 per flowing boe/day in 2013 Parallels 2014 estimated capital efficiencies are 20,000 per flowing boe/day Parallels corporate decline rate is the…
Impact of Low Decline Rates Comparison of TDs Estimate of Parallels Decline Rate vs. the Industry Average* Decline Rate Parallel Energy Trust Production (boe/d) 1 year production loss of 730 boe/day CAPEX of approx. 15.3…
Natural Gas Prices Canada vs. U.S. Natural Gas Price Comparison NYMEX vs. AECO (Source: Bloomberg and CAPP Natural Gas Report) www.parallelenergy.ca TSX: PLT.UN 23
Crude Oil Prices Canada vs. U.S. Crude Oil Price Comparison WTI on NYMEX vs. Edmonton Par (Source: Bloomberg and CAPP Crude Oil Report) www.parallelenergy.ca TSX: PLT.UN 24
Summary Very attractive cash yield (16%) given the low risk profile of the asset Income Trust with ideal assets to create predictable cash flow Industry leading corporate decline rate of 8 10% provides a solid base for…
Market Data (As at November 25, 2013) Ticker Symbol PLT.UN Units Outstanding 53.4 million 52 Week Range 3.57 4.66 Closing Price (November 25, 2013) 3.84 Distribution declared since IPO 2.09 Distribution Yield (0.05 per unit per month)…
Management & Directors Henry Sykes, Q.C. Henry Sykes, Q.C. Executive Chairman Executive Chairman of Parallel Energy Trust and President of MGM Energy Rick Alexander President and CEO Rick Alexander President and CEO of Parallel…
Cross Border Trust Structure Unitholders Investment in Units Distributions Tax efficient Mutual Fund Trust structure Parallel Principal and Administrator Investment in CT Notes and CT Units Energy Trust (Alberta Trust) Interest…
Parallel Energy Trust Corporate Office Investor & Media Contact 4100, 350 7th Avenue SW, Curtis Pelletier Manager, Investor Relations Calgary, Alberta T2P 3N9 Main: (403) 781-7888 Parallel Energy LP Tulsa Office Toll-Free: (855)…
Loading...
