OUR FOCUS We are an upstream energy company, focused on light oil development in western Canada EXTENSIVE PORTFOLIO SUSTAINABLE SHAREHOLDER VALUE OF ASSETS BUSINESS MODEL CREATION Drilling inventory of 10+ Dividend suspended…
OUR ASSET BASE Oil Gas 9 Month Average Production 41,750 boepd Business Units Q4 Production Drilling Inventory (boepd) (locations) 2014 Production Average: 40,400 boepd; Bakken 14,000 1,060 78% liquids weighting Cardium…
2015 CORPORATE STRATEGY Retain long-term value and preserve financial flexibility in this low oil price environment Capital program of 190 210 million to be funded by internally generated cash flow Spending target for the first half…
2015 CAPITAL & DRILLING PROGRAM For 2015, we will be executing a 2-rig drilling program 2015 Planned Capital Activity Capital Expenditures by Play Capital Net Wells 1 (millions) (2015e) BAKKEN 83 million CARDIUM 30 Net Wells…
FOCUS ON FREE CASH FLOW Our long term light-oil business model Initial capital investment in light oil resource plays generates near-term FUTURE GROWTH production growth and early payout GROWING INTO FREE CASH FLOW Maturing…
DEBT AND LIQUIDITY Term debt provides certainty; balance sheet liquidity (target: 200 - 500 million) provides flexibility 575 million of available DEBT CAPITAL COMPOSITION Term Secured Debt liquidity Term subject to 1.15…
DISPOSITION ACTIVITY 2014 asset sales total 729 million Dispositions Metric Production 6,315 boepd 115,400/boepd Reserves (2P) 20.9 mmboe 39.12/boe1 Annualized Net Operating Income 112 million2 6.5x We exceeded our 2014…
GUIDANCE We are taking a conservative approach to 2015 2015 2014 Average Production (boe/d) 30,000 32,000 40,000 41,0001 Exit Production (boe/d) 30,000 32,000 36,000 37,0001 Liquids Weighting 77% 78% Funds Flow 2 Funds Flow from…
FUNDS FLOW PROTECTION Our 2015 WTI hedge position helps protect our downside in the current pricing environment Commodity 1H 2015 2H 2015 Oil hedged - WTI (bbl/d) 7,750 4,795 Net production hedged 1,2 38% 24% Ceiling (US/bbl) 104 103…
ECONOMIC SENSITIVITIES Sensitivities and assumptions on annualized 2015 funds flow from operations Impact Parameter Assumption Change of: ( millions) WTI Oil Price1 US65.00/bbl +/- 1.00 5.2 Production 31,000 boepd +/- 1,000 11.2…
BAKKEN ASSETS Focus on optimization and EOR Our assets produce light oil from the Bakken and the conventional Mississippian formations with a relatively low decline rate. With a moderate drilling program in 2014, we focused on optimizing…
IMPROVING TIGHT OIL RECOVERIES Future value generation through natural gas flooding With Bakken EOR projects we Bakken Creelman EOR Performance 1600 12 expect to: Attenuate declines and extend 1400 production life Increase…
CARDIUM ASSETS Generating positive operating cash flow Our extensive land base stretches from Calgary to LTS Land Edmonton and our assets primarily produce light oil LTS Batteries from the Cardium formation. We are continuously Sales…
CARDIUM GROWTH Carduim Production and Cummulative Well Count 25,000 500 20,000 400 Net Wells on Production Production (boepd) 15,000 300 10,000 200 5,000 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3…
PROVEN RESULTS THROUGH INNOVATION Innovations in drilling and completion techniques improve production and lower costs Performance in West Pembina Slickwater fracturing has 100,000 reduced costs and improved production Cumulative…
AB / BC ASSETS The Swan Hills is our next growth target Grown production rates to 2,500 boepd New 3,500 bopd battery operational in Q2 2014 Future Operations Completion and flow-back protocols have been revised following Q1 2014…
GROWING SWAN HILLS PRODUCTION Swan Hills production growth has increased our liquids weighting for the Alberta/BC business unit 5,000 25 4,000 20 Net Wells on Production Production (boepd) 3,000 15 2,000 10 1,000…
LONG-TERM WELL ECONOMICS We focus on well economics that reinforce our business model with quick payouts and strong capital efficiencies < 2 year capital payout 2 recycle ratio Business Unit Bakken Business Unit Cardium Alberta/BC Type…
LONG-TERM OPPORTUNITY EXTENSIVE ASSETS SUSTAINABILITY SHAREHOLDER VALUE Drilling inventory of 10+ 2014-15 capital 575 million of liquidity years expected to be funded to preserve financial by cash flow flexibility Undeveloped…
Trading Symbol LTS: TSX Share Price (January 19, 2015) 1.03 Market Capitalization 204 million Shares Outstanding (Nov 2014 Basic) 198 MM Total Debt 1.56 billion Options/Incentive shares 6.0 MM Enterprise Value 1.76 billion Shares…
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