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Investor Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Feb 2, 2015 · 29 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 – Whitecap Resources Inc. – slide 1
    SUCCESS FOCUS = + MOTIVATED PEOPLE + QUALITY ASSETS SUSTAINABLE LIGHT OIL GROWTH + INCOME PLATFORM February 2015
  2. Investor Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 253.5 Fully diluted 258.7 Market capitalization (B) 3.0 Annual dividend (/share) 0.75 2015 average production (boe/d) 36,000 % oil + NGLs 76% 2015 netback (/boe) Operating…
  3. Investor Presentation – Whitecap Resources Inc. – slide 3
    Managing the Current Low Price Environment Balance Sheet Strength Managing Production Growth Rate Capital Discipline Monitoring Cost of Services Total Payout Ratio Focus Long Term Sustainability Objective 3
  4. Investor Presentation – Whitecap Resources Inc. – slide 4
    Total Shareholder Return 10% / Annum MOTIVATED PEOPLE + QUALITY ASSETS + FOCUS = SUCCESS Founding Principles Employees are shareholders Light oil focus Per share growth (cash flow, production, reserves and NAV) Execution…
  5. Investor Presentation – Whitecap Resources Inc. – slide 5
    WCP Employee Share Ownership Total Employee Ownership 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2009 2010 2011 2012 2013 2014 Since 2009 insiders increased…
  6. Investor Presentation – Whitecap Resources Inc. – slide 6
    Results and Track Record Production/Share Growth 2P Reserves/Share Growth 40,000 180 250,000 2014 F&D Costs 1,000 140 TP P+P 160 848 900 35,000 Incl. FDC 19.03 13.79 139 130 140 200,000 P+P Recycle Ratio = 2.3x 746 800 30,000…
  7. Investor Presentation – Whitecap Resources Inc. – slide 7
    Results and Track Record Cash Flow/Share Growth 600.0 2.50 2.08 500.0 1.84 2.00 1.57 1.68 400.0 (Cash Flow / share fd) 1.34 1.50 300.0 (MM) 486.8 1.00 200.0 404.0 0.48 278.8 0.50 100.0 193.9 87.2 11.3…
  8. Investor Presentation – Whitecap Resources Inc. – slide 8
    1.8 Billion Value Created (September 2009 December 2014) Net Total Total Purchase Capital Total Total Present Cash Flow Rate of Price Spent Cost Cash Flow Value plus NPV Return Area (MM)(1) (MM)(2) (MM) (MM) (MM)(3) (MM) (%) NW…
  9. Investor Presentation – Whitecap Resources Inc. – slide 9
    7 Key Attributes to WCP Growth + Dividend Strategy Focus on organic per share growth (3 - 5% per year) within cash flow, supplement with accretive acquisitions Conservative total payout ratio and strong balance sheet Provide…
  10. Investor Presentation – Whitecap Resources Inc. – slide 10
    Growth Within Cash Flow Sustainable Asset Base 2015 Free Cash Flow by Area 125 100 75 100 67 34 20 72 84 50 60 60 52 50 25 33 0 Saskatchewan SW AB Pembina NW AB/BC Operating Income Development Capital Free Cash…
  11. Investor Presentation – Whitecap Resources Inc. – slide 11
    2015 Development Capital 2015 Capex by Area (%) 2015 Well Count (gross) Saskatchewan 100 SW AB 90 26% Other 80 17% 2% 70 55 60 50 30% 40 25% 30 18 20 11 NW AB/BC 5 10 0 Pembina Sask SW AB Pembina NW AB/BC 2015e…
  12. Investor Presentation – Whitecap Resources Inc. – slide 12
    Predictable and Stable Production Base Base and new well production is predictable and repeatable High level of certainty of achieving forecasted volumes Key characteristics: Areally consistent reservoirs Large resource in place,…
  13. Investor Presentation – Whitecap Resources Inc. – slide 13
    Financial Prudence and Risk Management C98.61 C98.61 C97.15 C97.15 15,000 100.00 12,500 95.00 Oil Hedges 10,000 90.00 C/bbl WTI bbls/d 7,500 85.00 5,000 Objective: 80.00 2,500 1) Mitigate price volatility -…
  14. Investor Presentation – Whitecap Resources Inc. – slide 14
    Sensitivities 2015 Cash Flow Sensitivities and Assumptions Parameter Annual Base Sensitivity Impact (000s) Oil price (USWTI) 52.50 +/- 1.00 4,500 Gas price (C/GJ AECO) 2.50 +/- 0.10 1,200 Production (boe/d) 36,000 +/- 100…
  15. Investor Presentation – Whitecap Resources Inc. – slide 15
    Core Areas of Operations Development Inventory 2,229 Boundary Drilling inventory 115 2014/15 wells 0/3 Oil New well netback (/boe) 34 100% Light Oil 10+ Years inventory Drilling inventory 60 Montney 2014/15 wells 2/0 BRITISH…
  16. Investor Presentation – Whitecap Resources Inc. – slide 16
    Elnora Nisku Oil Acquisition Recently consolidated to 100% WI Operated, 35o API light sweet oil, focused asset Largest Nisku oil discovery in the past 20 years Elnora Free Cash Flow 60 Nisku zone at 1,900m depth, 18 - 30m thick…
  17. Investor Presentation – Whitecap Resources Inc. – slide 17
    Cardium Horizontal Resource Play Cardium oil resource play repeatable and expandable Edmonton Light sweet oil (39 API) West Pembina East Pembina Strong operating and cash flow netbacks (36 - 40/boe) Low risk optimization of 7…
  18. Investor Presentation – Whitecap Resources Inc. – slide 18
    West Pembina Cardium Legacy Characteristics Unitized waterfloods, 38o API light oil, 1,700m depth 6 Units (46 100% WI) Industry Hz Wells Acquired Hz Wells 83% oil + NGLs WCP Drilling CPDU1 79.1% Non-Unit Lands Average base decline…
  19. Investor Presentation – Whitecap Resources Inc. – slide 19
    Exceptional Type Curve Economics East Pembina Garrington Garrington West Pembina Type Well Economics Cardium Cardium (Standard) Cardium (ERH) Cardium DCE&T (MM) 2.23 2.77 3.41 2.73 Production, IP30 (boe/d) 239 311 466 317…
  20. Investor Presentation – Whitecap Resources Inc. – slide 20
    Western Saskatchewan Viking Oil Light oil (36 API) Viking resource play Type Well Economics Lucky Hills/Viking Strong capital efficiencies, short payout periods Decline mitigation via waterflood SASKATCHEWAN Type A Type B Improving…
  21. Investor Presentation – Whitecap Resources Inc. – slide 21
    Deep Basin Dunvegan Oil Dunvegan light oil (39 - 42 API) Recently expanded opportunity base Dunvegan Type Curves 500 Play characteristics 416 boe/d 400 IP30 Large OOIP of 6 to 15.5 MMboe/section Exceptional reservoir quality:…
  22. Investor Presentation – Whitecap Resources Inc. – slide 22
    Exceptional Type Curve Economics Elmworth Karr/Simonette Type Well Economics Dunvegan Dunvegan DCE&T (MM) 2.95 3.56 Production, IP30 (boe/d) 293 544 Production, IP365 (boe/d) 174 264 P+PA Reserves (Mboe) 431 514 Year 1 Oil +…
  23. Investor Presentation – Whitecap Resources Inc. – slide 23
    Boundary Lake Asset Characteristics Operated, 35o API light oil, focused land base Boundary Lake WI Production Avg 54% WI in 3 operated units Boundary Lake zone at 1,300m depth 34/boe netback (91% oil + NGLs) 5% decline Current: 254…
  24. Investor Presentation – Whitecap Resources Inc. – slide 24
    Exceptional Type Curve Economics Boundary Boundary Type Well Economics Vertical Horizontal DCE&T (MM) 1.12 1.66 Production, IP30 (boe/d) 32 80 Production, IP365 (boe/d) 30 75 P+PA Reserves (Mboe) 107 214 Year 1 Oil + NGLs (%)…
  25. Investor Presentation – Whitecap Resources Inc. – slide 25
    Economic Sensitivities to WTI US/bbl Profit to Investment Ratio Rate of Return 2.8 400% 2.5 2.3 350% 2.0 300% 1.8 1.5 250% 1.3 200% 1.0 0.8 150% 0.5 0.3 100% 0.0 50% -0.3 -0.5 0% 50 60 70 80 90 50 60 70 80 90 Payout…
  26. Investor Presentation – Whitecap Resources Inc. – slide 26
    2015 Outlook 2014 2015e % Change Operational Average production (boe/d) 32,458 36,000 11% Development capital (MM) 324 200 (38%) Wells drilled (gross) 169 89 (47%) Financial Cash flow netback (/boe) 41.00 30.75 (25%) Cash flow (MM) 487…
  27. Investor Presentation – Whitecap Resources Inc. – slide 27
    The Whitecap Investment Opportunity Visible growth per share; CF, production, reserves, NAV Growth 10+ years high netback light oil development drilling locations Meaningful and consistent monthly dividends without DRIP Income…
  28. Investor Presentation – Whitecap Resources Inc. – slide 28
    Research Coverage Current Price Targets AltaCorp Capital Inc. 15.00 GMP Securities 14.75 Barclays 13.00 Haywood Securities 17.00 BMO 13.00 Macquarie Equity Research 19.00 CIBC World Markets Inc. 16.00 National Bank Financial 15.50…
  29. Investor Presentation – Whitecap Resources Inc. – slide 29
    TSX:WCP www.wcap.ca February 2, 2015 29

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