CORPORATE PRESENTATION October 2014 www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
CORPORATE OVERVIEW Parallel is a high-yield distribution-paying oil and gas producer Highly qualified Board and management team with considerable oil and gas experience On track to achieve 2014 annual production guidance of 7,100…
OBJECTIVE & STRATEGIES Corporate Objective To provide Parallels unitholders with a sustainable monthly distribution while strategically growing our asset base and operations Corporate Strategies Manage a sustainable business model by…
LOCATION OF ASSETS Texas Assets Greater Panhandle / Hugoton Field Parallels Assets and Operating Areas Oklahoma Assets Location Estimated % of Total Production Texas Carson 63% Texas Sneed 31% Texas Cargray 3% Texas SE…
OPERATING AREAS Operating Area Production Type Acreage Wells (net acres) (gross count) Condensate / NGLs Carson Natural Gas 91,000 220+ Condensate / NGLs Sneed Natural Gas 52,000 200+ Texas Condensate / NGLs Cargray…
INFRASTRUCTURE Parallels operating areas have extensive oil and gas infrastructure in place to support long-term production growth Primary and back-up processing agreements in place at both Carson and Sneed Pipeline, compressors,…
OPERATOR OF ASSETS Parallels U.S. based operating team is led by Tony Swindell, Parallels Chief Operating Officer U.S. Operating Team Operating Office Tulsa, Oklahoma Fully-Staffed 14 Employees U.S. Field Team Field Offices…
DRILLING SUMMARY Low-Risk, Development & Delineation Drilling Parallels Traditional Drilling Single Lateral Wells Technique Air No Mud Open Hole No Frac Average Cost Per Well 675,000 725,000 Estimated IP30 Rate(1) 35 40 boe/day…
RESERVE SUMMARY Summary of Reserves at December 31, 2013 Reserves PV10 (mboe) % (USMM) % Proved Developed Producing (PDP) 32,985 67 374 76 Proved Undeveloped 9,521 19 51 10 Total Proved 42,506 86 425 86 Probable 6,994 14 66 14…
ACTUALS & OUTLOOK www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
PRODUCTION Parallel has demonstrated historical growth in its quarterly production Gross production growth of 36% from IPO to Q3-2014 (production growth per unit 65%) 2014 year-to-date (nine month) average daily production of 7,050…
2014 DRILLING & WORKOVERS Year-To-Date (Nine Month) 2014 Drilling & Workover Program Drilled and completed 13 wells in the Carson operating area Drilled and completed one gross well (0.2 net well) in Garfield County, Oklahoma…
REVENUE & OPERATING NETBACK Breakdown of Gross Revenue (US) (Before Realized Hedges) Parallels operating netback (before realized hedges) has steadily improved throughout 2013 and 2014 www.parallelenergy.ca TSX: PLT.UN 14
PRODUCTION MIX & REVENUE Production Mix Condensate and NGLs accounted for 64% of total production in the first half of 2014 Revenue Split Condensate and NGLs accounted for 75% of total revenue in the first half of 2014…
PRODUCTION MIX NGL SPLIT Parallels Estimated NGL Production Split & the Weighted Average Price at Conway in Q2-2014 Weighted Average Parallels Estimated Price in Q2-2014 NGL Production Split (US/boe at Conway) Ethane 21%…
FY-2014 OUTLOOK & GUIDANCE 2014 Production Guidance 2014 annual average daily production guidance of 7,100 to 7,300 boe/day Production mix to average 24% condensate, 42% natural gas liquids (NGLs) and 34% natural gas 2014 Cash…
LONG-TERM DEBT REDUCTION Parallels long-term debt reduction goal is to have sufficient availability under its bank facility to fund its outstanding convertible debentures when they mature on June 30, 2017 Parallel has a number of…
INDUSTRY COMPARISONS www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
EFFICIENCIES & DECLINE RATES Parallel has very low capital efficiencies compared to the average Canadian listed Junior & Intermediate dividend-paying E&P Parallels production decline rate is the lowest in the industry at 8 10%…
PAYOUT RATIOS Parallels estimated total payout ratio in 2014 is less than 100% (pre-DRIP) Parallel has one of the most sustainable business models relative to other Canadian listed Junior & Intermediate dividend-paying E&Ps in terms…
IMPACT OF A LOW DECLINE RATE 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 720 boe/day CAPEX of approx. 14.6…
INVESTMENT SUMMARY The Ideal Business Model for a High-yield Distribution-paying Oil and Gas Producer Total forecasted payout ratio of less than 100% (pre-DRIP) in 2014 which supports a sustainable 0.05 monthly distribution…
MARKET DATA (As at October 1, 2014) Ticker Symbol TSX: PLT.UN Units Outstanding 54.5 million 52 Week Range 3.46 4.84 Closing Price (October 1, 2014) 3.63 Distribution declared since IPO 2.54 Distribution Yield (0.05 per unit per month)…
MANAGEMENT & DIRECTORS Management Henry Sykes, Q.C. Tony Swindell Executive Chairman Chief Operating Officer Rick Alexander Nancy Dilts President and CEO VP, Legal and Corporate Secretary Rick Miller Chief Financial Officer…
CORPORATE STRUCTURE Unitholders Investment in Units Distributions Tax efficient Mutual Fund Parallel Principal and Investment in CT Notes Energy Trust Interest on CT Administrator Shareholders Trust structure and CT Units…
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