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Annual General Meeting – Canadian Oil Sands Limited

Canadian Oil Sands Limited · Apr 30, 2014 · 33 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. Annual General Meeting – Canadian Oil Sands Limited – slide 1
    Annual General Meeting April 30, 2014 Ryan Kubik President & Chief Executive Officer Canadian Oil Sands Limited
  2. Annual General Meeting – Canadian Oil Sands Limited – slide 2
    Presentation Overview 1. Our Strategic Focus 2. Results and 2014 Outlook 3. COS Investment Catalysts
  3. Annual General Meeting – Canadian Oil Sands Limited – slide 3
    STRATEGIC FOCUS
  4. Annual General Meeting – Canadian Oil Sands Limited – slide 4
    Syncrude: A High Quality Resource Established production base Long-life reserves Fully upgraded light, sweet crude oil Proven operator and proven technology Predictable reservoir recovery over 90%
  5. Annual General Meeting – Canadian Oil Sands Limited – slide 5
    Highly Leveraged to Increasing Crude Oil Prices1 Illustrative cash flow from operations (/share)2 4.00 3.00 2014 estimate 2.00 1.00 0.00 WTI (US/bbl) 70 80 90 100 110 All figures in Canadian dollars unless otherwise…
  6. Annual General Meeting – Canadian Oil Sands Limited – slide 6
    Dividends Reflect Free Cash Flow Over Time (1,2) millions Annual Total Dividends Cumulative Dividends/FCF 2,400 8,000 2,100 7,000 1,800 6,000 Dividends 1,500 5,000 1,200 4,000 Cumulative Dividends 900 3,000 600 2,000…
  7. Annual General Meeting – Canadian Oil Sands Limited – slide 7
    RESULTS & OUTLOOK
  8. Annual General Meeting – Canadian Oil Sands Limited – slide 8
    2013 Results Cash flow from operations of 1.3 billion Completed two major capital projects, ahead of schedule and 250 million under budget Paid quarterly dividends of 0.35/share, or 678 million Sales volumes of 98,000 bbl/d at…
  9. Annual General Meeting – Canadian Oil Sands Limited – slide 9
    First Quarter Results Q1 2014 Q1 2013 Actual 1 Actual 2 Sales volume (bbl/d) 105,300 95,700 Realized SCO selling price (/bbl) 105.73 96.11 Operating expenses (/bbl) 46.91 41.20 Net income (/share) 0.35 0.37 Cash flow from…
  10. Annual General Meeting – Canadian Oil Sands Limited – slide 10
    2014 Outlook 20141 Sales volume (bbl/d)2 100,700 Realized selling price (/bbl) 96.00 Operating expenses (/bbl) 46.08 Cash flow from operations (millions)3 1,194 Cash flow from operations (/share)3 2.46 1. 2014 Outlook as…
  11. Annual General Meeting – Canadian Oil Sands Limited – slide 11
    COS INVESTMENT CATALYSTS
  12. Annual General Meeting – Canadian Oil Sands Limited – slide 12
    Syncrudes path to PRODUCTION GROWTH
  13. Annual General Meeting – Canadian Oil Sands Limited – slide 13
    Operating Leverage Syncrude production Thousand barrels per day 400 350 Average production of 287,000 bbl/d since 2007 300 250 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014F Every 2 million bbl change in…
  14. Annual General Meeting – Canadian Oil Sands Limited – slide 14
    Reliability Initiatives Across The Operation
  15. Annual General Meeting – Canadian Oil Sands Limited – slide 15
    Froth Production Issues with crushers and conveyors contributed to approximately 3 MBbl production restriction in 2013 Actions taken include: Aurora Mine Relocation in 2013 Comprehensive rebuild of trains 2 and 3 Mildred Lake…
  16. Annual General Meeting – Canadian Oil Sands Limited – slide 16
    Froth Treatment and Distillation High solids in the bitumen feed causing furnace tube leaks downstream in distillation units contributed to approximately 2 - 4 MBbl production restriction. Actions taken include: Improved product…
  17. Annual General Meeting – Canadian Oil Sands Limited – slide 17
    Hydro Processing Fouled hydrogen plant exchanger Reliability issues in hydro processing have led to as much as 5 MBbls/yr of lost production Actions taken include: Program to replace the waste heat recovery exchangers in all…
  18. Annual General Meeting – Canadian Oil Sands Limited – slide 18
    Utilities Gas Turbine Generator Additional steam and power utilities planned in 2017
  19. Annual General Meeting – Canadian Oil Sands Limited – slide 19
    Completing Syncrudes MAJOR PROJECTS
  20. Annual General Meeting – Canadian Oil Sands Limited – slide 20
    Major Projects Capital Expenditure Profile millions, net to Canadian Oil Sands 1000 Centrifuge Tailings Management 900 Mildred Lake Mine Train Replacement Aurora North Tailings Management 800 Aurora North Mine Relocation 700…
  21. Annual General Meeting – Canadian Oil Sands Limited – slide 21
    Mildred Lake Mine Train Replacements (MLMR) Currently 85% complete Expected in-service date of Q4 2014 Cost estimates revised downward from 4.2 billion to 3.9 billion (gross to Syncrude) Tightened range around cost estimate to +5% /…
  22. Annual General Meeting – Canadian Oil Sands Limited – slide 22
    Centrifuge Tailings Management Project Currently 75% complete Expected in-service date of first half of 2015 Cost estimate remains at 1.9 billion (gross to Syncrude) Range around the cost estimate remains at +15% / -15% (1) Total…
  23. Annual General Meeting – Canadian Oil Sands Limited – slide 23
    Accessing new MARKETS
  24. Annual General Meeting – Canadian Oil Sands Limited – slide 24
    Quality and Location Differentials Cdn /bbl Trailing 3-Month Average 130 120 110 100 90 Brent WTI 80 WCS Bitumen 70 60 50 40
  25. Annual General Meeting – Canadian Oil Sands Limited – slide 25
    Quality and Location Differentials Cdn /bbl Trailing 3-Month Average 130 120 110 100 90 Brent SCO 80 WTI WCS 70 Bitumen 60 50 40
  26. Annual General Meeting – Canadian Oil Sands Limited – slide 26
    Markets for COS Syncrude Production Kitimat Syncrude Edmonton Burnaby Hardisty Quebec City Montreal Sarnia Chicago Patoka Cushing Current synthetic crude oil markets Houston Potential new markets
  27. Annual General Meeting – Canadian Oil Sands Limited – slide 27
    The markets view of LONG-TERM OIL PRICES
  28. Annual General Meeting – Canadian Oil Sands Limited – slide 28
    100 105 75 80 85 90 95 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Source: Bloomberg, April 23, 2014 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 WTI Forward Prices Jun-16 Aug-16 Oct-16 Dec-16 Feb-17…
  29. Annual General Meeting – Canadian Oil Sands Limited – slide 29
    World Energy Demand by Fuel Type Global energy needs expected to increase by 30% Oil use is expected to increase 13% to 101 million barrels per day Source: International Energy Agency, World Energy Outlook 2013
  30. Annual General Meeting – Canadian Oil Sands Limited – slide 30
    Oil as a Transportation Fuel Globally, liquids (mostly crude oil) meet 95% of transportation needs Source: International Energy Outlook 2013; US Energy Information Administration
  31. Annual General Meeting – Canadian Oil Sands Limited – slide 31
    Production Declines Dramatically Without Further Investment Source: International Energy Agency, World Energy Outlook 2013; Production declines from all currently producing fields in the absence of further investment.
  32. Annual General Meeting – Canadian Oil Sands Limited – slide 32
    COS Investment Catalysts 1. Production growth through improved reliability These four catalysts represent potential to improve total shareholder 2. Completion of remaining major projects return Mildred Lake Mine Replacement (MLMR)…
  33. Annual General Meeting – Canadian Oil Sands Limited – slide 33
    Questions Follow us: Twitter cdnoilsands www.cdnoilsands.com/blog

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