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Peters & Co – Peyto Exploration & Development Corp

Peyto Exploration & Development Corp · Mar 18, 2013 · 34 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. Peters & Co – Peyto Exploration & Development Corp – slide 1
    Peters & Co. www.Peyto.com Low Cost and Large Scale Resource March 2013
  2. Peters & Co – Peyto Exploration & Development Corp – slide 2
    Peyto Profile N TSX Listing: PEY N Monthly Dividend: 0.06/share N Shares Outstanding: 148.7 million, 5% insiders N Current Production: 345 MMCFe/d (58,000 boe/d) N YE 2012 2P Reserves: 2.35 TCFe (392 mmboes) N Net Debt: 100…
  3. Peters & Co – Peyto Exploration & Development Corp – slide 3
    The Peyto Strategy Grow Our Assets Production 2P Reserves Funds from 2P NPV5 DA (Bcfe/mm sh) (MMcfe/d/mm sh) Operations (/sh) 38 656 16.6 (/sh) 36 36 35 34 561 14.5 2.92 31 3.02 31 476 12.9 2.71 29 476 2.65 443 2.36…
  4. Peters & Co – Peyto Exploration & Development Corp – slide 4
    The Peyto Strategy Control Our Costs PDP FD&A Operating Interest Cost G&A (/Mcfe) Costs (/Mcfe) 0.50 (/Mcfe) w/transportation 2.95 (/Mcfe) 0.41 2.88 0.39 0.36 2.22 2.39 2.26 2.12 0.54 0.28 0.31 2.11 2.10 0.52 0.53…
  5. Peters & Co – Peyto Exploration & Development Corp – slide 5
    Peyto is Large Scale Resource
  6. Peters & Co – Peyto Exploration & Development Corp – slide 6
    Peytos Assets Geographically Focused Core Areas 400,000 net acres 7 operated gas plants ---(440 mmcf/d net capacity) Cutbank 1000+ km pipelines 800+ producing zones Kakwa 58,000 boe/d Processed by Peyto Chicken Leland 150…
  7. Peters & Co – Peyto Exploration & Development Corp – slide 7
    Peytos Assets Deep Basin Expert AB Hz Deep Basin Gas 100 Driller 2012 90 80 2012 Gas Spuds 70 60 A AA C A F FA F F A F CC AF CAC A A A C C ACF AA FCA A C CCC A F A A 50 A CA CCC AA F CCF A A FA CCF C…
  8. Peters & Co – Peyto Exploration & Development Corp – slide 8
    Peytos Assets Multi Zone Stacked Sandstone Reservoirs Up to per section 9 *NGL recoveries can increase by 15+ bbl/mmcf with deeper cutting processing facilities 3/15/2013
  9. Peters & Co – Peyto Exploration & Development Corp – slide 9
    Peytos Assets Deep Basin Lands Go A Long Way 450 Peyto Lands 400 Net Lands (000's acres) 350 +32% YoY 300 250 200 150 Net Peyto Sections 100 50 - Net Sections of Cardium, Dunvegan, Notikewin, Falher, Wilrich,…
  10. Peters & Co – Peyto Exploration & Development Corp – slide 10
    Peytos Assets Large Hz MSF Inventory To Do Done1 Total Total Hz Hz Locations Total Total Locations Unbooked Vertical Hz Booked* Wells Wells 56 432 52 191 29 5 1 5 1 14 90 39 79 61 7 14 14 54 13 35 222 14 93 97 165…
  11. Peters & Co – Peyto Exploration & Development Corp – slide 11
    Peytos Assets 2012 Reserves and NPVs NPV (millions CDN, discounted at) Sales Natural Gas Gas Liquids & Oil Category (BCF) (Mbbl) BOE BCFe 0% 5% 8% 10% Proved Producing 802 23,772 157,491 945 4,767 2,806 2,254 1,998 Proved…
  12. Peters & Co – Peyto Exploration & Development Corp – slide 12
    Peyto is Low Cost
  13. Peters & Co – Peyto Exploration & Development Corp – slide 13
    Peytos Profitable Business Build it for less than we sell it Land 11MM PEY 2012 Seismic Drilling 2MM 212MM Compl. 127MM PDP FD&A (2.22) Wellsite 46MM Facilities 37MM /mcfe Acq/Disp 183MM 618MM PDP Reserves (before Prod.)…
  14. Peters & Co – Peyto Exploration & Development Corp – slide 14
    Peytos Profitable Business Control Costs To Generate Profits To Pay Dividends PEY 2012 PEY 2011 PEY 2010 PDP FD&A /mcfe (2.22) (2.12) (2.10) Cash Costs /mcfe (1.05) (1.35) (1.63) Sales Price 4.21 5.47 6.18 /mcfe 2.00 2.45…
  15. Peters & Co – Peyto Exploration & Development Corp – slide 15
    Peytos Profitable Business Profitable Even Through The Lows AECO Monthly 10 /GJ 37% Ave. Peyto Realized Gas Price (/mcfe) Profit Cum To Date 8 6 Bonus 4 Cash Costs 2 PDP FD&A - 2000 2001 2002 2003 2004 2005 2006…
  16. Peters & Co – Peyto Exploration & Development Corp – slide 16
    Peytos Profitable Business Cost Control Challenges for the Canadian Industry CND 2012** CND 2011* CND 2010* PDP FD&A /mcfe (3.90) (4.20) (4.74) Cash Costs /mcfe (3.96) (3.91) (3.64) Sales Price /mcfe 7.37 7.89 7.60 (0.78)…
  17. Peters & Co – Peyto Exploration & Development Corp – slide 17
    Peytos Profitable Business Lowest Operating Costs Gas Producers How We operate Full facilities No water No sour Chemical recycle Nat gas fuel Continuous 1 %/yr innovation 18 BOE factor - 6 mcf = 1 bbl of oil…
  18. Peters & Co – Peyto Exploration & Development Corp – slide 18
    Peytos Profitable Business Facility Ownership and Control Peyto Gas Plants Cheap Cut ETA ETA WI Oldman 125 mmcf/d Q4 12 100% Nosehill 120 mmcf/d Q4 13 100% Wildhay 70 mmcf/d Q1 14 100% Galloway 60 mmcf/d 69% Newman 30 mmcf/d 100%…
  19. Peters & Co – Peyto Exploration & Development Corp – slide 19
    Peytos Profitable Business Liquids Rich Natural Gas Peyto 2012 Realized Prices Natural Gas 2.30/GJ Ethane C2H6 7.80/bbl = 2.66/GJ Propane C3H8 24/bbl = 5.95/GJ Liquid Conversion Existing Cheap Deep Cut Butane C4H10 64/bbl =…
  20. Peters & Co – Peyto Exploration & Development Corp – slide 20
    Peytos Profitable Business Oldman Cheap Cut NGL Extraction New Oldman North Plantsite JT Chokes and (Newman) DeEth Tower Deep Cut Recompressors Dehy and Mole Seive LPG storage and pump station Peyto Oldman Gas…
  21. Peters & Co – Peyto Exploration & Development Corp – slide 21
    Peytos Returns Returns Driven Organic Activity 70,000 60,000 2012 50,000 40,000 30,000 Net Capital to PV5 20,000 10,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Production/share growth*…
  22. Peters & Co – Peyto Exploration & Development Corp – slide 22
    Peytos Returns Delivering Returns on the ONR Acquisition 15,000 Capex Program to date 58 MM D/C/E/T 12 wells gross Net Production (Boe/d) (10.8 net) 10,000 Original Acquisition Development Plan 45 wells 245MM Over…
  23. Peters & Co – Peyto Exploration & Development Corp – slide 23
    Peytos Future
  24. Peters & Co – Peyto Exploration & Development Corp – slide 24
    2013 Outlook Biggest Year Ever Drill (100% Hz Wells, Liquids Rich Natural Gas) Expand & Extract Increase Processing Capacity & NGL Yield Increase Undeveloped Land Base Shoot Seismic 2013 Capital Program Acquire Additional…
  25. Peters & Co – Peyto Exploration & Development Corp – slide 25
    2013 Outlook Large Resource + Low Cost = Profitable Growth 62,000-67,000 boed 70,000 70,000 56,000 boed 60,000 60,000 50,000 42,100 boed 50,000 40% CAGR 40,000 40,000 BOED (35%/share) 30,600 boed 30,000 30,000 Base…
  26. Peters & Co – Peyto Exploration & Development Corp – slide 26
    2013 Outlook Continuously Improve Profitability 2013 Goals* Pad drilling CNG powered rigs PDP FD&A /mcfe (2.00) Well design improvements Water optimization Natural gas heated water Summer drilling Cash Costs /mcfe…
  27. Peters & Co – Peyto Exploration & Development Corp – slide 27
    PEY.TO Corporate Fact Sheet PEYTO Exploration & Development Corp. N Long Reserve Life Asset 9 yrs PDP, 22 yrs P+P at YE 2012 N Lowest Cost Producer 1.05/mcfe (6.30/boe) cash costs* 2012 N Superior Shareholder Returns Ave ROCE 20%,…
  28. Peters & Co – Peyto Exploration & Development Corp – slide 28
    Appendix Quarterly Track Record Tax Pools Hedging Strategy Gas Marketing Liquids Marketing FAQ 29 3/15/2013
  29. Peters & Co – Peyto Exploration & Development Corp – slide 29
    Quarterly Track Record 2012 2011 2010 Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Total Q4 Operations Production Oil & NGLs (bbl/d) 4,778 5,286 5,236 4,480 4,101 3,856 3,947 3,918 3,811 3,746 3,389 3,439 Natural gas (mcf/d) 238,490 266,808…
  30. Peters & Co – Peyto Exploration & Development Corp – slide 30
    Organic Business Model Peytos Tax Pools 1,400 1,200 1,000 800 Federal Tax Pools Millions 600 Q4/12 400 200 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 CEC UCC (25%) CEE (100%) CDE…
  31. Peters & Co – Peyto Exploration & Development Corp – slide 31
    Successful Hedging Strategy Peyto Realized Price History 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 16.00 Peyto 7.51/mcf Peyto 7.38/mcf Peyto 8.78/mcf Peyto 8.48/mcf Peyto 8.42/mcf Peyto 8.64/mcf Peyto 6.44/mcf…
  32. Peters & Co – Peyto Exploration & Development Corp – slide 32
    Gas Marketing Future Sales Financial Hedges - Gas Pricing 2012 2013 2014 2015 Da te contra cte d GJ/d (/GJ) N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O 25-Nov-09 5000 5.670…
  33. Peters & Co – Peyto Exploration & Development Corp – slide 33
    Liquids Marketing Future Sales Financial Hedges - Propane Financial Hedges - Butane 2012 2013 2014 2012 2013 2014 Term bbl/d Pricing (/bbl) A M J J A S O N D J F M A M J J A S O N D J F M Term bbl/d Pricing (/bbl) A M J J A S O N D…
  34. Peters & Co – Peyto Exploration & Development Corp – slide 34
    Peytos Payout Dividend Sustainability 1,600 1,400 1,200 (Millions) 1,000 800 Peyto Cum. Earnings 600 Q3/12 400 200 0 Cum Dist/Div (before DRIP) Cum Earnings Peyto Cum. Dist/Div. Q3/12 35 3/15/2013

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