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CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp

Peyto Exploration & Development Corp · Apr 1, 2011 · 56 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. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 1
    2011 2003 2010 1998 2003 CIBC 2011 ENERGY & INFRASTRUCTURE April 2011 www.Peyto.com CONFERENCE
  2. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 2
    Peyto Profile PEYTO Exploration & Development Corp. N TSX Listing: PEY N Monthly Dividend: 0.06/share N Shares Outstanding: g 133.1 million ((6% insider ownership) p) N Current Production: 200 MMCFe/d (33,300 boe/d) N…
  3. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 3
    The Peyto Strategy PEYTO Exploration & Development Corp. Deploy p y Superior p Business Acumen N Deep basin technical expertise N Continuous focus on returns N Internally generated drilling ideas (over 1,000 locations to…
  4. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 4
    The Peyto Strategy S Superior i ShShareholder h ld R Return t m distribution) PEYTO Exploration & Development Corp. 40 40.00 00 35.00 30.00 (with and without cum 25.00 20.00 15.00 10.00 Unit price…
  5. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 5
    The Peyto Strategy W Invest We I t In I Ourselves O l PEYTO Exploration & Development Corp. 40% prod. per share growth 40 00 40.00 /d per million) m distribution) 300 Record Production/unit from Dec-09 to Aug/05 of 241…
  6. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 6
    The Peyto Strategy S Successful f l 2010 C Capital it l P Program PEYTO Exploration & Development Corp. 180 160 140 120 2010 Drills 2010 Net Capex 201 Million 100 (All in 261MM less 60MM in Op Income from 2010 wells) 45…
  7. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 7
    Peytos Peyto s Business PEYTO Exploration & Development Corp.
  8. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 8
    Peytos Business 12 Y Year T Track kRRecord d PEYTO Exploration & Development Corp. Prospect Generation Reserves Growth NAV Growth Profit Sharing (BCFe) (NPV5 Debt Adj/Unit) 1999 2000 2001 1999 2002 2000…
  9. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 9
    Peytos Business A l i H Applying Hz T Technology h l tto Ti Tight ht S Sands d PEYTO Exploration & Development Corp. Sundance Area Reservoirs 10 12 9 3/29/2011
  10. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 10
    Peytos Business P Proven Leader L d iin th the D Deep B Basin i PEYTO Exploration & Development Corp. Alberta's Central Deep Basin Activity AF AFF A FAA AA A EE A EF E Horizontal gas wells last 12 mo. A F F A…
  11. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 11
    Peytos Business F Focus on Returns R t Drives Di C Capital it l Di Discipline i li PEYTO Exploration & Development Corp. 60,000 2011F 2010 17,300/boe/d 2009 17,300/boe/d , / / 2008 33,100/boe/d 2007 26,500/boe/d…
  12. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 12
    Peytos Business U i Unique L d St Land t Strategy PEYTO Exploration & Development Corp. 1,000 3,000,000 c) 900 ed Land (boe/ac 2,500,000 800 700 ac) 2,000,000 developed Reserrves/Undevelope eveloped Land…
  13. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 13
    Peytos Peyto s Assets PEYTO Exploration & Development Corp.
  14. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 14
    Peytos Assets G hi ll F Geographically dC Focused Core A Areas PEYTO Exploration & Development Corp. 267,000 net acres R10 R8 R6 R4 R2W6 R27 R25 5 R23 operated R21 gas R19 plants R17 R15 R13W5 T64 ---(250 mmcf/d capacity)…
  15. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 15
    Peytos Assets L Large H Hz MSF IInventory t PEYTO Exploration & Development Corp. Horizontal Horizontal Locations 126 locations 19 locations 70 locations 72 locations 165 locations 6 locations 458…
  16. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 16
    Peytos Assets L Longest tRReserve Lif Life PEYTO Exploration & Development Corp. 2010 Year End Proven Producing Reserve Life 15 Long 10 ears Average Ye Short 5 - 16 3/29/2011
  17. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 17
    Peytos Assets L Lowest tOOperating ti C Costs t PEYTO Exploration & Development Corp. Q4 2010 Operating Costs 18 16 14 Operating Cost (/boe) 12 10 8 6 4 2 0 17 Operating Costs include Transportation…
  18. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 18
    Peytos Assets L Lowest tOOperating ti C Costs t Gas G Producers P d PEYTO Exploration & Development Corp. 18 PEYTO 16 Daylight Trilogy 14 Fairborne Operatinng Costs (/bboe) Advantage 12 12 P Perpetual t l 10…
  19. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 19
    Peytos Assets D Deep G Gas Drilling D illi R Royalty lt IIncentives ti PEYTO Exploration & Development Corp. 3,500-4,000 m MD Trigger depth for Natural Gas Deep Drilling Program 2,200 m TVD reduced from 2,500m TVD to 2,000m…
  20. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 20
    Peytos Assets Low FD&A Costs, Costs High Recycle Ratio PEYTO Exploration & Development Corp. 8 7 6 5.02 5 5 /Mcfe 4 3 2 0 2.10 2 1 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PDP TP…
  21. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 21
    Peytos Assets L Lowest t FD&A Cost C t PEYTO Exploration & Development Corp. 2010 Proven Producing FD&A Costs 40 35 30 25 ost (/boe) 20 FD&A Co 15 10 5 0 21 FD&A Cost Inclusive of Acquisition, Finding…
  22. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 22
    Peytos Assets L Lowest tTTotal t l Costs C t PEYTO Exploration & Development Corp. 2010 Low Total Costs 140% al Costs (/boe) / Total Revenue (/boe) 120% 100% 80% 60% 40% 20% Tota 0% Op Costs…
  23. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 23
    Peytos Assets P t Full-Cycle Peytos F ll C l G Gas S Supply l CCostt PEYTO Exploration & Development Corp. 10 10 hedged Realiized Price (//mcfe) cfe) 8 40% 8 as Price (/GJ J) s Price (/mc Average Profit 6 6…
  24. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 24
    Peytos Assets Wh Profitable Whos P fit bl PEYTO Exploration & Development Corp. Peyto Ave Profit 2002-2010 = 2.80/mcfe Ultra Pet. Ave Profit 2002-2010 = 1.96/mcfe 10 10 10 10 Price (/mcfe) e (/mcfe) Price (/mcf) 8 40%…
  25. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 25
    Peytos Assets Hi h M High Margins i PEYTO Exploration & Development Corp. Total Peyto Revenue 85.7% Gas 14 3% Liquids 14.3% New Drilling Peyto 2010 Unhedged Cardium Hztl Wilrich/Notikewin Hztl 3.80/GJ (Ave AECO daily) 4/GJ…
  26. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 26
    Peytos Peyto s Returns PEYTO Exploration & Development Corp.
  27. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 27
    Peytos Returns Hi hR High t Returns on C it l and Capital dE it Equity PEYTO Exploration & Development Corp. 60% 10 9 50% 8 7 40% 6 30% 5 4 20% 3 2 10% 1 0% 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008…
  28. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 28
    Peytos Returns Sh h ld Returns Shareholder R t = Growth G th + IIncome PEYTO Exploration & Development Corp. 50 40 are PV5 debt adjusted/sha 30 20 10 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009…
  29. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 29
    Peytos Returns I Investor t Recycle R l Ratio R ti - Industry I d t Comparison C i PEYTO Exploration & Development Corp. 2010 Total Proved Investor Recycle Ratio 1.5 Below 1.0 means you are paying more for the Proved boe…
  30. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 30
    2011 Outlook More Of 2010 PEYTO Exploration & Development Corp. Capital Expenditures (300-325 million before DRC) Drill and Re-enter New Gas Locations ((90% Hz)) Expand Gas Gathering & Processing Capacity Expand Undeveloped…
  31. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 31
    2011 Outlook 2010 All O Over A Again i PEYTO Exploration & Development Corp. 60,000 2011F 17,300/boe/d 2010 17,300/boe/d 2009 17,300/boe/d 2008 33,100/boe/d boe/d) 2007 26,500/boe/d 2006 50,300/boe/d Annual…
  32. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 32
    Appendix PEYTO Exploration & Development Corp. Tight g Gas Resource Plays y Cardium Notikewin Wilrich Falher Quarterly Track Record Tax Pools Distribution History Payout Ratio Gas Marketing Hedging Strategy Reserves…
  33. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 33
    Tight Gas Resource Plays H i t l MSF P Horizontal j t Projects PEYTO Exploration & Development Corp. 33 3/29/2011
  34. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 34
    Cardium Resource Play H i Horizontal t l MSF P Project j t PEYTO Exploration & Development Corp. C di Cardium Gas G Fairway F i Sundance Cardium 4,000 sq miles up to 65 TCF Gas in Place1 2-3 TCF developed to date E…
  35. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 35
    Cardium Resource Play C di Cardium T Type L Log and dRReserves PEYTO Exploration & Development Corp. Volumetric Reserves AREA(Ha)= 256 (1 section) 23m Gross thickness H(m)= 15 15m Net Pay (using POROSITY(%)= 9 6% porosity…
  36. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 36
    Cardium Resource Play Horizontal MSF Project PEYTO Exploration & Development Corp. R11 R9 R7 R5 R3 R1W6 R26 R24 R22 R20 R18 R16 T66 GF F CFFACF FF FAG F AAF CACF AF AF F F F FCAG G A F AF CF FCACF FEF FC GCFF G ACCF CF AG F FG L…
  37. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 37
    Cardium Resource Play E Economic i CComparison i Vertical V ti l vs. H Horizontal i t l PEYTO Exploration & Development Corp. 7,000 Ave Cardium Vertical last 5 yrs (00/132005522W5/0) Well 1 Well 2 Well 3 W ll 4 Well 4…
  38. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 38
    Cardium Resource Play P Payout t Analysis A l i PEYTO Exploration & Development Corp. 4.0 3.5 Ave Cardium Hz Cost 5.7 million (D&C, E&T, Seismic, Land & Facilities) 3.0 Well 1 Well 2 All in Costs (000s) Well 3 Well 4…
  39. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 39
    Cardium Resource Play C Conservative ti H Horizontal i t lRReserve A Assignment i t PEYTO Exploration & Development Corp. P+P 280m Ave Drainage Area: PDP 90 ac (340m perimeter) Ave 80 T P+P 100 ac (360m perimeter) sand…
  40. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 40
    Notikewin Resource Play H i Horizontal t l MSF P Project j t PEYTO Exploration & Development Corp. A N Peyto Not. vt A N Peyto P t Crdm Peyto Not. hhz N t hz Peyto Notikewin Mineral Rights 40 3/29/2011
  41. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 41
    Notikewin Resource Play T Type L 1 Log 1-20-54-22W5 20 54 22W5 PEYTO Exploration & Development Corp. 28m Gross Pay 19m Net Pay Volumetric Reserves AREA(Ha)= 256 (1 section) H(m)= 19 POROSITY(%)= 8 SW(%)= 35 TEMP.(Deg.C)=…
  42. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 42
    Notikewin Resource Play E Economic i CComparison i Vertical V ti l vs. H Horizontal i t l PEYTO Exploration & Development Corp. Average Vertical Notikewin 00/080305621W5/0 Well 2 10,000 Well 1 Hi h Hz High H W ll 4 Well…
  43. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 43
    Notikewin Resource Play P Payout t Analysis A l i PEYTO Exploration & Development Corp. 4.5 Ave Notikewin Cost 5.2 million (D&C,E&T,Seismic, Land & Facilities) 4.0 Well 1 All in Costs (000s) Well 2 Drill 2,900 3.5 Well 3…
  44. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 44
    Wilrich Resource Play H i Horizontal t l MSF P Project j t PEYTO Exploration & Development Corp. Nosehill Project Area A N Peyto Wil. vt A N Peyto P t Crdm Peyto Wil. hhz Wil hz P t Wilrich Peyto Wil i h…
  45. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 45
    Wilrich Resource Play T Type L 7 Log 7-5-56-20W5 5 56 20W5 PEYTO Exploration & Development Corp. 23m Gross Pay 16m Net Pay Volumetric Reserves AREA(Ha)= 256 (1 section) JET H(m)= H(m) 16 2825 FRAC (-1578.4) POROSITY(%)=…
  46. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 46
    Wilrich Resource Play E Economic i CComparison i Vertical V ti l vs. H Horizontal i t l PEYTO Exploration & Development Corp. Average Wilrich Vertical 00/022605520W5/0 Well 1 9,000 Well 2 Well 3 Well 4 Well 5 8,000 Well…
  47. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 47
    Wilrich Resource Play P Payout t Analysis A l i PEYTO Exploration & Development Corp. 4.5 Ave Wilrich Hs Cost 5.2 million (D&C,E&T,Seismic, Land & Facilities) 4.0 Well 1 Well 2 All in Costs (000s) Well 3 Well 4 Drill 2,800…
  48. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 48
    Falher Resource Play T Type L 2 Log 2-8-55-21W5 8 55 21W5 PEYTO Exploration & Development Corp. Example Volumetric Reserves Notikewin AREA(Ha)= 256 (1 section) H(m)= H(m) 10 POROSITY(%)= 8 SW(%)= 35 TEMP.(Deg.C)= 98…
  49. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 49
    Falher Resource Play P Payout t Analysis A l i PEYTO Exploration & Development Corp. 4.5 Ave Falher Cost 5.2 million (D&C,E&T,Seismic, Land & Facilities) 4.0 Well 1 All in Costs (000s) Well 2 Drill 2,800 3.5 Complete 1,600…
  50. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 50
    Quarterly Track Record PEYTO Exploration & Development Corp. 2010 2009 Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Operations Production Oil & NGLs (bbl/d) 3,389 3,439 3,322 3,465 3,330 3,028 3,222 2,916 2,950 3,022 Natural gas (mcf/d)…
  51. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 51
    Organic Business Model P t T Peytos Tax Pools P l PEYTO Exploration & Development Corp. 900 800 700 600 500 ons Millio 400 300 200 100 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010F UCC…
  52. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 52
    Payout Ratio History PEYTO Exploration & Development Corp. Maximum 91% Historical Payout Ratio 100% Minimum Converted 42% % to a Trust 80% at 57% 60% 40% 20% 0% Quarter Cash Payout Ratio Total Payout Ratio…
  53. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 53
    Gas Marketing F t Future Sales S l PEYTO Exploration & Development Corp. Financial Hedges - Gas Pricing 2010 2011 2012 2013 Term GJ/d (/GJ) 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 From To…
  54. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 54
    Successful Hedging Strategy Peyto Realized Price History PEYTO Exploration & Development Corp. 2003 2004 2005 2006 2007 2008 2009 2010 16.00 Peyto 7.51/mcf Peyto 7.38/mcf Peyto 8.78/mcf Peyto 8.46/mcf Peyto 8.42/mcf…
  55. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 55
    Peytos 2010 Reserves V l Volumes PEYTO Exploration & Development Corp. Natural Gas Sales Gas Liquids & Oil Category (BCF) (Mstb) BOE's(Mstb) Proven Producing 568 15,959 110,620 Proven Non-Producing 12 305 2,236 Proven…
  56. CIBC 2011 Energy and Infrastructure Conference – Peyto Exploration & Development Corp – slide 56
    Peytos 2010 Reserves B f Before Tax T Net N t Present P t Value V l PEYTO Exploration & Development Corp. Variable Price Economics NPV (millions of CDN dollars) Category 0% 5% 8% 10% Proven Producing 4,503 4 503 2,363 2…

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