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Investor Presentation – Peyto Exploration & Development Corp

Peyto Exploration & Development Corp · Dec 10, 2010 · 43 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 – Peyto Exploration & Development Corp – slide 1
    TSX: PEY.UN December 2, 2010 130 million units outstanding www.Peyto.com
  2. Investor Presentation – Peyto Exploration & Development Corp – slide 2
    Peyto Version 3.0 Di id d paying Dividend i corporation ti 40 35 Peyto 1 0 Peyto 1.0 Peyto 2 0 Peyto 2.0 Peyto 3 0 Peyto 3.0 30 Great 25 Recession 20 15 15 10 5 5 1 Billion in Distributions 1 Billion in…
  3. Investor Presentation – Peyto Exploration & Development Corp – slide 3
    We Invest In Ourselves P d ti per U Production Unit it or Sh Share 40 00 40.00 /d per million) m distribution) 300 Record Production/unit Aug/05 of 241 boe/d/mm 35.00 250 30.00 Production per Unitt or Share (boe/…
  4. Investor Presentation – Peyto Exploration & Development Corp – slide 4
    Production Growth Per Unit(share) I d t Comparison Industry C i 30% 20% 10% 0% -10% -20% -30% 4 Q3 2010 over Q3 2009 production per trust unit or share 12/6/2010
  5. Investor Presentation – Peyto Exploration & Development Corp – slide 5
    Improved Capital Efficiency R Record dAAnnuall P Production d ti W Wedge d 60,000 2010F 16 500/boe/d 16,500/boe/d 2009 - 17,300/boe/d 2008 - 33,100/boe/d 2007 - 26,500/boe/d 50,000 2006 - 50,300/boe/d Annual Produciton…
  6. Investor Presentation – Peyto Exploration & Development Corp – slide 6
    Tight Gas Resource Plays M lti l V Multiple Vertical ti l /H /Horizontal i t lTTargets t Sundance Area Reservoirs 12 6 12/6/2010
  7. Investor Presentation – Peyto Exploration & Development Corp – slide 7
    Concentrated Asset Base G hi ll F Geographically dC Focused Core A Areas 240,000 net acres R10 R8 R6 R4 R2W6 R27 R25 5 R23 operated R21 gas R19 plants R17 R15 R13W5 T64 ---(245 mmcf/d capacity) T64 900 km pipelines C G…
  8. Investor Presentation – Peyto Exploration & Development Corp – slide 8
    Tight Gas Resource Plays H i t l MSF Pil Horizontal Pilott P j t Projects 8 12/6/2010
  9. Investor Presentation – Peyto Exploration & Development Corp – slide 9
    Cardium Resource Play H i Horizontal t l MSF Pil Pilott 1 C di Cardium Gas G Fairway F i Pilot Project 1 Sundance Cardium 4,000 sq miles up to 65 TCF Gas in Place1 2-3 TCF developed to date E Peyto Cardium Rights 400…
  10. Investor Presentation – Peyto Exploration & Development Corp – slide 10
    Cardium Resource Play C di Cardium T Type L Log and dRReserves Volumetric Reserves AREA(Ha)= 256 (1 section) 23m Gross thickness H(m)= 15 15m Net Pay (using POROSITY(%)= 9 6% porosity cutoff) SW(%)= 18 TEMP.(Deg.C)= 80…
  11. Investor Presentation – Peyto Exploration & Development Corp – slide 11
    Cardium Resource Play Pilot Project 1 Sundance Cardium R23 R22 R21 R20 R19W5 W FFUUF F A U F U F Peyto 16-32-55-21-W5 L FU G CG F F G G C W F F C FF F F F F F D24 F U F U F F C F 24 G F 19 U F F W E 24 L G G G UV V…
  12. Investor Presentation – Peyto Exploration & Development Corp – slide 12
    Cardium Resource Play E Economic i CComparison i Vertical V ti l vs. H Horizontal i t l Ave Cardium Vertical last 5 yrs (00/132005522W5/0) 7,000 Well 1 Well 2 Well 3 Well 4 6,000 Well 5 Well 6 High Hz Well 7 5,000 Well 7…
  13. Investor Presentation – Peyto Exploration & Development Corp – slide 13
    Cardium Horizontal Development P t ti l L Potential Locations ti R9 R7 R5 R3 R1W6 R26 R24 R22 R20 R18 R16W5 F CF F FFF G CE G JF G FC ED F AEF AF C F G FF FCF KKGF CIK CGFCF CF D CL GC G FGFA G E G G G G CG L GF CG ECF F GF…
  14. Investor Presentation – Peyto Exploration & Development Corp – slide 14
    Notikewin Resource Play H i Horizontal t l MSF Pil Pilott 2 Peyto Notikewin Mineral Rights 14 12/6/2010
  15. Investor Presentation – Peyto Exploration & Development Corp – slide 15
    Notikewin Resource Play T Type L 1 Log 1-20-54-22W5 20 54 22W5 28m Gross Pay Volumetric Reserves 19m Net Pay AREA(Ha)= 256 (1 section) H(m)= 19 23m Gross Pay POROSITY(%)= 8 16m Net Pay SW(%)= 35 TEMP.(Deg.C)= 96…
  16. Investor Presentation – Peyto Exploration & Development Corp – slide 16
    Notikewin Resource Play Pilot Project 2 Greater Sundance Notikewin R23 R22 R21 R20 R19W5 U WF DV F U U F G F F C F W G E Peyto Pine Ck 14-7-56-17W5 L GG FG IC F F FF FF F U F F C G UV F G F F FVU F F F UG F F G F FF F UF…
  17. Investor Presentation – Peyto Exploration & Development Corp – slide 17
    Notikewin Resource Play E Economic i CComparison i Vertical V ti l vs. H Horizontal i t l Average Vertical Notikewin 00/080305621W5/0 10,000 Well 2 Well 1 Hi h Hz High H Well 4 Well 3 8,000 Well 5 Well 6 Ave Vertical…
  18. Investor Presentation – Peyto Exploration & Development Corp – slide 18
    Wilrich Resource Play H i Horizontal t l MSF Pil Pilott 3 Nosehill Project Area Peyto Wilrich Mineral Rights 18 12/6/2010
  19. Investor Presentation – Peyto Exploration & Development Corp – slide 19
    Wilrich Resource Play T Type L 7 Log 7-5-56-20W5 5 56 20W5 Volumetric Reserves AREA(Ha)= 256 (1 section) JET 2825 H(m)= 16 FRAC 23m Gross Pay (-1578.4) POROSITY(%)= 8 16m Net Pay SW(%)= 35 TEMP.(Deg.C)= 98 PRES.(kPa)=…
  20. Investor Presentation – Peyto Exploration & Development Corp – slide 20
    Wilrich Resource Play Pilot Project 3 Nosehill Wilrich R21 R20 R19W5 F G F U 29 28 27 F 26 25 30 29 F28 K 27 26 25 30 29 28 27 26 F F C Peyto 14-05-56-20W5 F G J I EE E F F G F F G G C E Wilrich Horizontal F F CG E…
  21. Investor Presentation – Peyto Exploration & Development Corp – slide 21
    Wilrich Resource Play E Economic i CComparison i Vertical V ti l vs. H Horizontal i t l Average Wilrich Vertical 00/022605520W5/0 Well 1 10,000 Well 2 Well 3 Well 4 9,000 Well 5 Well 6 Well 7 8,000 Well 8 Ave Vertical…
  22. Investor Presentation – Peyto Exploration & Development Corp – slide 22
    Other Resource Plays H i Horizontal t l MSF Pil Pilott 4 4,5 5 and d on 22 12/6/2010
  23. Investor Presentation – Peyto Exploration & Development Corp – slide 23
    Low Cost Producer P t Full-Cycle Peytos F ll C l G Gas S Supply l CCostt 10 10 hedged Realiized Price (//mcfe) cfe) 8 41% 8 as Price (/GJ J) s Price (/mc Average Profit 6 6 /mcf Bonus Cnd Realized Gas O…
  24. Investor Presentation – Peyto Exploration & Development Corp – slide 24
    Low Cost Producer Th New The N M Margins i (h(how tto make k 3 gas work) k) Total Peyto Revenue 84.8% Gas 15 2% Liquids 15.2% TWP (new drilling) Peyto 9mo 2010 Unhedged Cardium Hztl Wilrich/Notikewin Hztl 3.92/GJ (Ave AECO…
  25. Investor Presentation – Peyto Exploration & Development Corp – slide 25
    Low Cost Producer M i M Margins Matter tt 100% 90% 80% enue 70% Margin as % of Reve 74% Operating 60% Margin 50% 40% 30% 56% Profit Margin 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009…
  26. Investor Presentation – Peyto Exploration & Development Corp – slide 26
    Low Cost Producer P t IIndustry Peytos d t L Leading di O Op C Costs t 16 Quarterly Operating C osts (/boe) 12%/yr 14 12 10 8 6 4 1.6%/yr 2 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year…
  27. Investor Presentation – Peyto Exploration & Development Corp – slide 27
    Low Cost Producer L Low O Op Cost C t = Long L R Reserve Lif Life 2009 Year End Proven Producing Reserve Life 15 10 35 Years PDP 5 30 29 TP - 25 25 P+P 21 22 RLI ((yrs) 20 18 16 15 14 14 11 10 10 10…
  28. Investor Presentation – Peyto Exploration & Development Corp – slide 28
    Low Cost Producer D Deep G Gas Drilling D illi R Royalty lt IIncentives ti 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 TVD 3,700-4,000 m MD…
  29. Investor Presentation – Peyto Exploration & Development Corp – slide 29
    Low Cost Producer Wh Profitable Whos P fit bl Peyto Ave Profit 2002-2009 = 2.92/mcfe Ultra Pet. Ave Profit 2002-2009 = 2.79/mcfe 10 10 10 10 Price (/mcf) ce (/mcfe) 8 41% 8 8 8 Peyto Realized Gas Price (/mcfe)…
  30. Investor Presentation – Peyto Exploration & Development Corp – slide 30
    Horizontal Well Payout C t off Capital Cost C it l Ad Advantage t 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 00/13-35-055-20W5/0 00/12-34-055-20W5/2 Life (in months) Wilrich 00/16-35-055-20W5/0 % Paid Out 00/04-05-056-20W5/0…
  31. Investor Presentation – Peyto Exploration & Development Corp – slide 31
    The Peyto Strategy Hi hR High t Returns on C it l and Capital dE it Equity 60% 250 50% 41% 200 Ave ROE 40% 150 30% 21% Ave 100 ROCE 20% 50 10% 0% 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Return…
  32. Investor Presentation – Peyto Exploration & Development Corp – slide 32
    2010 Activity To Date Continue Active Development Pace Capital Expenditures (225-250 million before DRC) 48 net wells p projected j to YE 2010 ((38 drilled to date)) 85% are Horizontal MSF Plant expansion at Nosehill,…
  33. Investor Presentation – Peyto Exploration & Development Corp – slide 33
    2011 Outlook More Of The Same Capital Expenditures (250-275 million before DRC) Drill and Re-enter New Gas Locations ((90% Hz)) Expand Gas Gathering & Processing Capacity Expand Undeveloped Land Base Expand Seismic Database…
  34. Investor Presentation – Peyto Exploration & Development Corp – slide 34
    2011 Outlook 2010 All O Over A Again i 60,000 2011F 16,500/boe/d 2011F 16 500/boe/d 2010F 16,500/boe/d 2009 17,300/boe/d 2008 33,100/boe/d 50,000 2007 26,500/boe/d 2006 50,300/boe/d 2005 42,100/boe/d 2005 42…
  35. Investor Presentation – Peyto Exploration & Development Corp – slide 35
    Canada vs USA Were We re losing market share 20 80 19 70 18 17 60 Cnd Gas (bcf/d) US Gas (bcf/d) 16 15 50 14 U C 40 13 12 30 11 10 20 2007 2008 2009 2010 Western Canadian Gas Supply (Bcf/d) U S Dry…
  36. Investor Presentation – Peyto Exploration & Development Corp – slide 36
    Appendix Quarterly Track Record Industry Comparisons Distribution History y Payout Ratio Gas Marketing Hedging Strategy Reserves data volumes, values 36 12/6/2010
  37. Investor Presentation – Peyto Exploration & Development Corp – slide 37
    Quarterly Track Record 2010 2009 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Total Q4 Operations Production Oil & NGLs (bbl/d) 3,322 3,465 3,330 3,028 3,222 2,916 2,950 3,022 3,265 3,207 Natural gas (mcf/d) 122,717 112,422 103,934 92,718 95,467…
  38. Investor Presentation – Peyto Exploration & Development Corp – slide 38
    Distribution History Monthly Distribution 0.20 0.15 0.10 0.05 0.00 Monthly Distribution 38 Historical Per Unit and Units Outstanding numbers have been adjusted to reflect the May 27, 2005 2:1 stock split…
  39. Investor Presentation – Peyto Exploration & Development Corp – slide 39
    Payout Ratio History 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 Historical Per Unit and Units Outstanding…
  40. Investor Presentation – Peyto Exploration & Development Corp – slide 40
    Gas Marketing F t Future Sales S l Financial Hedges - Gas 2009 2010 2011 2012 Pricing 0-Jan-00 GJ/d (/GJ) 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 From To 1-Apr-09 31-Oct-09 5000…
  41. Investor Presentation – Peyto Exploration & Development Corp – slide 41
    Successful Hedging Strategy Peyto Realized Price History 2003 2004 2005 2006 2007 2008 2009 16.00 Peyto 7.51/mcf Peyto 7.38/mcf Peyto 8.78/mcf Peyto 8.46/mcf Peyto 8.42/mcf Peyto 8.64/mcf Peyto 6.44/mcf AECO Mo AECO…
  42. Investor Presentation – Peyto Exploration & Development Corp – slide 42
    Peytos Reserves V l Volumes Natural Gas Sales Gas Liquids & Oil Category (BCF) (Mstb) BOE's(Mstb) Proven Producing 497 15,801 98,573 Proven Non-Producing 15 374 2,913 Proven Undeveloped 242 7,116 47,372 Total Proven 753…
  43. Investor Presentation – Peyto Exploration & Development Corp – slide 43
    Peytos Reserves N t Present Net P t Value V l Variable Price Economics NPV (millions of CDN dollars) Category 0% 5% 8% 10% Proven Producing 4,655 4 655 2,389 2 389 1,825 1 825 1,578 1 578 Proven Non-Producing 140 68 49…

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