CORPORATE SNAPSHOT Strategy: Sustainable Yield + Disciplined Growth Focus: High quality, large oilinplace reservoirs Symbol: TSX : TOG Average Daily Volume: (1) 1.2mm shares Basic Shares Outstanding: 113.1mm Market…
FOUNDATION OF TORC BUILDING A LIGHT OIL GROWTH PLATFORM Focus on reserves, production and cash flow per share growth over the long term Operational excellence Maintain strong, flexible balance sheet Focus on sustainability…
LIFE CYCLE OF RESOURCE EXPLOITATION SE SK Cardium Conventional Development Infill / Secondary / Tertiary Recovery Repeatability Resource Capture Monarch Torquay Exploration / Delineation Unique Exposure to…
BALANCED LIGHT OIL ASSET BASE 290 net undrilled locations for continued organic growth Cardium: Operated production base allows for control of (significant lower risk development pace and growth plan development inventory)…
Cardium Development
CARDIUM TREND SIGNIFICANT UNDRILLED DEVELOPMENT INVENTORY WEST PEMBINA CARDIUM TREND Large OilinPlace:1 5 mmbbls / section Land: 95 net light oil sections Depth: 1600 2000m Oil Quality: 40 API sweet Well Spacing: 4 wells /…
DEVELOPMENT DRILLING CARDIUM RESULTS Rate Time Economic Parameters 300 Cardium 185 mbbl Curve DCE&T (mm) 3.5 Average Production Rate, 30 Day Avg (BOPD) IP (365) (bopd) 93 200 (boepd) 115 Reserves (mbbls) 185 (mboe) 229…
Monarch Prospect Exposure to Light Oil Opportunity for StepChange in Value
MONARCH PROSPECT LARGE OILINPLACE EXPOSURE Central Monarch Development Area Monarch Large OilinPlace:1 1 billion bbls (1015 mmbbls/section) Land: 25 net section development area Depth: 1750 3500m Oil Quality: 30 43 API Well…
MONARCH PROSPECT CENTRAL DEVELOPMENT AREA Economic Parameters 350mbbl DCE&T (mm) 7.0 Capital Efficiency (/boepd) 35,000 Reserve Cost (/boe) 20.00 Rate of Return (%) 17% Operating Netback 35 (75 Edm Lt) (/boe)…
Southeast Saskatchewan Cash Flow Generation Plus Upside Potential
SE SASKATCHEWAN CONVENTIONAL CASH FLOW ENGINE SE Saskatchewan Large OilinPlace:1 Conventional Pools 5 100+ mmbbls Depth: 1000 2000m Oil Quality: 30 40 API Well Spacing: 75 150m interwell Est. RF: Up to 50% Undrilled…
SE SASKATCHEWAN TORQUAY / THREE FORKS UPSIDE Economic Parameters 1 Mile Well DCE&T (mm) 4.0 IP (365) (bopd) 98 Reserves (mbbls) 175 Capital Efficiency (/boepd) 40,800 Reserve Cost (/boe) 22.90 NPV 10 (mm) 3.8 Profit to…
Financial Overview
2014 YEAR IN REVIEW Year in Review Organic growth complemented by strategic accretive acquisitions = growth beyond targeted range of 57% Delineation drilling expanding growth platform Preserved decline profile Grew inventory…
RELATIVE POSITIONING IN CURRENT ENVIRONMENT Measured Approach Opportunistic Growth in Down Cycle Disciplined growth strategy and prudent E E G E V E E E V E VV V V V J G A G A E A E C V…
2015 CAPITAL PROGRAM BALANCED APPROACH TO MARKET VOLATILITY Budget Philosophy Free cash flowing asset with extensive inventory Cardium: 15 (12.8 net) Cardium wells Measured approach given market volatility 50% of core capital…
SUSTAINABILITY ANALYSIS Sustainability Highlights Sustainability Production Run Rate Production boepd 13,450 Run rate production of 13,450 boe/d ( 86% oil & NGLs) Decline Rate % 24% Annual Production Decline boepd 3,228 2015…
ROLL FORWARD SCENARIO ANALYSIS LOWER PRICE ENVIRONMENT Improving Decline Profile Improving Cost Structure Capital Allocation Lower growth results in lower Lower commodity prices drives Lower commodity prices reduces decline profile…
BALANCE SHEET STRENGTH & HEDGING Strong Financial Position Hedging Bank Facility 425mm Hedging program with up to 60% of volumes using a rolling two year price risk management program Drawn at Dec 31 180mm Program to be layered in…
DIVIDEND + DISCIPLINED GROWTH CHECKLIST Sustainability of business model driven by: Decline Rate 24% Operating Netback (75 Edm Lt) 40 Capital Efficiency Allin IP 365 38,000 / boepd 245mm net debt at yearend Strong Balance…
Summary
INVESTMENT HIGHLIGHTS Low Decline, High Netback Production Base Focused light oil asset base Sustainable Yield Allin payout ratio targeted below 100% Opportunity for CPPIB to support future growth and / or M&A Strategic…
CORPORATE INFORMATION Management Independent Reserve Engineers Analyst Coverage BMO Capital Markets Brett Herman Sproule Associates Limited President & Chief Executive Officer Jim Byrne Canaccord Genuity Jason Zabinsky Banks Anthony…
TORC RESERVES SIGNIFICANT RESOURCE & ECONOMIC GROWTH Reserves (Dec. 31, 2014) Key Highlights High quality light oil reserves base supports dividend model Year SE SK Pro % End Acquisition Forma Liquids P+P RLI of 13.2 years mmboe…
HEDGING PROGRAM Current Hedge Summary Volume (Bbl/d) Type (C/Bbl) Index Low High Feb 1, 2014 Jun 30, 2015 500 Collar 95.00 106.25 CWTI Jul 1, 2014 Dec 31, 2015 250 Collar 90.00 110.55 CWTI Jul 1, 2014 Dec 31, 2015 250 Collar 90.00…
SIGNIFICANT CORNERSTONE INVESTMENT FROM CPPIB CPPIBs Relationship Investments group provides longterm strategic capital to select companies CPPIB believes are positioned to be leaders in their respective industries Ownership of 21%…
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