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Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp.

Baytex Energy Corp. · Nov 16, 2011 · 28 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. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 1
  2. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 2
    Corporate Background Capital Markets Information Common Shares Trading Symbol TSX / NYSE: BTE Average Daily Volume (1) TSX: 821,500 / NYSE: 392,200 Shares Outstanding (Current) 117.3 million Market Value of Equity / Enterprise…
  3. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 3
    Corporate History Baytex Energy Ltd. Publicly-traded E&P corporation from 1993-2003 One of only six independent E&P names from 1993 that are still traded on the TSX Heavy oil emphasis and infrastructure development began in 1997…
  4. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 4
    Sustainable Business Model Uses of FFO Dividends Converted back to corporation effective December 31, 2010 Initial dividend of 0.20 per share - second consecutive year of increased dividends Dividend level subject to adjustment…
  5. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 5
    Payout Ratio - Net of DRIP (%) 0% 20% 40% 60% 80% 100% 120% Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Payout Ratio - Net of DRIP (%)…
  6. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 6
    Oil-Equivalent Production Growth th R ow 50,000 CAG % Gr 8% 13 40,000 30,000 boe / d 50,000 44,341 20,000 40,239 41,382 34,022 34,647 34,292 36,222 10,000 0 (1) 2004 2005 2006 2007 2008 2009 2010 2011 Percent…
  7. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 7
    Operating Cost 14.00 12.00 Average = 10.87 10.00 OPEX per BOE 8.00 6.00 4.00 2.00 0.00 '07 '07 '07 '07 '08 '08 '08 '08 '09 '09 '09 '09 '10 '10 '10 '10 '11 '11 '11 Q1 Q2 Q3…
  8. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 8
    Reserves / Contingent Resources Oil-Equivalent Reserve Growth Heavy Oil Light Oil & NGL Natural Gas Oil-Equivalent Reserves (MMboe) 250 wth R Gro 229 CAG 16% 10% 197 21 200 187 22 40 168 30 146 25 29 150 141 31 123…
  9. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 9
    Contingent Resource Assessment (Recoverable Volumes From Three Resource Plays) Contingent Resources (2) As at May 1, 2011 Low (C1) Best (C2) High (C3) (millions of barrels of oil equivalent and bitumen) (1) Estimate Estimate…
  10. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 10
    Seal Heavy Oil Resource Play Seal Primary Development Land position Seal Production - Crown Purchases 1999-2005 20,000 - 67,000 acres (105 sections) of 100% land 5 Hz wells Q3/11 - Estimated original oil in place (OOIP) per…
  11. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 11
    Seal Multi-Lateral Cold Horizontal Total Number of Laterals Total (2) Wells Single Two Three Four Six/Seven Eight Eight Laterals 2004 2 2 --- --- --- --- --- --- 2 2005 4 4 --- --- --- --- --- --- 4 2006 2 2 --- --- --- --- ---…
  12. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 12
    Seal Harmon Valley Thermal EOR Pilot Original thermal EOR (CSS) test - Harmon Valley is currently being developed by cold primary methods Actual Cold Projected Cold Post-Steam - Steam test was in a single lateral 1000 horizontal…
  13. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 13
    Seal Reserves Recognition Dec 31/05 Dec 31/06 Dec 31/07 Dec 31/08 Dec 31/09 Dec 31/10 Reserves (MMbbl) Total Proved 2.2 8.5 20.2 27.0 31.2 45.0 Proved plus Probable 4.0 13.0 28.7 39.2 54.7 83.9 Locations Assigned Reserves…
  14. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 14
    Lloydminster Heavy Oil 9 Months 2011 Production = 20,600 boe/d (42% of total Baytex volumes) Oil Gravity = 11 to 18 API YE 2010 Reserves (2P) = 85 mmboe (37% of total Baytex reserves) Reserve Life Index (2P) = 11.2 years Land…
  15. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 15
    Kerrobert SAGD Development Obtained as part of SW Saskatchewan acquisition in July 2009 Baytex redevelopment to date 3,500 Two wells on production - Drilled, completed and equipped 3 new well 3,000 August 2011 pairs and 2…
  16. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 16
    Profit Investment Ratio (PIR) 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x S. AB. Plains Belly River - Vt Non-core Haynesville - Hz Pine Creek Cardium - Hz Core Haynesville - Hz Niton Rock Creek - Hz Shallow Gas Multi-Zone - Vt…
  17. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 17
    Heavy Oil Differential Summer (high demand) season (Apr Sep) Winter (low demand) season (Oct Mar) 60 50 Lloyd Blend Differential (% of WTI Price) 40 30 20 Hedges 10 0 2005 2006 2007 2008 2009 2010 2011 Note:…
  18. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 18
    Downstream Heavy Oil Fundamentals Mid-Continent Refining Margins Maya Coking (USGC) Brent Crking 50 Bonny Lt Crking WTI Cracking Forcados Cracking 40 Basrah Cracking Refining Margin (US/bbl) Arab Lt. Cracking 30 Arab Hvy…
  19. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 19
    Light Oil Projects Light Oil Resource Plays Viking Bakken / Three Forks 20
  20. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 20
    Light Oil Resource Potential Contingent Resource (2) Estimated (millions of barrels of oil) Initial Rate (1) Recovery (1) Well Cost (1) Potential Net Low (C1) Best (C2) High (C3) (Boe/d / well) (Mboe/well) (Mln/well) Locations (1)…
  21. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 21
    Bakken / Three Forks Light Oil Development Current development predominantly in the Three Forks formation North Dakota Production (boe/d) Additional potential to develop Middle Bakken 2,000 1,800 180-square mile 3D to guide…
  22. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 22
    Light Oil Investment Metrics 100 Viking - Multi-Lateral (AB) Viking - Multi-Stage Frac (SK) 80 Before Tax ROR (%) Bakken-Three Forks - 1280-Acre (ND) Bakken-Three Forks - 640-Acre (ND) 60 40 20 0 40 50 60 70 80 90 100…
  23. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 23
    Hedge Coverage 2nd Half Full-Year Full-Year Full-Year 2011 2012 2013 2014 WTI Crude Oil % of Crude Oil Volumes Hedged (1) Fixed Price 2H2011 average: US91.18/bbl, 29% 20% 0% 0% 2012 average: US92.61/bbl Costless Collars…
  24. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 24
    Balance Sheet Balance Sheet Improvement 3.0 Debt / FFO 2.0 3.0 1.0 1.9 1.3 1.6 1.4 1.2 1.1 0.0 4 5 6 7 8 9 0 /0 /0 /0 /0 /0 /0 /1 31 31 31 31 31…
  25. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 25
    Credit Metrics Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Sept 30 2004 2005 2006 2007 2008 2009 2010 2011 Credit Facility (C Millions) Approved credit facility 250 250 300 370 485 515 550 700 Bank line undrawn 89 127 173 128…
  26. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 26
    2011E Funds From Operations (C Millions) Strip Q4/11 Heavy Oil Differential (% of WTI) 10% 15% 20% 80 538 526 515 Q4/11 WTI 90 554 542 529 (US/bbl) 100 571 558 543 2011 Funds From Operations using November 8, 2011 strip = C553…
  27. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 27
    Total Return Performance Baytex Energy S&P/TSX Oil & Gas E & P Index S&P/TSX Capped Energy Trust Index S&P/TSX Composite Index S&P 500 1200 1000 800 600 400 200 0 Jul-04 Jul-05 Jul-06 Jul-07…
  28. Bank of America Merrill Lynch 2011 Global Energy Conference – Baytex Energy Corp. – slide 28
    Contact Information Anthony W. Marino President and CEO Baytex W. Derek Aylesworth Chief Financial Officer (587) 952-3100 (587) 952-3120 Baytex Brian Ector Baytex Vice President, Investor Relations (587) 952-3237 Baytex…

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