Bank of America Merrill Lynch 2013 Leveraged Finance Conference December 2013
OUR FOCUS LIGHTSTREAM RESOURCES is an upstream energy company Focused on LIGHT OIL resource plays Light oil and liquids weighting of 80% DIVIDENDS + GROWTH business model A recently modified annual dividend of 0.48 / share + 2013…
OUR ASSET BASE 2013(e) Business Unit Drilling Inventory 2013(e) Production Production (locations) (boepd) 46,000 boepd Southeast Saskatchewan 22,400 1,2001 Drilling Inventory Cardium 20,000 580 2,200 locations AB / BC 3,600…
WHAT WE HAVE Our portfolio has grown to include significant holdings in 4 major light oil plays, a strong reserve base and a growing undeveloped land inventory, positioning us for future growth 250 Proved Developed Producing 3 Year…
GROWING OUR FREE CASH FLOW GENERATING ASSETS Initial capital investment in light oil resource plays generates rapid near-term production and cash flow growth Maturing production base generates growing free cash flow Long life assets…
CONTINUING TO GENERATE FREE CASH FLOW In 2014 we expect to generate free positive operating cash flow in southeast Saskatchewan and the Cardium Operating Cash Flow* 300 200 100 Millions - (100) In addition, we received…
ALIGNED ASSETS & CAPITAL STRUCTURE Our balance sheet is structured to match the attributes of our assets Characteristics of our assets: Allows us to: High operating netback Invest growth capital strong annual cash flow per share…
DEBT AND LIQUIDITY Term debt provides security; liquidity on the balance sheet provides flexibility Senior Secured Covenant Facility (0.2 billion of available liquidity) Debt Capital Composition Term Term subject to further…
BALANCE SHEET MANAGEMENT Attenuating capital while Continued improvement in sustainability ratio targeting sustaining production 100% by 2015 Changing dividend Reduce cash payments and eliminate further equity dilution by…
WE HEDGE OUR RISK We methodically layer on commodity contracts up to three years in the future to hedge between 25-50% of net production 21,000 120 2014(e) Production 17,500 100 Hedged Volume (bbl/d) Hedged Price (/bbl) 14,000…
2014 CAPITAL PROGRAM Capital spending in 2014 will build on 2013 to reduce declines and stabilize production 2013(e) 2014(e) 1 1 Planned Capital Activity Net Wells Capital Net Wells Capital (millions) (millions) SE Saskatchewan 50…
MATURING ASSET BASE As our production matures, our base decline is decreasing Annual Corporate Decline Rate 50% 40% 30% 20% 10% 0% 2010 2011 2012 2013 2014(e) 2015(e) 13
SUSTAINING PRODUCTION In 2014, with lower base declines and improving capital efficiencies we plan to maintain production levels with reduced capital investment 1,500 50,000 Extensive light-oil assets Capital Expenditures…
CONTINUING TO IMPROVE SUSTAINABILITY Over time our operations have migrated towards sustainability as our cash flow and cash payout converge Maturing production attenuates Improving Sustainability the base decline rate and 200%…
SE SASKATCHEWAN ASSETS We are maximizing the value of our assets by focusing on optimization and EOR Our assets have low decline, light-oil production from the Mississippian conventional and Bakken formations. Along with a moderate…
EARLY EOR SUCCESS IN THE BAKKEN Future value generation through natural gas flooding Creelman EOR Performance We expect to recover approximately 15% of the DPIIP 1,600 12 through primary recovery 11 1,400 methods; with EOR…
CONTINUED INVESTMENT Optimization work has been completed on 310 wells to date Work includes millouts, cleanouts, high volume lifts, swab/bail and new compressor installations In 2014, 30 million will be spent on optimizations in…
CARDIUM ASSETS Now generating positive operating cash flow Our extensive land base stretches from Calgary to Edmonton and our assets primarily produce light oil from the Cardium formation. We are evolving our expertise to continuously…
BUILDING IN THE CARDIUM Leveraging our experience in the Bakken allowed us to hit the ground running in the Cardium - we have 295 net sections providing opportunities for additional growth 25,000 400 Production (boepd) On-Stream…
IMPROVED RESULTS THROUGH INNOVATION Innovations in drilling and completion techniques improve productivity and lower costs Improving Performance in West Pembina 75,000 Slickwater fracturing has reduced costs and improved…
SWAN HILLS ASSETS Swan Hills is becoming our next growth area Accumulate Identified the play on existing lands and strengthened our position through land sales and farm-ins Farm-ins have earned 19.5 (10.2 net) sections We have…
EXPLORATION ASSETS Our land position has multi-zone potential Monias 13 Sections Dunvegan 9 Sections Gething LTS Land 17 Sections LTS Facility Sales Gas Pipelines West Swan Hills Wilrich River LTS Operated Wells 78…
WELL ECONOMICS We focus on well economics that reinforce our business model with quick payouts and strong capital efficiencies < 2 year capital payout 2 recycle ratio Saskatchewan Type Well Bakken1 Cardium Swan Hills2 Conventional…
STRENGTH IN OUR ASSETS Extensive light-oil assets consisting of: Solid, maturing production Improving base declines Large inventory of sustaining drilling opportunities and growth prospects Our asset base also underpins our balance…
Trading Symbol LTS: TSX Market Capitalization 1.2 billion Share Price (November 25, 2013) 5.60 Total Debt (Q3 2013) 2.2 billion Shares Outstanding (Q3 2013 Basic) 198.5 MM Enterprise Value 3.4 billion Options/incentive shares 14.7 MM…
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