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  • July 17, 2018

    JULY PRESENTATION

  • BIGSTONE – PROLIFIC, LIQUIDS RICH MONTNEY

    July 2018 2

    Grande Prairie

    Bigstone

    Montney

    Edmonton

    Calgary

     Successful delineation drilling

    to the west and south

     Growing condensate production

    and high stable yields

     Integration of owned

    infrastructure leading to lower

    operating costs

     Alliance / Chicago natural gas

    market access

    Pure play MONTNEY E&P company with WORLD

    CLASS ASSETS:

  • 2018 GUIDANCE FOR SECOND HALF 2018

    3July 2018

     2018 capital program supported by

    significant production and cash flow growth

    through 2017

     Condensate growth of 27% in Q1/18 over

    Q1/17

     Cash netbacks in Q1/18 23% greater than

    Q1/17

     Delineation drilling success sets up

    multiple options for “ultra-rich” condensate

    locations in 2018 and beyond

     Production data from new wells important

    input for 2H/18 planning

     First Half 2018 capital program

     7 new wells on production in 1H/18

     1H/18 forecast takes into account production

    downtime for new well completions and

    amine plant construction/commissioning

     Phase 1 Amine plant on-stream

     Second Half 2018 capital program

     4 new wells on production in 2H/18

    Strong return on capital, increased cash flow largely

    driven by continued condensate production growth

    2018 Second

    Half Guidance (1) 2018 Full Year

    Guidance

    Net capital program ($ million) $29 - $33 $75 - $80

    Well count drilled 4 (2.6 net) – 5 (3.3 net) 8 (5.2 net)

    Well count on production 4 (2.6 net) 11 (7.2 net)

    Average production (boe/d) 10,000 – 10,400 10,000 – 10,200

    Natural gas (mmcf/d) 37.0 – 37.5 36.0 – 36.5

    Field condensate (bbls/d) 2,500 – 2,650 2,600 – 2,650

    NGL’s (bbls/d) 1,400 – 1,500 1,450 – 1,500

    Percent liquids (%) 40 - 41 40

    Adjusted funds flow (“AFF”) ($

    million)

    $25 - $27 $50 - $54

    Net debt (2) $160 – $166 $160 – $166

    Net debt / AFF (annualized) 3.1 3.1

    2018 Q4

    Guidance

    2017 Q4

    Actuals

    %

    Change

    Average production (boe/d) 10,600 – 10,900 9,588 12

    Natural gas (mmcf/d) 38.5 – 39.0 35.4 9

    Field condensate (bbls/d) 2,700 – 2,900 2,374 18

    NGLs (bbls/d) 1,450 – 1,500 1,315 12

    Percent liquids (%) 40 38 --

    Adjusted funds flow (including

    hedges) ($ million)

    $14.5 - $15.0 $14.1 5

    Adjusted funds flow (excluding

    hedges) ($ million)

    $18.0 - $18.5 $13.3 40

    (1) Based on WTI crude oil price of $68 per barrel, NYMEX Henry Hub natural gas price of $2.95 per mmbtu and FX of 1.327

    CAD per USD.

    (2) Net debt is defined as the sum of bank debt, senior secured notes and the long term portion of unutilized take-or-pay contract

    plus (minus) the working capital deficit (surplus) excluding the current portion of the fair value of the financial instruments.

  • MANAGING THROUGH COMMODITY PRICE CYCLES

    July 2018 4

    $(5.00)

    $-

    $5.00

    $10.00

    $15.00

    $20.00

    $25.00

    Q 1

    /1 2

    Q 3

    /1 2

    Q 1

    /1 3

    Q 3

    /1 3

    Q 1

    /1 4

    Q 3

    /1 4

    Q 1

    /1 5

    Q 3

    /1 5

    Q 1

    /1 6

    Q 3

    /1 6

    Q 1

    /1 7

    Q 3

    /1 7

    Q 1

    /1 8

    Netback w/o Hedge Hedge Gain

    Focus on Montney

    Margin Growth

    Prolonged price weakness

    protected by hedges

    Early Stage Montney

    Production Growth Return to Montney

    Production Growth

    N e

    tb a

    c k (

    $ /b

    o e

    )

  • BIGSTONE MONTNEY GROWTH

    July 2018 5

    Montney Production Growth

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    2012 2013 2014 2015 2016 2017 1H2018

    B o e /d

    Gas Liquids Non-Montney

    Liquids CAGR 63%

    Nat. Gas CAGR 50%

    Funding Bigstone Montney Source of Funding

    Cash Flow 52%

    Dispositions 28%

    Equity 13%

    Debt 7% Cumulative

    Proceeds

     Montney asset growth funded largely

    through cash flow and non-core asset

    dispositions

     Life-to-date (LTD) capital includes land

    acquisitions and facility infrastructure build

    out

     170 gross sections of land acquired

     Ownership in 100+ mmcf/d field gathering and

    plant processing capacity

     Focus on margin growth and ROCE

    $463 million

    LTD Capital

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    $0

    $100

    $200

    $300

    $400

    $500

    2013 2014 2015 2016 2017 Q1/18

    Cum Capital Cum Proceeds Debt Production

    $ m

    ill io

    n s

  • CONSISTENT ECONOMIC RESERVE GROWTH

    July 2018 6

    Montney Reserves (mboe)

     52 wells (41.1 net) drilled LTD, 4 wells planned in

    2H/18

     2015/16 drilling focused on infill locations

     2017 drilling focused on delineating west and south

    lands

     3-Year Montney PDP FD&A to YE 2017

     $14.40/boe

    Montney Development (2012 to 2018)

    0

    5,000

    10,000

    15,000

    20,000

    2012 2013 2014 2015 2016 2017

    R e

    s e

    rv e

    s (

    m b

    o e

    )

    Proved Developed Producing

    Montney Other

    Montney CAGR 63%

    0

    20,000

    40,000

    60,000

    80,000

    2012 2013 2014 2015 2016 2017

    R e

    s e

    rv e

    s (

    m b

    o e

    )

    Total Proved Plus Probable

    Montney Other

    4

    6

    8

    6 6

    15

    11

    2012 2013 2014 2015 2016 2017 2018

    Montney Wells brought on Production

  • HOW DOES DELPHI’S BIGSTONE MONTNEY RANK:

    7July 2018

    DEE

    DEE

    Bigstone Montney economics driven by field condensate and NGL’s

    Recognized as a top tier liquids-weighted asset

    Among the highest IRRAmong the lowest break-even gas price

  • NETBACK COMPARISON – MONTNEY PRODUCERS

    July 2018 8

     Condensate yields, total liquids content and operating netbacks are among the highest

     Operating netbacks continue to increase as:

    • Focus on liquids-rich West Bigstone

    • Amine sweetening facility reduces operating costs (third-party processing)

    • Legacy production (10% of production; 2% of operating income) decreasing as a % of total

    Sources: DEE; Company MD&As

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    -

    5.00

    10.00

    15.00

    20.00

    25.00

    30.00

    35.00

    40.00

    45.00

    DEE DEE Montney VII NVA KEL SRX CR BIR AAV

    Netback(1) First Quarter 2018

    Operating netback Royalties Operating Transportation % Liquids (Total) % Condensate

    (1) Excluding hedges

  • BUILT A DOMINANT LAND POSITION

     Montney land base has grown to 170

    gross sections (111 net) from 4

    sections in 2011

     Significant land position allows for

    efficient operations, control over

    infrastructure and scalable

    development

     19+ year drilling inventory* on

    approximately 128 of 147

    undeveloped sections:

     400+ “Extended Reach HZ” locations

    equivalent to 800+ “1 mile” industry locations

     19 years of drilling inventory assuming a 3 rig

    (21 well/year) program

     Continue to identify and pursue

    additional consolidation opportunities

    * Based on 4 to 6 laterals per section and 1 to 2 layers across

    the 128 sections, increasing in well density from NE to SW.

    Refer to disclaimer for further details.

    July 2018 9

    Largest Land Position at Bigstone

  • July 2018 10

    BIGSTONE INFRASTRUCTURE FULLY INTEGRATED

     Amine plant

    commissioned and

    sending sweetened

    Montney gas to Bigstone

    14-28 natural gas

    processing plant (25%

    Delphi working interest)

     West Bigstone 16-10

    well producing to 100%

    Delphi 11-03 sweet gas

    plant

  • 7-11 AMINE PLANT ON-STREAM

    July 2018 11

    Delphi

    52 mmcf/d sour

    dehydration and

    compression

    facility

    Delphi

    17 mmcf/d amine

    plant to sweeten

    Montney sour gas

  • BIGSTONE SWEET GAS PROCESSING PLANT

    July 2018 12

    Repsol / Delphi sweet natural gas processing plant

     Delphi 25% working interest

     85 mmcf/d capacity

     significantly underutilized

     Amine sweetened Montney gas now being processed here

     Material operating cost savings

  • July 2018 13

    NEW AMINE PLANT IMPROVES CASH NETBACK

    • Commissioned A