International Petroleum Corp. (british Columbia) · OMXSTO:IPCO
International Petroleum Corp. (british Columbia) — International Petroleum — Q1 2019 Earnings Presentation
27 slides from International Petroleum Corp. (british Columbia)'s earnings presentation, May 8, 2019
Slide 1: Operations and Financial Update Q1 2019
Operations and Financial Update Q1 2019 First Quarter 2019 Mike Nicholson, CEO Christophe Nerguararian, CFO May 8, 2019 NC00133 p01 04.19
Slide 2: Corporate Strategy
International Petroleum Corp. Corporate Strategy Deliver operational excellence Maintain financial resilience Maximize the value of our resource base Grow through M&A NC00133 p09 04.19 2
Slide 3: Q1 2019 Highlights
International Petroleum Corp. Q1 2019 Highlights Q1 production at 44,400 boepd Production Guidance 2019 guidance: 46,000 to 50,000 boepd retained 2019 forecast exit rate >50,000 boepd Production growth targeted in all countries Operating Costs(1) Operating costs of 13.2 USD/boe; in line with guidanc
Slide 4: 2019 Production – Q1 Performance
International Petroleum Corp. Canada Gas Production CMD High 2019 Production – Q1 Performance Average temperature Suffield gas CMD Low 20,000 10 18,000 5 16,000 0 14,000 -5 12,000 -10 boepd Temperature 10,000 -15 Q1 production ~1,000 boepd (2%) below 8,000 -20 mid point guidance 6,000 -25 4,000 -30
Slide 5: 2019 Production Guidance
International Petroleum Corp. 2019 Production 2019 Production Guidance International, 19% France sia Canada Gas, 38% y ala Production guidance for 2019 retained: 46,000 to 50,000 boepd net M Suffield a Gas Canad r Othe Production growth targeted in all countries Suffield gas optimisation and oil dri
Slide 6: 2019 Revised Capital Budget
International Petroleum Corp. 2019 Revised Capital Budget Capital programme increased from high end guidance of 166 MUSD to 188 MUSD Fully funded from 2019 cash flow Canada – Suffield Malaysia Approved Oil drilling and gas optimisation Approved 3 infill wells - On track/ahead of expectation Keruing
Slide 7: IPC – Canada Suffield N2N EOR Project
Athabasca IPC – Canada Peace River Blackrod Cold Lake Suffield N2N EOR Project Mooney Edmonton Onion Lake N2N Facilities Calg ary Calgary Canada Suffield Canada Regina Medecine Hat N2N enhanced oil recovery project sanctioned High value project given 22 MCAD Cenovus pre funding Facility CAPEX and 9
Slide 8: IPC – Canada Blackrod Project - Acquired Strategic Lands
Blackrod Athabasca IPC – Canada Peace River Cold Lake Blackrod Project - Acquired Strategic Lands Mooney Edmonton Onion Lake Calg ary Calgary Canada Regina Medecine Hat Suffield Blackrod Project T78 Acquired 243 MMboe resource at very low cost (1) Among the best quality reservoir + thickest pay in B
Slide 9: Operating Cash Flow (MUSD)
International Petroleum Corp. Operating Cash Flow (MUSD)(1) Low Case High Case WTI-WCS WTI-WCS differential differential -20 -15 332 70 USD/bbl 306 70 USD/bbl 279(2) 265 258 60 USD/bbl 232 60 USD/bbl 189 50 USD/bbl 163 50 USD/bbl 138 36% 25% Q1 83 MUSD NC00133 p08 04.19 2017 2018 2019 Guidance(3) Ac
Slide 10: Net Asset Value (MUSD)
International Petroleum Corp. Net Asset Value (MUSD)(1) 2,314 With YE 2017 Pricing 111 PXX 166 IPCO 2,037 1,274 BlackPearl ~58% discount to NAV 847 526 Suffield 1,151 543 514 International 2017 2018 2019 Net Debt (2) NAV (1) IPCO Market Cap (3) NC00115 p09 01.19 1) As at December 31, 2018, see Reade
Slide 11: Net Asset Value Per Share
International Petroleum Corp. Net Asset Value Per Share(1) 14 14 NAV per share IPCO USD share price 01/01/19 13 13 USD per share USD 12.4 12 12 11 +37% 11 10 01/01/18 10 USD per share USD 9.1 9 Additional gas 9 ~58% optimisation in Commenced discount Suffield +89% 8 Canada approved 8 to NAV oil dril
Slide 12: Financial Highlights
First Quarter 2019 Financial Highlights 12
Slide 13: First Quarter 2019 Financial Highlights
First Quarter 2019 Financial Highlights First Quarter 2019 Production (boepd) 44,400 Average Dated Brent Oil Price (USD/boe) 63.1 Operating costs (USD/boe) (1) 13.2 Operating cash flow (MUSD) (1) 83.1 EBITDA (MUSD) (1) 81.7 Net result (MUSD) 33.1 (¹) Non-IFRS Measure, see MD&A 13
Slide 14: Realised Oil Prices
First Quarter 2019 Realised Oil Prices 100 90 78.32 78.21 77.58 73.10 80 70.55 66.29 70 Malaysia, 67.72 76.20 France, 64.50 60 50.30 48.68 USD/bbl 66.08 50 40.13 Suffield, 45.85 40 Onion Lake, 37.20 30 21.30 20 10 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2018 2019 NC00131 p0
Slide 15: Realised Gas Prices
First Quarter 2019 Realised Gas Prices Realised Price CAD/Mcf Empress / AECO differential AECO Day Ahead Index 9 8 7 6 3.07 5 CAD/Mcf 3.86 4 2.29 2.70 2.11 3 2 1 0 NC00131 p05 04.19 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2018 2019 15
Slide 16: Financial Results – Operating Cash Flow
First Quarter 2019 Financial Results – Operating Cash Flow (1) Operating Cash Flow (1) EBITDA(1) 100 100 80 83.1 80 81.7 76.1 65.3 60 60 Million USD Million USD 40 40 20 20 0 0 Q1 Q1 Q1 Q1 NC00131 p13 04.19 2019 2018 2019 2018 (1) Non-IFRS Measure, see MD&A 16
Slide 17: Operating Costs
First Quarter 2019 Operating Costs (1) USD/boe USD/boe operating costs 20 20 16 16 2019 Operating Costs: 12.9 USD/boe guidance unchanged 12 12 8 8 4 4 0 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Actual Forecast Forecast Forecast NC00131 p17 04.19 (1) Non-IFRS Measure, see MD&A 17
Slide 18: Netback (USD/boe)
First Quarter 2019 Netback (1) (USD/boe) First Quarter 2019 Average Dated Brent oil price (63.1 USD/bbl) Revenue 36.9 Cost of operations -11.3 Tariff and transportation -1.5 Production taxes -0.4 Operating costs (2) -13.2 Cost of blending -1.4 Inventory movements -1.1 Revenue – production costs 21.2
Slide 19: Cash Flows and Closing Net Debt (MUSD)
First Quarter 2019 Cash Flows and Closing Net Debt(1) (MUSD) -180 -180 Exploration & evaluation -200 MUSD -2.6 Financial -200 MUSD -4.7 -220 -220 Development Million USD MUSD -19.3 G&A -240 MUSD -3.0 -240 -260 -260 Closing Net Debt Opening Net Working capital & other 31 Mar 2019 Debt MUSD -33.7 MUSD
Slide 20: G&A / Financial Items
First Quarter 2019 G&A / Financial Items MUSD First Quarter 2019 G&A 3.0 G&A – Depreciation 0.3 G&A Expense 3.3 First Quarter 2019 Interest expense 4.3 Loan facility commitment fees 0.3 Amortisation of loan fees 0.6 Foreign exchange loss (gain), net (1) -3.9 Unwinding of asset retirement obligation
Slide 21: First Quarter 2019 Financial Results
First Quarter 2019 Financial Results Revenue MUSD 147.4 44,400 boepd 150 150 135 135 Production costs MUSD 62.8 Operating costs (1) 13.2 USD/boe 120 120 105 105 Depletion 90 MUSD 37.6 90 Cash Margin Million USD MUSD 84.6 Million USD 75 75 60 G&A 60 MUSD 3.3 Tax MUSD 6.4 45 45 Gross profit Exploratio
Slide 22: Balance Sheet
First Quarter 2019 Balance Sheet MUSD 31 Mar 2019 31 Dec 2018 Assets Oil and gas properties 1,034.2 1,014.8 Other non-current assets 160.3 169.4 Current assets 110.4 98.9 1,304.9 1,283.1 Liabilities Financial liabilities 262.8 283.7 Provisions 156.5 151.5 Other non-current liabilities 57.8 55.8 Curr
Slide 23: Liquidity and Hedging
First Quarter 2019 Liquidity and Hedging Credit Facilities One International (200 MUSD) and two Canadian (200 and 120 MCAD) revolving credit facilities IPC intends to amalgamate the two Canadian credit facilities into a single one for greater flexibility in Q2 Second lien notes (75 MCAD) In excess o
Slide 24: Q1 2019 Highlights
International Petroleum Corp. Q1 2019 Highlights Q1 production at 44,400 boepd Production Guidance 2019 guidance: 46,000 to 50,000 boepd retained 2019 forecast exit rate >50,000 boepd Production growth targeted in all countries Operating Costs(1) Operating costs of 13.2 USD/boe; in line with guidanc
Slide 25: Reader Advisory
Reader Advisory Forward Looking Statements This presentation contains statements and information which constitute “forward-looking statements” or “forward-looking information” (within the meaning of applicable securities legislation). Such statements and information (together, “forward-looking state
Slide 26: Reader Advisory
Reader Advisory The contingent resource estimates in respect of the oil and gas assets acquired in May 2019 in the Blackrod area of Canada are effective as of December 31, 2018, and have been evaluated by Sproule, in accordance with NI 51-101 and the COGE Handbook. The lands acquired will be part of
Slide 27: International Petroleum Corp.
a, International 1 Petroleum Corp.
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