Peyto Exploration & Development Corp. · TSX:PEY
Peyto Exploration & Development — Investor Presentation (October 2014)
18 slides from Peyto Exploration & Development's investor presentation, Oct 28, 2014
Slide 1: Appendix: Industry Comparison Slides - 2013
Appendix Industry Comparison Slides - 2013 • Operating Costs (including Transportation) • Cashflow Netback • Operating Margin • PP Reserve Life • Reserve Classification • PP FD&A Cost • Low Cost Producer • PP Recycle Ratio • PP Reserve Replacement Ratio • Payout Ratio • Distribution/Dividend Life •
Slide 2: 2013 Operating Costs
2013 Operating Costs Industry Comparison $25 100% 90% Operating Costs incl. Transportation $20 80% 70% $15 Ave 60% ($/boe) $12.33/boe % Gas 50% $10 40% 30% $5 20% 10% $- 0% Operating Costs include Transportation costs. 2 BOE factor - 6 mcf = 1 bbl of oil equivalent 10/28/2014
Slide 3: 2013 Cash Netback
2013 Cash Netback Industry Comparison $50 100% $45 90% $40 80% Cashflow Netback ($/boe) $35 70% $30 60% Ave % Gas $23.96/boe $25 50% $20 40% $15 30% $10 20% $5 10% $- 0% 3 Cashflow Netback per boe of production. BOE factor - 6 mcf = 1 bbl of oil equivalent 10/28/2014
Slide 4: Operating Margin
2013 Operating Margin Industry Comparison 80% 100% 90% 70% 80% 60% Operating Margin 70% 50% Average 48% 60% % Gas 40% 50% 40% 30% 30% 20% 20% 10% 10% 0% 0% 4 Annual Operating Margin is funds from operations divided by revenue. 10/28/2014
Slide 5: Reserve Life
2013 Reserve Life Industry Comparison, Proven Producing Reserve Life 8 Long 7 6 Average Reserve Life Index (yrs) 5 4 Short 3 2 1 0 5 10/28/2014
Slide 6: Reserves, Proven vs Probable
2013 Reserves, Proven vs Probable Industry Comparison, PP as % of P+P 100% 90% 80% 70% 60% 50% Ave 33% 40% 30% 20% 10% 0% 6 10/28/2014
Slide 7: PDP FD&A Cost
2013 PDP FD&A Cost Industry Comparison $50.00 $45.00 $40.00 $35.00 PDP FD&A ($/boe) $30.00 Ave $25.00/boe $25.00 $20.00 $15.00 $10.00 $5.00 $- 7 FD&A Cost – Inclusive of Acquisition, Finding and Development Capital BOE factor - 6 mcf = 1 bbl of oil equivalent 10/28/2014
Slide 8: Low Cost Producer
2013 Low Cost Producer Industry Comparison 250% 100% Total Costs ($/boe)/Total Revenue ($/boe) (%) 90% 200% 80% 70% 150% 60% % Gas Ave 111% 50% 100% 40% 30% 50% 20% 10% 0% 0% Total Costs per boe includes – Royalties, Op Costs, G&A, Interest, Management Fees, and PP FD&A cost 8 BOE factor - 6 mcf = 1
Slide 9: Recycle Ratio
2013 Recycle Ratio Industry Comparison, PDP Recycle Ratio 2.5 100% 90% 2.0 80% 70% PDP Recylce Rato 1.5 60% % Gas Ave 1.1 50% 1.0 40% 30% 0.5 20% 10% - 0% 9 Recycle Ratio = Netback/Proved Producing FD&A Cost 10/28/2014
Slide 10: Reserve Replacement Ratio
2013 Reserve Replacement Ratio Industry Comparison, Proved Producing 200% 150% PDP Reserve Replacement Ratio % 100% 50% 0% -50% -100% -150% -200% 10 Reserve Replacement Ratio per debt adjusted share – Incremental PP Reserves/share divided by Annual Production/share Number of shares/units are debt ad
Slide 11: Q4 Payout Ratio
2013 Q4 Payout Ratio Industry Comparison 70% 60% 50% 40% 30% 20% 10% 0% BNE PGF BTE CPG TBE ZAR WCP ARX VET PWT BNP ERF PEYTO LTS TET Payout Ratio – Total quarterly dividend(incl. exchangeable shares) divided by funds from operations, excluding stock option expenses and other performance based compe
Slide 12: Dividend Life, PDP NPV
2013 Dividend Life, PDP NPV Industry Comparison 35 30% 30 25% Implied Yield (1/Dividend Life) 24.1% 24.4% 25 20% 20 Yrs 15% 15 13.1% 11.3% 10% 10 8.4% 8.6% 8.8% 7.0% 7.3% 5.8% 6.0% 5% 5 5.2% 3.4% 3.7% 3.9% - 0% Distribution Life – Year End 2013 Proved Producing Undiscounted divided by 2013 Q4 divide
Slide 13: Market Premium to Base NAV
2013 Market Premium to Base NAV Industry Comparison 800% 700% 600% 500% 400% Ave 312% 300% 200% 100% 0% Dec 31, 2013 Share price 13 Dec 31, 2013 Proven Producing NPV5 Debt Adjusted per unit 10/28/2014
Slide 14: Market Premium to Upside NAV
Market Premium to Upside NAV Industry Comparison 450% 400% 350% 300% 250% 200% 150% Ave 116% 100% 50% 0% Dec 31, 2013 Share price 14 Dec 31, 2013 Proved plus Probable NPV10 Debt Adjusted per share 10/28/2014
Slide 15: Funding for Upside
2013 Funding for Upside Industry Comparison 500% PDP NPV10 required to fund FDC 450% 400% 350% Equity or debt will fund this, 300% neither is typically 250% accretive for shareholders 200% Ave 144% 150% 100% 50% 0% FDC is all Future Development Capital (undiscounted) associated with proved and proba
Slide 16: Debt Adjusted Cashflow Multiples
Debt Adjusted Cashflow Multiples Industry Comparison, NAV vs Market 20 18 16 14 12 10 8 Conventional Multiple 6 Range 4 2 0 TBE BTE ZAR PWT VET TET PEYTO LTS TOU CR WCP ARX CPG ERF PGF BNP BNE PMT DACFM = NAV Quarter End EV/CF DACFM – Enterprise value divided by annualized Qtrly CF 16 DACFM =NAV- us
Slide 17: Investor Recycle Ratio
2013 Investor Recycle Ratio Industry Comparison 500% 450% 400% Investor Recycle Ratio 350% 300% 250% 200% 150% 100% 50% 0% PDP P+P 17 Investor Recycle Ratio = Q4 2013Netback/boe divided by Dec 31/13 Enterprise Value/PDP or P+P/boe (YE 2013) 10/28/2014
Slide 18: PP Undiscounted NPV
2013 PP Undiscounted NPV Industry Comparison $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- PDP NPV0 EV 18 Proved Producing NPV Undiscounted – Net present value of the future net cashflows estimated at year end 2013 by independent engineering firms using forecast pric
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