Tourmaline Oil Corp. · TSX:TOU
Tourmaline Oil — Investor Day (February 2017)
76 slides from Tourmaline Oil's investor day presentation, Feb 28, 2017
Slide 1: Investor Day B
Investor Day B February 28, 2017
Slide 2: 6. Marketing & Transportation
Tourmaline Oil Corp. Investor Day 6. MARKETING & TRANSPORTATION 1
Slide 3: Planning for Change
Planning for Change Planning is bringing the future into the present so that you can do something about it now – Alan Lakein 2
Slide 4: Change in N. American Natural Gas Fundamentals
Change in N. American Natural Gas Fundamentals • It’s no secret that there has been a fundamental shift in N. America’s Natural Gas Market. Why? – Technology-horizontal drilling and multi-stage hydraulic fracturing – Emergence of Marcellus/Utica – Success of Montney and Alberta Deep basin • How sign
Slide 5: Emergence of Appalachia and Wet Gas Changed Natural Gas Fundamentals
Emergence of Appalachia and Wet Gas Changed Natural Gas Fundamentals 4
Slide 6: Demand growth continues-BP 2035 Outlook
Demand growth continues-BP 2035 Outlook • US demand will grow by 21 bcf/d by 2035 • Demand in Canada & Mexico increases by 10 bcf/d, driven mostly by power generation and industry. • Natural gas becomes the leading fuel in N.A around 2023 – 31% of total consumption in 2014 to 39% in 2035 – This comp
Slide 7: Demand for Natural Gas Grows Strongly
Demand for Natural Gas Grows Strongly… Source: BP 6
Slide 8: The Fuel Mix is Set to Change Significantly
The Fuel Mix is Set to Change Significantly… Source: BP 7
Slide 9: Unprecedented Call on N.A. Supply Led by US Big Three
Unprecedented Call on N.A. Supply to be Led by US “Big Three” from 2015-2020 Source: PIRA 8
Slide 10: LNG plays an Increasingly Important Role in Demand
LNG plays an Increasingly Important Role in Demand • LNG exports reach nearly 18 Bcf/d by 2035 • N. American’s share of global exports peaks at almost 30% around 2030 and accounts for a quarter of global LNG trade by 2035 9
Slide 11: Regional Dispersion of US Demand Gains
Regional Dispersion of US Demand Gains 2020 vs 2015 Source: PIRA 10
Slide 12: Changes in North American Gas Supply
Changes in North American Gas Supply (2015-2020) Source: PIRA 11
Slide 13: Tourmaline Diversification Strategy
Tourmaline Diversification Strategy • Tourmaline was a leader in seeing the fundamental supply shift and localized supply challenges • We immediately became proactive and started to diversify our exposure • Our Portfolio Approach – 2013 Long term Aeco basis, to get Nymex exposure – 2014 Sumas transp
Slide 14: April 2017-Oct 2017 Exposure Diversification
April 2017-Oct 31 2017 Exposure Diversification 9% 3% 51% Aeco Spot 2% 5% 15% Aeco FP 8% California 7% 7% Nymex Basis 54% Nymex FP 51% 2% Dawn Aeco Spot 8% 5% Chicago/Ventura Aeco FP 3% Sumas 9% Station 2 15% Note: April/May 2017 Aeco FP is 17% 13
Slide 15: Target Exit 2018 Exposure Diversification
Target Exit 2018 Exposure Diversification 33% Aeco Spot 13% 2% 33% 13% Aeco FP 7% 13% California Aeco Spot 13% Nymex 6% 6% Dawn Nymex FP Aeco 7% Chicago/Ventura FP 13% 2% Sumas 13% 13% 13% Station 2 14
Slide 16: Diversification yields Gains
Diversification yields Gains Diversification strategy is paying off and yielding marketing gains: • Basis Deals – 2016 Averaged 0.39 Cdn/GJ above Aeco 5A index. Equating to 27.7M • Export Deals Avg. Cdn/GJ above High in 2016 Benchmark (2016) Sumas $0.59* $ 1.16 Sept Ventura $0.29 $ 0.80 Aug Malin $0
Slide 17: More Gains from Strategy
More Gains from Strategy • Gains from Financial Swaps – In 2016 TOU had 18.3 M in gains from financial swaps • St 2 vs Aeco – 2016 average differential at St 2 to Aeco was -0.41 Cdn/GJ – As wide as -0.81 Cdn/GJ in Nov, 2016 – TOU 2016 average was -0.37 Cdn/GJ – We have minimal St 2 exposure going fo
Slide 18: Transportation Strategy
Transportation Strategy Source: TCPL 17
Slide 19: Transportation Strategy continued
Transportation Strategy continued • Tourmaline is well positioned to handle TCPL issues. Why? • Decisions to take firm transport on TCPL and Spectra needed to be made 2-3 yrs in advance. We made them. • Have contracted Firm service for our expansions and new growth areas. Do not rely on IT capacity.
Slide 20: Tourmaline Mid-Stream Assets
Tourmaline Mid-Stream Assets Feb 2017 The infrastructure skeleton in all three core operated complexes is now complete R. 15W6 R. 1W6 R. 15W5 Gundy Inga • 17 Working interest gas plants, 14 of which NE Alberta BC are 100% owned and operated Peace River High T85 • 15 compressor stations Charlie Lk Oi
Slide 21: Aeco Supply/Demand
Aeco Supply/Demand • Storage • TCPL Mainline 2017 – Maintain 2.5 bcf/d export market – Work to gain incremental market in future • TCPL A/BC Border expansion 2018 – Additional 610 mmcf/d export out Westgate • Oil Sands Natural Gas Demand – Gas demand will reach 4.5 bcf/d by 2025 • Alberta’s Electric
Slide 22: Tourmaline LNG Approach and Strategy
Tourmaline LNG Approach and Strategy Natural Gas is cleanest, most abundant fossil fuel source and the logical ‘bridge’ energy source for the next several decades. This will drive increasing LNG demand. LNG export capability is a critical component of Canada’s continued progression as an Energy
Slide 23: Oil Pricing Outlook
Oil Pricing Outlook • WTI Prices: where are they going? • Recent OPEC cuts will help markets restore to a more balanced outlook • At present, we subscribe to consensus view that oil is set up to remain in a price range of $50-$60 US/BBL – Stocks should continue to decline in this price range which w
Slide 24: Tourmaline Marketing Strategy
Tourmaline Marketing Strategy – Physical Oil • Tourmaline’s Peace River High Charlie Lake oil play continues to grow • We are currently building a clean oil terminal to handle oil, condensate, and NGL, – Will facilitate blending of butane into oil for enhanced sales value in Edmonton – Can handle 3r
Slide 25: Tourmaline Marketing Strategy
Tourmaline Marketing Strategy – Physical NGL’s • Transportation: Tourmaline has firm pipeline transportation capacity for our NGL production • Deep Cut NGL Extraction: Tourmaline has capacity to generate C2+ NGL Mix through Pembina Saturn 1 & 2 deep cut plants • Fractionation: Tourmaline is well-div
Slide 26: Natural Gas Liquids
Natural Gas Liquids – NEBC Opportunity • Northeast British Columbia – Opportunities – Tourmaline has an opportunity to build its own deep-cut NGL extraction facility at Gundy – We believe that by extracting propane we can create incremental value. – We are currently evaluating multiple marketing opp
Slide 27: Conclusion
Conclusion • N. America’s Natural Gas Market has fundamentally changed – future demand is in the South and supply is in the North • Flows are changing to reflect this shift • Tourmaline is participating in this change and diversifying to capture value. • Planning is bringing the future into the pres
Slide 28: 7. Five Year Plan Rollout
Tourmaline Oil Corp. Investor Day 7. FIVE YEAR PLAN ROLLOUT 1
Slide 29: 2016 Highlights
2016 Highlights 185,672 boe/d Reserves (1) 5th In 2016 12% Largest Gas Oriented 3% Midstream Company in WCSB 1.5x 16 Exit Net Debt / Q4 Annualized CF 85% 2nd Largest Canadian Natural Gas Producer Gas Oil NGL 2,666,170 PDP 1P 2P 71% Acres of Land (Gross) 20% 49% 31% Total Return Since IPO(2) 17 Years
Slide 30: Financial Outlook and Initiatives: Five Year Plan Components
Financial Outlook and Initiatives: Five Year Plan Components EUR’s, Drilling Days Royalties + + Currency Development Plans Taxes (Pools) Product Prices Five G&A + + Hedges Year Plan Interest Transportation Capital Costs Decline Rates + + Sales Operating 3
Slide 31: The Five Year Plan from 2012 Vs Actuals
5 Year Forecast: The 5 Year Plan from 2012 Vs Actuals 2012 Forecast Vs Actual Production 350,000 300,000 250,000 200,000 Boe/d 150,000 100,000 50,000 - 2012 2013 2014 2015 2016 2017 2018 Forecasted Production (Q2/2012) Actual Production 2017 Forecasted Production 4
Slide 32: 2017/18 Guidance
2017/18 Guidance Feb 2017 2017(1) 2018(1) Production – Boe/d 240,000 - 260,000 290,000 - 320,000 Cash Flow - $MM(i) $1,411 $1,843 CFPS - Diluted(i) $5.23 $6.80 E&P Capital Program - $MM $1,331 $1,792 Free Cash Flow - $MM(ii) $81 $51 Exit Net Debt - $MM(i) $1,502 $1,488 Debt to CF 1.1x 0.8x (1) Price
Slide 33: The Current Five Year Plan
5 Year Forecast: The Current 5 Year Plan 450,000 400,000 350,000 Spirit River 300,000 NEBC 250,000 Boe/d Deep Basin 200,000 150,000 100,000 50,000 - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Annual Pre- E&P Capital (Net Prod’n Prod’n Pre-tax tax After-tax After-tax E
Slide 34: Price Forecast
Price Forecast NYMEX ($USD/mmbtu) AECO ($CAD/mcf) $3.90 $3.80 $3.70 TOU Forecast $3.60 TOU Forecast $3.50 $3.40 Bank Price Deck Average $3.20 Bank Price Deck Average $3.30 $3.00 $3.10 External Reservoir External Reservoir $2.80 Engineer Price Deck Engineer Price Deck $2.90 Average $2.60 Average Stri
Slide 35: Five Year Forecast: Price Deck and Netback
5 Year Forecast: Price Deck and Netback 2017E 2018E 2019E 2020E 2021E Exchange Rate [$US/$C] 0.77 0.77 0.77 0.77 0.77 WTI [$US/bbl] 60.00 60.00 60.00 60.00 60.00 Edmonton Par [$C/bbl] 71.92 71.92 71.92 71.92 71.92 Henry Hub [$US/mcf] 3.25 3.25 3.25 3.25 3.25 AECO [$C/mcf] 3.15 3.15 3.15 3.15 3.15 St
Slide 36: Operating Netbacks
Operating Netbacks $25.00 $20.00 $15.00 $10.00 $5.00 $- 2013 2014 2015 2016 2017E $(5.00) Operating Netback Before Hedges Hedges Operating Netback After Hedging (1) Price Assumptions - 2017 & 2018 Gas price - $3.15/mcf AECO; 2017 & 2018 Oil Price - $60.00/bbl WTI US. (i) See “Non-GAAP Measures” in t
Slide 37: Drilling, Completion, Equip and Tie In Costs
5 Year Forecast: Drilling, Completion, Equip and Tie In Costs Deep Basin (D,C,E&T Costs) $10 $8 $6 MM $4 $2 $- 2014 2015 2016 2017E 2018E NEBC (D,C,E&T Costs) $7 $6 $5 $4 MM $3 $2 $1 $- 2014 2015 2016 2017E 2018E $6 Spirit River (D,C,E&T Costs) $5 $4 MM $3 $2 $1 $- 2014 2015 2016 2017E 2018E 10
Slide 38: Decline Curves
5 Year Forecast: Decline Curves 2,000 1,750 Deep Basin 1,500 EUR 5.60 Bcfe 1,250 47% EUR Increase Since 2012 IP 30 10,872 Mcfe/d Boe/d 1,000 750 IP 90 8,005 Mcfe/d 500 250 IP 365 4,207 Mcfe/d - 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 103 10
Slide 39: Historical Capital Efficiencies
5 Year Forecast: Historical Capital Efficiencies Historical Capital Efficiency $50,000 Cinch $45,000 $40,000 70% improvement in cash capital efficiencies from 2011 to 2016 $35,000 Shell and Huron Capital efficiency ($/boepd) Minehead- Edson-Ansell $30,000 Santonia Perpetual, $25,000 Bergen and Mapan
Slide 40: Forecast Capital Efficiencies
5 Year Forecast: Forecast Capital Efficiencies $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- 2017E 2018E 2019E 2020E 2021E CE excl. Major Facilities CE incl. Major Facilities 13
Slide 41: Maintenance Capital = $1B, Production at 320,000 boe/d
Maintenance Capital = $1B Production at 320,000 boe/d 400,000 Maintenance Capex to hold production at 320,000 boe/d from 2019 - 2021 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - Base 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Base 2017 2018 2019 2020 2021 2022 Maintenanc
Slide 42: 2017 Financial Sensitivities
2017 Financial Sensitivities Sensitivities – Impact on Cash Flow $40 $35 $30 $25 millions $20 $15 $10 $5 $0 2017 WTI Pricing 2017 AECO pricing 2017 Exchange rate 2017 Interest rate 2017 Gas 2017 Oil production (+$1.00/bbl) (+$0.10/Mcf) (+0.01) (-1%) production (+6,000 (+1,000 bbl/d) Mcf/d) 15
Slide 43: Operating Costs
5 Year Forecast: Operating Costs Q3 YTD Consolidated Operating Expenses - $174MM ($3.46/boe) Road & Lease Maintenance $2.48 MM Lease Rentals Fuel / Power 1% $6.38 MM $2.27 MM 4% 1% Workover and Turnaround Expenses $8.43 MM 5% Gathering and Processing $37.00 MM Property Taxes 21% $9.93 MM 6% Trucking
Slide 44: Tax Pools
Tax Pools Classification % Total (MM) PV10(MM) CEE 100% $323 $79 CDE 30% $1,952 $392 COGPE 10% $2,066 $277 UCC – Oil & Gas 25% $1,863 $340 Non-Capital Losses 100% $684 $167 Other - $66 $13 Total Tax Pools $6,954 $1,268 Tourmaline Tax Horizon: 5 Years 17
Slide 45: 8. Initiatives in Finance & U.S. Play Type Comparatives
Tourmaline Oil Corp. Investor Day 8. INITIATIVES IN FINANCE & U.S. PLAY TYPE COMPARATIVES 1
Slide 46: Trends in 2016 – Canadian E&P
Trends in 2016 – Canadian E&P • Supply/Demand fundamentals for natural gas recently improving • Growth rates for E&P companies were low • Continual improvement in capital efficiencies • Recycle and payout metrics became worse • Maintaining production levels and credit worthiness became more challeng
Slide 47: Macro Trends
Macro Trends Wells Drilled (WCSB) 2014 2015 2016 Gas ~4,075 ~1,850 ~1,300 Oil ~6,430 ~3,180 ~2,150 3
Slide 48: Canadian Gas Vs. American Gas Well Costs
Canadian/US Investment Landscape: Canadian Gas Vs. American Gas Well Costs Well Costs Vs. EUR by Play Type Drilling 3 Montney Wells 25 Completed Well Cost $ CDN EUR (Bcfe) 22.5 Bcfe 20 19.2 Bcfe 17.7 Bcfe $13.7 15 MM $12.0 MM $8.4 $8.7 10 MM 8.1 7.8 $8.7 MM MM Bcfe Bcfe 7.5 Bcfe 6.0 7.0 Bcfe Bcfe $4
Slide 49: Tourmaline vs US Gas Weighted Peers
Tourmaline vs US Gas Weighted Peers Cash Costs Per BOE Aug 2016 Operating Transportation G&A Interest $12.00 $10.80 $10.00 $1.62 $1.82 $8.00 Costs Per BOE $6.00 $5.05 $0.45 $5.39 $0.36 $4.00 $1.60 $2.00 $2.64 $1.98 $- Tourmaline (USD)* Peer Average** *CAD Converted into USD at BoC Noon Rate as of Au
Slide 50: Canadian and US Peers: Cost Structure
TOU Positioning and Peer Group Analysis: Canadian and US Peers: Cost Structure $5.00 Unhedged revenue, net of royalties – 9M/16 ($US/Mcfe) Cash costs – 9M/16 ($US/Mcfe) $4.00 Canadian Gas Peers Marcellus Peers $3.00 $2.00 $1.00 $0.00 Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer P
Slide 51: Debt: Current Debt Capacity
Debt: Current Debt Capacity Amount Facility Type (millions) Syndicated unsecured revolving credit facility • Maturity of June 2020 $1,800 Operating revolving credit facility • Maturity of June 2020 50 Syndicated unsecured term loan • Maturity of February 2022 650 Total Debt Capacity* $2,500 Outstand
Slide 52: Debt: Syndicated Term Loan
Debt: Syndicated Term Loan • Recently expanded and extended Syndicated Term Loan • $650MM • Stamping Fee: 200 bps • Maturity: February 3, 2022 • Tourmaline has been locking in a fixed rate of between 3.40% – 3.50% on term loan • Comparable market issuers • Peyto: $100MM, 7 Years at 3.70% (October 24
Slide 53: Debt: Permanent Debt Range
Debt: Permanent Debt Range Tourmaline Forecasted Debt Level $2,000 $1,500 Permanent Debt Range $1,000 $500 $- 2017E 2018E 2019E 2020E 2021E $(500) Net Debt Per 5 Year Plan Net Debt (Permanent - Upper Limit) Net Debt (Permanent - Lower Limit) 9
Slide 54: Debt Maturity Profile of Total Debt Capacity
Debt: Debt Maturity Profile of Total Debt Capacity TOURMALINE MATURITY PROFILE ARC MATURITY PROFILE $1,200 $2,000 $1,000 $800 $600 $1,800 $400 $200 $- $1,600 $1,400 Total debt capaicity (millions) SEVEN GENERATIONS MATURITY PROFILE $1,200 $1,000 $800 $600 $1,000 $400 $200 $- $800 $600 PEYTO MATURITY
Slide 55: Debt: Tourmaline Leading the Pack
Debt: Tourmaline Leading the Pack Calculation: Q3’16 Interest Expense Annualized / Q3’16 Debt Outstanding Canadian Peers Canadian Peers: ARC, Advantage, Baytex, Birchcliff, CNRL, Crew, EnCana, Enerplus, Painted Pony, Peyto, Seven Generations USA Peers US Peers: Antero, Cabot, EQT, Range, Rice and So
Slide 56: Debt: Current Debt Capacity
Debt: Current Debt Capacity Drawn Vs. Debt Capacity Tourmaline Debt Profile ($MM) Drawn Debt Capacity 2% 64% of Facility Drawn 26% $1,600 $2,500 72% $- $500 $1,000 $1,500 $2,000 $2,500 MM Revolver Term Operator Effective Interest Rate Tourmaline Maturity Profile 10% 9% $2,000 8% June 2020 % of Total
Slide 57: Debt: Interest Rate Trends
Debt: Interest Rate Trends 6 5 4 3 % 2 1 0 1/1/2005 1/1/2006 1/1/2007 1/1/2008 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 CDOR 1M LIBOR 1M CAD 5 Year Swap USD 5 Year Swap As at: February 17, 2017 Source: Bloomberg 13
Slide 58: Debt: Interest Rate Exposure
Debt: Interest Rate Exposure Interest Rate Swaps Interest Rate Exposure* Hedged 100% 65% 65% 69% 83% 89% 97% $600 90% Millions 80% $500 70% $400 60% 50% $300 40% $200 30% 35% 35% 31% 20% $100 17% 10% 11% $- 0% 3% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Fixed Variable 14
Slide 59: Tourmaline Mid-Stream Assets
Tourmaline Mid-Stream Assets Feb 2017 The infrastructure skeleton in all three core operated complexes is now complete R. 1W6 R. 15W6 R. 15W5 Gundy Inga • 17 Working interest gas plants, 14 of which are 100% owned and operated Peace River High T85 Oil, condensate and ngl • 15 compressor stations sto
Slide 60: TOU Strategy
TOU Strategy Convert our low cost and low risk inventory into sustainable cash flow, production and reserve growth • Maintenance Capital of $1B for • Low cost operator generates strong 320,000 boe/d, (base decline cash flow per BOE, resulting in 38%, 10 rigs) strong financial flexibility • Possess a
Slide 61: TOU Strategy: The Results
TOU Strategy The Results Production per Share (Base Value = 100) 250 248.5 Peer Peer2 Peer4 Peer5 Peer6 Peer7 200 Peer10 Peer11 Peer12 TOU 150 100 50 2012 2013 2014 2015 2016E 2017E 2018E Source: Company reports and Peters & Co. Limited estimates. Note: (1) Production per share is debt and dividend
Slide 62: TOU Strategy: Keeping a Constraint On Debt
TOU Strategy Keeping a Constraint On Debt 2017E D/CF 6.0x 5.0x USA Peers = Avg. 2.5x 4.0x Canadian Peers = Avg. 1.5x = Avg. 2.5x 3.0x Tourmaline= 1.1x 2.0x 1.1x 1.0x 0.0x Source: BMO Global Oil & Gas Comparables (February 7, 2017) Peers: ARC, Anadarko, Antero, Apache, Cabot, CNRL, Cenovus, Chesapeak
Slide 63: 9. Wrap Up
Tourmaline Oil Corp. Investor Day 9. WRAP UP 1
Slide 64: Tourmaline Strengths
Tourmaline Strengths 2014 (Board Strategy Session #1) Feb 2017 • Premier production growth intermediate EP in the WCSB • Premium reserve and value growth intermediate Cdn EP • Best defined future drilling inventory, less than 10% of which is developed • Focussed operations/geography hence small staf
Slide 65: Tourmaline Strengths
Tourmaline Strengths 2017 Feb 2017 • Premier production growth intermediate EP in the WCSB • Premium reserve and value growth intermediate Cdn EP • Best defined future drilling inventory, less than 10% of which is developed • Focussed operations/geography hence small staff requirement • Tourmaline d
Slide 66: Simple Scientific Fundamentals
Simple Scientific Fundamentals The Research S Curve Normal Statistical Distribution TECH SERVICE APPLIED • New technology development will continue to improve all aspects of business/life. • Appreciating risk and ‘likelihood’ can guide many approaches and decisions (business, macro- economics, gover
Slide 67: Tourmaline Technology Curve/Future Concepts, Requirements & Opportunities
Tourmaline Technology Curve/Future Concepts, Requirements & Opportunities • Cost saving via novel frac water sourcing/recycling • Alternative hz frac programs/processes – Concurrent pairs, delayed flow-backs etc. • Novel drilling technology to reduce time/cost • Utilizing gas fired turbines to reduc
Slide 68: Tourmaline Environmental Performance
Tourmaline Environmental Performance • Tourmaline strives to continually improve all aspects of environmental performance including the impact of its operations on air, land and water. • Tourmaline ranks as a ‘top decile’ performer under the new Ab Government carbon emission framework and despite th
Slide 69: Global Energy Needs
Global Energy Needs …. Science Matters …. Source: EIA – International Energy Outlook 2009 7
Slide 70: 2H 2016 Highlights/2017 Outlook
2H 2016 Highlights/2017 Outlook Feb 2017 • Tourmaline now a senior with 2017 production reaching the 250,000 boepd milestone. (30%+ annual growth) • The Company reserves are now 1.75 billion boe (Jan 1, 2017). (60%+ annual growth) • Three expansive resource plays, completely derisked, with Tourmalin
Slide 71: Schedule A
Schedule A DRILLING LOCATIONS Estimated Drilling Inventory This news release discloses drilling locations in four categories: (i) proved undeveloped locations; (ii) probable undeveloped locations; (iii) unbooked locations; and (iv) an aggregate total of (i), (ii) and (iii). Of the 14,713 undrilled l
Slide 72: Schedule A continued
Schedule A continued Deep Basin Vertical well count : Approximately 2,746 gross prospective sections at approximately 1.5 wells per section minus 10% for areas that are inaccessible or limited by spacing requirements minus approximately 888 existing wells. Includes 450 locations in the Outer Foothil
Slide 73: Schedule B
Schedule B Prospective locations are unbooked locations that are not included in inventory. Unbooked locations are internal estimates based on the Company's prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review.
Slide 74: Forward Looking Information
Forward Looking Information Certain information contained in this presentation constitutes forward-looking information within the meaning of applicable securities laws. This information relates to future events or the Company's future performance. All information other than information of historical
Slide 75: Forward Looking Information
Forward Looking Information With respect to forward-looking information contained in this presentation, assumptions have been made regarding, among other things: future crude oil and natural gas prices; future interests rates and currency exchange rates; the Company's ability to obtain qualified sta
Slide 76: Forward Looking Statement Advisories
Forward Looking Statement Advisories Oil and Gas Advisories Certain crude oil and natural gas liquids ("NGLs") volumes have been converted to millions of cubic feet equivalent ("mmcfe") or thousands of cubic feet equivalent ("mcfe") on the basis of one barrel ("bbl" of crude oil or NGLs to six thous