Baytex Energy Corp. · TSX:BTE
Baytex Energy — Shareholder Meeting (May 2014)
21 slides from Baytex Energy's shareholder meeting presentation, May 15, 2014
Slide 1: Annual and Special Meeting of Shareholders
Annual and Special Meeting of Shareholders Calgary, Alberta James Bowzer May 15, 2014 President and Chief Executive Officer
Slide 2: Advisory: Forward-Looking Statements
Advisory Forward-Looking Statements In the interest of providing Baytex's shareholders and potential investors with information regarding Baytex, including management's assessment of Baytex's future plans and operations, certain statements made by the presenter and contained in these presentation ma
Slide 3: Advisory (Cont.)
Advisory (Cont.) These forward-looking statements are based on certain key assumptions regarding, among other things: the receipt of regulatory, shareholder and other approvals for the Acquisition; our ability to execute and realize on the anticipated benefits of the Acquisition; petroleum and natur
Slide 4: Advisory (Cont.): Oil and Gas Information
Advisory (Cont.) Oil and Gas Information This presentation contains estimates of the volumes of the "contingent resources" for our oil resource plays in the Bluesky in the Peace River area of Alberta, the Mannville group in northeast Alberta and the Bakken/Three Forks in North Dakota as of December
Slide 5: Advisory (Cont.)
Advisory (Cont.) References herein to initial test production rates, 30-day IP rates and other short-term production rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter
Slide 6: Investment Highlights
Investment Highlights • Focus on per share growth in production and reserves Organic Oil Growth Long-term, Low-Cost Inventory • Sector-leading capital efficiency • Operational excellence Meaningful Dividend • Focus on dividend growth over the long-term Conservative Payout Ratio • Competitive differe
Slide 7: Corporate Profile
Corporate Profile Summary of Securities Trading Symbol TSX / NYSE: BTE Average Daily Volume (1) Canada: 1,105,900 / U.S.: 168,300 Shares Outstanding (Current) 126.4 million Market Capitalization / Enterprise Value $5.8 billion / $6.6 billion Total Monetary Debt (as of 3/31/14) $832 million Monthly D
Slide 8: Operating Areas
Operating Areas Production (Q1 2014) Company Total = 59,502 boe/d Lloydminster Peace River Heavy Oil 33% Heavy Oil 43% Light Oil 13% Gas 11% Operating Income (Q1 2014) Company Total = $197 million ($37/boe) Lloydminster Peace River Heavy Oil 38% Heavy Oil 42% Light Oil 16% Gas 4% 2P Reserves (Year E
Slide 9: Oil-Equivalent Production Growth
Oil-Equivalent Production Growth 60,000 40,000 boe / d 61,000 57,196 53,986 50,132 44,341 20,000 40,239 41,382 34,022 34,647 34,292 36,222 0 (1) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Percent Oil 73% 71% 73% 76% 77% 76% 79% 84% 87% 89% 89% (1) Based on mid point of guidance range of
Slide 10: Reserve Growth / Contingent Resources
Reserve Growth / Contingent Resources Proved Probable 350 Oil-Equivalent Reserves (MMboe) 318 300 292 252 250 229 159 200 187 197 96 148 168 89 150 141 146 61 68 52 107 123 39 43 100 37 30 159 140 156 144 116 126 129 50 86 102 103 77 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2P RLI (y
Slide 11: Pending Eagle Ford Acquisition
Pending Eagle Ford Acquisition 11
Slide 12: Strategic Rationale
Strategic Rationale - Baytex is acquiring premier acreage in the core of the Eagle Ford – one of the leading shale oil plays in the U.S. - The assets to be acquired are an excellent fit with our business model and position Baytex in another world-class oil resource play - Provides Baytex shareholder
Slide 13: Eagle Ford Acreage Position
Eagle Ford Acreage Position Aurora holds 22,200 net contiguous acres in the prolific Sugarkane Field located in south Texas in the core of the liquids- rich Eagle Ford shale. The acquisition provides exposure to low-risk, repeatable, high-return assets with leading capital efficiencies. The Sugarkan
Slide 14: Eagle Ford Acreage – Sweet Spot of a World-Class Play
Eagle Ford Acreage – Sweet Spot of a World-Class Play Eagle Ford Sweet Spot EUR Map Acreage Position Amongst Top Operators • EURs exceed 500,000 barrels of oil across • Aurora’s acreage is amongst top operators most of the acreage including COP, MRO, EOG and MUR Source: Drillinginfo, Scotiabank. EUR
Slide 15: Eagle Ford – Opportunity Summary
Eagle Ford – Opportunity Summary Eagle Ford Type Log Current Development - 80,200 highly contiguous gross acres (22,200 net acres) in the most prolific area of the Eagle Ford - Lower Eagle Ford originally developed at 80-acre spacing; current development is now 60-acre spacing (volatile oil) and 40-
Slide 16: Baytex Pro Forma – Three Key Oil Resource Plays
Baytex Pro Forma – Three Key Oil Resource Plays > 80% of Baytex’s pro forma production comes from three oil plays Single Well Economics (excluding acreage acquisition costs) (1) Eagle Ford Peace River Heavy Oil Lloydminster Heavy Oil Condensate Volatile Oil Multi-Laterals Verticals Horizontals Compl
Slide 17: Profit Investment Ratio by Play
Profit Investment Ratio 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x Seal Cold Heavy Multi-Lateral - Hz SE Sask Viewfield Bakken - Hz Ante Creek Montney (75% oil) - Hz Marcellus (dry gas) - Hz Kaybob Montney Oil - Tier 1 - Hz Marcellus (SW PA, wet gas) - Hz Lloyd Area Heavy - Vt AB Bakken (east, shallow) - Hz
Slide 18: Pro Forma Production and Reserves
Pro Forma Production and Reserves (1) Baytex Stand-Alone Baytex Pro Forma Aurora Production (2014E) = 60-62 Mboe/d Combined Production = 88 Mboe/d NGL 3% Natural Gas Light Oil Natural Gas 11% 11% 14% Light Oil NGL 13% 22% Heavy Oil Heavy Oil 75% 51% Proved + Probable Reserves (YE 2013) = 318 MMboe P
Slide 19: 2014: A Break Out Year for Canadian Heavy?
2014: A Break Out Year for Canadian Heavy? - Market conditions remain positive with the forward market indicating a WCS differential of ~ 20% for the remainder of this year (last nine months) - Positive catalysts unfolding in 2014 should contribute to sustained lower differentials and stronger heavy
Slide 20: Why Invest in Baytex
Why Invest in Baytex Superior Asset Base Income Payout Proven Track Record - Low cost development - Committed to paying a - Best-in-class balance sheet inventory – oil focus meaningful dividend - Sophisticated risk - Sector leading capital - Over $1.7 billion distributed management efficiency to sha
Slide 21: Contact Information
Contact Information Suite 2800, Centennial Place James L. Bowzer 520 – 3rd Avenue S.W. President & Chief Executive Officer Calgary, Alberta T2P 0R3 (587) 952-3000 T: (587) 952-3000 1-800-524-5521 Rodney D. Gray www.baytexenergy.com Chief Financial Officer (587) 952-3160 Brian G. Ector Vice President