Baytex Energy Corp. · TSX:BTE
Baytex Energy — Peters & Co. Annual Energy Conference 2014
27 slides from Baytex Energy's conference presentation, Sep 11, 2014
Slide 1: Capitalizing on Resource Plays
Peters & Co. Annual Energy Conference Capitalizing on Resource Plays September 11, 2014, Toronto, Ontario James Bowzer President and CEO Brian Ector Senior VP, Capital Markets and Public Affairs
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.) Actual results achieved will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Such factors include, but are not limited to: failure to realize the anticipated benefits of the acquisition of the Eagle Ford
Slide 4: Advisory (Cont.)
Advisory (Cont.) A range of contingent resources estimates (low, best and high) were prepared by Sproule and McDaniel. A low estimate (C1) is considered to be a conservative estimate of the quantity of the resources that will actually be recovered. It is likely that the actual remaining quantities r
Slide 5: Corporate Profile
Corporate Profile Summary of Securities Trading Symbol TSX / NYSE: BTE Average Daily Volume (1) Canada: 568,791 / U.S.: 231,771 Shares Outstanding (Current) 166.1 million Market Capitalization / Enterprise Value $7.9 billion / $10.1 billion Total Monetary Debt (2) $2.2 billion Monthly Dividend / Div
Slide 6: Resource Play and Production Mix
Resource Play and Production Mix Production (H2/2014 Guidance) Company Total = 86,000 – 88,000 boe/d NGLs Gas 13% 14% Heavy Oil 51% Light Oil 22% 2P Reserves (1) (2) Company Total = 432 MMboe NGLs Gas 17% 14% Heavy Oil 53% Light Oil 16% Production by Region North Dakota Texas 4% 34% Texas Lloydminst
Slide 7: Baytex – Three Key Oil Resource Plays
Baytex – 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 Completed Well
Slide 8: Profit Investment Ratio
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 9: The Eagle Ford
The Eagle Ford BANTEX
Slide 10: Strategic Entry into the Eagle Ford
Strategic Entry into the Eagle Ford The Eagle Ford Provides Baytex With Exposure to a World Class Oil Resource Play Overview of Acreage - 22,350 net contiguous acres in the Sugarkane Field in the core of the liquids-rich Eagle Ford shale. - The Sugarkane Field has been largely delineated which is ex
Slide 11: Eagle Ford – Gas/Liquids Window Map
Eagle Ford – Gas/Liquids Window Map Nine Eagle Ford Sub-Play Areas Eagle Ford Play Eagle Ford Play • Study based on production information received from the Texas Railroad Commission as of April 2014 • Over 8,500 wells included in the analysis • Excludes Austin Chalk, Olmos, Pearsall etc. Wood Macke
Slide 12: Eagle Ford - Wells Completed 2009 to 2014
Eagle Ford - Wells Completed 2009 to 2014 Wood Mackenzie breaks the Eagle Ford into nine distinct sub-play areas: (1) Northeast Oil, (2) Black Oil, (3) Karnes Trough Condensate, (4) Edwards Condensate, (5) Southeast Gas, (6) Southwest Gas, (7) Maverick Condensate, (8) Maverick Oil and (9) Hawkville
Slide 13: Eagle Ford – Sub-Play Risking
Eagle Ford – Sub-Play Risking Sub-Play Analysis Type Well Breakeven Source: Wood Mackenzie. Wood Mackenzie breaks the Eagle Ford into nine distinct sub-play areas: (1) Northeast Oil, (2) Black Oil, (3) Karnes Trough Condensate, (4) Edwards Condensate, (5) Southeast Gas, (6) Southwest Gas, (7) Maveri
Slide 14: Eagle Ford – Opportunity Summary
Eagle Ford – Opportunity Summary Eagle Ford Type Log Current Development - Lower Eagle Ford originally developed at 80-acre spacing; current development is now 60-acre spacing (volatile oil) and 40-acre spacing (condensate gas) Future Potential - Reserve upside exists through additional horizons in
Slide 15: Eagle Ford – Improving Performance
Eagle Ford – Improving Performance Increasing Development Performance and Recovery - Continuous improvements in drilling and completion design have increased 30-day IP rates by approximately 97% since Q4/2011 with 180-day cumulative recovery increasing 57% over the same time period - Drilling times
Slide 16: Eagle Ford - Key Attributes
Eagle Ford - Key Attributes - Material Production and High Quality Reserve Base - Substantial inventory of potential well locations to support future production growth - Reserve upside exists through additional horizons in the Austin Chalk and Upper Eagle Ford formations, downspacing and improving c
Slide 17: Heavy Oil Overview
Heavy Oil Overview 17
Slide 18: Peace River Oil Sands
Peace River Oil Sands 306 net sections of oil sands leases 553 million barrels of economic contingent resource * Area Statistics Production (Q2/2014) 26,100 bbl/d 2P Reserves (YE13) (1) 114 mmbbls Drilling Inventory (2) ~ 5 years (1) 2P Reserve breakdown = 67 million barrels (primary) and 47 milli
Slide 19: Multi-Lateral Cold Horizontal Wells
Multi-Lateral Cold Horizontal Wells Reservoir Characteristics (1) Formation Bluesky Depth 600 – 700 metres Oil Quality 11 °API Average Porosity 28% Permeability 0.5 – 5.0 darcies Oil Saturation 70% Recovery Factor 5 – 7% Well Economics (1) Well Design 8-10 laterals Completed Well Cost $2.6-$3.4 MM
Slide 20: Lloydminster Heavy Oil
Lloydminster Lloydminster Heavy Oil Heavy Oil 730 net sections; 212 million barrels of economic contingent resource * Area Statistics Production (Q2/2014) 19,900 bbl/d 2P Reserves (YE13) (1) 114 mmbbls Drilling Inventory (2) ~ 6.5 years (1) Includes SAGD projects at Gemini (44 million barrels) and
Slide 21: Lloydminster Development
Lloydminster Development Vertical Wells Completed Well Cost $450,000 Production (30-day IP) 30-50 bbl/d EUR 30-50 mbbl Capital Efficiency $11,250 per bbl/d Development Cost $11.25/bbl Horizontal Wells Completed Well Cost $950,000 Production (30-day IP) 70-80 bbl/d EUR 60-80 mbbl Capital Efficiency
Slide 22: Crude Oil Marketing
Crude Oil Marketing BAYTEX ENERGY CORP.
Slide 23: 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 ~ 19% for the remainder of this year (last four months) - Positive catalysts unfolding in 2014 should contribute to sustained lower differentials and stronger heavy
Slide 24: Heavy Oil Differential – WCS and Maya
Heavy Oil Differential – WCS and Maya 24
Slide 25: Oil Marketing Portfolio
Oil Marketing Portfolio Q3 2014 Heavy Oil Sales Portfolio WTI Financial Hedging Q3 / 2014 % Hedged 51% Fixed Price US$96.45/bbl Q4 / 2014 % Hedged 50% Fixed Price US$95.43/bbl FY 2015 % Hedged 19% Fixed Price US$94.60/bbl Percentage of hedged volumes are based on 2014 production guidance, net of roy
Slide 26: Why Invest in Baytex
Why Invest in Baytex Superior Asset Base Income Payout Proven Track Record - Low cost development - Committed to paying a - Strong balance sheet inventory – oil focus meaningful dividend - Sophisticated risk - Sector leading capital - Over $1.7 billion distributed management efficiency to shareholde
Slide 27: 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 Senior Vice Pr
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