Peyto Exploration & Development Corp. · TSX:PEY
Peyto Exploration & Development — Investor Presentation (January 2016)
32 slides from Peyto Exploration & Development's investor presentation, Jan 15, 2016
Slide 1: Notes: Table of Contents
Notes Table of Contents PEYTO Exploration & Development Corp. • Corporate Governance • Corporate Insurance • Performance Based Compensation • Distribution History • Major Share Placements • Financing (2015 - 1997) • Officers • Directors 1 1/15/2016
Slide 2: Corporate Governance
Corporate Governance PEYTO Exploration & Development Corp. • “We will be candid in our reporting, emphasizing the pluses and minuses important in appraising business value. Our guideline is to tell you the business facts that we would want to know if our positions were reversed.” • “Our policies and
Slide 3: Corporate Insurance
Corporate Insurance PEYTO Exploration & Development Corp. • General Liability (including pollution) $15 Million • Property (gas plants, wellsites, office) $135 Million (includes limited business interruption* coverage) • Operator’s Extra Expense (well control) $20 Million • Directors and Officers $4
Slide 4: Performance Based Compensation
Performance Based Compensation PEYTO Exploration & Development Corp. • Market Based Compensation “The principle behind our performance compensation is to compensate performance which • compensates employees based on share price benefits the sharetholder. We are confident that our plan is performance
Slide 5: Performance Based Compensation: Reserve Value Component Rules
Performance Based Compensation Reserve Value Component PEYTO Exploration & Development Corp. • Rules • At the time of payout, a share of the performance based compensation is allocated, based on performance, to employees and key consultants. • Each year an independent engineering firm calculates the
Slide 6: Performance Based Compensation: Market Component Rules
Performance Based Compensation Market Component PEYTO Exploration & Development Corp. • Rules • At time of grant, a share of the performance based compensation is allocated to employees and key consultants. • Rights vest over one to three year periods. • The size is not to exceed 6% of total shares
Slide 7: Performance Based Compensation: Market Component (as of June 30, 2015)
Performance Based Compensation Market Component (as of June 30, 2015) PEYTO Exploration & Development Corp. To be valued @ Dec. 31/16 **Valued but not paid Average Grant Number of Number of Outstanding Vesting Date Price Rights Rights Value 12/31/2016 $ 24.09 1,266,167 1,004,718 $ 3,107,496 12/31/20
Slide 8: Performance Based Compensation: Market Component (2)
Performance Based Compensation Market Component (2) PEYTO Exploration & Development Corp. “Before we converted to a trust the market based compensation maximum was set at 10% of the shares outstanding. As a trust the maximum level was set by the board at 6-7% (units outstanding). Since that time, th
Slide 9: Distribution/Dividend History
Distribution/Dividend History PEYTO Exploration & Development Corp. Distribution Distribution Number of Units Distribution Distribution Number of Distribution Distribution Number of Dividend Number of Dividend per Number of Month per Unit O/S Month per Unit Units O/S Month per Unit Units O/S per Sha
Slide 10: Major Share Placements
Major Share Placements PEYTO Exploration & Development Corp. Shares Is s ue Pri ce Net Proceeds Des cri pti on Year (000's ) ($/s hare) (000's ) Ini ti al Capi tal i zati on, Founders and Publ i c 1998 22,956 $ 0.08 $ 1,676 Ri ghts Offeri ng, Pri vate Pl acement to Outs i de Party 1999 26,098 $ 0.16
Slide 11: 2016 Financing
Financing (2016) PEYTO Exploration & Development Corp. • 2016 • $3,768,969 Private Placement Share Issue (149,030 Shares $25.29/share) – January 6, 2016 • Private placement of Common Shares to employees and consultants. Shares were priced based on the five day weighted average prior to the year end.
Slide 12: 2015 Financing
Financing (2015) PEYTO Exploration & Development Corp. • 2015 • $5,625,036 Private Placement Share Issue (168,920 Shares $33.30/share) – January 7, 2015 • Private placement of Common Shares to employees and consultants. Shares were priced based on the five day weighted average prior to the year end.
Slide 13: 2014 Financing
Financing (2014) PEYTO Exploration & Development Corp. • 2014 • $160,480,000 Equity Issue (4,720,000 shares $34.00/share) – February 5, 2014 • February 5, 2014 issued 4,720,000 common shares at $34.00/share for gross proceeds of $160,480,000. These funds were initially be used to pay down bank debt.
Slide 14: 2013 Financing
Financing (2013) PEYTO Exploration & Development Corp. • 2013 • $3,394,852 Private Placement Share Issue (154,550 Shares $22.38/share) – January 7, 2013 • Private placement of Common Shares to employees and consultants. Shares were priced based on the five day weighted average prior to the year end.
Slide 15: 2012 Financing (continued)
Financing (2012) Cont. PEYTO Exploration & Development Corp. • 2012 • $110,034,005 Equity Issue (4,628,750 shares $24.85/share) – November 20, 2012 • November 20, 2012 issued 4,628,750 common shares at $24.85/share for gross proceeds of $115,024,438. These funds were initially be used to pay down ba
Slide 16: 2012 Financing
Financing (2012) PEYTO Exploration & Development Corp. • 2012 • $50,000,000 Private Placement of Senior Secured Notes (10 yr., 4.88%) – September 6, 2012 • Private placement of senior secured notes with Prudential Investment Management Inc. The notes have a coupon rate of 4.88% and mature on Septemb
Slide 17: 2011 Financing
Financing (2011) PEYTO Exploration & Development Corp. • 2011 • $9,740,202 Private Placement Share Issue (397,235 Shares $24.52/share) • Private placement of Common Shares to employees and consultants. Shares were priced based on the five day weighted average prior to the year end. The total proceed
Slide 18: 2010 Financing
Financing (2010) PEYTO Exploration & Development Corp. • 2010 • $12,423,260 Private Placement Share Issue (655,581 Shares $18.95/share) • Private placement of Common Shares to employees and consultants. Shares were priced based on the five day weighted average prior to the year end. The total procee
Slide 19: 2009 Financing
Financing (2009) PEYTO Exploration & Development Corp. • 2009 • $2,728,274 Private Placement Unit Issue (196,420 Units $13.89/unit) • Private placement of Trust Units to employees and consultants. Units were priced based on the five day weighted average prior to the year end. The total proceeds from
Slide 20: 2008 Financing
Financing (2008) PEYTO Exploration & Development Corp. • 2008 • $550,000,000 Revolving Line of Credit from Bank • 2007 year end review, increased to $550,000,000 Revolving Line of Credit with the Bank of Montreal, BNP Paribas, Royal Bank of Canada, and the Union Bank of California, Société Genéral,
Slide 21: 2007 Financing
Financing (2007) PEYTO Exploration & Development Corp. • 2007 • $525,000,000 Revolving Line of Credit from Bank • 2006 year end review, increased to $525,000,000 Revolving Line of Credit with the Bank of Montreal, BNP Paribas, Royal Bank of Canada, and the Union Bank of California, Société Genéral,
Slide 22: 2006 Financing
Financing (2006) PEYTO Exploration & Development Corp. • 2006 • $6,928,366 Private Placement Unit Issue (312,370 Units $22.18/unit) • Private placement of Trust Units to employees and consultants. Shares were priced based on the five day weighted average prior to the reserves report. The total proce
Slide 23: 2005 Financing
Financing (2005) PEYTO Exploration & Development Corp. • 2005 • $4,500,125 Private Placement Unit Issue (175,000 Units $25.72/unit) • Private placement of Trust Units to employees and consultants. Units were priced based on the ten day weighted average prior to the reserve report. The total proceeds
Slide 24: 2004 Financing
Financing (2004) PEYTO Exploration & Development Corp. • 2004 • $230,000,000 Revolving Line of Credit from Bank • 2003 year end review, increased to $230,000,000 Revolving Line of Credit with the Bank of Montreal, CIBC, National Bank of Canada and the Union Bank of California • $300,000,000 Revolvin
Slide 25: 2003 Financing
Financing (2003) PEYTO Exploration & Development Corp. • 2003 • $180,000,000 Revolving Line of Credit from Bank • Increased to $180,000,000 Revolving Line of Credit with the Bank of Montreal, CIBC, National Bank of Canada and the Union Bank of California • $29,813,189 Private Placement Share Issue (
Slide 26: 2001-2002 Financing
Financing (2001-2002) PEYTO Exploration & Development Corp. • 2001 • $50,000,000 Revolving Line of Credit from Bank • Moved from $25,000,000 Revolving Line of Credit with the National Bank of Canada to a $50,000,000 Revolving Line of Credit with the Royal Bank of Canada. • $60,000,000 Revolving Line
Slide 27: 2000 Financing
Financing (2000) PEYTO Exploration & Development Corp. • 2000 • $2,700,000 Convertible Debenture issued to Paramount Resources Ltd. • Bears interest at 3% per annum; Convertible at $0.30/share over five year term. Redeemable after July 1, 2000 if trading price above $0.42/share. Issued January 2000
Slide 28: 1999 Financing
Financing (1999) PEYTO Exploration & Development Corp. • 1999 • $267,000 Private Placement • Issued 2,970,000 shares at $0.09/share, January 1999 • $2,073,037 Shareholder Rights Offering • Issued 13,108,670 shares, November 1999 • $2,500,000 P&NG Purchase from Paramount Resources Ltd. • Originally F
Slide 29: 1997-98 Financing
Financing (1997-98) PEYTO Exploration & Development Corp. • 1997 (before Peyto Management) • $250,000 Private Placement to JCP Founders • Issued 5,000,000 shares at $0.05/share March 1997 • $250,000 JCP IPO • Issued 2,500,000 shares at $0.10/share December 1997 • 1998 October 23, 1998 Peyto Starts a
Slide 30: Officers
Officers PEYTO Exploration & Development Corp. Darren Gee, President, CEO, Director (P.Eng.) Professional Engineer, oil & gas reservoir, evaluation, production & exploitation engineering experience since 1989, B.Sc. Mechanical Engineering, University of Alberta. Joined Peyto 2001 Scott Robinson, Exe
Slide 31: Directors
Directors PEYTO Exploration & Development Corp. Darren Gee, President and CEO (2007-present) Scott Robinson, Executive VP Operations and COO Don T. Gray, Chairman, Co-founder (CEO & President 1998-2006) Mick MacBean, Lead Independent Director, Chartered Accountant, Managing Director of TriWest Capit
Slide 32: Advisory Regarding Forward-Looking Statements
Advisory Regarding Forward-Looking Statements PEYTO Exploration & Development Corp. This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "obj
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