Bonterra Energy Corp. · TSX:BNE
Bonterra Energy — Investor Presentation (March 2015)
23 slides from Bonterra Energy's investor presentation, March 2015
Slide 1: Bonterra Energy Corp. March 2015
BONTERRA ENERGY CORP. MARCH 2015 YIELD GROWTH SUSTAINABILITY
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION Certain statements contained in this Presentation include statements which contain words such as “anticipate”, “could”, “should”, “expect”, “seek”, “may”, “intend”, “likely”, “will”, “believe” and similar expressions, statements relating to matters that are not historical
Slide 3: Rate of Return
RATE OF RETURN SUPERIOR LONG-TERM RETURNS TO SHAREHOLDERS Combined Share Price Dividend * Based on March 3, 2015 closing price of $41.82 $75.90 $41.82 $34.08 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Mar-15 2
Slide 4: Dividend History
DIVIDEND HISTORY $0.40 $0.35 $0.30 $0.30 $0.29 $0.28 $0.26 $0.25 $0.24 $0.22 $0.21 $0.20 $0.18 $0.16 $0.16 $0.15 $0.15 $0.14 $0.12 $0.10 $0.05 $- 3
Slide 5: Current Snapshot
CURRENT SNAPSHOT CORPORATE PROFILE Shares outstanding 32.1 million Market capitalization $1.34 billion Insider ownership 12% Current monthly dividend $0.15 per share Current annualized yield(1) 4.3% Oil and liquids weighting – Q4 71% (6% liquids) Reserve life index (PDP) 7 years Reserve life index (
Slide 6: Financial Results
FINANCIAL RESULTS HIGHLIGHTS Q3 9 Months Year (000s except per share amounts) 2014 2014 2013 Funds Flow $57,705 $177,739 $181,574 Per share – basic $1.80 $5.57 $6.01 Payout ratio 50% 47% 55% Cash from other sources (3) $7,500 $39,000 $32,903 Cash Dividends per share $0.90 $2.64 $3.33 Average Daily P
Slide 7: Guidance
GUIDANCE OUTLOOK NINE MONTHS YEAR 2013 (000s except per boe amounts) 2014 GUIDANCE 2014 ACTUAL Average production 12,400-12,700 boe/d 13,096 boe/d 12,190 boe/d Operating costs ~$13.00/boe $14.37/boe(2) $12.77/boe Corporate netbacks $41.33/boe(1) $49.28/boe $40.58/boe Funds flow from commodities $200
Slide 8: Production Forecast
PRODUCTION FORECAST Base Spartan HZ Pembina Acquisition Capital Forecast 16,000 14,000 12,000 10,000 BOE/d 8,000 6,000 4,000 2,000 0 Month Note: Capital expenditures 2016 are not included in this chart 7
Slide 9: Cash Flow Sensitivities
CASH FLOW SENSITIVITIES Per Annum Cash Flow Sensitivity Analysis(1) (estimate for 2014) Cash Flow(3) Per Share(2) Change of U.S. $1.00 per barrel of oil and NGLs $2,528,000 $0.08 Change of Canadian $0.10 per MCF of natural gas $ 786,000 $0.02 Change of Canadian $0.01 / U.S.$ exchange rate $2,149,000
Slide 10: Increasing Shareholder Value: Production
INCREASING SHAREHOLDER VALUE Production per Share Production Profile (boe per share) 0.147 0.150 0.124 0.119 0.109 29% Natural Gas 0.101 71% Oil/NGLs 13,195 12,190 2009 2010 2011 2012 2013 2014 Gross Production (boe per day – year over year growth) 6,703 Oil/Liquids 6,322 5,628 Natural Gas 4,994 4,0
Slide 11: Increasing Shareholder Value: Reserves
INCREASING SHAREHOLDER VALUE Reserves per Share Reserves Profile (boe per share) (Proved plus Probable) (Proved plus Probable) 2.47 2.50 2.28 2.09 2.13 29% Natural Gas 1.99 71% Oil/NGLs 80,248 74,981 2009 2010 2011 2012 2013 2014 Gross Reserves (MBOE - Proved plus Probable – year over year growth) 4
Slide 12: Pembina Acquisition
PEMBINA ACQUISITION R11 R10 R9 R8 R7 R6 R5W5 DEAL RATIONALE • Pembina Cardium Tuck-In T51 • Operational Synergy / Facility Consolidation T50 • 1,800 Boe/d • 86% Oil & NGL’s T49 • 7% Decline • Reserves (Proved) – 9,861 MBOE T48 • Reserves (P+P) – 13,039 MBOE T47 • Potential Cardium Locations – 244 gr
Slide 13: Cardium Lands
CARDIUM LANDS LAND • Average working interest – 76% • Bonterra operates 88.5% of its total production • Reserve life index (Proved) – 11 years • Reserve life index (P+P) – 16 years • Reserves (P+P) – 93.3 MBOE • Land position – 292 gross (201 net) sections • Booked locations – 271 gross (234 net) we
Slide 14: Pembina Cardium
PEMBINA CARDIUM ORIGINAL OIL IN PLACE PER SECTION RECOVERY FACTOR 0 to 5,000 Mbbl 0% 5,000 to 10,000 Mbbl 5% 10,000 to 20,000 Mbbl 10% 20,000 to 25,000 Mbbl 15% 25,000+ Mbbl 20% 25% KEY CHARACTERISTICS • Pembina is the largest conventional oilfield in Canada with large oil in place and low recovery
Slide 15: Pembina Cardium Development
PEMBINA CARDIUM DEVELOPMENT CONVENTIONAL VERTICAL DEVELOPMENT • 4 vertical wells • Estimated ultimate oil recovery: 378,000 Bbl • Recovery factor: 3.3% 8 HZ WELLS* PER SECTION DEVELOPMENT • Estimated ultimate oil recovery: 1,178,000 Bbl • Recovery factor: 10.2% • Number of wells per section on prima
Slide 16: Drilling Innovation
DRILLING INNOVATION Spud to Rig Release Normalized to 3,000m MD 20 15 DAYS 10 5 0 2008 2009 2010 2011 2012 2013 2014 2015 YEAR • Transition from intermediate casing design to monobore design • Advances in bit technology 15
Slide 17: Completion Innovation
COMPLETION INNOVATION TRANSITION FROM OPEN HOLE TO CASED HOLE • Increased recovery • Accurate and even placement of fracs • Increased number of fracs per well. • Reduced costs per frac Packers Cemented $100,000 $90,000 $80,000 $70,000 $/stage $60,000 $50,000 $40,000 $30,000 $20,000 10 15 20 25 30 35
Slide 18: Pad Development
PAD DEVELOPMENT ADVANTAGES – ‘ASSEMBLY LINE’ DEVELOPMENT Concentration of activity that dramatically increases capital efficiencies and minimizes surface disturbance 17
Slide 19: Pembina Cardium Development
PEMBINA CARDIUM DEVELOPMENT 13 12 11 10 9 8 7 6 5 4 3 2W5 51 50 49 48 47 46 45 18
Slide 20: Carnwood Area
CARNWOOD AREA Drilled 2015 Completions 2015 Drills Potential locations Sections: 38 gross (35 net); Locations (6 to 8 wells per section): ~300 gross (280 net) 19
Slide 21: Average BNE Cardium Economics
AVERAGE BNE CARDIUM ECONOMICS BNE AVERAGE HZ METRICS 300 Total capital costs per well ($MM) 2.6 Reserves per well (MBOE) 165 IP (1 month) (boe/d) 255 250 IP (12 months) (boe/d) 124 Internal rate of return (% BT) 71 200 Payout (years) 1.4 Recycle ratio 1.8 BOE/D 150 Price Deck: Sproule 2015 Q1 (WTI:
Slide 22: Why Invest in Bonterra?
WHY INVEST IN BONTERRA? QUALIFIED AND EXPERIENCED STAFF SUSTAINABLE FOCUS ON PER DIVIDEND SHARE GROWTH LARGE INVENTORY CONCENTRATED BONTERRA OF HIGH QUALITY ASSET BASE DRILL LOCATIONS FOCUS ON GOOD ACCESS TO TECHNOLOGICAL MARKETS INNOVATION STRONG BALANCE SHEET 21
Slide 23: Corporate Information
CORPORATE INFORMATION BOARD OF DIRECTORS BANKERS G. J. Drummond CIBC, Calgary, Alberta G. F. Fink National Bank of Canada, Calgary, Alberta R. M. Jarock J. P. Morgan, Calgary, Alberta C. R. Jonsson TD Securities, Calgary, Alberta R. A. Tourigny Alberta Treasury Branch, Calgary, Alberta HEAD OFFICE O