Baytex Energy Corp. · TSX:BTE
Baytex Energy — EnerCom's The Oil & Gas Conference 2014
30 slides from Baytex Energy's conference presentation, August 2014
Slide 1: EnerCom's The Oil & Gas Conference
EnerCom’s The Oil & Gas Conference August 17-21, 2014 Denver, Colorado James Bowzer, President and CEO Brian Ector, Senior Vice President, 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: 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 6: Corporate Profile
Corporate Profile Summary of Securities Trading Symbol TSX / NYSE: BTE Average Daily Volume (1) Canada: 820,883 / U.S.: 150,415 Shares Outstanding (Current) 166.1 million Market Capitalization / Enterprise Value $8.0 billion / $10.2 billion Total Monetary Debt (2) $2.2 billion Monthly Dividend / Div
Slide 7: Operating Areas
Operating Areas 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 Lloydminster Peace River 33
Slide 8: Oil-Equivalent Production Growth
Oil-Equivalent Production Growth 80,000 60,000 boe / d 40,000 75,000 57,196 50,132 53,986 20,000 40,239 41,382 44,341 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% 86% (1) Based on mid point of guidance ra
Slide 9: 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 10: 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 11: 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 12: The Eagle Ford
The Eagle Ford BANTEX
Slide 13: 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 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 • Baytex’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 - 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 16: Eagle Ford – Improving Performance
Eagle Ford – Improving Performance Increasing Development Performance and Recovery - A subsidiary of Marathon Oil Corporation is the operator of the majority of Baytex’s Eagle Ford position - Continuous improvements in drilling and completion design have increased 30-day IP rates by approximately 97
Slide 17: 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 18: Heavy Oil Overview
Heavy Oil Overview 18
Slide 19: 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 20: 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 21: 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 22: 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 23: Crude Oil Marketing
Crude Oil Marketing BAYTEX ENERGY CORP.
Slide 24: 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 ~ 23% for the remainder of this year (last four months) - Positive catalysts unfolding in 2014 should contribute to sustained lower differentials and stronger heavy
Slide 25: Heavy Oil Differential – WCS and Maya
Heavy Oil Differential – WCS and Maya 25
Slide 26: 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$94.60/bbl Percentage of hedged volumes are based on 2014 production guidance, net of roy
Slide 27: Corporate Growth Strategy
Corporate Growth Strategy BAYTEX :
Slide 28: Updated 2014 Operating Plans
Updated 2014 Operating Plans Q1/2014 Q2/2014 H1/2014 H2/2014 FY 2014 2014 Guidance Summary Actual Actual Actual Guidance Guidance (1) Production (boe/d) 59,502 66,934 63,239 86,000-88,000 74,000-76,000 Capital Expenditures ($ millions) $172 $149 $321 $440-465 $765-790 (1) Numbers may not add due to
Slide 29: 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 30: 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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