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CORPORATE PRESENTATION JUNE 2016 All amounts in Canadian dollars unless indicated otherwise
1
Advisory Regarding Forward-Looking Information and Statements
June 2016
This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “will”, “expects”, “believe”, “plans”, “potential” and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this presentation contains forward-looking statements and information concerning: NuVista's future strategy, focus and opportunities; plans to maintain NuVista's balance sheet strength; profitably grow production and funds from operations and develop NuVista's resource base, plans to focus on and improve processing and infrastructure; the benefits of NuVista's risk management program; the anticipated benefits of NuVista's asset base; expected supply cost reductions; NuVista's exploration and development program; drilling, testing and completion plans, the timing thereof and the results therefrom; anticipated inventory of drilling locations and type of wells; estimated liquid yields; anticipated well economics including drilling, completion and equipping and tie-in costs; anticipated well performance and type curves; and other estimated operating, transportation, G&A and other costs; estimated liquid yields; netbacks, payouts, finding and development costs, capital efficiencies, recycle ratio and estimated rates of return; NuVista's ability to fulfill all TOP obligations; guidance with respect to NuVista's capital expenditure program, production mix, netback, funds from operations, targeted net debt levels and net debt to funds from operations ratios; commodity pricing and exchange rates and industry conditions. Statements relating to "reserves" and "resources" are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves or resources described exist in the quantities predicted or estimated and that the reserves or resources can be profitably produced in the future.
The forward-looking statements and information in this presentation are based on certain key expectations and assumptions made by NuVista, including prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future well production rates; reserve and resource volumes; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; debt service requirements and operating costs and the receipt, in a timely manner, of regulatory and other required approvals. Although NuVista believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because NuVista can give no assurance that they will prove to be correct. There is no certainty that NuVista will achieve commercially viable production from its undeveloped lands and prospects. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the oil and gas industry in general such as: operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation of petroleum and natural gas and loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; stock market volatility; and changes in legislation, including but not limited to tax laws, royalty rates and environmental regulations. Management has included the above summary of assumptions and risks related to forward-looking statements in order to provide a more complete perspective on NuVista's future operations. Readers are cautioned that this information may not be appropriate for other purposes. The foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of NuVista are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
This presentation also contains future-oriented financial information and financial outlook information (collectively, "FOFI") about our prospective results of operations and funds from operations, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI and forward-looking statements. NuVista’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI and forward-looking statements, or if any of them do so, what benefits NuVista will derive therefrom. NuVista has included the FOFI and forward-looking statements in this presentation in order to provide readers with a more complete perspective on NuVista’s future operations and such information may not be appropriate for other purposes. The FOFI and forward-looking statements and information contained in this presentation are made as of the date hereof and NuVista undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
2
NuVista Snapshot
Production (MBoe/d)
27% 50%
75% ~90%
95+%
28%
25%
17%
0
5
10
15
20
25
30
2013* 2014 2015 2016E 2017EWapiti Montney Wapiti Sweet Other
TSX trading symbol: NVA Market capitalization: ~$1.0 billion Basic shares outstanding: 156.6 million Bank revolver capacity: $200 million Percent Drawn: 45% Net Debt:Cashflow1: 1.5x
2016 Guidance Production: 23,500 – 24,500 Boe/d Capital investment: $165 – $175 million Funds from operations2: $110 – $120 million
1 June 2016 est. debt to Q116 Annualized Funds from Operations 2 Pricing Assumptions: $2.10/GJ AECO and US$50/Bbl WTI * Pro-forma 2013 Divestitures
Operating areas
WAPITI
EDMONTON
CALGARY
GRANDE PRAIRIE
June 2016
NuVista Corporate Info (June 30, 2016E)
3
NVA Principles and 2016 Guidance Focused on the Long Term… Flexibly managing the short term
June 2016
• Well costs down an additional 30% since 2014
• Continued improvement versus type curve
• Infrastructure spend complete for growth through 2018+
• Capex focused on well development in 2016-17, not on facilities
• G&A reduced by 1/2 over last 3 years, to $1.75/Boe for 2016
Reducing Costs & Improving Performance
• Net debt/funds flow from operations target under 2x and falling as strip pricing rises
• Flexibility to dial spending quickly down or upwards as commodity prices change
• Disciplined approach to capital spending
Maintain Balance Sheet Strength
• Short term pace of spend minimized while preserving long term take-away plans
• Result is 10% to 20% production per share growth with ~flat debt
• 2017 cash flow per share growth 15 to 50%(1)
• Optimized 2016 development well economics 30% to 60% IRR and 1.5 to 3.0 year payout(1)
Profitable Growth Tuned to Market Environment
Efficiency and Flexibility
(1)Range refers to Strip and Upside pricing cases, refer to Slide 7 for detailed assumptions
4
The Alberta Condensate-Rich Montney … A sweet spot in a "world class" play
High Quality
Reservoir
Overpressured 150-200 m thick
Condensate Rich
1. Scalable/Repeatable • Deposition on the shelf edge – not
isolated pockets • Gas charged top to bottom • Over-pressured – low water saturation
2. Porous and Permeable • Hydrocarbon filled porosity up to 9%
(typically 4-5%) • Sand/silt reservoir exhibits much better
permeability
3. Condensate-rich • High liquids and condensate
demonstrated in all our wells to date
4. Thick Formation • 150 – 200 metres • Multiple developable layers of resource
June 2016
The Alberta Condensate-Rich Montney Industry Drilling and Production growth continues…
*Excludes southern areas of Alberta Condensate-rich Montney (Resthaven and Simonette). Map is an estimate of Industry land positions compiled from public data
• High level of industry activity continues
• > 850 Montney HZ wells licensed and/or drilled to date
• Montney gas production exceeding 0.8 Bcf/d
Elmworth to Kakwa Montney HZ Activity Update*
June 2016
R9 W6 R10 W6
NuVista Encana Paramount Sinopec-Daylight CNRL Seven Generations Shell Apache Montney Licenses and Hz Wells
5
R6W6 R4W6 R2W6 R8W6
T65
T62
T61
T67
T69
T70
T68
T66
T64
T63
Elmworth to Kakwa Production Growth*
0
50
100
150
200
250
300
350
400
450
500
0
100
200
300
400
500
600
700
800
900
1000
Prod
ucin
g Hz
Wel
l Cou
nt
Avg.
Cal
enda
r Day
Gas
(M
Mcf
/d)
Avg. Gas Rate Producing Well Count
6
2016 Capital Guidance Ability to Adapt to Commodity Price Environment
June 2016
2015A FY Capex ($MM)
$185
$67
$10 $11
2016FY Capex – March Forecast ($MM)
$100
$10
$8 $6
DCET & Well OptimizationFacilities & Water MgmtMaintenanceOther
2015 Highlights: • 18 Montney Wells drilled • Built Elmworth Compressor Station
March 2016 Highlights: • Flexible capex program; reduced
from orig. Budget of $140M-$160M • 10-11 Wells in Bilbo & Elmworth • Minimal infrastructure spend
Development Focused
$273 MM $115-$135 MM
2016FY Capex – June Forecast ($MM)
$140
$14
$8 $6
June 2016 Highlights: • Increased capex as a result of
proceeds from strategic initiatives • Incremental development wells
added: total of ~18 Wells now planned
$165-$175 MM
Incremental Wells with Robust Economics
7
22.4 23.5 26.0
1.0
3.0
10
15
20
25
30
35
2015A 2016E 2017E
Upside Case Strip Case
June 2016
Funded Growth Plan at Strip and Upside Pricing…
Capital Expenditures ($MM) Production (MBoe/d)
(1)Assumptions: 2016 STRIP & UPSIDE: US$46/bbl WTI; C$2.00/GJ AECO; 1.31:1.0 C$:USD 2017 STRIP: US$51/bbl WTI; C$2.60/GJ AECO; 1.31:1.0 C$:USD 2017 UPSIDE: US$60/bbl WTI; C$3.00/GJ AECO; 1.27:1.0 C$:USD
$273
$165 $140
$10 $40
$100
$200
$300
2015A 2016E 2017E
Upside Case Strip Case
Cashflow(1) ($MM) Debt ($MM)(1)(3)
$125 $110 $125
$10
$50
$50
$100
$150
$200
2015A 2016E 2017E
Upside Case Strip Case $175
$120 $125
$50
$150
$250
2015A 2016E 2017E
Term Debt Bank Debt
$180 $175(2)
$273
22.4 24.5
29.0
(2) 2016 Capex approximately $100MM net of June 2016 W6 Asset Divestiture proceeds
(3) Working Capital Deficit not illustrated, which estimated to be approximately $20MM
8
0
1,000
2,000
3,000
4,000
5,000
6,0000 5 10 15 20 25 30 35 40
Dep
th (m
)
Days
2013 2014 2015
Recent wells: 4,700m in 17 days; 5,500m in 21 days
Recent Wells
$0
$2
$4
$6
$8
$10
$12
2013 2014 2015E 2016E
($M
) Relentless Improvement Efficiency and Well Costs
June 2016
$0
$100
$200
$300
$400
$500
$600
2013 2014 2015E 2016E
($00
0)
• Drilling and completion costs coming down steadily from efficiency improvements
• Record drilling cost of $2.8 MM with 4,750 metres of total measured depth
• Record completion costs of <$2.0 MM; average completion cost per stage placed has now dropped below $130,000
• In-field gathering largely in place – majority of 2016 wells will be on-lease tie-ins; limited expiry/step-out drilling
Average Annual Montney Drilling Curves Montney Well Cost (DCET) By Year
Montney Drilling & Completion Cost per Stage Operational Highlights
Recent Record Wells:
4,750m in 17 days; 5,500m in 21 days
Last 5 wells outperforming
these 2016 budget
expectations
9
0
100
200
300
400
500
600
700
0 6 12 18 24 30 36
Cum
ulat
ive
Prod
uctio
n (M
boe)
Time (Months)
2015 Type Curve (4.4 Bcf, 75 bbl/MMcf)2011-2013 (11 Wells)2014 (12 Wells)2015+ (10 Wells)
Relentless Improvement Bilbo Well Performance
June 2016
Bilbo Type Curve Progression
0
100
200
300
400
0 6 12 18 24
Cum
ulat
ive
Prod
uctio
n (M
Boe)
Time (Months)
2013 Type Curve (4.4 Bcf; 35 Bbls/MMcf)2014 Type Curve (4.4 Bcf; 45 Bbls/MMcf)2015 Type Curve (4.4 Bcf; 75 Bbls/MMcf)2016 Optimized Locations (5.0 Bcf; 66 Bbls/MMcf)
0
300
600
900
1,200
1,500
1,800
0 6 12 18 24
Sal
es P
rod
(Boe
/d)
Time (Months)
2016 Optimized Bilbo Well Production Profile
Two-year CTD production up 13% vs. 2015 and 38% vs. 2013
2016 Optimized Bilbo Total Production (Boe/d) 2016 Optimized Bilbo C5+ Production (Bbls/d)
NuVista's type curve based on Management's best estimates; Type Curve: Bcf = EUR; Bbls/MMcf = C5+ yield
Bilbo Well Production-to-Date
*Production groupings based off spud dates
10
Relentless Improvement Elmworth Well Performance
June 2016
Elmworth Type Curve Progression
0
100
200
300
400
0 6 12 18 24
Cum
ulat
ive
Prod
uctio
n (M
Boe)
Time (Months)
2013 Type Curve (4.4 Bcf; 35 Bbls/MMcf)2014 Type Curve (4.4 Bcf; 45 Bbls/MMcf)2015 Type Curve (6.0 Bcf; 45 Bbls/MMcf)2016 Optimized Loc's (6.5 Bcf; 42 Bbls/MMcf)
0
300
600
900
1,200
1,500
1,800
0 6 12 18 24
Sal
es P
rod
(Boe
/d)
Time (Months)
2016 Optimized Elmworth Total Production (Boe/d) 2016 Optimized Elmworth C5+ Production (Bbls/d)
2016 Optimized Elmworth Well Production Profile
Two-year CTD production up 7% vs.
2015 and 45% vs. 2013
Elmworth Well Production-to-Date
NuVista's type curve based on Management's best estimates; Type Curve: Bcf = EUR; Bbls/MMcf = C5+ yield
0
100
200
300
400
500
600
700
0 6 12 18 24 30 36
Cum
ulat
ive
Prod
uctio
n (M
boe)
Time (months)
2015 Type Curve (6 Bcf, 45 bbl/MMcf)Small Frac (3 Wells)Big Frac (12 Wells)
11
Montney Operations Activity Update
Elmworth 16 Wells Producing in the Development Block (IP30)
4 Elmworth Extension wells Producing (IP30) 1 New IP 30 – 1 Additional on-stream
1 Rig Drilling
Gold Creek 6 Producers (IP30)
One new IP 30
NVA New IP30 NVA Producing Montney (IP30) NVA In-Progress Wells Montney HZ’s
2016 Focus on Capital Efficiency • Increasing Montney Activity post-W6 Divestiture • ~18 Montney wells planned in 2016 • Minimal Infrastructure Capex required – filling
existing facilities • 2016 well performance expectations up 10-15%
over 2015
Attractive Land Tenure • NuVista has over 135,000 gross acres of land
(210 sections @ 86% WI) • Minimal 3rd party encumbrances • Manageable expiries
Activity Highlights • 4 New IP30's in Q1 – 4 Additional IP30's in Q2 • Increasing to 2 Rigs in Q3 • >60 wells on production
June 2016
T70
T68
T66
R8W6 R6W6
T67
T69
R7W6
Bilbo
33 Producers (IP30) 2 New IP30's – 2 Additional on-stream
1 New Extended-reach well completed (on-stream in July)
New Gold Creek IP30: Raw Gas: 4.4 MMcf/d (flat) Condensate: 710 Bbl/d Total Sales: 1,355 Boed CGR: 160 Bbl/MMcf
12
Elmworth Development Block Volume Ramp in-progress
June 2016
R9W6
T67
T68
NVA Montney IP30's
NVA In-Progress Wells
Montney Horizontal Wells
NVA Compressor Site Connected to SemCAMS
R8W6 1 New IP30
2 Additional Wells Recently On-Stream 1 Rig Drilling T69
0
1
2
3
4
5
6
7
8
9
Prod
uctio
n (M
boed
)
Sales Gas NGL's C5+
39 9
11
Cumulative-to-Date Bbls/MMcf
Condensate
Butane
Propane
North Montney Sales Production
Elmworth Well Performance
Raw Gas (Mcf/d)
C5+ (Bbl/d)
Total Sales
(Boe/d)
C5+ Yield (Bbl/
MMcf)
Well Count
IP30 6,305 312 1,298 49 16 IP60 5,662 268 1,154 47 15 IP90 5,375 236 1,078 44 13
IP180 4,169 172 837 41 9 IP360 3,186 126 635 39 8
13
Bilbo Development Block Focus on Efficient Production Additions in 2016
June 2016
NVA Montney IP30 Wells
NVA Montney In-Progress Wells
Montney Horizontal Wells
NVA 3-36 Compressor and connect to Keyera R6W6
T65
T66
2 New IP30's 2 Wells Recently On-Stream
1 Well Completed
0
2
4
6
8
10
12
14
16
Prod
uctio
n (M
boed
)
Sales Gas NGL's C5+
76
5 5
Cumulative-to-Date Bbls/MMcf
Condensate
Butane
Propane
South Montney Sales Production
Bilbo Well Performance
Raw Gas (Mcf/d)
C5+ (Bbl/d)
Total Sales
(Boe/d)
C5+ Yield (Bbl/
MMcf)
Well Count
IP30 6,341 642 1,618 101 33 IP60 5,604 515 1,383 92 31 IP90 5,123 450 1,245 88 31
IP180 4,331 343 1,021 79 26 IP360 3,235 226 737 70 22
Two New Step-Out IP30's Avg/Well: Raw Gas: 6.3 MMcf/d Condensate: 842 Bbl/d Total Sales: 1,732 Boed CGR: 134 Bbl/MMcf
14
A Closer Look at the NuVista 'Boe' Condensate Underpins Economics and Provides Torque to Oil Price Recovery
June 2016
NuVista Production Mix(1)
0
5,000
10,000
15,000
20,000
25,000
2013 2014 2015 2016E
71%
12%
17%
70%
22%
8% Nat Gas
Condensate
NGL's & Oil
NuVista 2016 Revenue Composition(2)
49%
49%
2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016E
(1) Pro-forma Divestitures (2) Based on WTI (USD/Bbl): $40.00; AECO (C$/GJ): $2.50; Fx (CAD:USD): 1.4:1
Boe/
d
Hedged or Unhedged: Condensate is ~50% of revenue from 22% of total
production
15
Wapiti Montney … Firm Egress Counts Built-in growth with generous capital flexibility in the short term … … and multiple options for the long term
CNRL Gold Creek Plant
Keyera Simonette Plant
SemCAMS K3 Plant SemCAMS Raw Gas Pipeline
Keyera Raw Gas and c5+ Pipeline
Alliance Sales Line
TCPL Sales Line
NuVista (100%) Bilbo Compressor Station
Raw Gas Capacity – 80 MMcf/d Condensate Cap'y – 8,000 Bbl/d
NuVista (100%) Elmworth Compressor Station
Raw Gas Capacity – 80 MMcf/d Condensate Cap'y – 4,000 Bbl/d
NuVista (50%) North Compressor Station
Raw Gas Capacity – 20 MMcf/d
Grande Prairie
Proposed 2018 Wapiti Area Gas Plants
June 2016
16
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
0
20
40
60
80
100
120
140
160
180
200
Mon
tney
Cap
acity
– B
oe/d
Mon
tney
Raw
Gas
Cap
acity
- M
Mcf
/d
SemCAMS Keyera Min TOP Commitment
30 MMcf/d
2016 Montney Production 20,000+ Boe/d 15,000+ Boe/d of Future Growth Capacity in Place
2013 2016 2015 2014
Wapiti Montney Processing Capacity Firm Capacity with TOP flexibility built in All products have virtually 100% FIRM downstream take-away
2017
15 MMcf/d
30 MMcf/d
35 MMcf/d
17 MMcf/d
30 MMcf/d
June 2016
New Sour Gas Plant
17
Commodity Price Risk Management We are well hedged with under 10% AECO exposure for 2016
June 2016
Floor C$ WTI price of $77.17/Bbl on ~52% of
2016 Q2-Q4 net production
Floor AECO price of $3.30/Mcf on ~71% of
2016 Q2-Q4 net production
Basis includes some Chicago pricing. Includes NYMEX hedges converted to an AECO equivalent price. Hedging position shown is post-W6 asset sale circa July 1, 2016
20.00
40.00
60.00
80.00
100.00
500
1,000
1,500
2,000
2,500
3,000
3,500
2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2
Pric
e, C
$/Bb
l
Hedg
ed V
olum
e, B
bl/d
Crude Oil Hedge Position
Bbl/d Capped Bbl/d Uncapped Avg. Floor Avg. Ceiling
0.75
1.50
2.25
3.00
3.75
4.50
20,000
40,000
60,000
80,000
100,000
120,000
2016Q2
2016Q3
2016Q4
2017Q1
2017Q2
2017Q3
2017Q4
2018Q1
2018Q2
2018Q3
2018Q4
2019Q1
Pric
e, C
$/G
J
Hedg
ed V
olum
e, G
J/d
Natural Gas Hedge Position
GJ/d Capped GJ/d Uncapped GJ/d AECO-NYMEX Basis Avg. Floor Avg. Ceiling
Only 5% of gas volumes exposed to AECO this
summer
18
Funds from Operations and netbacks hanging in there despite low commodity prices
45% 31%
52%
66% 72% 72% 79%
81%
17,823 14,493
18,030
23,165 23,215 21,448 21,622 23,355
25,484
-
5,000
10,000
15,000
20,000
25,000
30,000
Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116
Wapiti Montney Other Properties
NuVista Operating Results 2016 Guidance
Corporate Production (Boe/d)
Funds from Operations
2016 Actual Production (Boe/d)
Guidance (Boe/d)
Q1 25,484 24,500 - 25,000
2016 FY - 23,500 - 24,500
$19.26
$11.42
$16.47 $17.22 $14.52 $15.53 $16.00 $15.15
$13.06
$0
$5
$10
$15
$20
$25
$0$5
$10$15$20$25$30$35$40$45$50
Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116
($/B
OE)
($M
M)
Funds from Operations ($MM) Funds from Operations ($/BOE)
June 2016
2016 Actual Capex ($MM)
2016 Capex Guidance Range
($MM)
Q1 $61 -
2016 FY $165 - $175
76%
2016 Actual Funds from Operations
($MM)
2016 Funds from Operations
Guidance Range ($MM) (1)
Q1 $30 -
2016 FY $110 - $120
(1) Based on commodity pricing of US$50/Bbl WTI and $2.10/GJ AECO
19
Balance sheet comes first Top plays win at any price, wells keep improving Focused capital discipline & reducing unit costs No material unutilized TOP cost concerns Increasing our growth in stages as strip prices move up Hedging – strong downside protection through 2016+
but with full torque to oil prices 2017+
NuVista Looking Forward Flexibility and Strength in a Volatile Environment
We have the Assets We have the Will We have the Team We have the Strategy… To Deliver
June 2016
20
Advisory Regarding Oil and Gas Information & Other Advisories
ADVISORY REGARDING OIL AND GAS INFORMATION
Throughout this presentation the terms Boe (barrels of oil equivalent), MBoe (thousands of barrels of oil equivalent), MMBOE (millions of barrels of oil equivalent),Bcfe (billions of cubic feet of gas equivalent) and Tcfe (trillion of cubic feet of gas equivalent). Such terms may be misleading, particularly if used in isolation. The conversion ratio of six thousand cubic feet per barrel (6 Mcf: 1 Bbl) of natural gas to barrels of oil equivalent and the conversion ratio of 1 barrel per six thousand cubic feet (1 Bbl: 6 Mcf) of barrels of oil to natural gas equivalent is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Any references in this presentation to initial production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for NuVista. NuVista has presented certain typecurves and well economics which are based on NuVista’s historical production in the Bilbo and Elmworth development areas, in addition to production history from analogous Montney developments located in close proximity to the Wapiti area. Such type curves and well economics are useful in understanding management's assumptions of well performance in making investment decisions in relation to development drilling in the Montney area and for determining the success of the performance of development wells; however, such type curves and well economics are not necessarily determinative of the production rates and performance of existing and future wells. In this presentation, estimated ultimate recovery represents the estimated ultimate recovery associated with the type curves presented; however, there is no certainty that NuVista will ultimately recover such volumes from the wells it drills. In presenting such type curves, inputs and economics information, NuVista has used a number of oil and gas metrics which do not have standardized meanings and therefore may be calculated differently from the metrics presented by other oil and gas companies. Such metrics include "Development Well Capital", "raw EUR", "NPV10", "PIR", "payout", "ROR", "netback", "F&D" and "capital efficiency". Development well capital includes all capital spent to drill, complete, equip and tie-in a well. Raw EUR represents the estimated ultimate recovery of resources associated with the type curves presented. NPV 10 represents the anticipated net present value of the future net revenue discounted at a rate of 10% associated with the type curves presented. PIR (Profit to Investment Ratio) is the ratio of the NPV 10 relative to the development well capital. Payout means the anticipated years of production from a well required to fully pay for the development well capital of such well. ROR means the rate of return of a well or the discount rate required to arrive at a NPV equal to zero. Netback equals total revenues on a BOE basis (excluding realized commodity derivative gains/losses) less royalties, transportation and operating costs. F&D is the anticipated full exploration and development costs associated with each barrel of oil equivalent expected to be recovered from a well based on the type curves and economics presented. Capital efficiency is a measure of expected development well capital divided by average first year production results (IP365) from such well based on the type curve presented. It should not be assumed that the future net revenues (NPV10) included in this presentation represent the fair market value of the reserves. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties due to the effects of aggregation. NON-GAAP MEASUREMENTS Within this presentation, references are made to terms commonly used in the oil and natural gas industry. Management uses funds flow, debt to annualized funds from operations and netback to analyze operating performance and leverage. Funds from operations as presented, does not have any standardized meaning prescribed by GAAP and therefore it may not be comparable with the calculation of similar measures for other entities. All references to funds from operations throughout this presentation are based on cash flow from operating activities before changes in non-cash working capital, environmental remediation expenses, note receivable allowance (recovery) and asset retirement expenditures. Netbacks equals total revenues excluding realized commodity derivative gains/losses less royalties, transportation and operating costs. Debt (net debt) is calculated as long-term debt plus current assets less current liabilities and excludes the current portions of the commodity derivative asset or liability.
June 2016
21
Advisory Regarding Reserves Disclosure
RESERVES DISCLOSURE The reserves estimates prepared herein have been evaluated by an independent qualified reserves evaluator in accordance with NI 51-101 and the COGE Handbook and is effective December 31, 2015 and is based on an independent evaluation by GLJ using January 1, 2016 forecast pricing. The reserves have been categorized accordance with the reserves and resource definitions as set out in the COGE Handbook, which are set out below: Reserves are estimated remaining quantities of petroleum anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical, and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Reserves are further classified according to the level of certainty associated with the estimates and may be sub-classified based on development and production status. Proved Reserves are those quantities of petroleum, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs and under existing economic conditions, operating methods and government regulations. Probable Reserves are those additional quantities of petroleum that are less certain to be recovered than Proved Reserves, but which, together with Proved Reserves, are as likely as not to be recovered.
June 2016
22
APPENDIX
June 2016
23
Gold Creek Delineation Continued Encouragement…
June 2016
16-1 On-production
16-19 On-production
16-27 On-production
1-28 On-production
8-12 New IP30
IP30
Well Raw Gas (MMcf/d)
C5+ (Bbls/d)
Total Sales (Boe/d)
C5+ Yield (Bbl/MMcf)
16-19 6.8 377 1,307 56 13-25 1.8 263 543 146 1-28 2.9 462 876 161 16-01 7.3 489 1,635 67 16-27 4.6 256 1,044 55 8-12 4.4 710 1,355 160
Cumulative Production to Date (June 15, 2016)
Well Days on Prod
C5+ Yield Condensate Cumulative Sales Gas Total
(Bbl/MMcf) (Mbbls) (MMcf) (MBoe)
16-19 339 56 52 775 197 13-25 232 123 36 257 81 1-28 451 121 120 860 270
16-01 245 49 40 694 170 16-27 322 40 39 832 193
13-25 Shut-in pending tie-in
24
2015 Year-end Reserves Report
2015 Year-end Reserves Report – GLJ Petroleum Consultants Ltd. • PDP reserves volume increased 40% before production and dispositions, or 13% after • Corporate TP+PA reserves volume increased by 15% • Corporate TP+PA F&D of $3.69/Boe & TP F&D of $8.11/Boe – 2015 Corporate Netback
$15.28/Boe – TP+PA Recycle Ratio 4.1x & TP Recycle Ratio 1.9x • Corporate TP+PA B-Tax NPV10% decreased 25% to $1.1 billion primarily due to a ~30%
reduction in GLJ's price forecast* • Reserve Life Index now at ~27 years and ~13 years on a TP+PA and TP basis, respectively • Montney TP+PA average reserves per well increased 4% vs. 2014; Montney TP+PA well
locations now 253, an increase of 23% compared to year end 2014
12 29 86
184 225
98 65
53
36
28
0
50
100
150
200
250
300
2011 2012 2013 2014 2015
Other Wapiti Montney
Corporate TP+PA Reserves (MMBoe)
253
87 167
847 1,155
938
1,197
612
476
251
120
0
200
400
600
800
1,000
1,200
1,400
1,600
2011 2012 2013 2014 2015
Other Wapiti Montney
Corporate TP+PA NPV10% ($MM)
1,058
Corporate TP+PA Reserves by Area
* Based on first 3 yr avg prices See Appendix for important disclosures regarding Reserves June 2016
89%
9%
2% MTY
W6 SWT
Non-W6
25
Condensate Pricing Strong demand and premium price for the long term
• Condensate is used in Alberta as a diluent to ship heavy oil on pipelines
• Condensate in Alberta is typically priced at a premium to crude oil
• US condensate supply is increasing
• But condensate export restrictions are easing
• Condensate must be transported to Alberta – "we're on the right end of the pipe"
• Premium for condensate will always reflect the cost of transportation to deliver to Alberta while demand outstrips local Alberta production … and it still does
Western Canada Condensate Supply and Demand
June 2016
Western Canadian Condensate Pricing
26
Lower Montney Activity NuVista Data Collection In Progress
Elmworth
Wapiti
South Wapiti
Gold Creek
Bilbo
Kakwa
Karr
Pipestone
SCL 1-33-67-5W6 Producing
7Gen 13-24-65-5W6 Producing (dual lateral)
7Gen 12-32-64-5W6 Producing
7Gen 15-22-63-3W6 Producing
Confidential 30-Jan-2016
NVA Lands Montney Wells LWR Montney A Wells LWR Montney Cores
• Multiple pilot wells in progress by industry – Early Production Data Emerging
• NuVista has good distribution of vertical wells and cores
• NuVista vertical completion: over pressured, condensate-rich
• NuVista pilot deferred until commodity price recovery
NVA 15-13-68-7W6 Vertical Over-pressured – 133 Bbls/MMcf condy
June 2016
ACL 1-7-67-7W6 Producing
Confidential: 07-Oct-2015
SCL 9-27-66-7W6 Confidential: 14-Feb-2016
T70
T68
T66
R9W6 R7W6 R5W6 R3W6