Corporate Presentation AUGUST 2018 The largest Canadian energy producer that nobody has heard of…
Why you should care Jupiter Resources Corporate Presentation | 2 • Canada’s 5 th largest gas-weighted producer • 2 nd largest Deep Basin pure play • Consistently drill some of Canada’s highest productivity gas wells • Scalable platform with deep inventory of low-risk resource • Targeting all-in corporate returns on capital investment > 20% JUPITER PROPERTIES WESTERN CANADA SEDIMENTARY BASIN DEEP BASIN FAIRWAY MAJOR GAS PIPELINES
Why we operate in the deep basin Jupiter Resources Corporate Presentation | 3 Technology matters High productivity wells - Leverage strong, integrated technical - Deeper, over-pressured reservoirs team to differentiate our results - Higher relative permeability - Employ risked innovation and challenge the status quo Large multi-zone Strong economic returns resource potential - Prolific natural gas wells supported - Multiple, high quality stacked targets by significant liquids content - Vast database from historical vertical - Low operating costs and good wells & existing 3D seismic infrastructure
Significant resource across ~350k net acres Jupiter Resources Corporate Presentation | 4 Over 6 Tcfe WOLF CREEK RED ROCK KAKWA RESTHAVEN of recoverable resource identified in proven horizontal target formations PEMBINA MUSREAU alone (Cardium, Dunvegan, Falher C, Falher F, Wilrich) PEMBINA CUTBANK JUPITER KAKWA JUPITER RESTHAVEN STRATIGRAPHIC LEGEND FUTURE HORIZONTAL TARGET FORMATION PEMBINA RESTHAVEN PROVEN HORIZONTAL TARGET FORMATION TARGET FORMATION COMPANY LAND GAS PROCESSING PLANTS MAJOR GAS PIPELINES
Our diversified, high quality inventory Jupiter Resources Corporate Presentation | 5 >6 TCFE total resource From proven formations PROVED 20% FALHER F 43% OTHER 9% PROBABLE 13% WILRICH 24% DUNVEGAN E 7% ADDITIONAL RESOURCE 67% FALHER C 11% CARDIUM 6% Creating value in everything we do Resource split by area 735 derisked future locations (net) DUNVEGAN E 11% FALHER F 31% WOLF CREEK 39% RESTHAVEN 26% FALHER C 9% WILRICH 27% RED ROCK 5% KAKWA 30% OTHER 7% CARDIUM 15% Total Resource includes remaining reserves from 64 wells drilled from 2014 – 2017; Other locations based on preliminary analysis of additional formations including Falher B & Notikewin
Midstream capacity to support 20% growth Jupiter Resources Corporate Presentation | 6 800 700 600 500 RAW GAS VOLUME (mmcf/d) 400 300 Shut-in production exposed to daily AECO pricing 200 100 0 JAN-15 JAN-16 JAN-17 JAN-18 JAN-19 JAN-20 JAN-21 MUSREAU JUPITER RESTHAVEN KAKWA PROCESSING CAPACITY CUTBANK NGTL (raw gas eq) RESTHAVEN
Securing market access Jupiter Resources Corporate Presentation | 7 Natural Gas transportation capacity secured through long term agreements ~ 510 MMcf/d firm sales gas transportation Additional future capacity: 2019: +65 MMcf/d 2020: +130 MMcf/d Primarily exposed to AECO (NIT) pricing Very liquid market with growing Intra-AB demand 50,000 GJ/d optionality to Malin JUPITER MARKET EXPOSURE KEY MARKET HUB MAJOR GAS PIPELINES
Strategy of longer laterals and larger stimulations Jupiter Resources Corporate Presentation | 8 Lateral length and proppant intensity evolution Sequential accumulation of initial production Jupiter is the leader in proppant loading and well length Operators show consistency in cumulative production resulting in the out performance of peers within the over time with some noticeable changes in performance Deep Basin. 3,500 IP 180 SEQUENTIAL ACCUMULATION (Bcf/d) 2014+ Completions 3,000 0.7 JUPITER 0.6 2,500 TOTAL LATERAL LENGTH (M) Pre 2014 Acquisition 0.5 2,000 0.4 1,500 PEER GROUP 0.3 1,000 0.2 500 0.1 2011 2012 2013 2014 2015 2016 2017 0.0 JUPITER PEER GROUP Post-Acquisition Activity (Jupiter Drills) 90 0 10 20 30 40 50 60 70 80 100 Proppant Intensity (tonnes/lateral meter) ≤ 0.5 1.0 ≥ 1.6 SEQUENTIAL DRILLS SOURCE: GeoScout, GeoLogic Well Completions & Frac Database, Credit Suisse.
What we’ve learnt to date (2014 – 2017) Jupiter Resources Corporate Presentation | 10 Team Geology - Built and fostered a highly integrated - Fuller understanding of petrophysics operations & technical team and reservoir analysis - Established strong platform for growth - Matching predictive models to results Results Operations - Improved economics - Process, cost & efficiency improvements - Larger recoverable resource - Drilling longer laterals with - Higher quality inventory optimized spacing 9
Supplemental Materials 10
Executive team Jupiter Resources Corporate Presentation | 13 Simon Bregazzi Patrick Elliott Marian Kanik Basilis Brad Wakefield Shyla Stinson CEO EVP SVP Planning SVP Operations CFO Simon brings over 20 years Patrick brings over 20 years Marian brings over 30 years Brad brings over 20 years Shyla brings over 15 years of experience in the energy of experience in the oil and of experience in the energy of energy industry of oil and gas experience industry in corporate gas industry in North industry in economic experience in a wide range to the Company in a finance and mergers & America, in both evaluations, business of operational and broad range of corporate acquisitions. Simon holds a unconventional and development, investor technical roles. Brad holds finance and accounting BSc (Hons) in Actuarial conventional resources. relations and marketing. a Mechanical Engineering activities. Shyla is a CPA, Science from the University Patrick holds a BSc (Hons) Marian holds a BComm Technology Diploma from CA and holds a Bachelor of Western Ontario. in Geology from the from the University of the Saskatchewan Institute of Commerce degree University of Western Calgary. of Applied Sciences and from the University of Ontario. Technology. Saskatchewan. Prior or Comp ompanies: s: Prior or Comp ompanies: s: Prior or Comp ompanies: s: Prior or Comp ompanies: s: Prior or Comp ompanies: s: Canbriam Energy Canbriam Energy Canbriam Energy Centrica Energy BOS Solutions Ltd. Goldman Sachs Capitol Energy Northwest Upgrading Talisman Energy Welton Energy CIBC World Markets Encana Esprit Exploration Esprit Exploration PanCanadian Energy Canadian Hunter
At Jupiter, we… Jupiter Resources Corporate Presentation | 14 Strive to be extraordinary Are committed to conducting Treat our communities with respect business in a responsible manner and dignity Are responsible stewards of the Create value in everything we do Are proud to be a Canadian shareholder capital entrusted to us energy provider 12
Guidance Jupiter Resources Corporate Presentation | 15 2018 YTD Actuals 2017 Actuals 2018F Guidance (As of June 30, 2018) Capital ($millions) (1) 246 165 – 175 96 Wells drilled (net) 19.5 13 7.5 Production (net before royalties) Natural Gas (MMcf/d) 265 290 – 300 287 Crude Oil & NGLs (Mbbl/d) 20 20 – 21 21 Total production (MMcfe/d) 384 410 – 425 (2) 413 (2) Expenses ($/Mcfe) Operating 0.24 0.24 – 0.26 0.22 Processing: Capital fee 0.59 0.48 – 0.50 0.49 Flow-through plant operating 0.30 0.27 – 0.30 0.26 Transportation (3) 0.42 0.44 – 0.47 0.42 G&A ($/Mcfe) (4) 0.09 0.08 – 0.09 0.09 Average royalty rate (%) 4.3 5 – 6 4.5 (1) Includes approximately $50 million (2017) and $35 million (2018F) of facility and other capital in support of future development. (2) Includes voluntary production curtailments due to weak local natural gas prices. (3) Includes transportation of 50,000 GJ/day to Malin (offset by higher revenue). (4) Excludes monitoring fee paid to Apollo.
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