Delivering Growth & Value www.parexresources.com | TSX:PXT | Corporate Presentation | July 2018 1 Corporate Presentation | July 2018 Corporate Presentation | March 2017 1
CORPORATE SNAPSHOT Operating results 2016 2017 2018E Production (boe/d) FY Average 29,715 35,541 ~43,000 Capital Expenditures (1) - US$ million $112 $212 ~$290 Drilling Program (# wells) 17 38 45-50 Reserves (year-end) 2P Reserves (Dec. 31) (2) - Mmboe 112 162 2P Reserve Life Index - years 9.9 11.4 Capital structure – March 31, 2018 Net Working Capital (3) - US$ million $206 US$100 MM Undrawn Credit Facility (3) No Debt Market Capitalization (3)(4) C$3.7Bn Common Shares Basic Outstanding (TSX listed) (4) 156 MM (1) Assuming US$55 Brent Oil Price in 2018 (2) Parex’ working interest, as per the independent reserve report prepared by GLJ Petroleum Consultants effective Dec. 31, 2017 (3) As at March 31, 2018 (4) Assuming CAD $24 share price See “Advisories” at the end of this presentation 2 Corporate Presentation | July 2018 Corporate Presentation | March 2017 2
DELIVERING CONSISTENT SHAREHOLDER VALUE 2P RESERVES (DE (DEBT ADJU JUSTED) PRODUCTION PER SHA HARE (DE (DEBT ADJU JUSTED) 300 1,200 DAPS (BOE/MM BASIC SHARES) (MBOE/MM BASIC SHARES) 250 1,000 2P RESERVES 200 800 150 600 100 400 50 200 - - 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 FUNDS FL FU FLOW PER R SH SHARE (B (BASIC IC) PXT VS. . S&P/TSX ENERGY IND INDEX (T (TTEN) 75% 66% $3.00 $120.00 FUNDS FLOW PER SHARE 60% BRENT PRICE (USD/BBL) $2.50 $100.00 (USD/BASIC SHARE) 40% 45% 34% TOTAL RETURN $2.00 $80.00 30% 15% 15% 15% $1.50 $60.00 15% 7% $1.00 $40.00 0% $0.50 $20.00 -15% -11% -16% -25% -30% $- $- 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 PXT S&P/TSX Energy Index FUNDS FLOW PER SHARE (USD/BASIC SHARE) BRENT (USD/BBL) 3 Corporate Presentation | July 2018 Corporate Presentation | March 2017 3
REASONS TO OWN PAREX 1. No debt and positive working capital exceeding US$206MM (1Q18) 2. High margins: 1Q18 Operating Netback US$39/boe @ Brent $67/bbl 3. Ability to grow within cash flow: o 2017 Growth: production 19.6% yoy & RLI increased to 11 years from 10 o 2018 Growth Guidance: ~15-20% self-funded 4. Exploration Upside: o Scheduled to drill 15-18 exploration wells in 2018 5. Focused management - ability to growth within a single country Colombia 6. Delivering shareholder value 4 Corporate Presentation | July 2018 Corporate Presentation | March 2017 4
2018 GUIDANCE: CASH FLOW FUNDED GROWTH Maintenance Capex Period Assumptions 14 wells Oil (Brent) H2’18 US $75/bbl 38,000 boe/d ~ $90MM FFO netback (1)(2)(3) H2’18 US $35/boe Production (high-end) FY ~43,000 boe/d CAPEX Capital expenditure H2’18 ~US$145MM ALLOCATION Funds flow from operations (3) H2’18 ~US$295MM YOY Production growth/share FY ~15-20% (1) FFO netback is defined as Funds Flow From Operations per bopd. (2) Netback is a non-GAAP Measure. (3) Excluding decommissioning & environmental liabilities Growth Capex 31-36 wells 3,000-5,000 boe/d $170-200MM 5 Corporate Presentation | July 2018 Corporate Presentation | March 2017 5
2018 DRILLING PROGRAM BLOCK Exploration/Appraisal Development Wells (#) Base: Llanos Conventional Cabrestero 1-2 4-5 5-7 LLA-34 4 14 18 Other Llanos 2-3 - 2-3 Exploration – Big “E” Capachos & VIM-1 2-3 1 3-4 Exploitation: Tight Oil & Large OIP Aguas Blancas 4 6 10 DeMares 2 3-4 5-6 Other Magdalena 1 1 2 2018 – Total Wells (#) 15-18 30-32 45-50 6 Corporate Presentation | July 2018 Corporate Presentation | March 2017 6
PAREX CASH NETBACK (1) 2018 H2 TARGET CASH NETBACKS (2) $85 $80 $80 $75 BRENT PRICE $75 $70 REALIZED PRICE (USD/BOE) $70 $67.27 $65 $65 $61.46 $60 ($11.29) Differential $60 $55 Royalties ($7.29) $50 Opex ($5.35) $45 (3) Transportation ($4.24) $40 ($3.40) G&A, Finance & Misc. Costs $35 ($7.60) Tax $30 $25 $20 Cash $15 Netback $10 $5 $26.39 $28.10 $26 $29 $32 $35 $38 $- 2018 H2 Guidance Q4 2017 Q1 2018 Brent ~$30/bbl generates sufficient cash flow to maintain production (1) Cash netbacks are non-GAAP measure defined as funds flow from operations per barrel of oil per day. (2) 2018 H2 target cash netbacks are based on production guidance mid-point excluding hedges. (3) Prior period transportation expense on a gross dollar and per boe basis were restated as a result of the Company adopting IFRS 15 7 Corporate Presentation | July 2018 Corporate Presentation | March 2017 7
CONSISTENT & SUSTAINABLE GROWTH: PATH TO 50,000* BOPD In a $50/bbl environment, our portfolio supports reaching 50,000 bopd during 2019 *Refer to February 6, 2017 Press Release “ Parex announces executive and board of directors appointments” 8 Corporate Presentation | July 2018 Corporate Presentation | March 2017 8
SOLID FOUNDATION SUPPORTS GROWTH TRACK RECORD OF PROGRESSING RESERVES* FROM 3P TO CASH FLOW Dec. 31, Proved + Probable+ Proved + Proved Annual 2P Reserve Life Possible Probable Production Index Based on Annualized Millions of Barrels of Oil Equivalent Q4 Production 2013 50 32 17 6 5 years 2014 104 68 40 8 7 years 2015 125 82 46 10 8 years 2016 169 112 64 11 10 years 2017 241 162 96 13 11 years 241 Mmboe ~ 60,000 boe/d & 11 yr RLI *Per the independent reserve reports prepared by GLJ Petroleum Consultants Ltd. effective December 31 of the reported year. Future development capital (FDC) included in the 2017 GLJ Report are: 1P $302 mm, 2P $432 mm & 3P $537 mm 9 Corporate Presentation | July 2018 Corporate Presentation | March 2017 9
CONVENTIONAL OIL RESERVES GENERATE VALUE Proved+ Proved + Probable+ Total Company - 2017YE Proved Probable Possible FD&A USD/boe (1) $6.00 $4.71 $3.87 Recycle Ratio (FD&A) (1) 4.4x 5.6x 6.8x After Tax NPV10% - CAD/sh (2) $12.81 $20.32 $28.92 Working Capital - CAD/Sh (3) $1.33 $1.33 $1.33 Total CAD/Sh (3) $14.14 $21.65 $30.25 (1) Per the independent reserve reports prepared by GLJ Petroleum Consultants Ltd. effective December 31 of the reported year, including Future Development Cost. Recycle Ratio is calculated using Q4 2017 Funds Flow From Operations per barrel divided by annual F&D or FD&A as applicable. (2) Based on GLJ Petroleum Consultants Ltd. price forecast, which assumes $65.40/bbl over 2018-2022 (3) WC of US$163 million (CAD 205 million) and 154.7 million shares at December 31, 2017 10 Corporate Presentation | July 2018 Corporate Presentation | March 2017 10
SOUTHERN LLANOS: FOUNDATION FOR GROWTH CABRESTERO (100% WI, operator) Calona LLA-32 • Swing producer block Kananaskis Herradura • Successful Bacano appraisal in 2017 LLA-34 Tilo Chiricoca o 4 wells drilled to date Chachalaca • 2018 Plan: 1-2 exploration wells and 4-5 development wells Tarotaro Tigana LLA-34 (55% WI, Non-operated) Tua • Currently producing ~62,000 boe/d gross (~34,100 boe/d net) Jacana • Tested extent of Jacana-Tigana trend to SW in 2017 Aruco Curucucu o Drilled 9 exploration wells & 13 development wells • 2018 Plan: 4 exploration wells and 14 development wells Jacamar Cabrestero Bacano Explore core position, appraise & develop Akira discoveries, and leverage Parex’ costs & As per the independent reserve report prepared by GLJ Petroleum Consultants Ltd. effective Dec. 31/17 exploration strengths. Faults GLJ 3P (2017YE) Exploration 11 Corporate Presentation | July 2018 Corporate Presentation | March 2017 11
Cabrestero & LLA-34: UNDERSTANDING THE POTENTIAL Tigana TSO-8 2017 GLJ 3P Outline TSO-1 Field GLJ 3P Reserves GLJ 2P Reserves 2017 GLJ 2P Outline TSO-5 TSO-2 TSO-6 (Parex ’ WI) (MMBO) (MMBO) TSO-7 TSO-3 YEAR END 2016 2017 2016 2017 TSO-4 Tigana Guadalupe 51 71 34 52 10 Jacana Guadalupe 45 76 30 50 9 Jacana 5 Tigana-Jacana Mirador 19 36 12 21 6 Other LLA-34 14 19 11 12 3 2 JS-2 Curucucu LLA-34 TOTAL 129 202 87 135 1 4 J20 Jacamar 8 JS-1 13 Cabrestero 18 18 11 13 11 Tigui 1 22 Tigui Sur 1 Expanded reserve area in 2017 with LLA-34 17 21 12 B-7 Jacana, Jacamar, Curucucu, Bacano & B-3 T-4 T-2 Cabrestero T-1 Akira B-5 Tigana Norte. B-6 T-3 B-2 Bacano B-4 Exploration Appraisal/Dev Drilled Potential Stratigraphic Edge As per the independent reserve report prepared by GLJ Petroleum Consultants Ltd. effective December 31, 2017 12 Corporate Presentation | July 2018 Corporate Presentation | March 2017 12
Appraisal/Dev LLANOS-34 GLJ 3P (2017YE) Faults BRIDGING JACANA & TIGANA FIELDS TN5 TN4 • Tigana-Norte 1 has produced ~3.5 TN7 TN9 TN2 mmbbls (1) since June 2014 TN3 TN1 o Expanding Tigana North area TN6 TN8 T2 Tigana o Focus is Guadalupe with Mirador upside T3 T4 o Drilled 4 wells in 2017 TS3 TS1 TS2 o 2018 Plan: 4 development wells TS7 TS4 TSO-8 TS6 TS5 TSO-1 TSO-5 Tua TSO-2 TSO-7 TSO-3 TSO-4 Jacana Jacana-10 As per the independent reserve report prepared by GLJ Petroleum Consultants Ltd. effective Dec. 31/17 (1) As at March 31, 2018 13 Corporate Presentation | July 2018 Corporate Presentation | March 2017 13
Recommend
More recommend
