Delivering Growth & Value www.parexresources.com | TSX:PXT | Corporate Presentation | August 2018 1 Corporate Presentation | August 2018 Corporate Presentation | March 2017 1
CORPORATE SNAPSHOT Operating results 2016 2017 2018E Production (boe/d) FY Average (high end) 29,715 35,541 ~44,000 Capital Expenditures (1) - US$ million $112 $212 ~$325 Drilling Program (# wells) 17 38 55-60 Reserves (year-end) 2P Reserves (Dec. 31) (2) - Mmboe 112 162 2P Reserve Life Index - years 9.9 11.4 Capital structure – June 30, 2018 Net Working Capital (3) - US$ million $66 US$100 MM Undrawn Credit Facility (3) No Debt Market Capitalization (3)(4) ~C$3.0Bn Common Shares Basic Outstanding (TSX listed) (4) 156 MM (1) Assuming US$75 Brent Oil Price in H2 2018 (2) Parex’ working interest, as per the independent reserve report prepared by GLJ Petroleum Consultants effective Dec. 31, 2017 (3) As at June 30, 2018 (4) Assuming C$19.50 share price See “Advisories” at the end of this presentation 2 Corporate Presentation | August 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 | August 2018 Corporate Presentation | March 2017 3
REASONS TO OWN PAREX 1. No debt and positive 2Q18 working capital exceeding US$66MM 2. High margins: 2Q18 Operating Netback US$45/boe @ Brent $75/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: ~24% self-funded 4. Focused management - ability to growth within a single country Colombia 5. Delivering shareholder value 4 Corporate Presentation | August 2018 Corporate Presentation | March 2017 4
2018 GUIDANCE: CASH FLOW FUNDED GROWTH Period Assumptions Oil (Brent) H2’18 US $75/bbl FFO netback (1)(2)(3) H2’18 US $35/boe Production (high-end) Full Year ~44,000 boe/d Capital expenditure (mid-point) H2’18 ~US$165MM Funds flow from operations (3) H2’18 ~US$295MM YOY Production growth/share Full Year ~24% (1) FFO netback is defined as Funds Flow From Operations per bopd. (2) Netback is a non-GAAP Measure. (3) Excluding decommissioning & environmental liabilities 5 Corporate Presentation | August 2018 Corporate Presentation | March 2017 5
PAREX CASH NETBACK (1) 2018 H2 TARGET CASH NETBACKS (2) $80 BRENT PRICE $75 $80 $74.97 $70 REALIZED PRICE (USD/BOE) $65 $67.27 $70 ($13.01) Differential $60 $60 Royalties ($8.10) Opex ($5.76) $50 Transportation ($3.13) G&A, Finance & Misc. Costs ($4.10) $40 (3) ($9.25) Tax $30 $20 $10 (3) $28.10 $26 $29 $32 $35 $38 Cash Netback $31.62 $- $(10) 2018 H2 Guidance Q1 2018 Q2 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 (2) 2018 H2 target cash netbacks are based on production guidance mid-point excluding hedges and decommissioning & environmental liabilities. (3) Adjusted to exclude a $137.5 million one-time voluntary tax restructuring during the three months ended June 30, 2018 6 Corporate Presentation | August 2018 Corporate Presentation | March 2017 6
CONSISTENT & SUSTAINABLE GROWTH: PATH TO 50,000* BOPD 0.45 50,000 BOE PER THOUSAND SHARES Production Debt Adjusted Production Per Share 45,000 0.40 40,000 PRODUCTION (BOE/D) 0.35 35,000 0.30 30,000 0.25 25,000 0.20 20,000 0.15 15,000 0.10 10,000 0.05 5,000 - - Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 2018F 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” 7 Corporate Presentation | August 2018 Corporate Presentation | March 2017 7
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 8 Corporate Presentation | August 2018 Corporate Presentation | March 2017 8
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; excludes tax restructuring (3) WC of US$163 million (CAD 205 million) and 154.7 million shares at December 31, 2017 9 Corporate Presentation | August 2018 Corporate Presentation | March 2017 9
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 • Drilled 6 of 7-12 wells planned in 2018 Chachalaca Tarotaro Tigana LLA-34 (55% WI, Non-operated) Tua • Producing ~64,000 boe/d gross (~35,200 boe/d net) • Tested extent of Jacana-Tigana trend to SW in 2017 Jacana Aruco • Drilled 14 of 28 wells planned in 2018 Curucucu Jacamar Explore core position, appraise & develop Cabrestero discoveries, and leverage Parex’ costs & Bacano Akira exploration strengths. As per the independent reserve report prepared by GLJ Petroleum Consultants Ltd. effective Dec. 31/17 Faults GLJ 3P (2017YE) Exploration 10 Corporate Presentation | August 2018 Corporate Presentation | March 2017 10
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 24 Expanded reserve area in 2018 with LLA-34 Tigui Sur 1 17 21 12 B-7 Tigui and Totoro discoveries B-3 T-5 T-4 T-2 Cabrestero T-1 Akira B-5 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 11 Corporate Presentation | August 2018 Corporate Presentation | March 2017 11
Appraisal/Dev LLANOS-34 GLJ 3P (2017YE) Faults BRIDGING JACANA & TIGANA FIELDS TN5 • Tigana-Norte 1 has produced ~3.7 TN4 TN7 TN9 TN2 mmbbls (1) since June 2014 TN3 TN1 o Expanding Tigana North area TN6 TN8 T5 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 TS6 TSO-8 TS5 TSO-1 TSO-5 TSO-6 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 July 30, 2018 12 Corporate Presentation | August 2018 Corporate Presentation | March 2017 12
CAPACHOS DEVELOPMENT AND GUADALUPE DEPTH STRUCTURE EXPLORATION POTENTIAL NEXT STEPS • Drilled 2 wells to earn 50% in the block. ANDINA NORTE-1 o Capachos-2 drilled, restricted production. o Capachos Sur-2 drilled as water disposal well. • Drilling Andina-1 exploration well. ANDINA-1 • Targeting ~34-39 API Oil in the Guadalupe Formation. • Construction of gas processing facility by 4Q18. CAPACHOS-2 CAPACHOS SUR-2 Development well Parex wells Legacy wells Future exploration 13 Corporate Presentation | August 2018 Corporate Presentation | March 2017 13
Recommend
More recommend
