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TSX: YGRTSX: YGR
Corporate Presentation
August 2017
2TSX: YGR
1) Price as at August 1, 2017
Capitalization Reserves and Locations (2)
Ticker TSX: YGR
Shares Outstanding (mm)
Basic 80.2
Options (weighted avg. price $1.63) 7.8
Fully Diluted 88.0
Market Cap ($mm) (at $3.37 / share)(1) $270
Q2 2017 Net Debt ($mm) $73
($100mm credit facility)
Enterprise Value ($mm) $343
Insider Ownership
Basic 14%
Fully Diluted 21%
2) Reserves effective as at December 31, 2016 based on the reserve report prepared by Deloitte LLP,
independent petroleum engineers (the “Reserves Report”)
3) NAV = NPV10 Reserve Value less Net Debt and excludes undeveloped land value
4) As at December 31, 2016
5) Net Value per Location calculated as (Current Enterprise Value - PDP Reserves value at December
31, 2016) / Total and Booked net locations, respectively
December 31, 2016 mmboe
NPV10
($mm)
NAV(3) / FD
Share
Recycle
Ratio(4)
Proved Developed 7.9 $139.1 $0.70 2.4x
Total Proved 36.5 $489.6 $4.68 3.4x
Proved + Probable 60.6 $734.5 $7.47 3.7x
Based on 1-mile Gross Net
Booked Cardium Locations 214 150
Total Cardium Locations 862 662
Corporate Snapshot
➢ Majority of reserves bookings based on old well path; last
well program helped de-risk / delineate the acreage
➢ Probabilistic risk vs. reserves risk now
➢ Highly motivated management and board with insiders
owning 14% of the basic shares and 21% of the fully
diluted shares
3TSX: YGR
Randall Faminow, VP, Land➢ 30+ years of experience in all aspects of oil and gas land work,
including negotiation, acquisitions and divestments, contracts
and mergers
James Glessing, CA, CFO➢ 17+ years oil and gas accounting experience
➢ Executive and financial experience as CFO with North Peace
Energy Corp
➢ Controller at BlackRock Ventures,
➢ Canadian Natural Resources, Shell and Deloitte
Board of Directors
Management Team
Neil Mackenzie ➢ Director of various public companies, including Canyon
Technical Services
➢ Currently a partner in Blackstone Fluids, an oil and gas drilling
fluids company
Ted Morton➢ A former Canadian politician and cabinet minister in the Alberta
government
➢ Has held various positions in the Alberta Government including
Minister of Energy (2011-2012), Minister of Finance and
Enterprise (2010-2011), and Minster of Sustainable Resources
(2006-2010)
Gordon Bowerman➢ Chairman
➢ President of Cove Resources Ltd
➢ Founder of several successful private and public oil and gas
companies
Robert Weir➢ President of Weir Resource Management Ltd
Jim Evaskevich➢ President and CEO of Yangarra Resources Ltd
The Team
Jim Evaskevich, President & CEO ➢ 30+ years extensive executive experience with strong
operations background
Lorne Simpson B.Sc., C.E.T., VP, Operations➢ 30+ years experience in the industry
➢ Supervisor, Drilling Ops with PetroBakken Energy Ltd.
➢ Engineered, drilled or completed 250 HZ Cardium wells, 200 HZ
Bakken wells, 2 HZ Duvernay wells, 25 HZ Montney wells, and
dozens of Blue Sky, Viking, SWS, Glauc, and Rock Creek HZ
wells
4TSX: YGR
Top Decile Full Cycle rates of return
Central Alberta Cardium formation focus
Low-cost operator, high netbacks
➢ YTD 2017 Cash costs totaled $14.00/boe
• Operating costs (including transportation) of $8.52/boe
• Royalties of $2.95/boe (8% of revenue)
• G&A costs of $0.74/boe
• Finance and interest costs of $1.79/boe
➢ Breakeven pricing, including reserve replacement of $23.41/boe
• Operating margins were 71% and cash flow margins were 65%
• 2016 F&D costs of $9.41/boe
➢ Low-cost philosophy, not just a result of current low commodity prices
Consistent, low risk Cardium economics
➢ Last 10-well program proves “new method” of drilling
➢ New path currently not fully captured in reserve report
Potential Duvernay upside
Why Own Yangarra?
5TSX: YGR
Full Cycle Returns
1. Half cycle IRR is based on actual drilling and completion costs, production to date and P+P reserves
2. Full cycle IRR allocates all other capital costs to the wells (i.e. land, G&G, infrastructure)
6TSX: YGR
Reserves Per Share (boe per share) (2P)
Gross Reserves (mmboe)
Reserves GrowthReserves Profile
Oil/NGL's47%
Nat. Gas53%
Volumes (boe)
Oil/ NGL's82%
Nat.Gas18%
NPV10 ($)
8.712.5
17.5
37.440.6
60.6
0
10
20
30
40
50
60
70
2011 2012 2013 2014 2015 2016
Re
se
rves
(mm
bo
e)
1P Reserves 2P Reserves
$0.22
$0.31 $0.36
$0.65 $0.60
$0.76
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
2011 2012 2013 2014 2015 2016
2P
Reserv
es /
sh
are
7TSX: YGR
PDP13%
PUD48%
PROB39%
➢ Consistent improvement in, and continued focus
on, F&D costs and recycle ratios
➢ Management estimates proven and probable
Cardium locations have a similar chance of
success
➢ Reserve Life Index (“RLI”)
• 37 years with one rig
• 18 years with two rigs
• 12 years with three rigs
PDP19%
PUD48%
2P33%
Finding and Development
NPV10 BT Volumes
Reserves(1)
2P Reserves: 60.6 mmboe2P NPV10: $734.5 million
1. Reserves effective as at December 31, 2016 based on the Reserves Report
F&D and Recycle RatiosRecycle Ratio vs Added Reserve Volumes
0
5
10
15
20
25
30
$0
$5
$10
$15
$20
$25
$30
2011 2012 2013 2014 2015 2016
2P
Re
se
rve A
ddit
ion
s (m
mb
oe)
Fin
din
g &
De
ve
lop
men
t Co
sts
* ($
/ b
oe
)
1P F&D / boe 2P F&D / boe 2P Net Reserve Adds
*Includes changes in future capital
$0
$20
$40
$60
$80
$100
$120
$140
0x
1x
2x
3x
4x
5x
6x
7x
2011 2012 2013 2014 2015 2016
WT
I ($
US
) / b
bl
Re
cycle
Rati
o* (x
)
1P Recycle Ratio 2P Recycle Ratio WTI (USD) / bbl
*Excludes realized gains and losses on hedging
Upper Cardium (5-15% Porosity)
Lower Cardium (3-6% Porosity)
Bioturbated Zone (20-80% Sand)
2.5-4.0m
1.5-3.0m
3.0-7.0m
Old
Well Path
New
Well Path
Old Frac PlaneNew Frac Plane
Upper Cardium
Lower Cardium
BioturbatedZone
Upper Cardium Bioturbated Lower Cardium
Deeper Drill Path
8TSX: YGR
Upper ReservoirCore analysis
Porosity 9-11%Kmax average 0.09md
BioturbatedInterval not analyzed
Log Porosity 3-4%
3%
OOIP 2,959 MstbOBOEIP 8,218 Mbbl
OOIP 2,198 MstbOBOEIP 6,105 Mbbl
10m
Total PackageOOIP/section 5,157 Mstb
OBOEIP/section 14,323 Mbbl
105 API
Deeper Drill Path
9TSX: YGR
#4 - YGR 100/1-26-37-8W5 – 2.0 Mile
101 Stages – 1,520 tons
On Prod: December 5, 2016
IP30: 395 boe/d (76% liquids)
#3 - YGR 104/14-19-41-5W5 – 1.4 mile
69 Stages – 1,056 tons
On Prod: October 29, 2016
IP90 Rate: 414 boe/d (77% liquids)
#2 - YGR 100/1-14-41-6W5 – 2.0 mile
74 stages 1,120 tons
On Prod: October 25, 2016
IP90 Rate: 120 boe/d (94% liquids)
#5 - YGR 100/2-26-39-9W5 – 2.0 mile
103 stages – 1,114 tons
On Prod: February 2, 2017
IP35 Rate: 645 boe/d (89% liquids)
#1 - YGR 103/4-7-41-5W5 – 1.6 mile
71 Stages – 1,070 tons
On Prod: October 5, 2016
IP90 Rate: 480 boe/d (82% liquids)
#6 - YGR 102/8-14-41-6W5 – 2.0 mile
107 stages – 1,571 tons
On Prod: February 3, 2017
Clean-up phase (Day 1-20): 217 boe/d (93% liquids)
Production phase (Day 21-35): 534 boe/d (88% liquids)
#10 - YGR 100/3-23-37-8W5 – 2.0 mile
104 stages – 1,565 tons
On Prod: April 6, 2017
IP37 Rate: 313 boe/d (~69% liquids)
#8 - YGR 100/1-34-39-8W5 – 2.0 mile
105 stage – 1,535 tons
On Prod: April 6, 2017
IP27 Rate: 1,017 boe/d (~80% liquids)
#9 - YGR 100/5-19-41-7W5 – 2.0 mile
109 stages – 1,640 tons
On Prod: March 1, 2017
Clean-up phase (Day 1-50): 130 boe/d (98% liquids)
Production phase (Day 51-65): 173 boe/d (94% liquids)
#7 - YGR 102/16-15-44-10W5 – 2.0 mile
102 stages – 1,533 tons
On Prod: March 23, 2017
IP35 Rate: 662 boe/d (~38% liquids)
Well #2 drilled using old well path
Well #7 restricted due to capacity constraints
Well #9 on pump, recently started flowing
Cardium Formation
10TSX: YGR
129 (99 net) Sections of Cardium
11TSX: YGR
Production Per Share
Gross Production (boe/d)
Production GrowthProduction Vintage
0
1,000
2,000
3,000
4,000
5,000
2011 2012 2013 2014 2015 2016 Q1 2017
Pro
du
cti
on (b
oe/d
)
Oil (bbl/d) NGLs (bbl/d) Gas (boe/d)
Note: Production volumes include royalty barrels
Note: Production volumes include royalty barrels
➢ 2015 to 2016 capital spent on efficiency and
improving IPs and recovery (ball drop to sliding
sleeve)
➢ But capital allocation focused on growing
inventory / land base throughout the Cardium
Halo at attractive prices
➢ Q1 2017 production of 4,483 boe/d (59% liquids)
➢ 2017 onwards focusing on significant production
growth while continuing to grow land base
70
80
90
100
110
120
130
140
150
160
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2014 2015 2016 2017
# o
f P
rod
ucin
g W
ells
Pro
du
cti
on (b
oe/d
)
2013 2014 2015 2016 2017 # of Wells
2017 based on 5 wells drilled in
the first quarter and 12 wells in
second half of 2017
0x
1x
2x
3x
4x
5x
6x
0
10
20
30
40
50
60
2011 2012 2013 2014 2015 2016 Q1 2017
Net
Deb
t / T
rail
ing
Cash
Flo
w
Pro
du
cti
on
/ M
M S
ha
res
Prod. Per MM Shares Net Debt / Cash Flow
12TSX: YGR
➢ 862 gross (662 net) future 1-mile Cardium future drilling locations (1)
• Continued to grow inventory by strategically picking up land in the down turn
➢ Opportunity to drill extended reach wells
1) Management estimate is based on an estimate prepared by a non-independent qualified reserves evaluator of the Company in accordance with National Instrument 51-101 and the COGE Handbook.
Drilling Locations (1-mile laterals)
0
100
200
300
400
500
600
700
800
900
1000
2010 2011 2012 2013 2014 2015 2016 2017
Lo
ca
tio
ns
Net Gross
Cardium Drilling Inventory(1)
13TSX: YGR• $2.75/GJ natural gas; Exchange 0.76 USD/CAD; Ed Par Diff to WTI C$3.00/bbl
• Fixed operating costs of $5,000/month and variable operating costs of $5.00/boe plus transportation of ~$1.30/boe
Cardium Well Economics
0
100
200
300
400
500
600
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46
Pro
du
cti
on P
er D
ay
Months
Total (boe/d) Oil (bbls/d)
➢ Completed the 10 well capital program that
commenced in August of 2016 with all wells on-
stream as of April 2017
➢ Halo Cardium is a proven success with new
well path and new technology
• Not vertically exploited compared to main
Cardium fields
• No plumbing required between wells
• Large untapped recoverable resource with
the use of longer wells, drilling into deeper
bioturbated zone and more frac ports
Top 'Cardium Oil' Monthly Volumes Seen in April 2017
Company Field
(bbl) (mmcf) (bbl/d) (#)
Yangarra Resources Ferrier 17,787 28.9 775.0 na
Company A Pembina 15,148 8.4 836.0 na
Yangarra Resources Ferrier 14,151 15.0 477.0 100
Company B Willesden Green 12,228 26.9 914.0 na
Company C Wapiti 11,553 3.0 385.0 na
Company C Wapiti 10,649 22.3 355.0 24
Company C Ferrier 8,514 31.3 293.0 31
Company C Wapiti 8,358 8.6 279.0 25
Company C Ferrier 8,001 10.5 398.0 26
Frac
Stage
Monthly
Vol
Associated
Gas
Mth Daily
Oil
Lateral Length 2.0 Mile
DCET ($mm) $3.75
IP30 - Oil (bbl/d) 390
IP30 - BOE (boe/d) 490
IP90 – Oil (bbl/d) 295
IP90 - BOE (boe/d) 425
IP365 - BOE (boe/d) 335
Capital Eff (1st Year Prod) ($/boe/d) 11,194
EUR (mboe) 474
F&D (Half Cycle) ($/boe) $7.91
Price Sensitivity: WTI (USD/bbl) $30.00 $40.00 $50.00 $60.00
IRR (%) 37% 84% 148% 231%
NPV10% (BT) ($mm) $1.7 $3.9 $6.0 $8.0
Payback (years) 2.0 1.1 0.8 0.7
Recycle Ratio (x) 2.3x 3.2x 4.1x 4.9x
14TSX: YGR
CAPEX budget for 2017 $70.0 million
Budget focused on Cardium Wells
➢ 5 wells in the first quarter and 12 wells in the second half
Funded with cash flow and the existing credit facilities
2017 Guidance
Production (boe/d)
➢ Annual Average 5,500 – 6,000 boe/d
Cash flow from operations $47.5 – 52.5 million
Year end net debt
Annual debt to cash flow
$77.5 – 82.5 million
1.5 – 1.7 : 1
Pricing Assumptions (annual average)
➢ WTI (USD/bbl) $47.50
➢ Edmonton Par (CDN/bbl) $61.65
➢ AECO (CDN/GJ) $2.75
2017 Capital Plan
15TSX: YGR
➢ YGR: 15-19-39-6W5 (1.5 Mile) IP 20 - 700 boe/d 52% liquids (81 stages & 1,744 tons of sand)
Duvernay Formation
#4 Paramount: 100/03-28-039-
05W5
RR: 2015/01/27
40,337 bbl cum oil
112,199 mcf cum gas
Completion: 9 stages; 240t
#1 Shell: 100/09-27-039-06W5
RR: 2014/02/17
35,097 bbl cum CND
339,544 mcf cum gas
Completion: 14 stages; 70-90t
#3 YGR: 100/15-19-039-06W5
RR: 2014/09/04
10,726 bbl cum oil
132,267 mcf cum gas
Completion: 81 stages
#5 Shell: 100/02-25-040-08W5
RR: 2015/06/20
87,596 bbl cum cnd
884,479 mcf cum gas
Completion: 29 stages; 72-90t
#7 Repsol: 102/13-24-038-07W5
RR: 2016/02/27
On: 2016/08/15
838 bbl cum CND
269,639 mcf cum gas
Completion: 22 stages; 180t
Recent Well Results
(Sorted By RR Date)
1
2
3
4
5
6
7
#6 Repsol: 100/13-09-039-06W5
RR: 2015/06/21
1,019 bbl cum oil
403,950 mcf cum gas
Completion: 14 stages; 70-80t
#2 Shell: 103/08-11-040-08W5
RR: 2014/07/18
12,722 bbl cum cnd
781,274 mcf cum gas
Completion: 16 stages; 72-90t
Source: GeoScout and Frac Database
16TSX: YGR
Oil Hedges2017 200 bbl/d collar C$65.00 WTI/bbl and a ceiling of C$75.00 WTI/bbl (2017)
100 bbl/d at C$70.00 WTI/bbl (2017)200 bbl/d at C$69.25 WTI/bbl (Mar – Jul 2017)500 bbl/d at C$75.20 WTI/bbl (Jul – Dec 2017)200 bbl/d at C$76.50 WTI/bbl (Jul – Dec 2017)
2018 Sold Call on 200 bbl/d at US$70.00 WTI/bbl (2018)
2019 Sold Call on 500 bbl/d at US$60.00 WTI/bbl (2019)Sold Call on 200 bbl/d at US$65.00 WTI/bbl (2019)
Differential Hedges2017 500 bbl/d Edmonton par to WTI differential at US$2.85/bbl (Apr – Dec 2017)
Natural Gas2017 2,000 GJ/d at $3.12/GJ (2017)
2,000 GJ/d at $3.01/GJ (2017)
Interest Rate Swaps
4.400% (2.150% + 2.25% Stamping Fee) Fixed rate on $10 million (June 2014-May 2018)
4.600% (2.350% + 2.25% Stamping Fee) Fixed rate on $10 million (June 2014-June 2018)
4.185% (1.935% + 2.25% Stamping Fee) Fixed rate on $10 million (May 2018-Nov 2023)
4.195% (1.945% + 2.25% Stamping Fee) Fixed rate on $10 million (June 2018-Nov 2023)
Risk Management Program
17TSX: YGR
Acumen Capital Finance Partners Limited
Trevor Reynolds
Oil and Gas Research Analyst
(403) 410-6842
AltaCorp Capital Inc.
Thomas Matthews, P.Eng, CFA
Analyst - Institutional Research
(403) 539-8621
Canaccord Genuity
Sam Roach, CFA
Associate Analyst
(403) 691-7809
Clarus Securities Inc.
Robert Pare, CA, CFA
Managing Director, Equity Research
(403) 767-0821
Cormark Securities Inc.
Amir Arif, CFA
E&P Equity Research
(403) 750-7200
Industrial Alliance Securities Inc.
Michael Charlton
Research Analyst - Oil & Gas
(403) 705-4978
Paradigm Capital Inc.
Ken Lin, CFA
Oil and Gas Analyst
(403) 513-1042
PI Financial Corp.
Brian Purdy, P.Eng, MBA, CFA
Research Analyst - Energy
(403) 543-2823
Raymond James Ltd.
Jeremy McCrea, CFA
Oil and Gas Analyst
(403) 509-0518
Analyst Coverage
18TSX: YGR
Forward Looking Statements
Statements in this presentation may contain forward-looking information including expectations of future production and components of cash flow andearnings. Forward looking statements or information are based on current expectations, estimates and projections that involve a number of risks anduncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward looking statementsor information. These risks and uncertainties which may cause actual results to differ materially from the forward looking statements or informationinclude, among other things: general economic and business conditions; the risk of instability affecting the jurisdictions in which the Company operates; therisks of the oil and natural gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand;the possibility that government policies or laws may change or governmental approvals may be delayed or withheld; risks and uncertainties involvinggeology of oil and natural gas deposits; the uncertainty of reserves estimates and reserves life; the ability of the Company to add production and reservesthrough acquisition, development and exploration activities; the Company’s ability to enter into or renew leases; potential delays or changes in plans withrespect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production (includingdecline rates), costs and expenses; fluctuations in oil and natural gas prices, foreign currency exchange rates and interest rates; risks inherent in theCompany’s marketing operations, including credit risk; health, safety and environmental risks; and uncertainties as to the availability and cost of financing.Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.
The reader is cautioned not to place undue reliance on this forward-looking information. The forward looking statements or information contained in thispresentation are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward looking statements orinformation, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward lookingstatements or information contained in this presentation are expressly qualified by this cautionary statement.
19TSX: YGR
Reserve Definitions
Natural gas has been converted to a barrel of oil equivalent (Boe) using 6,000 cubic feet (6 Mcf) of natural gas equal to one barrel of oil (6:1), unlessotherwise stated. The Boe conversion ratio of 6 Mcf to 1 Bbl is based on an energy equivalency conversion method and does not represent a valueequivalency; therefore Boe's may be misleading if used in isolation. References to natural gas liquids ("NGLs") in this news release include condensate,propane, butane and ethane and one barrel of NGLs is considered to be equivalent to one barrel of crude oil equivalent (Boe). One ("BCF") equals onebillion cubic feet of natural gas. One ("Mmcf") equals one million cubic feet of natural gas.
Reserve Definitions:(a) "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining
quantities recovered will exceed the estimated proved reserves.(b) "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual
remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.(c) "Developed" reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities have not been
installed, that would involve a low expenditure (e.g. when compared to the cost of drilling a well) to put the reserves on production.(d) "Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate.
These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of productionmust be known with reasonable certainty.
(e) "Developed Non-Producing" reserves are those reserves that either have not been on production, or have previously been on production, but areshut in, and the date of resumption of production is unknown.
(f) "Undeveloped" reserves are those reserves expected to be recovered from know accumulations where a significant expenditure (for example, whencompared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reservesclassification (proved, probable, possible) to which they are assigned.
(g) The Net Present Value (NPV) is based on Deloitte AJM Forecast Pricing and costs. The estimated NPV does not necessarily represent the fair marketvalue of our reserves. There is no assurance that forecast prices and costs assumed in the Deloitte AJM evaluations will be attained, and variancescould be material.
This presentation contains references to measures used in the oil and natural gas industry such as “netback”. These measures do not have standardizedmeanings prescribed by GAAP and therefore should not be considered in isolation. These reported amounts and their underlying calculations are notnecessarily comparable or calculated in an identical manner to a similarly titled measure of other companies where similar terminology is used. Wherethese measures are used they should be given careful consideration by the reader. These measures have been described and presented in this presentationin order to provide shareholders and potential investors with additional information regarding the Corporation's liquidity and its ability to generate funds tofinance its operations. Netback denotes petroleum and natural gas revenue and realized gains or losses on financial instruments less royalty expenses,operating expenses and transportation and marketing expenses calculated on a per boe basis.