RESULTADOS FINANCIEROS 2Q - ao fiscal 2015 Febrero 16 de 2015, - - PowerPoint PPT Presentation
Bogot RESULTADOS FINANCIEROS 2Q - ao fiscal 2015 Febrero 16 de 2015, Bogot STRATEGY Main Objectives: 1) Development activity and Infrastructure on Esperanza & VIM-5 From 20 MM scfpd to 83MM scfpd by year-end calendar 2015 2)
Bogotá
Quarterly production, data from Financial Statements and MD&A report for each of the periods
Before royalties
60%
estimated calendar year 2015 48% WTI insensitive to oil prices
Mar 31 2014 Jun 30 2014 Sep 30 2014 Dec 31 2014 Mar 31 2015
1,875 1,613 1,974 1,666 1,232 4,685 5,774 5,675 4,953 4,512 2,633 2,941 3,334 3,236 3,502 1,700 1,884 2,273 1,967 1,704 Ecuador Gas LLA23 RH & Others Netback $43,57 Netback $37,70
10.893 boepd 12.212 boepd
Netback $25,14 Netback $44,70
13.256 boepd 11,822 boepd
Netback $20,56
10,950 boepd
Amounts expressed in millions of U.S. dollars ($) Quarterly volumes. Data from the Financial Statements and MD&A for each of the periods.
in thousands of U.S. Dollars ($) *Includes IPC of Ecuador Revenues Production and transportation expenses
March 31 2015 2014
Net income (loss) (15.638) 19.438 Adjusted for: Income tax 7.116 12.882 Equity tax 1.519 Net finance expense 5.262 2.416 Depletion and depreciation 12.289 9.015 Stock-based compensation and restricted share units 1.737 2.454 Loss on derivatives and financial instruments 145 (1.311) Unrealized foreign exchange gain and other (3.186) (2.657) Pre-license and exploration costs 98 3.405 Impairment of assets
585 386 Change in provision (10.545) EBITDA 9.927 35.483
Payable in either cash or common shares
Excluding Clarinete Discovery Capped at a cumulative total of US$10 million
Reserves report for the period ending June 2016 Capped at a maximum of $13 millon Payable 15 days after the reserves report Payable in either cash or common shares
Bogotá
This presentation may include certain forward looking statements. All statements other than statements of historical fact, included herein, including, without limitation, statements regarding future plans and objectives of Canacol Energy Ltd. (“Canacol” or the “Corporation”), are forward- looking statements that involve various risks, assumptions, estimates, and uncertainties. These statements reflect the current internal projections, expectations or beliefs of Canacol and are based on information currently available to the Corporation. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. All of the forward looking statements contained in this presentation are qualified by these cautionary statements and the risk factors described above. Furthermore, all such statements are made as of the date this presentation is given and Canacol assumes no obligation to update or revise these statements. Barrels of Oil Equivalent Barrels of oil equivalent (boe) is calculated using the conversion factor of 5.7 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 5.7 Mcf:1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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Exploration 15-for-24 wells (63%) Discovered >50 MMboe in 2P reserves Development 50-for-53 wells (94%)
CY ‘15 guidance(1) 10-12,000 avg. boepd (60% WTI insensitive) $84 MM E&D capex 2P reserves Gas 345 BCF (61 MMboe) / $852 MM(2) Oil 23 MMbls / $556 MM(3) EV $571 MM
‘08 ‘11 ‘12 ‘14 OIL GAS
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11 8 7 35 18 Gas 61 43
(1) Based on $60/bbl WTI average price for calendar ‘15 (2) As of Feb ‘15 reserve reports. Represents pre-tax NPV-10. (3) As of Jun ‘14 reserve reports. Represents pre-tax NPV-10.
Oil 23 '09 '10 '11 '12 '13 '14 _
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~63% development $32 MM spent YTD / $52 MM remaining 4x production starting in Dec ‘15 ↑ production from 20 → 83 MMcf/d ↑ gas ebitda from $30 → $150 MM(1)
Dry gas
Lower Magdalena
$43 MM
49%
Dry gas Starting CY 3Q‘15, 2 wells at Clarinete Pipeline to Jobo Light oil Up to 4 workovers Flow line and facilities New 3D; firm-up exploration leads
Light oil
Llanos
$33 MM
Oriente
$8 MM
(1) Annualized
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10,000 20,000 30,000 40,000 50,000 60,000 70,000 '15e '16e '17e '18e '19e '20e
Avg. boepd
Each gas contract is locked-in, take-or-pay contracts: Customers (yrs.) 5-15 Volumes (MMcf/d) 118 Gas sales price range (MMbtu) $5-$8 Price escalation (/yr.) 2-3%
Spend ~$300 MM to generate $1.6 B ebitda
Base 2P reserves and deemed volumes Dry gas 345 BCF (61 MMboe)(1) Light oil 23 MMbls(2) Net acres 23 contracts / 2.6 MM Resource potential >280MMboe(3)
(1) As of Feb ‘15 reserve reports. Represents pre-tax NPV-10. (2) As of Jun ‘14 reserve reports. Represents pre-tax NPV-10. (3) Mgmt. estimate
$- $100 $200 $300 $400 $500 '15e '16e '17e '18e '19e '20e
$ MM / yr.
200 400 600 800 1,000 1,200 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15e '16e '17e '18e
Residential Commercial Industrial Petrochemical Ecopetrol Transport Thermoelectric MMcf/d
Bogota +10% +0%
+2% +3% +3%
Source UPME
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Caribbean Sea Riohacha Ballena Chuchupa La Creciente +58 MMcf/d Cerro Matoso Barranquilla Cartagena
‘14→‘18e CAGR +15%
3 Guajira fields declined ~20% y/y (blow-down)
<5 gas fields (only 6% of Colombia’s production)
Late ‘14 performance 2 discoveries tripled 2P reserves y/y to 345 BCF Signed gas contracts to boost production by 6x to 118 MMcf/d over the next 3 yrs. Upside ~785k gross acres, ~15% of basin >2 TCF gross unrisked prospective resources
3 Guajira fields
Lower Mag Basin Nelson Clarinete Palmer
Compressor TGI pipeline Promigas pipeline Gas field
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7 gas fired power plants
Gas pipeline Prospects and leads Fields and discoveries
5 10 20 30 km
World >> Colombia >> Caribbean Coast (Canacol’s market) +1% +9% +15% per yr.
‘11 Nelson ‘14 Palmer ‘14 Clarinete
Blocks 4 Gross acres ~785k, ~15% of basin Locked-in growth 4x production 20 → 83 MMcf/d starting in Dec ‘15 Expand ebitda $30 → $150 MM(3)
Palmer Nelson Clarinete
‘14 ‘11 ‘14 La Creciente
100% 100% 100% 100%
(1) Reserve reports as of Feb ‘15 (2) Represents gross unrisked prospective gas resources (3) Annualized Lower Magdalena Jobo Tie in
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Upper Zone GWC @ -6,410 ft subsea
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~3,000 acres
Subcrop edge (1) Reserve report as of Feb ’15, pre-tax NPV-10 (2) Resource report as of Feb ’15, pre-tax NPV-10
Clarinete-2 appraisal Oboe-1 appraisal
Upgrade Jobo facilities 50→100 MMcf/d Finish 15 km flow line to tie Clarinete to Jobo Quadruple production 20 → 83 MMcf/d Expand ebitda $30 → $150 MM(1) Design, construct and execute ~190 km pipeline (16”) Between Jobo and Sincelejo Upgrade from 10 → 16” pipe Between Sincelejo and Cartagena: Pipeline loop New compression at Filadelphia Bypass around Sincelejo
La Creciente +58 MMcf/d
Cartagena
Nelson Clarinete Palmer Sincelejo Jobo
Filadelphia
Compressor Promigas pipeline Gas field
7 gas fired power plants
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(1) Annualized
Las Maracas ~12 MMbls Macarenas ~6 MMbls Cravo E ~8 MMbls Cravo S ~9 MMbls
3D Lab M R H Tigro L P New 3D
Fault Oil fields Leads
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(1) Gross barrels produced from Aug ‘08 to Jan ‘15 (2) Reserve reports for Labrador, Leono, Pantro, Tigro as of Jun ‘14 Reserve report for Rancho Hermoso as of Jun ‘14 (3) Management’s estimate of net unrisked recoverable prospective resources
3 2 1 4 6 COR 4 COR 12 VMM 3 VMM 2 COR 11 COR 39 Santa Isabel 5 7
N S
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(1) Represents DeGolyer & MacNaugton resource report mean estimate for Canacol’s gross working prospective oil resources and potential NPV-10 respectively, effective Jun ‘14
Shell Shell Ecopetrol CNOOC Exxon Exxon
Drilling VIM 37
(1) Reserve reports effective Feb ’15. Represents pre-tax NPV-10. (2) Reserve reports effective Jun ’14. Represents pre-tax NPV-10. (3) Management’s estimate of net risked prospective resources
CY ‘15 guidance(1) 10-12,000 boepd (60% WTI insensitive) Base 2P reserves Dry gas 345 BCF (61 MMboe)(1) Light oil 23 MMbls(2) ‘15e → ‘20e, exploit a diverse portfolio Base 2P reserves production +20% CAGR, 11k→32k boepd Exploration resource upside →33k boepd from >280 MMboe(3)
100% from base 2P reserves
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TSX (CNE), BVC (CNEC), OTCQX (CNNEF)
(1) As of March 31, 2015, and includes dilutive securities based on CDN 3.36 closing price/share. (2) Converted using CDN → USD exchange rate (0.84) as of 5/13/15 (3) As of March 31, 2015 CDN $/share
In mm
Shares outstanding 120.5
USD in mm
Market capitalization $338.1 Bank debt 240.7 Convertible bond 20.1 260.8 Working capital (28.4) Net debt $232.4 Enterprise value $570.5
(2) (3) (3) (1)
$200 MM Replaces existing senior credit agreement Matures Sep ‘19 No principal payments until Dec ‘17 Amortizes thereafter in 8 equal quarterly payments Interest payable quarterly at LIBOR + 4.75% Relaxed financial covenants
$- $2 $3 $5 $6 $8
3.36 (3)