Spyglass Resources Corp. - PrecisionIR
Spyglass Resources Corp. - PrecisionIR Spyglass Resources Corp. - PrecisionIR
Board of DirectorsSpyglass Board of DirectorsRandy Findlay, P.EngIndependentChairman• Director of Charger Energy Corp., Canadian Helicopters Group Inc., PembinaPipeline Corporation, Superior Plus Corp., Whitemud Resources Inc., EllisDonInc., Summerland Energy Inc. and SeaNG Ltd.Dennis Balderston, CA Director • Director of AvenEx Energy Corp, Condor Petroleum Inc. and Suroco Energy Inc.Tom Buchanan, FCA Director • Chairman & CEO of Charger Energy Corp. and Former President & CEO ofProvident Energy Trust• Director of Pembina Pipeline Corporation, Athabasca Oil Corp., and HawkExploration Ltd.Gary Dundas, CMA, MBA Director • Director and VP, Finance & CFO of AvenEx Energy Corp.• Director of Direct Cash Payments Inc., Athabasca Oil Corporation, CanadianInternational Oil Corp. Fraction Energy ServicesPeter Harrison, CFA, MBA Director • Chairman, Pace Oil and Gas Ltd., Director, Freehold Royalties Ltd.• Manager, Oil and Gas Investments for CN Investment Division• Former Senior Vice President, Montrusco Bolton Investments Inc.Mike Shaikh, FCA Director • Director of Pace Oil and Gas Ltd., Hawk Exploration Ltd.• Former member of the board of the ASC (2003-2006)Jeff Smith, P.Geol Director • Director of Pembina Pipeline CorporationJohn Wright, P.Eng, CFA Director • President, CEO and Director of Petrobank Energy and Resources Ltd.,• Chairman and CEO of PetroBakken Energy Ltd. and Chairman ofPetrominerales Ltd., Director of Hawk Exploration Ltd., and Director of ChargerEnergy Corp.Spyglass Resources Corp.6
Key Attributes & OutlookPro Forma OperationalCurrent Production [boe/d] 17,500% Oil & Liquids [%] 49%Total Proved Reserves (1) [MMboe] 57.5Total Proved plus Probable Reserves (1) [MMboe] 93.9Undeveloped Land (Net) [Acres] 645,000Light Oil Drilling Inventory [Locations] >1,000Years of Sustaining Development Available [Years] >20Pro Forma FinancialShares Outstanding [MM] 129Net Debt and Working Capital (2) [$MM] $293Credit Facility Capacity [$MM] $400Estimated Tax Pools [$MM] $900Hedging ProgramHedging Target [% Production] 50%-60%Time Horizon [months] 12-18Crude Oil Hedged for 2013 [% Production] 32%Natural Gas Hedged 2013 [% Production] 41%2013 Outlook (1)Exit Production Forecast [boe/d] 18,000% Oil & Liquids [%] 52%Average Production Forecast [boe/d] 16,000% Oil & Liquids [%] 51%Cash Flow Forecast (2)(3) [$MM] 104Capital Expenditures [$MM] $70 - $80Dividends [$MM] $26Net Debt to Annualized Exit Cash Flow [x] 2.1xBasic Payout Ratio [%] 25%All-in Payout Ratio (4) [%] 95% - 100%Preliminary 2014 Outlook (2)(3)Average Production Forecast [boe/d] ~18,000% Oil & Liquids [%] 53% - 55%Capital Expenditures [$MM] $90 - $100Dividends [$MM] $35Net Debt to Cash Flow [x] 1.7xBasic Payout Ratio [%] < 25%All-in Payout Ratio (4) [%] 80% - 85%(1) Reserves from reserve reports for each company as of December 31, 2011 and the updated GLJ report on certain propertiesfor Charger as of May 31, 2012 adjusted for AvenEx and Charger minor dispositions in 2012 and adjusted for 2012production to October 31, 2012 as forecast in the December 2011 reserve reports.(2) Pro forma net debt and working capital incorporates cash proceeds from the disposition of Elbow River Marketing andestimated transaction costs and excludes risk management assets and liabilities as of the closing date of the transaction.(1) Assumes transaction closes March 31, 2013 with Pace as continuing issuer. 2013 outlook reflects one quarter of Pace projectionsand three quarters of pro forma Spyglass projections.(2) Commodity price assumptions: 2013 - Edm Light C$88.89, corporate realized crude oil and liquids price C$74.23 at the wellhead,AECO $3.39 / Mcf. 2014 - Edm Light C$88.54, corporate realized crude oil and liquids price C$79.42 at the wellhead, AECO $3.79/ Mcf.(3) Commodity price sensitivities: 2013 - a $1.00/bbl change in realized crude oil prices, results in a $0.9 million change in annualizedcash flow; a $0.50/Mcf change in natural gas prices, results in a $6.0 million change in annualized cash flow. 2014 - a $1.00/bblchange in realized crude oil prices, results in a $2.5 million change in cash flow; a $0.50/Mcf change in natural gas prices, resultsin a $8.0 million change in cash flow.(4) All-in Payout Ratio is defined as Capital Expenditures plus Dividends divided by Cash Flow.Spyglass Resources Corp.7
- Page 1 and 2: Intermediate Sized, Commodity Balan
- Page 3 and 4: Why Spyglass?• Sustainable divide
- Page 5: Experienced Management TeamSpyglass
- Page 9 and 10: Underpinning the Model - Low Declin
- Page 11 and 12: Pro Forma Reservesas at October 31,
- Page 14 and 15: Share PriceYield (MRA)Peer Benchmar
- Page 16: Corporate InformationTSX Listed: SG
Board of Directors<strong>Spyglass</strong> Board of DirectorsRandy Findlay, P.EngIndependentChairman• Director of Charger Energy <strong>Corp</strong>., Canadian Helicopters Group Inc., PembinaPipeline <strong>Corp</strong>oration, Superior Plus <strong>Corp</strong>., Whitemud <strong>Resources</strong> Inc., EllisDonInc., Summerland Energy Inc. and SeaNG Ltd.Dennis Balderston, CA Director • Director of AvenEx Energy <strong>Corp</strong>, Condor Petroleum Inc. and Suroco Energy Inc.Tom Buchanan, FCA Director • Chairman & CEO of Charger Energy <strong>Corp</strong>. and Former President & CEO ofProvident Energy Trust• Director of Pembina Pipeline <strong>Corp</strong>oration, Athabasca Oil <strong>Corp</strong>., and HawkExploration Ltd.Gary Dundas, CMA, MBA Director • Director and VP, Finance & CFO of AvenEx Energy <strong>Corp</strong>.• Director of Direct Cash Payments Inc., Athabasca Oil <strong>Corp</strong>oration, CanadianInternational Oil <strong>Corp</strong>. Fraction Energy ServicesPeter Harrison, CFA, MBA Director • Chairman, Pace Oil and Gas Ltd., Director, Freehold Royalties Ltd.• Manager, Oil and Gas Investments for CN Investment Division• Former Senior Vice President, Montrusco Bolton Investments Inc.Mike Shaikh, FCA Director • Director of Pace Oil and Gas Ltd., Hawk Exploration Ltd.• Former member of the board of the ASC (2003-2006)Jeff Smith, P.Geol Director • Director of Pembina Pipeline <strong>Corp</strong>orationJohn Wright, P.Eng, CFA Director • President, CEO and Director of Petrobank Energy and <strong>Resources</strong> Ltd.,• Chairman and CEO of PetroBakken Energy Ltd. and Chairman ofPetrominerales Ltd., Director of Hawk Exploration Ltd., and Director of ChargerEnergy <strong>Corp</strong>.<strong>Spyglass</strong> <strong>Resources</strong> <strong>Corp</strong>.6
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