RE:Corporation presentation?? Time for an updateA list of topics the new presentation could address (no particular order, just a list):
#1 Reserves (by asset) - I know they usually have a PR for this but a summary page should be part of any presentation. It would also be nice if it was explained why there are so many drilling locations but only some of them are part of the reserves. Also, I think this is where drilling locations and sections belong.
#2 $20 Netback - they stated that was the # for 2017, they have not achieved this in the past, so let's see how it breaks down - price deck, by asset, and by asset mix, operating cost, transportation, royalty.
#3 Hedging - a page on what their policy is and what their current and planned positions are.
#4 New Royalty Framework - they've paid as high as 16% in the past, how is the new framework work and what is their forecast for 2017 and beyond.
#5 Capex - the # I saw somewhere in their releases is $45M - is that still the case, what is the breakdown, the infrastructure in place can handle how much gas/oil/NGL per day.
#6 Land Reconciliation - it took some sleuthing on my part to figure out they had sold some lands together with the Ante Creek disposal. They also bought a lot of various lands in Q2, did they buy any in Q3 or Q4?
#7 Other assets' plans - The dry gas stuff still represents 25% of production, they should at least give it a page to say what is the decline, drilling locations, cost, Netback, etc...and any plans to sell (they should obviously).
#8 Results - they will obvously have their own release but a summary should be integrated into the presentation (some companies show the last 5 quarters). They have this dashboard but its incomplete.
#9 Ante Creek transaction - just tell us what it is exactly. In the PR, they did not address how the gas from Waskahigan (which was processed at Ante Creek?) is going to be handled - is there a processing agreement? And like I said, all of a sudden the Duvernay oil page was gone from the November presentation (obviously tossed in the Ante Creek deal).
#10 Production estimate by Quarter - they should obviously have a buffer but since they know their decline and their drilling plans, they should be able to tell us what this is going to look like.
#11 Summary Budget - since they have production, netback and capex, they should be able to tell us what the CF for 2017 looks like and what the year end bank debt looks like.
#12 Waskahigan type curve and economics - I looked at the type curve, the EUR, the various statements and it doesn't add up - the payback can't possibly be 1.1 years if the capex per well is $3.5M, the netback is $20 and year 1 production is 75,000 BOE. Also, is it 35% or 50% oil?
#13 Gold Creek - same as Waskahigan. The type curve in the November presentation does not jive with a statement in one of the Press Release talking about 350-550 BOE average for year 1. Its like one is a sales pitch and the other is ultra conservative? Shareholders should want the realistic type curve and management should be held to account if they fail to meet it.
#14 3 page Cautionary statement - can they possibly consolidate to 1 page?
#15 update the IR contact.
I'm not an oil person so some of my questions may be dumb or nonsensical.
From reading all the presentations and press releases of 2016, its clear the cadence, the continuity (you can't state something one presentation, change it the next and not explain what changed) and consistency (you can't state something material in a press release ex $20 netback but have no mention of this in the presentation) were lacking.
A good example of above was the GC locations - I've seen it stated that its up to 300 locations but in the press releases, it talked about 100 locations. So which one is it?