Reserve Information
2016 YEAR END RESERVES
Whitecap's 2016 year end reserves were evaluated by independent reserves evaluator McDaniel & Associates Consultants Ltd. ("McDaniels") in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) as of December 31, 2016. Additional reserve information as required under NI 51-101 is included in our Annual Information Form which has been filed on SEDAR.
The financial and operational information below is based on estimates and are unaudited.
2016 Reserve Highlights
Total Proved Plus Probable (“TPP”)
- Increased TPP reserves by 28% or 13% per debt-adjusted share to 355.8 MMboe from 278.9 MMboe in 2015.
- Development capital spending replaced 91% of production at an F&D cost of $2.34/boe, including changes in FDC, which generated a recycle ratio of 11.3 times.
- Total TPP reserve additions of 93.7 MMboe replaced 559% of production at an FD&A cost of $11.51/boe, including FDC, which results in a recycle ratio of 2.3 times.
Total Proved (“TP”)
- Increased TP reserves by 26% or 11% per debt-adjusted share to 251.8 MMboe from 200.0 MMboe in 2015.
- Development capital spending replaced 94% of production at an F&D cost of $2.42/boe, including changes in FDC, which generated a recycle ratio of 10.9 times.
- Total reserve additions of 68.6 MMboe replaced 409% of production at an FD&A cost of $13.32/boe, including FDC, which results in a recycle ratio of 2.0 times.
- TP reserves comprise 71% of TPP reserves compared to 72% in the prior year.
Proved Developed Producing (“PDP”)
- Increased PDP reserves by 32% or 16% per debt-adjusted share to 149.0 MMboe from 113.2 MMboe in 2015.
- Development capital spending replaced 61% of production at an F&D cost of $14.46/boe which generated a recycle ratio of 1.8 times.
- Total PDP reserve additions of 52.6 MMboe replaced 313% of production at an FD&A cost of $15.78/boe, including FDC, which results in a recycle ratio of 1.7 times.
- PDP reserves represent 59% of the TP reserves compared to 57% in the prior year.
Summary of Reserves
As at December 31, 2016
Company Share Reserves | ||||
Description | Oil (Mbbl) | Gas (MMcf) | NGL (Mbbl) | Total (Mboe) |
Proved producing | 108,970 | 184,670 | 9,250 | 148,999 |
Proved non-producing | 4,207 | 6,301 | 183 | 5,440 |
Proved undeveloped | 72,241 | 111,034 | 6,621 | 97,368 |
Total proved | 185,419 | 302,004 | 16,054 | 251,807 |
Probable | 75,838 | 126,282 | 7,115 | 104,001 |
Total proved plus probable | 261,257 | 428,287 | 23,169 | 355,807 |
Summary of Before Tax Net Present Values
(Forecast Pricing)
As at December 31, 2016
Before Tax Net Present Value ($MM) ^{(1)} | ||||||||||
Discount Rate | ||||||||||
Description | 0% | 5% | 10% | 15% | 20% | |||||
Proved producing | 4,293 | 3,127 | 2,457 | 2,030 | 1,738 | |||||
Proved non-producing | 163 | 113 | 85 | 67 | 55 | |||||
Undeveloped | 2,834 | 1,883 | 1,320 | 964 | 726 | |||||
Total proved | 7,289 | 5,124 | 3,861 | 3,061 | 2,519 | |||||
Probable | 4,488 | 2,314 | 1,445 | 1,018 | 774 | |||||
Total proved plus probable | 11,777 | 7,438 | 5,306 | 4,080 | 3,294 | |||||
Per fully diluted share | $31.63 | $19.97 | $14.25 | $10.96 | $8.84 |
^{(1) }Includes abandonment and reclamation costs as defined in NI 51-101.
Performance Measures
The following table highlights annual performance ratios based on the evaluation of our petroleum and natural gas reserves prepared by McDaniels.
2016 | 2015 | 2014 | Three Year Weighted Average | |
Total Proved Plus Probable | ||||
F&D ^{(1)} | $2.34 | $6.97 | $13.80 | $6.79 |
F&D recycle ratio ^{(2)} | 11.3x | 5.2x | 3.3x | 7.2x |
FD&A ^{(3)} | $11.51 | $18.27 | $19.56 | $15.78 |
FD&A recycle ratio ^{(2)} | 2.3x | 2.0x | 2.3x | 2.2x |
Production replacement ^{(4)} | 559% | 499% | 833% | 609% |
RLI (years) ^{(5)} | 19.3 | 18.2 | 16.0 | 18.1 |
Total Proved | ||||
F&D ^{(1)} | $2.42 | $8.86 | $19.03 | $8.79 |
F&D recycle ratio ^{(2)} | 10.9x | 4.1x | 2.4x | 6.5x |
FD&A ^{(3)} | $13.32 | $23.11 | $26.43 | $19.88 |
FD&A recycle ratio ^{(2)} | 2.0x | 1.6x | 1.7x | 1.8x |
Production replacement ^{(4)} | 409% | 400% | 610% | 458% |
RLI (years) ^{(5)} | 13.6 | 13.0 | 11.3 | 12.8 |
Proved Developed Producing | ||||
F&D ^{(1)} | $14.46 | $12.57 | $21.84 | $15.74 |
F&D recycle ratio ^{(2)} | 1.8x | 2.9x | 2.1x | 2.2x |
FD&A ^{(3)} | $15.78 | $29.46 | $29.62 | $23.80 |
FD&A recycle ratio ^{(2)} | 1.7x | 1.2x | 1.5x | 1.5x |
Production replacement ^{(4)} | 313% | 236% | 437% | 320% |
RLI (years) ^{(5)} | 8.1 | 7.4 | 6.8 | 7.5 |
^{(1) }F&D costs are calculated as the sum of development capital of $146.8 million plus the change in FDC for the period of $0.4 million (PDP), -$108.7 million (TP) and -$111.0 million (TPP), divided by the change in reserves that are characterized as development for the period.
^{(2) }Recycle ratio is calculated as operating netback divided by F&D or FD&A costs. Operating netback is calculated as revenue (including realized hedging gains and losses) minus royalties, operating expenses, and transportation expenses. Our operating netback in 2016 was $26.64/boe.
^{(3) }FD&A costs are calculated as the sum of development capital of $146.8 million plus acquisition capital of $605.7 million plus the change in FDC for the period of $77.3 million (PDP), $161.6 million (TP) and $326.0 million (TPP), divided by the change in total reserves, other than from production, for the period.
^{(4) }Production replacement ratio is calculated as total reserve additions (including acquisitions net of dispositions) divided by annual production. Whitecap's production averaged 45,841 boe/d in 2016.
^{(5) }Reserve life index (“RLI”) is calculated as total Company share reserves divided by the annualized fourther quarter actual production of 50,612 boe/d.