Beruflich Dokumente
Kultur Dokumente
CFO survey
Final report
June 2015
WTI USD/bbl
5/29/2014
104.26
44.88
WTI USD/bbl
3/13/2015
Study overview
Participant profile
The aggregate production of respondents accounts for over
30% of Canadas total 2014 production of oil and gas
Both public and private companies are represented
Participants have domestic and foreign assets
Producers have conventional and unconventional oil, gas
and NGLs with the commodity mix varying from over 65% oil,
balanced production, to over 65% gas
Daily production from 25,000 boe/day to 500,000 boe/day,
including some of Canadas Top 10 producers
Range of net debt vs projected cash flows ranged from less
than 2.0 to over 4.5
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Combined boe/day production of participants
>2.1
million
>30%
6 respondents
Balanced oil and
gas production
5 respondents
>65% gas
production
7 respondents
25,000 50,000 bbl/day
6 respondents
50,000 -150,000 bbl/day
5 respondents
> 150,000 bbl/day
<2.0
2.0-4.5
>4.5
3
Access to Capital
2008-09 was a global
economic crisis, this is
really limited to energy.
The average cost per well drilled in the WCSB has risen
dramatically as:
new technologies are implemented (multi-stage fracturing)
deeper, more technically difficult reservoirs are targeted
(i.e. Duvernay)
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
<12
28%
Months
>12
Months
72%
USD WTI
CAD WTI
Interview
Period
April 2015
CAD WTI $72
USD WTI $60
June 2013
CAD WTI $96
USD WTI $93
Weakening FX rate resulting in favourable CAD WTI
WTI pricing per www.eia.gov
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
Challenge or opportunity?
Helps us to be more
nimble; forces us to
correct.
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
REDUCING
COSTS
SHORT-TERM CASH
FLOW
CASH FLOW
MANAGEMENT
DEBT
MANAGEMENT
ALTERED PLANS
TO ACCESS
FINANCING
IMPROVING THE
BALANCE SHEET
DEFER SPEND
STRATEGIC
ACQUISITIONS
CUT DIVIDEND
DIVESTITURES TO
MONETIZE ASSETS
MANAGING
CAPITAL
M&A
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
8%
17%
8%
67%
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
10
Field
Productivity
Operations
Technology
Operational
Risk
Management
Operational
Excellence
Operations
Management
Systems
Regulatory,
Safety and
Environment
Asset
Management
Sustainability
Highest
priority
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
Medium
priority
Low
priority
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Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
12
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
13
No cut
1-20%
20-40%
>40%
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
Yes (67%)
No (33%)
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Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
15
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
16
Positioning
for strategic
acquisitions
56%
Forced to
consider
monetizing
assets
44%
Difficult to do strategic
acquisitions now.
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
17
80
80.0
250
60.0
200
60
40.0
150
40
100
20.0
Count of Deals
China
Brazil
Russia
India
Argentina
0
Mexico
Asset Value
Mar
Apr
Corporate, JV, Licensing
Australia
Feb
UK
Dec
Jan
Asset Count
Canada
50
US$ bn
20
Count
300
USA
100
General observations:
M&A activity picked up towards the end of Q1 2015
as oil prices moved upwards and stabilized
around US$ 50.
North America dominates the number of deals as
well as value from 2013-2015 YTD including in
recent weeks, except for the anomalous US$ 70 bn
takeover bid of BG by Shell in Europe.
Last 15 days in April recorded maximum number
of M&A activities in Q1 2015 with 68 instances.
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
18
Deloitte perspective
M&A and managing uncertainty
120
80
Deal value ($MM)
15,000
60
10,000
40
5,000
-
Volume of deals
100
20,000
20
Q1 10Q2 10Q3 10Q4 10Q1 11Q2 11Q3 11Q4 11Q1 12Q2 12Q3 12Q4 12Q1 13Q2 13Q3 13Q4 13Q1 14Q2 14Q3 14Q4 14 Q115
Total disclosed deal value
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
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Closing
Longer than 12 months
Both a challenge and an opportunity
Preserve cash flow through reducing dividends, deferring capital, reducing
staff and pressing suppliers for discounts
Will have long-term benefits for the industry. Increased competitiveness,
greater productivity and improved quality of the workforce
Asset management, field productivity and operations technology
Deloitte LLP and affiliated entities. | 2015 Calgary upstream CFO survey Final report
20
www.deloitte.ca
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Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited.
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