Peyto Exploration & Development Corp. · TSX:PEY

Peyto Exploration & Development — Shareholder Meeting (May 2015)

34 slides from Peyto Exploration & Development's shareholder meeting presentation, May 12, 2015

  1. Slide 1: Peyto Exploration & Development Corp. Annual General Meeting

  2. Slide 2: Forward looking statements

  3. Slide 3: How do they do it?

    Sank AGL

  4. Slide 4: ppl cit

    ppl cit TSX hokal sebucn over AG JRars ¢ 7 —_ ~ ~ —_ ® Oter ELPs: VET VW, ARK 2O*, CHQ SHH

  5. Slide 5: Peyto's share performance

    Peyto's Share Pedfotu kikce: Shareholder (RR act AS

  6. Slide 6: Slide 6

  7. Slide 7: —_ : =)

    —_ : =)

  8. Slide 8: Family partnership business approach

    Daw'F fale! wolhat! dtlece| da Family ¢¢ = partnership i J 1 Make ew! oun i dae wach By J Gust make Fors Mmoury wy money ) )’ Lowest possible rigk y St Can we repeak and predict ° the cegult? ai

  9. Slide 9: The Peyto Strategy

    The Peyte Strategy e luvegt lu cus owHN ideas e Reila vk ourselves e Operate vk ourselues e Focus on Maxinoun Retosn aRerlciewnt | e Shay concentrated, lean \ |

  10. Slide 10: Location map

    R22 R17 R12 R7 T T4 T40 tion map.MAP D R2

  11. Slide 11: Traditional drilling

    kradibional Dee akin TVeae 4 Cuery enique) Deeg bagin Gas w bbe Deeg Ee Sands stays w the a a position because Woids can ", wove Kaeo the Kaqlt rock bo displace ble ars vedio. 8 cigk of wells "watering ovk,

  12. Slide 12: Foubore potential

    Foubore Potent: al We lave over AYOO locations ; aS 7 vdenti fied Wa i several proven OR) doew abions LH TT == “te

  13. Slide 13: Wells drilled

    Cun. wells dAcillea Coven other another A400 wells ove eursenk land base i ‘Ss shill less Klan | L046 Aevelo pea ) T + Yt "AA

  14. Slide 14: 2000-2014 realized price, costs and profit

    2LOO0-—2OAY Peryto's Be Rel: Retold Clast AS yes) \ 4 Ys Beklal vt Produce! ih) | Sell it ~3 CPDP FDA) (Roy Opex, beans es QKA, int) ri; | CEA. + EA.4S)+ $6.68 CR | =$L.48 [weber GAL Prohit Cocekty simple!) ie

  15. Slide 15: Last year's results

    Lag! Year's! Regults | CZOAN) Reila ik Produce tk Sell ik CEL.LS + £4.08) + $8.04 HEA. VA/ rede BEL Profit Coven w/low gas price aud largest capex )

  16. Slide 16: Peyto's track record

    PEYTO'S TRACK RECORD S Peyto’s Profitable Business Profitable Even Through The Lows KVorla costs D) lave been Hat ¥ all r Ce aed Mrough gers prices down, should come down with oil prices Falling ) Producing costs \ ¥ lave been coming T down i Wy, ae Peyto Realized Gas Price ($/mefe) Cash Costs PDP F

  17. Slide 17: Growth per share

    GROWTH PER SHARE | Aucdeal CashHow Prod vebion ze regerves 14 CAGR cover last S yes 29% CAGR “ly 4 e ARL CAGR ox ok 4 + at ee ee aor e y =, % ‘ 7 < F l 1 1 1 iT 1 n - *e T T T T T T T T T 1 1 1 1 T 'aq '0A 0% ‘os ‘or ‘od "aa ‘Ad . dist. we Assumes dis —\ bought back shares

  18. Slide 18: The Peyto Strategy

    The Peyte Strategy e luvegt lu cus owHN ideas e Reila vk ourselves e Operate vk ourselues e Focus on Maxinoun Retosn aRerlciewnt | e Shay concentrated, lean \ |

  19. Slide 19: Production per share

    PRODUCTION PER SHARE 4 a é 2OAZ_ | 204% «1 otonySsN

  20. Slide 20: Production per share

    \ PRODUCTION PER SHARE OAS LOAG C42.1% + $4.06) + £4.56 = $4.23

  21. Slide 21: Peyto's returns

    PEYTO'S RETURNS GL Reborn oun equity AR Ye | Uekurt On ca pital LOA’ AVE AG YRS

  22. Slide 22: After AGM years and wells, what have we learned

    After AG RATS and A,000 wells. What have we texan

  23. Slide 23: Solid foundation, keep your plans

    Gotta tetas, solid ocd ation Rot keep Yovc plans very Woia

  24. Slide 24: Commodity prices are cyclical

    Gas Price CO. Price/ 6) Commodity Prices Ace Crelical® WAECO US¢/nwbte ' — ie eS ‘A 'OR tog ‘0% ='0a, TAA Hludestey ackivity Pollows commodity prices.

  25. Slide 25: Invest counter cyclical for max return

    luvegt Covuter Cyelical doe Max Return bop ph Ws RR eyecle LOE AO (- WEN ¢s + $3 MEL botlow. of IRR Ke eyele Kwo) to

  26. Slide 26: Counter cyclical growth profile

    Counter Crelical Geawth Profile Successhl counter eyelical investing should regulk in a qrowkl. profile klak shacks and stops cater ban vice, theoretical Vneae growth.

  27. Slide 27: Peyto production / share

    PEYTO PRODUCTION / SHARE Cooe/a/wmak)

  28. Slide 28: Operating costs

    OPERATING COSTS 22

  29. Slide 29: Dividends come from profits

    Dividends covne: Prbu. profits ae KIL Klere ig no pcokit, Aividends are coming drow Sources of capital. That's uot sustainable. “| 4

  30. Slide 30: Dividend sustainability

    +. is ° ° ° \ 1 — > na ° ,o9 1 Ly Dd: vidend Su sgkaimability Comvlakive Rarnings Comrvlative Aividends

  31. Slide 31: Recap: what we know

    RECAP WHAT WE KNOW wow af Gommedibios and indoskry are evyelical JU Cornter evyelical dee wax returns SY Lowest cost producer \sS best SU Bel profit due sugtainable yield

  32. Slide 32: Lowest cost producer, profitable, consistent

    e Lowest cogt prodveer e Very erohk kable e Long, cougigtent track record @ Concentrated e lLaneon abive e Hoge potential

  33. Slide 33: 2015 plans

    i - ~ 2 = Palais aignsiate ZOAS PLANS Ca pital program Drilling ALS cite (ri tit alee Reilding Facilities Semeok SRigwmic Roving tanae ADD.-000—sszfa— 30 2 Profit

  34. Slide 34: Peyto Exploration & Development Corp.

    PEYTO Exploration & Development Corp.

Peyto Exploration & Development — Shareholder Meeting (May 2015) on 6ix