Advertisement
Based on this reconciliation of changes in BT NPV, the Peyto team was able to create $963 million of Proved Producing, $1.36 billion of Total Proven, and $2.0 billion of Proved plus Probable Additional undiscounted reserve value, with $618 million of capital investment. The ratio of capital expenditures to value creation is what Peyto refers to as the NPV recycle ratio, which is simply the undiscounted value addition, resulting from the capital program, divided by the capital investment. For 2012, the Proved Producing NPV recycle ratio is 1.6.
The following table breaks out the value created by Peyto's capital investments and reconciles the changes in debt adjusted NPV of future net revenues using forecast prices and costs as at December 31, 2012.
---------------------------------------------------------------------------- Proved Producing($millions)Discounted at 0% 5% 10%----------------------------------------------------------------------------Before Tax Net Present Value at Beginning of Year ($millions)Dec. 31, 2011 Evaluation using InSite Jan. 1, 2012 price forecast, less debt $4,344 $2,159 $1,326----------------------------------------------------------------------------Per Share Outstanding at Dec. 31, 2011 ($/share) $31.40 $15.60 $9.58---------------------------------------------------------------------------- 2012 sales (revenue less royalties and operating costs) ($338) ($338) ($338) Net Change due to price forecasts (using InSite Jan 1, 2012 price forecast) ($625) ($418) ($293) Value Change due to discoveries (additions, extensions, transfers, revisions) $963 $756 $631 --------------------------------- ---------------------------------Before Tax Net Present Value at End of Year ($millions)Dec. 31, 2012 Evaluation using InSite Jan. 1, 2013 price forecast, less debt $4,105 $2,144 $1,336----------------------------------------------------------------------------Per Share Outstanding at Dec. 31, 2012 ($/share) $27.61 $14.42 $8.99--------------------------------------------------------------------------------------------------------------------------------------------------------Year over Year Change in Before Tax NPV/share -12% -8% -6%Year over Year Change in Before Tax NPV/share including Dividend ($0.72/share) -10% -3% 1%---------------------------------------------------------------------------- Tables may not add due to rounding.---------------------------------------------------------------------------- Total Proved($millions)Discounted at 0% 5% 10%----------------------------------------------------------------------------Before Tax Net Present Value at Beginning of Year ($millions)Dec. 31, 2011 Evaluation using InSite Jan. 1, 2012 price forecast, less debt $7,236 $3,507 $2,030----------------------------------------------------------------------------Per Share Outstanding at Dec. 31, 2011 ($/share) $52.30 $25.35 $14.67---------------------------------------------------------------------------- 2012 sales (revenue less royalties and operating costs) ($338) ($338) ($338) Net Change due to price forecasts (using InSite Jan 1, 2012 price forecast) ($1,025) ($720) ($507) Value Change due to discoveries (additions, extensions, transfers, revisions) $1,363 $1,058 $845 --------------------------------- ---------------------------------Before Tax Net Present Value at End of Year ($millions)Dec. 31, 2012 Evaluation using InSite Jan. 1, 2013 price forecast, less debt $6,869 $3,504 $2,060----------------------------------------------------------------------------Per Share Outstanding at Dec. 31, 2012 ($/share) $46.20 $23.57 $13.86--------------------------------------------------------------------------------------------------------------------------------------------------------Year over Year Change in Before Tax NPV/share -12% -7% -6%Year over Year Change in Before Tax NPV/share including Dividend ($0.72/share) -10% -4% -1%---------------------------------------------------------------------------- Tables may not add due to rounding.---------------------------------------------------------------------------- Proved + Probable Additional($millions)Discounted at 0% 5% 10%----------------------------------------------------------------------------Before Tax Net Present Value at Beginning of Year ($millions)Dec. 31, 2011 Evaluation using InSite Jan. 1, 2012 price forecast, less debt $10,790 $5,018 $2,825----------------------------------------------------------------------------Per Share Outstanding at Dec. 31, 2011 ($/share) $77.99 $36.27 $20.42---------------------------------------------------------------------------- 2012 sales (revenue less royalties and operating costs) ($338) ($338) ($338) Net Change due to price forecasts (using InSite Jan 1, 2012 price forecast) ($1,631) ($1,078) ($749) Value Change due to discoveries (additions, extensions, transfers, revisions) $1,969 $1,416 $1,087 --------------------------------- ---------------------------------Before Tax Net Present Value at End of Year ($millions)Dec. 31, 2012 Evaluation using InSite Jan. 1, 2013 price forecast, less debt $10,360 $5,070 $2,198----------------------------------------------------------------------------Per Share Outstanding at Dec. 31, 2012 ($/share) $69.69 $34.10 $19.63--------------------------------------------------------------------------------------------------------------------------------------------------------Year over Year Change in Before Tax NPV/share -11% -6% -4%Year over Year Change in Before Tax NPV/share including Dividend ($0.72/share) -10% -4% 0%---------------------------------------------------------------------------- Tables may not add due to rounding.
