Third Quarter Accounting & Tax Update Calgary, AB — October 3rd, 2016
Welcome Rick Whitley Regional Managing Partner
New partner announcement
Catherine Buhmiller Partner, Tax
Marcello D’Egidio Partner, Tax
Susanne DiCocco Partner, Advisory
Kimberly Payne Partner, Audit
Narmin Vasanji Partner, Advisory
David Yung Partner, Audit
© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
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Agenda • • • • • • •
Market activity overview – Chris Chan Regulatory update and impairment – Shane Doig Accounting updates – Reinier Deurwaarder Alberta carbon levy – Jeff Smith Tax dispute resolution update – Michel Bourque Cyber security – The Digital Privacy Act – Jeff Thomas Questions
© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
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Market activity overview
Chris Chan Partner, Advisory
Current environment and challenges • Low price environment with continuing risk of global oversupply of oil
• Continuing decline in drilling activity due to limited capital availability • Limited transactions in energy services sector with greater proportion of transactions in the midstream sector • E&P producers’ focus on capital efficiency and cost reduction
© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
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Comparison of utilization Rig Utilization
Rig Utilization %
Oct-16
Jul-16
Apr-16
Jan-16
Oct-15
Jul-15
Apr-15
Jan-15
Oct-14
Jul-14
Apr-14
Jan-14
Oct-13
Jul-13
Apr-13
Jan-13
Oct-12
Jul-12
Apr-12
Jan-12
Oct-11
Jul-11
Apr-11
Jan-11
Oct-10
Jul-10
Apr-10
Jan-10
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Average
Source: Canadian Association of Oilwell Drilling Contractors and Daily Oil Bulletin, JuneWarren-Nickle's Energy Group
© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
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Capital cost Average Drilling and Completion Costs 4,000
300
3,500
250
3,000
200
2,500
150
2,000
100
1,500
50
1,000
0 2012
2013
Total D&C Costs
2014
2015
2016
Average Cost per Stage Source: Canadian Discovery Frac Database
© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KP
