Cavvy Energy Ltd · TSX:CVVY
Cavvy Energy — Investor Presentation (July 2025)
35 slides from Cavvy Energy's investor presentation, July 2025
Slide 1: Corporate Presentation July 2025
Corporate Presentation July 2025
Slide 2: Cautionary Statements
Cautionary Statements This presentation is for informational purposes only and does not of the economic and political environment in which Cavvy operates; the Statements relating to “reserves” are forward looking statements due to constitutes an offer or recommendation to purchase, subscribe for, re
Slide 3: Cavvy Energy Ltd. – Who We Are
Cavvy Energy Ltd. – Who We Are Cavvy is a public E&P company with upstream and midstream assets One of the largest Canadian Foothills producers concentrated in the Canadian Foothills, home to some of the largest conventional gas reservoirs in North America. Market Snapshot 35,000 boe/d5 Head office
Slide 4: Cavvy's Purpose & Principles
Cavvy’s Purpose & Principles Our Our Our Purpose Mission Our Principles Strategy Safely and responsibly develop, Our work is guided by four key principles as produce and process hydrocarbon part of our high-performance culture: energy to maximize shareholder • We deliver the Right Results for Cavvy
Slide 5: Strategy Execution Drives Shareholder Value
Strategy Execution Drives Shareholder Value 2024 2025 2026+ Stabilize Transition Breakout ✓ Divested legacy Goldboro assets ✓ Rebranded, concluding the transition phase of ❑ Restart all shut-in production in supportive ✓ Repaid high-cost bridge loan the strategic pivot market conditions ✓ Increased
Slide 6: Strategically Located Midstream Infrastructure
Strategically Located Midstream Infrastructure Core Areas & Key Processing Facilities Operated Gas Plant Utilization (2) (Current) (4) 300 Cavvy Other Owners 3rd Party Excess Capacity 250 Designed Capacity Cavvy is one of the largest Foothills producers of natural gas and 200 owns & controls key dee
Slide 7: Third Party Processing – Key Value Driver
Third Party Processing – Key Value Driver Third Party Processing (1) Reducing Field OPEX with Increased 3rd Party Processing (2) (Q1/25) 120 $30.00 OPEX Adj. OPEX Caroline Waterton Jumping Pound 3rd Party Throughput (MMcf/d) TTM OPEX/Adj. OPEX by Field 100 $25.00 80 $20.62 $20.00 $18.79 60 $16.28 $1
Slide 8: Caroline Gas Plant: Significant 3rd Party Gas Processing
Caroline Gas Plant: Significant 3rd Party Gas Processing • Significant 3rd party liquids-rich natural gas drilling in surrounding On Prod 2021 On Prod 2022 area, primarily focused in the Mannville Glauconitic and Ellerslie On Prod 2023 On Prod 2024 formations On Prod 2025 Capture Area • The Caroline
Slide 9: Exceptional Sulphur Market Upside Exposure in 2026+
Exceptional Sulphur Market Upside Exposure in 2026+ Historical WC Sulphur w/ Periods of (+/-) Margin Canadian Sulphur Production(2) $500 6,000 $450 Period of (+) Margin $400 Period of (-) Margin 5,000 $350 Vancouver Spot FOB Transportation (US$67/mt) 4,000 000s mt $300 US$/mt $250 3,000 $200 $150 2,
Slide 10: 2024 Year-End Net Asset Value & Reserves
2024 Year-End Net Asset Value & Reserves Share price deep discount versus NAV persists into 2025 Net Asset Value Highlights TPP Volume by Area (MMboe) Current Share Price (1) $/sh. 0.39 TPP Reserves 2024 2023 Change Common Shares O/S MM 290.4 Gas Bcf 1,228 1,282 -4% 244 Waterton (4) FD Shares O/S (3
Slide 11: Untapped Drilling Inventory
Untapped Drilling Inventory Identified Gross Unrisked Drilling Inventory By Tier (TP) (1) Cavvy Drilling Inventory Classification 800 748 Tier Tier Subdivision Scheme POP (2) 600 1a Booked undeveloped – wells are captured in reserves report 100% Only 4% of identified drilling inventory is booked at
Slide 12: Q1 2025 Operating & Financial Results, Outlook
Q1 2025 Operating & Financial Results, Outlook
Slide 13: Q1 2025 Operating Results
Q1 2025 Operating Results Partial restart of shut-in production, robust 3rd party processing, maintenance at Jumping Pound 18,000 Central • Production: 22,584 boe/d, 78% gas 16,000 Production by Area (boe/d) Waterton 14,000 Jumping Pound ‒ ~1,800 of shut-in production in Northern AB/NEBC partially r
Slide 14: Q1 2025 Financial Results
Q1 2025 Financial Results Strong cashflow and hedge gain leads to material debt repayment Key Financial Metrics ($000s) Q1 2025 • $32.6 million NOI generated ($16.02 / boe, $0.10 per basic share) and $21.7 Sales Revenue $52,668 million Funds Flow from Operations ($0.07 per share) Third Party Process
Slide 15: Q1 2025 Net Operating Income - Sensitivity
Q1 2025 Net Operating Income - Sensitivity Q1 2025 NOI sensitivity (change in NOI for 10% change in underlying variable) • The NOI Sensitivity chart shows the change in Q1 Operating Expense 14% Net Operating Income as a result of a 10% change in each variable on a hedged basis NGL & Condensate Produ
Slide 16: 2025 Guidance & Hedge Position
2025 Guidance & Hedge Position Supportive pricing for production restart and robust hedging Liquids Hedges Volumes Hedged (bbl/d) WTI Forward Curve 105 Weighted Average Floor Weighted Average Ceiling 2,500 Guidance Measure 2025 Guidance 100 2,000 Total Production (boe/d) 23,000 – 25,000 95 Net Opera
Slide 17: Key Takeaways
Cayvy" ENERGY Key Takeaways
Slide 18: Key Takeaways – Path to Shareholder Value
Key Takeaways – Path to Shareholder Value • Simplify business by focusing on western Canadian upstream and midstream assets ‒ Completed strategic pivot culminating in sale of legacy Golboro assets, new corporate brand • Lower leverage to reduce risk and improve resilience • Improve facility reliabil
Slide 19: Thank You
Thank You Cavvy Energy
Slide 20: Appendix A – Asset Detail
Cayvy" ENERGY Appendix A — Asset Detail
Slide 21: Waterton Core Area Overview
Waterton Core Area Overview Overview Map Upside ▪ Low-risk sour drilling opportunities and sweet gas play delineation, complemented by near-term recompletion and reactivation potential ▪ Condensate-rich development drilling locations provide high netback opportunities over multiple thrust sheets ▪ B
Slide 22: Waterton Core Area - continued
Waterton Core Area - continued Waterton Deep Cut Production Sour Gas Processing 5,000 45.00 Facility with Liquids (bbl/d) Proved Developed Gas (MMcf/d) 4,000 35.00 Producing NPV10 Fractionation 3,000 $274MM¹ 100% Working interest 2,000 25.00 ¹YE24 Evaluator Pricing Licensed Capacity of 180 1,000 15.
Slide 23: Central AB & Caroline Core Area Overview
Central AB & Caroline Core Area Overview Overview Map Upside ▪ Development upside highlighted by: ▪ Ostracod – low risk, highly productive ▪ Mannville – well established, liquids-rich, highly productive ▪ Horizontal drilling has proven effective by others in all target zones elsewhere in the CAB Foo
Slide 24: Caroline Core Area - continued
Caroline Core Area - continued Production Caroline Deep Cut 5,000 30.00 Sour Gas Processing Liquids (bbl/d) Gas (MMcf/d) Proved Developed Facility 4,000 25.00 Producing NPV10 3,000 74% Working interest $105MM¹ 2,000 20.00 ¹YE24 Evaluator Pricing Licensed Capacity of 195 mmcf/d 1,000 15.00 Q2/2024 Q3
Slide 25: Jumping Pound Core Area Overview
Jumping Pound Core Area Overview Overview Map Upside ▪ Upside consists of a combination of development and exploration targets: ▪ Infill Turner Valley opportunities offsetting existing fields ▪ Sweet and sour exploration drilling opportunities in the Jumping Pound and Moose Mountain areas Inventory
Slide 26: Jumping Pound Overview - Continued
Jumping Pound Overview - Continued Jumping Pound Deep Production Cut Sour Gas 1,500 50.00 Liquids (bbl/d) Processing Facility Gas (MMcf/d) Proved Developed 40.00 1,000 30.00 Producing NPV10 with Fractionation 20.00 C$126MM¹ 100% Working interest 500 10.00 ¹YE24 Evaluator Pricing Licensed Capacity of
Slide 27: Northern AB Area Overview
Northern AB Area Overview Overview Map Upside ▪ Combination of traditional vertical multi-zone completions, and horizontal targets in the Dunvegan, Cadotte and Falher ▪ Ojay contains abundant Mannville and Nikanassin reservoirs with up to 100m of cumulative net sand that historically produce comingl
Slide 28: Marketing & Logistics
Marketing & Logistics Natural Gas: Cavvy’s deep cut sour gas plants provide enhanced revenue from multiple product streams. • All three facilities are pipeline connected to TC Energy’s Nova System. • Historically, with all liquids stripped by the deep cut processing facilities, Cavvy Facility Produc
Slide 29: Appendix B – Foothills Geology
Appendix B – Foothills Geology
Slide 30: Introduction to the Canadian Foothills
Introduction to the Canadian Foothills Generalized Lithological Controls on Fold Style and Fracture Development Clastics • Interbed slip (deck of cards) • Can generate intermediate-scale complex folds Detachments in Clastics passively • Thin bedded units can be highly fractured depending on litholog
Slide 31: Foothills Fracture Systems
Foothills Fracture Systems Idealized fold-related fracture systems (Feltham, 2006 Conjugate fracture system in a Type 1 Horizontal wells best exploit fractured reservoirs as shown after Sterns, 1968). Type 1 fractures are oriented orientation in Paleozoic carbonates, Central in this outcrop example
Slide 32: Appendix C – Corporate
Cayvy" ENERGY Appendix C — Corporate
Slide 33: Hedge Position Detail
Hedge Position Detail 2025-2028 Hedge Portfolio(1) Q125 Q225 Q325 Q425 2025 Q126 Q226 Q326 Q426 2026 Q127 Q227 Q327 Q427 2027 Q128 Q228 Q328 Q428 2028 AECO Natural Gas Sales Total Hedged (GJ/d) 110,000 110,000 110,000 110,000 110,000 78,502 71,855 68,340 65,025 65,845 63,340 28,154 - - 20,172 - - -
Slide 34: Executive Team
Executive Team Darcy Reding | President & Chief Executive Officer | Joined Cavvy in 2021 Mr. Reding previously served as the Vice President of Operations & Geoscience at NAL Resources Management until the acquisition by Whitecap Resources in Q1 2021. Mr. Reding has 35 years of energy technical and l
Slide 35: Governance & Corporate Information
Governance & Corporate Information Board of Directors Independent Reserve Evaluator Patricia McLeod, K.C. Chair Independent Director Deloitte LLP Michael Backus Independent Director Harvey Doerr Independent Director Auditors Doug Dreisinger Independent Director Ernst & Young LLP Andrew Judson Indepe