Spartan Delta Corp · TSX:SDE
Spartan Delta — Investor Presentation (May 2024)
22 slides from Spartan Delta's investor presentation, May 7, 2024
Slide 1: Spartan Delta Corp. Investor Presentation
SPARTAN DELTA CORP. I N V E S TO R P R E S E N TAT I O N M AY 7 , 2 0 2 4
Slide 2: Spartan Delta Corporate Strategy: Three Pillar Strategy
SPARTAN DELTA CORPORATE STRATEGY Three Pillar Strategy I . D E E P B A S I N O P T I M I Z AT I O N I I . D E E P B A S I N C O N S O L I D AT I O N I I I . N E W D U V E R N AY C O R E A R E A ORGANIC GROWTH TECHNICAL EXPERTISE LOW COST OF ENTRY FREE FUNDS FLOW GENERATION OPERATIONAL AND G&A SYNERG
Slide 3: Corporate Summary
CORPORATE SUMMARY Building a Sustainable Energy Company S PA R TA N D E LTA C O R P. C A P I TA L I Z AT I O N 40,500 BOE/d 2024 Production SPARTAN DELTA CORP TSX SDE $150 MM 2024 Capital Share Price(1) $/sh 4.21 DEEP BASIN ~$100-125 MM 2024 Capital Common Shares Outstanding(2) MM 173.2 Edmonton, Al
Slide 4: Spartan's Strategic Milestones
SPARTAN’S STRATEGIC MILESTONES Continuously Generating Shareholder Value C O R P O R AT E H I G H L I G H T S S I N C E I N C E P T I O N ( 1 ) T R A C K R E C O R D O F E X E C U T I N G S T R AT E G Y $537 MM $1,623 MM $980 MM Growth Through Targeted Strategic Acquisitions in a Depressed 1 Market.
Slide 5: Q1 2024 Highlights
Q1 2024 HIGHLIGHTS Consistently Delivering Results UNAUDITED HIGHLIGHTS Q3 2023 Q4 2023 Q1 2024 FIRST QUARTER 2024 HIGHLIGHTS Crude Oil bbls/d 478 570 748 Condensate bbls/d 1,653 1,870 2,111 38,533 BOE/D 6% AVERAGE LIQUIDS GROWTH Natural Gas Liquids (NGLs) bbls/d 8,670 9,196 9,442 PRODUCTION QoQ Nat
Slide 6: I. Deep Basin Optimization
I. DEEP BASIN OPTIMIZATION Free Funds Flow with Substantial Inventory Duration Into Owned Infrastructure SUMMARY ▪ Spartan’s foundational asset generating organic growth resulting in significant Free Funds Flow Belly River ▪ Targeting >20% capital efficiency improvements in 2024 compared to 2023 Car
Slide 7: II. Deep Basin Consolidation
II. DEEP BASIN CONSOLIDATION Fairway Poised for Consolidation D E E P B A S I N F A I R W AY ▪ Spartan has a proven consolidation and integration record and a clean balance sheet position ▪ Deep Basin offers scale and operational synergies ▪ Spartan possesses technical expertise in the fairway ▪ Exi
Slide 8: III. New Duvernay Core Area
III. NEW DUVERNAY CORE AREA Prolific Liquids-Rich Shale Asset Offers Significant Scalability and Commerciality W E S T S H A L E B A S I N D U V E R N AY CARROT CREEK DUVERNAY ▪ Spartan acreage possesses geotechnical attributes comparable to Kaybob Duvernay ▪ Spartan has established one of the large
Slide 9: III. New Duvernay Core Area: Willesden Green & Pembina Fairway
III. NEW DUVERNAY CORE AREA Expansive Position Across the Willesden Green & Pembina Fairway WILLESDEN GREEN & PEMBINA WILLESDEN GREEN NORTH ACQUISITION ~186,000 ~162,000 ~38,000 ~1,600 BOE/D GROSS NET NET DUVERNAY AVERAGE ACRES ACRES ACRES PRODUCTION ~350 ~300 ~50 ~70% GROSS DUVERNAY NET DUVERNAY NE
Slide 10: 2024 Updated Guidance
2024 UPDATED GUIDANCE Optimizing the Deep Basin and Growing the Duvernay PREVIOUS U P D AT E D G U I D A N C E (1) FY 2024 FY 2024 G U I D A N C E H I G H L I G H T S (1) Crude Oil & Condensate bbls/d 2,700 3,300 Natural Gas Liquids (NGLs) bbls/d 9,700 10,100 ~15% ~35% Natural Gas MMcf/d 163 162 INC
Slide 11: 2024 Hedging Profile
2024 HEDGING PROFILE Balance Sheet and Free Funds Flow Protection 2024 HEDGES HEDGING HIGHLIGHTS AECO 7a AECO BASIS WTI 50% @ $2.77/GJ ~61% GJ/d C$/GJ mmbtu/d U$/mmbtu bbl/d C$/bbl NET NATURAL GAS GREATER THAN 2024 AECO Q2 2024 75,000 2.66 25,000 (1.00) 600 101.06 PRODUCTION HEDGED S T R I P P R I C
Slide 12: 2023 Reserves
2023 RESERVES Based on 2024 Average Forecast Pricing of US$73.67/bbl WTI and C$2.20/MMBtu AECO R ESERVE VOLUMES I M P L I E D N E T P R E S E N T VA L U E P E R S H A R E (1) 300,000 10.00 250,000 8.00 200,000 6.00 $/Share MBOE 150,000 4.00 100,000 2.00 50,000 0 0.00 PDP TP TPP PDP TP TPP N E T P R
Slide 13: Spartan's Sustainable Development Goals
SPARTAN’S SUSTAINABLE DEVELOPMENT GOALS Spartan is Committed to Meeting the Needs of the Present, While Protecting the Future Dominant position in the liquids-rich Deep Basin, yielding consistent economic results Infrastructure footprint provides enhanced capital efficiencies, netbacks and investmen
Slide 14: www.SpartanDeltaCorp.com
www.SpartanDeltaCorp.com 14
Slide 15: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS MANAGEMENT TEAM Fotis Kalantzis ▪ Chairman, Director and co-founder of Logan Energy; former SVP and co-founder of Spartan Energy, Spartan Oil and Spartan Exploration President, CEO & Director Martin Malek ▪ Former VP of Engineering, Business Development and Corpo
Slide 16: Spartan's Historical Performance
SPARTAN’S HISTORICAL PERFORMANCE Spartan Delta’s Financings Have Significantly Outperformed the TSX Energy Index DECEMBER 2019 MAY 2020 MARCH 2021 AUGUST 2021 Founding Financing: Bellatrix Asset Acquisition: Montney Acquisitions: Velvet Acquisition: $25 million at $1.00 per share $64 million at $2.0
Slide 17: Previous Iterations Historical Performance
PREVIOUS ITERATIONS HISTORICAL PERFORMANCE Spartan Has Significantly Outperformed the TSX Energy Index Through Multiple Iterations and Cycles SPARTAN SPARTAN SPARTAN SPARTAN EXPLORATION OIL ENERGY DELTA January 2010 – May 2011 June 2011 – January 2013 December 2013 – May 2018 December 2019 – June 20
Slide 18: Analyst Coverage & Corporate Information
ANALYST COVERAGE & CORPORATE INFORMATION EXECUTIVE OFFICE STOCK EXCHANGE LISTING INSTITUTION: A N A LY S T : Spartan Delta Corp. The TSX Exchange 1600, 308 – 4th Avenue SW Trading Symbol: SDE ATB Capital Markets Patrick O’Rourke Calgary, Alberta T2P 0H7 P: 403 265 8011 I N V E S T O R I N F O R M AT
Slide 19: Abbreviations
ABBREVIATIONS A&D Acquisitions and Dispositions MM or mm Million AECO Alberta Energy Company "C" Meter Station of the NOVA Pipeline System mmboe/sec Million barrels of oil equivalent per section ARO Asset Retirement Obligations mmbtu; mmbtu/d Metric million British thermal unit; metric million Briti
Slide 20: Disclaimer
DISCLAIMER Forward Looking Statements: availability of services, commodity price and exchange rate fluctuations, actions of OPEC and OPEC+ members, wars, changes in legislation (including but not limited to tax laws, royalty regimes and environmental legislation), ▪ Certain information included in t
Slide 21: Disclaimer
DISCLAIMER Oil and Gas Advisories: applicable. Unbooked locations are internal estimates based on Spartan’s prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked ▪ BOE Disclosure. The term barrels of o
Slide 22: Disclaimer
DISCLAIMER Non-GAAP M easures and Ratios: property, plant and equipment, before acquisitions and dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities. ▪ This presentation contains certain financial measures and ratios, as described below, wh