Yangarra Resources Ltd. · TSX:YGR
Yangarra Resources — Investor Presentation (March 2022)
20 slides from Yangarra Resources's investor presentation, March 2022
Slide 1: Corporate Presentation
CORPORATE PRESENTATION TSX: YGR MARCH 2022
Slide 2: Investment Highlights
INVESTMENT HIGHLIGHTS ➢ Expected cash flow per share (“CFPS”) growth of ~75% in 2022 • $1.06 CFPS in 2021 • $1.90 CFPS in 2022E • March 3rd, 2022 share price of $2.13 implies a P/CF of 1.1x on 2022E CFPS ➢ Expected production growth of 34% in 2022 • 8,931 boe/d in 2021 • 12,000 boe/d in 2022E • Base
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT CAPITALIZATION SUMMARY 2022E GUIDANCE Share Price (Mar 3) $2.13 2021 2022E Basic Shares 86.6 Options 8.3 Avg. BOE/D 8,931 12,000 Fully Diluted 94.9 Basic Mkt. Cap. $184.6 CAPEX $88 $105 YE 2021 Net Debt $196.8 FFO $91 $165 Enterprise Value $381.4 Free CF $3 $60 Exit Debt $197 $137
Slide 4: Core Principles
CORE PRINCIPLES OWNER MODEL EARNINGS DRIVEN RETURN FOCUSED ➢ Insiders own 19% of basic shares & ➢ Focus on profitability ➢ Economic returns drive capital 26% on a fully diluted basis ➢ 2021 EPS of $0.58 decisions ➢ Simple performance structure keeps ➢ Share capital of $178mm ➢ Infrastructure & integ
Slide 5: Type Curve for Proposed Drill Program
CURRENT RISKED (85%) DEVELOPMENT TYPE CURVE TYPE CURVE FOR PROPOSED DRILL PROGRAM (AVERAGE OF ALL 1.5/2.0-MILE WELLS IN TIER 1 AREAS) Risked 500 Drilling & Completions Capital/well $mm 3.25 IP90 (56% Oil) boe/d 386 IP365 (43% Oil) boe/d 308 400 1st Year Capital Efficiency $/boe/d 10,600 Base Economi
Slide 6: Three-Year Outlook
THREE-YEAR OUTLOOK 3-Year Production 3-Year FCF (millions) 16,000 $155 FCF (US$70 WTI, C$3.50 AECO) Risked 14,000 FCF (US$80 WTI, C$4.00 AECO) $130 12,000 FCF (US$90 WTI, C$5.00 AECO) $114 $85 $89 $78 $56 $52 $25 2022 2023 2024 2022 2023 2024 ➢ Targeting 30 wells a year ➢ When debt reaches 1:1 on a
Slide 7: Long Term Profitability
LONG TERM PROFITABILITY Earnings before tax (millions) Return on Capital Employed $60 14.0% 12.0% $50 10.0% $40 8.0% $30 6.0% $20 4.0% $10 2.0% $- 0.0% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 ➢ Track record of profit ➢ Positive return on capital employed ➢ Tax horizon of 5+ years
Slide 8: ESG
ESG ➢ Discounted ARO of $13.8mm • Abandoned and reclaimed 100+ wells over past 4 years 2020 C02E INTENSITY: 0.030 • 14 inactive wells left to abandon in portfolio • Reduced reclamation costs by 75% by using Yangarra OFS group ➢ Targeting 40% reduction in methane emissions for 2022 over 2020 • Reduce
Slide 9: Oil Field Services (OFS) Group
OIL FIELD SERVICES (“OFS”) GROUP ➢ Yangarra’s internally owned & operated OFS group works exclusively on Yangarra projects • Yangarra took advantage of low-pricing during 2020 to buy equipment • OFS group will help offset inflationary pressures ➢ Reduced pipeline costs by 50% compared to previous 3r
Slide 10: 2021 Reserves
2021 RESERVES Bank Line to PDP Reserve Value ➢ $1.63 PDP NAV per share ➢ $8.92 Proved NAV per share ➢ $13.86 2P NAV per share ➢ 82.8 million BOE of Total Proved reserves ➢ 141.2 million BOE of 2P reserves ➢ Trailing 5-year proved F&D of $10.87 2016 2017 2018 2019 2020 2021 PDP Reserve Value Year-End
Slide 11: Land
LAND ➢ 20 years of inventory yangarra resources ltd. MARCH 2022| PG 11 (Refer to end of presentation for slide notes & advisories)
Slide 12: Leadership
LEADERSHIP MANAGEMENT TEAM BOARD OF DIRECTORS Jim Evaskevich* - 30+ years of extensive executive experience Gordon Bowerman - President of Cove Resources Ltd. President & CEO - Strong field & drilling operational background Chairman - 50+ years of oil & gas experience Lorne Simpson, B.Sc., C.E.T.* -
Slide 13: Appendix
APPENDIX RISK MANAGEMENT, ANALYST COVERAGE, PRESENTATION FOOTNOTES & FORWARD LOOKING STATEMENTS yangarra resources ltd. MARCH 2022| PG 13 (Refer to end of presentation for slide notes & advisories)
Slide 14: Analyst Coverage
ANALYST COVERAGE BROADLY COVERED BY THE STREET Acumen Capital Finance Partners Ltd. Cormark Securities Inc. Peters & Co Trevor Reynolds Garett Ursu, CFA Dan Grager treynolds@acumencapital.com gursu@cormark.com dgrager@petersco.com (403) 410-6842 (403) 750-7221 (403) 261-2215 ATB Capital Markets Nati
Slide 15: Presentation Footnotes
PRESENTATION FOOTNOTES MARCH 2022 ➢ Slide 3: For FFO see definition on slide 16; Assumed $7.00 per boe of operating & transportation costs, 8% royalty rate, 5% interest rate on bank debt, $1.00 per boe of G&A costs ➢ Slide 5: Type curve provided is the proposed drilling program weighted average of t
Slide 16: Presentation Footnotes
PRESENTATION FOOTNOTES MARCH 2022 Non–IFRS and Additional IFRS Measures This document contains “funds flow from (used in) operations”, which is an additional IFRS measure. The Company uses funds flow generated from (used in) operations as a key measure to demonstrate the Company’s ability to generat
Slide 17: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains a summary of management's assessment of results and should be read in conjunction with the Consolidated Financial Statements and related Management's Discussion and Analysis for the year ended December 31, 2021, as filed on the SEDAR profile of Y
Slide 18: Forward Looking Statements (Cont.)
FORWARD LOOKING STATEMENTS (CONT.) The forward-looking statements contained in this presentation are made as of the date on the front page and the Company assumes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, fut
Slide 19: Forward Looking Statements: Non-GAAP Measures
FORWARD LOOKING STATEMENTS NON-GAAP MEASURES & ANALOGOUS INFORMATION This presentation contains references to measures used in the oil and natural gas industry such as “netback”, “net debt” and “cash flow”. These measures do not have standardized meanings prescribed by International Financial Report
Slide 20: Forward Looking Statements: Reserve Definitions
FORWARD LOOKING STATEMENTS RESERVE DEFINITIONS Natural gas has been converted to a barrel of oil equivalent (Boe) using 6,000 cubic feet (6 Mcf) of natural gas equal to one barrel of oil (6:1), unless otherwise stated. The Boe conversion ratio of 6 Mcf to 1 Bbl is based on an energy equivalency conv
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