Spartan Delta Corp · TSX:SDE
Spartan Delta — Investor Presentation (May 2022)
33 slides from Spartan Delta's investor presentation, May 10, 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION Spartan Delta Corp. (SDE: TSX) May 10, 2022
Slide 2: Spartan Delta Corporate Strategy
SPARTAN DELTA CORPORATE STRATEGY Building a Sustainable Energy Company CONCENTRATED ASSET BASE DEEP BASIN >40,000 boe/d(2) MONTNEY >30,000 boe/d(3) Sustaining capital ~30% of asset level NOI(1) Largest producer and acreage holder in the oil window of the Montney Low OPEX and high margin liquid
Slide 3: Company Overview
COMPANY OVERVIEW Spartan Delta Corp. (SDE:TSX) Capitalization (as at May 9, 2022) Spartan Delta Corp. TSX SDE MONTNEY: (1) Spartan is the largest Share Price $/sh 11.75 producer and land holder in (1) the Montney oil window Market Capitalization (basic) $MM 1,803 Deep inventory of Common Shares
Slide 4: First Quarter 2022 Highlights
FIRST QUARTER 2022 HIGHLIGHTS Operational Execution into Commodity Tailwinds UNAUDITED HIGHLIGHTS Q4 2021 FY 2021 Q1 2022 Average production volumes were 72,588 boe/d (19% oil and condensate, 18% NGLs Crude Oil boe/d 11,450 4,697 11,270 and 63% natural gas) in the first quarter. Condensate boe/d 2,3
Slide 5: Year-End 2021 Reserve Evaluation
YEAR-END 2021 RESERVE EVALUATION Based on 2022 Average Forecast Pricing of U$72.83/bbl WTI and C$3.56/MMBtu AECO Independent qualified reserves evaluation effective December 31, 2021 (3) 2021 RESERVE HIGHLIGHTS Volume - Gross (MMboe) Value - NPV10 ($MM) PDP TP TPP PDP TP TPP 2020 67.289 134.977 20
Slide 6: 2022 Development
2022 DEVELOPMENT Maintaining Strong Free Funds Flow While Advancing Selected Growth Projects BC AB MONTNEY 30,563 boe/d (Q1 2022)(1) ~$231MM 2022 capital 20-22 net wells 430,000 net acres > 1,000 net drilling locations identified (277 booked)(2)(4) Self-funding growth core area Development d
Slide 7: The Montney Oil Fairway
THE MONTNEY OIL FAIRWAY A Differentiated Montney Play Targeting >50% Oil Weighted Production Montney Thermal Maturity ~430,000 acres (670 sections) of prospective Montney with in-place Flatrock volumes of up to 45 mmboe/section Over 1,000 net identified drilling locations with 277 net locations
Slide 8: Montney Overview
MONTNEY OVERVIEW Deep Inventory of Growth Projects in the Montney Oil Window Montney Asset Characteristics: BC AB Flatrock Largest land position (~430,000 net acres) and production base within the prolific Montney oil window Flatrock Deep inventory of economic drilling locations (>1,000 net) acr
Slide 9: Gold Creek East Asset Overview
GOLD CREEK EAST ASSET OVERVIEW Repeatable Results with Available Infrastructure Capacity Asset Characteristics: Development asset with exceptional Production(1): 15,672 boe/d (52% liquids) economics contributing significant free (Q1 2022) funds flow Inventory 131 Booked (230m spacing) 5-7 PAD Re
Slide 10: Gold Creek West Asset Overview
GOLD CREEK WEST ASSET OVERVIEW Development Asset with Step Out Growth Opportunities Asset Characteristics: Development asset with strong economics Production(1): 4,418 boe/d (57% liquids) (Q1 2022) Grande Prairie Spartan owned battery and gathering system Inventory 56 Booked (350m spacing) (net)
Slide 11: Karr Asset Overview
KARR ASSET OVERVIEW Top Oil Wells in the Montney Asset Characteristics: Amongst the most prolific oil wells in Production(2): 2,860 boe/d (74% liquids) the basin (Q1 2022) Inventory 26 Booked (350m spacing) Low decline Montney oil wells (net): 61 Unbooked (350m spacing) 87 Total (3,000-3,700m HZ
Slide 12: Pouce Coupe Asset Overview
POUCE COUPE ASSET OVERVIEW Repeatable Economic Drilling Asset Characteristics: Repeatable economic development Production(1): 3,169 boe/d (40% liquids) drilling yielding strong economics (Q1 2022) Inventory 47 Booked (350m spacing) Development pace measured while (net): 50 Unbooked (350m spacing
Slide 13: Simonette Asset Overview
SIMONETTE ASSET OVERVIEW Growth Asset with Owned Infrastructure Asset Characteristics: Low decline asset with owned Production: 3,462 boe/d (23% liquids) infrastructure and compelling growth (Q1 2022) opportunities Inventory 17 Booked (350-400m WS) Karr (net): 175 Unbooked (350-400m WS) Asset sp
Slide 14: Deep Basin Overview
DEEP BASIN OVERVIEW Robust Economics and Infrastructure Footprint Underpin Free Funds Flow Engine Deep Basin Asset Characteristics: CENOVUS SAND CREEK SDE O’CHIESE NEES-OHPAWAGANU’CK 10-09 • 230 MMcf/d Deep Cut (25% WI) Top quality resource of delineated liquids-rich Spirit River and condensate- •
Slide 15: 2022 Guidance
2022 GUIDANCE Total Return Focused Model of Organic Growth and Free Funds Flow Generation (1) 2022 Guidance 2022 Average Production boe/d 68,500 - 72,500 Crude Oil and Condensate boe/d 14,900 Natural Gas Liquids (NGLs) boe/d 13,200 Natural Gas (2) mcf/d 254,400 Operating Expenses $/boe 7.91 Transpor
Slide 16: Risk Management
RISK MANAGEMENT Risk Management Portfolio(1) AECO Basis positions provide diversification to Henry Hub Near-term right way risk management position in place as natural gas prices, safeguarding against structural or supply- the balance sheet moves to Spartan’s target D/CF of 0.5x led push back of Can
Slide 17: Spartan's Sustainable Development Goals
SPARTAN’S SUSTAINABLE DEVELOPMENT GOALS Spartan is Committed to Meeting the Needs of the Present, While Protecting the Future Focus Since 2020 Active Initiatives Environmental Gender Management & Stewardship Diversity Board Top Decile LMR Female Workforce: Ownership Water Recycling Drilling Fluid 18
Slide 18: Investor Highlights
INVESTOR HIGHLIGHTS Concentrated Core Development Areas with Torque to both Oil and Natural Gas Tailwinds Dominant position in two core areas, the Montney and Deep Basin, yielding some of Canada’s most prolific economics Financial sustainability with prudent leverage and strong Adjusted Funds Flow(1
Slide 19: Appendix
2) APPENDIX SPARTAN May 10, 2022 DELTA CORP.
Slide 20: Montney Targets and Reservoir Parameters
MONTNEY TARGETS AND RESERVOIR PARAMETERS Extensive Inventory Developed Primarily With a Single Layer to Maximize Returns A A’ Doig Flatrock Pouce Coupe Gold Creek West Gold Creek East Karr Simonette Upper Montney Upper Middle Montney Lower Middle Montney/D1 Lower Montney Porosity >3% Primary Target
Slide 21: Area Montney Map
AREA MONTNEY MAP Spartan’s Positioning in the Montney Fairway Kelt Flatrock Leucrotta Tourmaline Arc Pouce Coupe Arc Birchcliff Kelt Ovintiv Advantage CNRL Kelt Grande Prairie Pipestone Gold Creek NuVista Shell CNRL Paramount Cenovus Karr Arc Whitecap Whitecap Simonette Kiwetinohk XTO May 10, 2022 2
Slide 22: Risk Management
RISK MANAGEMENT High Torque To Improving Fundamentals of Both Oil and Natural Gas Natural Gas US$ NYMEX - AECO 7A Basis US$ NYMEX Swaps - Short US$ NYMEX Swaps - Collar Swaps - Short Volume Volume Floor - Ceiling Volume Period US$/Mmbtu US$/Mmbtu (Mmbtu/d) (Mmbtu/d) (US$/Mmbtu) (Mmbtu/d) Q2 2022 55,
Slide 23: Analyst Coverage & Contact Information
ANALYST COVERAGE & CONTACT INFORMATION Institution Analyst EXECUTIVE OFFICE STOCK EXCHANGE LISTING ATB Capital Markets Patrick O’Rourke Spartan Delta Corp. The TSX Exchange 1500, 308 – 4th Avenue SW Trading Symbol: SDE Calgary, Alberta T2P 0H7 BMO Capital Markets Mike Murphy INVESTOR INFORMATION P:
Slide 24: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS MANAGEMENT TEAM Richard McHardy Former President, CEO and co-founder of Spartan Energy, Spartan Oil and Spartan Exploration Executive Chairman & Director Fotis Kalantzis Former SVP and co-founder of Spartan Energy, Spartan Oil and Spartan Exploration Presiden
Slide 25: Disclaimer
DISCLAIMER Forward Looking Statements the timing of expenditures and production additions. In addition, Spartan cautions that current Certain information included in this presentation constitutes forward-looking information under global uncertainty with respect to the spread of the COVID-19 virus
Slide 26: Disclaimer Cont'd
DISCLAIMER CONT’D Oil and Gas Advisories well. Management considers payout an important measure to evaluate its operational BOE Disclosure. The term barrels of oil equivalent ("boe") may be misleading, particularly if performance and capital allocation processes. It demonstrates the return of cash
Slide 27: Disclaimer Cont'd
DISCLAIMER CONT’D Oil and Gas Advisories Drilling Locations / Inventory. This presentation discloses drilling inventory in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the McDaniel Report and
Slide 28: Disclaimer Cont'd
DISCLAIMER CONT’D Non-GAAP Measures and Ratios financial instrument assets and liabilities and lease liabilities. As at March 31, 2022 and at This presentation contains certain financial measures and ratios, as described below, which do December 31, 2021, the Adjusted Working Capital deficit (surp
Slide 29: Price Deck Details
PRICE DECK DETAILS Guidance Pricing All guidance, forecasts and economics are based on the following budget price deck (unless otherwise stated): 2022 2023 2024 AECO Gas C$/GJ $3.75 $3.50 $3.25 WTI US$/bbl $80.00 $75.00 $70.00 Edmonton Oil C$/bbl $97.02 $91.08 $85.09 Edmonton Cond. C$/bbl $101.43 $9
Slide 30: Auditor Price Deck Details
AUDITOR PRICE DECK DETAILS Three Consultant Average (McDaniel, GLJ and Sproule) January 1, 2022 3 Consultant Average (McDaniel, GLJ and Sproule) Summary of Price Forecasts Saturday, January 1, 2022 C rude O il P ric e F o re c as t s Liquids P ric e F o re c a s t s G a s P ric e F o re c as t s E d
Slide 31: Auditor Price Deck Details
AUDITOR PRICE DECK DETAILS Three Consultant Average (McDaniel, GLJ and Sproule) January 1, 2021 3 Consultant Average (McDaniel, GLJ and Sproule) Summary of Price Forecasts Friday, January 1, 2021 C rude O il P ric e F o re c as t s Liquids P ric e F o re c a s t s G a s P ric e F o re c as t s E dm
Slide 32: Abbreviations
ABBREVIATIONS AECO Alberta Energy Company "C" Meter Station of the NOVA Pipeline System API American Petroleum Institute gravity ARO Asset Retirement Obligations bbl; bbl/d Barrel; barrels per day bcf; bcf/d Billion cubic feet of natural gas; billion cubic feet per day of natural gas BN Billion boe;
Slide 33: Info@SpartanDeltaCorp.com www.SpartanDeltaCorp.com
Info@SpartanDeltaCorp.com www.SpartanDeltaCorp.com