Slide 1: Corporate Presentation March 2024
March 2024 Corporate Presentation
Slide 2: Forward Looking Information
Forward Looking Information Certain statements contained in this presentation constitute forward-looking expansion opportunities; the availability of third party services; prevailing This presentation is for informational purposes only, and shall not constitute information within the meaning of appl
Slide 3: Specified Financial Measures and Oil and Gas Advisories
Specified Financial Measures Oil and Gas Advisories This presentation makes reference to certain financial measures and ratios which are not Production and Reserves Information Barrels of Oil Equivalent recognized measures under generally accepted accounting principles (“GAAP”) and do not In respect
Slide 4: Company Overview
m* RESOURCES LTD se STRATHCONA Company Overview
Slide 5: Company Overview
Company Overview Strathcona is currently producing ~185 Mboe / d with a 38-year reserve life index across three core areas: Lloydminster, Cold Lake, and the Montney Asset Map Market Data Ticker TSX:SCR Basic: 214,235,608 Shares Outstanding Dilutive Securities: 0 Ownership ~91% / ~9% (Waterous Energy
Slide 6: Core Principles
Core Principles WEF and Strathcona have built the company using a differentiated investment strategy and management culture Value Creation Since Inception Value-Based Investment Strategy with 3 Guiding Principles: ▪ Compound Long-Term Intrinsic Value Per Share – Short-term market narratives inevitab
Slide 7: Historical Performance Since Inception vs. Public Peers
Historical Performance Since Inception vs. Public Peers Over the last 7 years Strathcona’s strategy has led to a unique track record versus its public peers, generating significant per share growth while keeping leverage low Production and 2P Reserves Per Share CAGR(1)(2)(3) After-Tax 1P NAV Per Sha
Slide 8: Core Areas
Core Areas Strathcona has three concentrated core areas, each with a long reserve life index, low breakeven, and robust growth profile Lloydminster Heavy Oil Cold Lake Thermal Montney Key Statistics Key Statistics Key Statistics Current Current Current Mboe/d ~53 Mboe/d ~60 Mboe/d ~72 Production(1)
Slide 9: Reserves Base
Reserves Base Strathcona has a long-life reserves base positioning it for significant future growth, and is currently trading at a 40-50% discount to its oil sands peers based on NAV Reserves Life Index (Years)(1) 38 22 Athabasca MEG Strathcona Canadian Natural Cenovus Suncor Imperial 2P RLI 1P RLI
Slide 10: Long-Term Development Plan
Long-Term Development Plan Strathcona has significant growth optionality within its portfolio, with the potential to grow production ~75% within 8 years, while retaining a top-tier reserve life Historical Production Growth(1) Future Growth Potential (2) 350 325 300 285 115 250 Up to 8% CAGR 85 220 P
Slide 11: Oil Marketing Economics "The Strathcona Blend"
Oil Marketing Economics Strathcona’s heavy oil properties earn premium realized prices with low transportation costs, while the condensate-rich Montney provides a natural diluent hedge 2023 Realized Oil Prices, net of Transportation Costs (C$ / bbl)(1) SCR Cold Lake Bitumen $68.37 Typical Athabasca
Slide 12: Balance Sheet
Balance Sheet Strathcona has a simple capital structure composed of bank debt and US$ senior notes, with minimal off-balance sheet and environment liabilities and no current cash taxes Debt Overview as of 12/31/2023 (C$mm) Off Balance Sheet + ARO Liabilities vs. Peers ($ / boe / d)(1) $2,500 March 2
Slide 13: 2024 Plan
se STRATHCONA RESOURCES LTD 2024 Plan
Slide 14: 2024 Capital Program
2024 Capital Program Strathcona’s 2024 capital budget reflects a disciplined approach to value-added growth, focused on a combination of drilling to fill existing facilities and major expansion projects Capital Budget (C$mm) 2024E Sources and Uses of Cash (C$mm) $3,200 US$100 WTI 100% of FCF used to
Slide 15: 2024 Sustaining and Drill-to-Fill Economics
2024 Sustaining and Drill-to-Fill Economics Strathcona’s 2024 capital program includes ~$1,050 million of sustaining and drill-to-fill capital, targeting low-breakeven, high return locations across its asset base PIR PV-10 and Breakeven vs. Cumulative Undeveloped Resource(1)(2)(3) Lloydminster Cold
Slide 16: 2024 Major Expansion Projects
2024 Major Expansion Projects 2024 capital includes ~$250 million on major projects which are expected to add ~25 Mbbls / d of incremental production by YE 2026 at a cost of ~$20-$30k / bbl / d, while lowering opex Meota Expansion Lindbergh Debottleneck Orion Waste Heat Recovery Total Capital: ~$400
Slide 17: 2024 Sensitivities
2024 Sensitivities Strathcona’s 2024 cash flows are most sensitive to WTI and WCS prices, with minimal exposure to condensate prices 2024E Unhedged FCF Sensitivities Key Modeling Assumptions ▪ Total Oil(1): 100% WCS (AB) Realized Prices ▪ Other NGLs: 25% WTI ▪ Natural Gas: 110% AECO WTI (- / + US$1/
Slide 18: Asset Spotlights
se STRATHCONA RESOURCES LTD Asset Spotlights
Slide 19: Asset Spotlight: Cold Lake
Asset Spotlight: Cold Lake Since early 2023 Strathcona has grown production at Cold Lake by ~20% while reducing SOR ~20%, with a further ~15 Mbbls / d of spare oil capacity remaining within existing facilities Cold Lake Oil Production vs. Steam-Oil-Ratio Cold Lake Capacity vs. Current Throughput 65
Slide 20: Asset Spotlight: Montney
20 Peak Monthly Production (boe / d) 500 0 1,000 1,500 2,000 2,500 3,000 3,500 4,000 (1) ARC RESOURCES HZ KAKWA 8-27-64-5 SRL HZ 104 KAKWA 1-29-61-3 SRL HZ 102 KAKWA 1-29-61-3 CPEC ELM 2-9-69-4 PARA HZ KARR 1-21-65-5 ARC RESOURCES HZ KARR 5-2-65-5 ARC RESOURCES HZ KAKWA 16-34-64-5 PARA HZ 102 KARR 3
Slide 21: Asset Spotlight: Lloydminster
Asset Spotlight: Lloydminster Strathcona has significant exposure to the emerging Mannville multi-lateral play in Lloydminster, and is piloting its first Mannville multi-lateral well in Druid in 2024 Total “Mannville Stack” Oil Production (Mbbls / d)(1) Strathcona Mannville Original Oil In Place (OO
Slide 22: Appendix
ws STRATHCONA “= RESOURCES LTD Appendix
Slide 23: 2017-2023 Reserves Highlights
2017-2023 Reserves Highlights Since 2017 Strathcona has grown 1P and 2P Reserves at a 19% CAGR, averaged a 2.4x PDP recycle ratio while organically growing PDP at a 5% CAGR, and grown intrinsic value at a 21% CAGR Reserves Growth(1) 2,612 2,360 7-Year CAGR, per Share 1,693 PDP 1P 2P 943 Organic 5% 9
Slide 24: Carbon Capture Strategy
Carbon Capture Strategy Strathcona’s Cold Lake and Saskatchewan thermal assets are uniquely suited for CCUS, leading to attractive economics and an accelerated development timeline CO2 Storage Reservoirs vs. Major Oil Sands Projects Carbon Capture Economic Drivers Concentrated Point Source Asia/Lata
Slide 25: WCS Differential Outlook
WCS Differential Outlook Strathcona benefits from an improving outlook for WCS differentials; demand for Canadian heavy oil is increasing, while egress has never been better Historical WCS-WTI Differentials (US$ / bbl) Pipeline Bottlenecks $26.18 US SPR Releases / Discounted Russian Barrels $18.71 $