Bonterra Energy Corp. · TSX:BNE
Bonterra Energy — Investor Presentation (March 2024)
30 slides from Bonterra Energy's investor presentation, March 2024
Slide 1: Our Strong Foundation Accelerates Transformation
TSX:BNE Our Strong Foundation Accelerates Transformation. March 2024 Corporate Presentation Grounded in Energy.
Slide 2: At a Glance: It's Time to Revisit Bonterra
AT A GLANCE It’s Time to Revisit Charlie Lake Bonterra. Period. New Core Area: Light Oil, Natural Gas & NGLs Development ready Charlie Lake asset in Northern Alberta adds locations and One of Canada’s longest standing junior oil and free funds flow gas companies, featuring top-tier operations. • Mod
Slide 3: Multiple Strategic Advantages
W HY BONT ERRA Multiple Strategic Advantages Pembina Cardium – Cash Flow Engine High netbacks & IRRs from Cardium asset Substantial drilling inventory with <1 year payouts Compelling Value Opportunity • New Montney and Charlie Lake plays enhance Charlie Lake & Montney - Growth Upside corporate susta
Slide 4: Strategic Priorities
S T R A T E G IC P R IO R IT IE S Strategic Priorities Execution + Maintain Exercise Financial Enhance Pursue Prudent M&A Operational Excellence Discipline Sustainability + Exploration • Target accretive M&A • Cardium execution = steady • Focus on free funds flow • 2024 budget prioritizes Free oppor
Slide 5: 2023 Reserves Evaluation
ROBUST RESERVES 2023 Reserves Evaluation Robust Reserves Underpin Shareholder Value and Value Creation Reserve Category Oil (Mbbl) BOE (Mboe) NPV BT 10% (1) (millions) Proved Developed Producing 16,475 32,763 557,339 80% Total Proved Reserves on Volume Proved Developed Non-Producing 2,485 5,257 76,5
Slide 6: NAV Highlights Value Proposition
V A L U E P R O P O S IT IO N NAV Highlights Value Proposition Bonterra offers shareholders torque to oil and exposure to a significant low risk drilling inventory YE2023 Net Asset Value Net Asset Value per Share ($/sh) @ US$75WTI / $3.00 GJ AECO (1,2) Flat Price Sensitivities (3) Proved Developed T
Slide 7: Financial Discipline
Financial Discipline Bonterra.
Slide 8: 2024 Guidance
S U S T A IN A B IL IT Y F O C U S 2024 Guidance Fully-funded 2024 Capital Program Designed to Maximize Free Funds Flow With Modest Production Growth Operating & Financial1 Average Daily Production (BOE per day) 13,800 – 14,2002 $90-$100 MM 2024 capital expenditure range Oil and NGL Weighting (perce
Slide 9: Stable Production + Modest Growth
S U S T A IN A B IL IT Y F O C U S Stable Production + Modest Growth Production Profile Net Wells Drilled & Brought on Production CARDIUM CHARLIE LAKE CARDIUM CHARLIE LAKE 25,000 40 35 38 20,000 Average Production (Boe/d) 30 32 7 8 15,000 25 4 Net Wells 23 24 20 22 10,000 15 10 5,000 5 0 0 Q4 2022 Q
Slide 10: Enhanced Liquidity
F IN A N C IA L D IS C IP L IN E Enhanced Liquidity Debt Reduction With Stable Production Profile $189 Million $350 14,500 Net Debt reduction ~14,200 from Q1 2021 to Dec 31, 2023 boe/d 14,000 $300 13,500 $250 13,000 34% Production (BOE/D) Production growth Debt ($MM) $200 12,500 from 2020 to 2023 $1
Slide 11: Return of Capital Model: Getting Back to Our Roots
S U S T A IN A B IL IT Y F O C U S Return of Capital Model: Getting Back to Our Roots Focus on financial flexibility to support a sustainable return of capital model Sustainable Return of Capital Framework Key Metrics: Forecasted Leverage targets(1): Return of Capital NET DEBT D/EBITDA Shareholder R
Slide 12: Pembina Cardium Core Area
Pembina Cardium Core Area Bonterra.
Slide 13: Pembina Cardium: Cash Flow Engine
Expansive Drilling Inventory C A R D IU M Pembina Cardium: Cash Flow Engine Drayton Valley One of Canada’s Largest Oil Plays 92% Sizeable, concentrated position at Pembina Operated Production and Willesden Green Cardium fields Pembina Long Runway 19.4 Years 2023 Reserve Life Index Estimated original
Slide 14: Predictable and Repeatable
C A R D IU M Predictable and Repeatable Cardium Type Curve (1 mile lateral) 126 Boe/d IP365 200 150 1.0 Years Before Tax Payout @ $80 WTI BOE/D 100 50 $20,300/Boepd Capital Efficiency 0 1 2 3 4 5 6 7 8 9 10 11 12 Months 13 14 15 16 17 18 19 20 21 22 23 24 98% Rate of Return@ $80 WTI WTI(1) $USD/bbl
Slide 15: Charlie Lake Core Area
Charlie Lake Core Area i\\ Bonterra.
Slide 16: Charlie Lake Acquisition
C H A R L IE L A K E Charlie Lake Acquisition Long-term development runway with highly economic drilling locations, driving improved free cash flow profile Contiguous • Acquired 37 sections through crown land sales in 2022 and 2023 Land Block • Recently added 79 (net) adjacent sections, creating a n
Slide 17: Key Acquisition Metrics
C H A R L IE L A K E Key Acquisition Metrics Bonterra Land Charlie Lake Total Acquisition Acquisition Acquisition Cost $2.7 $24.1 $26.8 ($MM) Land (gross) 37 87 124 (sections) W.I. 100% 91% 94% (%) Production - 330 330 (boe/d) Liquids - 43% 43% (%) Locations (net) 46 69 115 (#) TP Reserves - 924 924
Slide 18: Backstopping Corporate Sustainability
C H A R L IE L A K E Backstopping Corporate Sustainability Charlie Lake Type Curve (2 mile lateral) 368 Boe/d IP365 600 500 0.8 Years 400 Before Tax Payout @ $80 WTI BOE/D 300 200 $12,232/Boepd Capital Efficiency 100 0 1 2 3 4 5 6 7 8 9 10 11 12 Months 13 14 15 16 17 18 19 20 21 22 23 24 130% Rate o
Slide 19: Charlie Lake Development Plan
C H A R L IE L A K E Charlie Lake Development Plan Anticipate drilling 4 Gross (3.6 net) wells in 2024 and growing the asset to ~6,000 boe/d with the ability to hold flat, with ~6 wells per year for over a decade Production Profile NOI and Cumulative Free Funds Flow 8,000 $120 6,000 6,000 6,000 6,00
Slide 20: Montney Development Opportunity
Montney Development Opportunity
Slide 21: Montney Development High Impact Optionality
MO N T N E Y Montney Development High Impact Optionality 100/04-03-074-06W6/00 First Montney Well (100/04-03-074-06W6/00) 100% Working Interest • Successfully drilled in Q3 2023 Land Base • Successfully completed in Q4 2023 • Peak daily rate: 753 BOE per day during flow test (469 BBL per day and 1,7
Slide 22: Montney Characteristics
MO N T N E Y Montney Characteristics Doig Future Robust Reservoir Profile Upper Target D4 Montney Primary Target D3 Reservoir Characteristics Internal D3 Type Curve D3 • Depth 1,925m TVD • ~80 identified Montney ‘D3’ locations Middle • Porosity: 8% Avg • Estimated IP365: 487 Boe/d; 50% liquids Montn
Slide 23: Driving Reserve Growth
MO N T N E Y Driving Reserve Growth Montney Type Curve (2 mile lateral) 487 Boe/d IP365 600 500 0.9 Years 400 Before Tax Payout @ $80 WTI BOE/D 300 200 $15,390/Boepd Capital Efficiency 100 0 1 2 3 4 5 6 7 8 9 10 11 12 Months 13 14 15 16 17 18 19 20 21 22 23 24 125% Rate of Return@ $80 WTI WTI(1) $US
Slide 24: Play Comparison Summary
C O R P O R A T E IN V E N T O R Y Play Comparison Summary Robust corporate drilling inventory supports growth and sustainability Corporate Inventory Economic Comparison (1) Rate of Return (%) Payout (yrs) 200 1.2 1.1 1.1 MTNY CHLYLK CHLYLK CRDM 153 1.0 0.9 160 (2.0 mile) (3.0 mile) (2.0 mile) Tier
Slide 25: Focus on Responsible Operations
S U S T A IN A B IL IT Y F O C U S Focus on Responsible Operations At our core is a deep commitment to value creation Experienced Team reignited with Loyal investor base and We are committed to a new vigour by CEO and return of capital pioneers environmental sustainability refreshed board • Exceptio
Slide 26: Strong Leadership Team
ENHANCED T EAM & ST RONG GOVERANNCE Strong Leadership Team Leadership Team Board of Directors Patrick G. Oliver Steve Ewens D. Michael G. Stewart Patrick G. Oliver President & CEO VP, Engineering Director, Chair Director, CEO Over 35 years of experience in the Western Joined Bonterra in 2014 and hol
Slide 27: Corporate Information & Contacts
Corporate Information & Contacts S T O C K E X C H A N G E L IS T IN G IN D EPEN D EN T R ESER VE EN G IN EER TSX: Sproule Associates Limited BNE LEGAL COUNSEL C A L G A R Y ( H E A D O F F IC E ) Borden Ladner Gervais LLP Suite 901, 1015 – 4th St SW Calgary, AB T2R 1J4 BANKS A U D IT O R S 403.262.
Slide 28: Appendix
Appendix Z ~ Bonterra.
Slide 29: Risk Management: Weighted Average Oil Hedges
S U S T A IN A B IL IT Y F O C U S Risk Management: Weighted Average Oil Hedges Fixed Q1 2024 Q2 2024 Q3 2024 Q4 2024 Supports Sustainability Volume bbl/d - - - - Price USD $/bbl - - - - 30% hedged for Collars Q1 2024 Q2 2024 Q3 2024 Q4 2024 next 9 months Volume Ceiling bbl/d USD $/bbl 2,300 85.87 2
Slide 30: Advisories
Advisories FORWARD LOOKING INFORMATION: assumptions and analyses made by us in light of our new information, future events or otherwise. and subordinated debt. Field netback is defined as revenue Certain statements contained in this presentation include experience and perception of historical trends