Cardinal Energy Ltd. · TSX:CJ

Cardinal Energy — Shareholder Meeting (May 2018)

16 slides from Cardinal Energy's shareholder meeting presentation, May 17, 2018

  1. Slide 1: Annual and Special Shareholder Meeting

    Annual and Special Shareholder Meeting May 17, 2018

  2. Slide 2: 2017 in Review

    2017 in Review Mandate:  Increase light oil exposure  Increase netbacks  Reduce operating Costs  Maintain dividend 2

  3. Slide 3: Grande Prairie Acquisition

    Grande Prairie Acquisition (March 2017) Grande Prairie Acquisition MM$ Acquisition Consideration 31 2017 Capital Expenditures 12 Total Capital 43 2017 Cash Flow from Assets 6 Net Capital Outlay 2017 37 Grande Prairie Acquisition – YE 2017 PV10, MM$ PDP TP TPP YE 2017 Closing 63 84 100 Reserves , Mmb

  4. Slide 4: Midale/House Mountain Acquisition (July 2017)

    Midale/House Mountain Acquisition (July 2017) MM$ Acquisition Consideration 296 2017 Capital Expenditures 3 Total Capital 299 Midale/House Mountain Historical Production 6,000 2017 Cash Flow from Assets 31 5,000 Net Capital Outlay 2017 268 SE Sask (Midale) 4,000 boe/d 3,000 Midale/House Mtn Acq YE 2

  5. Slide 5: 2017 Results

    2017 Results House Mountain Grande Prairie and Midale % Increase Acquisition Acquisition over Q4 2016 At Q2 2017 At Q3 2017 Q1 2018 Q4 2016 Light oil (bbl/d) 2,677 3,040 8,112 8,987 236% WCS Priced oil (bbl/d) 9,596 10,074 9,531 8,845 -8% NGL (bbl/d) 313 703 712 660 111% Nat Gas (mcf/d) 12,178 20,02

  6. Slide 6: 2017 in Review

    2017 in Review Dec 31/16 Jan/2018 Mandate:  Increase light oil exposure 22% 50%  Increase netbacks $14.86 $20.20  Reduce operating Costs $23.24 $20.93  Maintain dividend ✔ 6

  7. Slide 7: 2018 Outlook

    2018 Outlook  Sustainable Business Model  Growth and Income funded thru cash flow, at less than 100% payout ratio  Focus Areas:  Reduce Net Bank Debt to 1x adjusted funds flow  Maintaining best in class 10% decline  Improve netback  Begin long lead time operating cost reduction projects  Mai

  8. Slide 8: Cardinal Production By Area

    Cardinal Production By Area 8

  9. Slide 9: Mitsue / House Mountain

    Mitsue / House Mountain Mitsue House Mtn Focus:  Capital projects to improve netbacks and decrease op costs  Build out drilling inventory 9

  10. Slide 10: Grande Prairie

    Grande Prairie  7 well Hz program (2017-2018)  Average well performance above expectation  Additional drilling 2018 2H + 2019  EOR (water flood) currently anticipated (2019) Q4 2017/Q1 2018 New Drills  Dunvegan Bar sand - ~1350m TVD  High quality light oil (~75% liquids) 10

  11. Slide 11: Central Operating Area

    Central Operating Area 8% yoy reserves growth with water flood optimization Low predictable decline of ~ 5%/year  >300 million barrels OOIP  Majority of production is under secondary recovery  Drill inventory developing 11

  12. Slide 12: South - Bantry Strat Program

    South - Bantry Strat Program  Initial success (2014-2016) focused in areas supported by abundant vertical well control  10 location strat program drilled (Jan- Feb 2018) to increase confidence in next round of horizontal drills 2018 Focus  Operating cost optimization Primary area of  2H drilling

  13. Slide 13: Midale – Long term potential

    Midale – Long term potential Recovery Factors  Directly offsets the Weyburn Unit 50% 46%  Analogous reservoir to Weyburn, 45% world class miscible flood 40% Long term potential reservoir 35% 33% 30%  Underdeveloped relative to 25% 24% Weyburn with minimal 20% 20% development since 2009 15% 2018 –

  14. Slide 14: Balance of 2018

    Balance of 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Total Production 21,200 20,500 21,250 21,500+ Bank Debt $213 M $200 M Payout 98% Less than 100% Less than 100% Less than 100% Dividend $0.035/month $0.035/month $0.035/month $0.035/month 14

  15. Slide 15: Advisory

    Advisory Forward-looking Statements This presentation contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Cardinal's plans and other aspects of Cardinal's anticipated future

  16. Slide 16: Advisory

    Advisory Non-GAAP Measures This presentation contains the terms "adjusted funds flow", “free cash flow”, "total payout ratio", "netback", "net bank debt", "net bank debt" and "net bank debt to adjusted funds flow" which do not have a standardized meaning prescribed by International Financial Reporti

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