Obsidian Energy Ltd · TSX:OBE
Obsidian Energy — Merger or Acquisition (January 2021)
33 slides from Obsidian Energy's merger presentation, Jan 28, 2021
Slide 1: Obsidian Energy Corporate Presentation February 2021
Filed by Obsidian Energy Ltd. (Commission File No. 001-32895) Pursuant to Rule 425 under the Securities Act of 1933 Subject Company: Bonterra Energy Corp. Obsidian Energy Corporate Presentation February 2021Filed by Obsidian Energy Ltd. (Commission File No. 001-32895) Pursuant to Rule 425 under the
Slide 2: Important Notice to the Readers
Important Notice to the Readers This presentation should be read in conjunction with the Company’s unaudited interim consolidated financial statements, Management's Discussion and Analysis ( MD&A ) for the three and nine months ended September 30, 2020. All dollar amounts contained in this presentat
Slide 3: Corporate Overview
Corporate Overview M Ma ar rk ke et t S Su um mm ma ar ry y Ticker Symbol OBE Peace River MM Shares Outstanding 74 3,196 boe/d Q3 2020 Cold flow heavy oil MM Market Capitalization $82 Manage base production MM Net Debt $479 MM Enterprise Value $561 C Co or rp po or ra at te e S Su um mm ma ar ry y m
Slide 4: Short-term Strategic Priorities & Results
Short-term Strategic Priorities & Results S Sh ho or rt t- -t te er rm m P Pr ri io or ri it ti ie es s • Pursue successful acquisition of Bonterra to create “The Cardium Champion” • Transformational opportunity for both companies’ shareholders • Continue operational momentum and cost reduction init
Slide 5: Long-term Strategic Priorities
Long-term Strategic Priorities Superior Shareholder Return Generate excess free cash Create scale and further Drive per share growth via flow while holding production decrease cost structure via organic development and flat with growth optionality Cardium consolidation debt pay down at increased com
Slide 6: Creating The Cardium Champion
Creating The Cardium Champion st On September 21 2020 Obsidian Energy commenced a formal offer to purchase all of the issued and outstanding common shares of Bonterra Energy Corp. • Obsidian Energy has offered 2 Obsidian Energy Shares for each Bonterra Share Central • Creates the Cardium Champion wi
Slide 7: Regaining Market Relevance
Regaining Market Relevance Pro Forma Company is poised to deliver a compelling overall investment thesis and to maximize value for all stakeholders of both Bonterra and Obsidian Energy W Wh hy y I Is s T Th hi is s T Tr ra an ns sa ac ct ti io on n C Co om mp pe el ll li in ng g F Fo or r B Bo ot th
Slide 8: Obsidian Energy Investment Highlights
Obsidian Energy Investment Highlights • Base business continues to improve through strong production performance leveraging significantly improved cost structure Corporate • Focused on Cardium consolidation to realize significant synergies, continue to lower our WTI/bbl breakeven costs and achieve m
Slide 9: Corporate Cost Improvements
Corporate Cost Improvements O OP PE EX X C Co om mm me en nt ta ar ry y Exceeding our 2020 OPEX and G&A per boe guidance Operating Expenses (OPEX) Updated 2020 • Total reduction in OPEX per boe of 27% from Guidance 2017 to mid-point of 2020 Guidance ($11.10/boe) • 2020 OPEX per boe continues to decr
Slide 10: Corporate Breakeven Analysis
Corporate Breakeven Analysis B Br re ea ak ke ev ve en n U US S$ $ W WT TI I//b bb bl l - - H Hi is st to or ri ic ca al l a an nd d P Pr ro oj je ec ct te ed d O Ob bs si id di ia an n // O Ob bs si id di ia an n & & B Bo on nt te er rr ra a P Pr ro o F Fo or rm ma a Unhedged Cash Flow (US$/bbl) 20
Slide 11: Undeveloped Reserves
Undeveloped Reserves 2 20 01 19 9 P PD DP P//1 1P P R Ra at ti io o 2 20 01 19 9 2 2P P L Lo oc ca at ti io on ns s//S Se ec ct ti io on n C Co om mm me en nt ta ar ry y • OBE has booked undeveloped locations based on achievable capital spending over the next 5 years. OBE is conservatively booked wi
Slide 12: Cardium Play Fairways: A Large High-Graded Inventory
Cardium Play Fairways A Large High-Graded Inventory W Wes est t P Pem emb bi ina na C Cent entr ra al l P Pem emb bi ina na R10W5 INDEX MAP 132 680 Type Curve Locations Type Curve Locations • Well established productive • Individual fairways and unit trend significantly de-risked boundaries in histo
Slide 13: Leading Cardium Well Performance
Leading Cardium Well Performance C Cu um mu ul la at ti iv ve e o oi il l r ra at te e o ov ve er r t ti im me e i in n t th he e W Wi il ll le es sd de en n G Gr re ee en n F Fi ie el ld d 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1
Slide 14: Cardium Growth & Operational Improvements
Cardium Growth & Operational Improvements C Co om mm me en nt ta ar ry y T To ot ta al l C Ca ar rd di iu um m P Pr ro od du uc ct ti io on n • Our 2017-2020 drilling programs in Crimson Lake delivered robust production growth with high-netbacks and low operating costs • Lowered DCET costs by 8% sin
Slide 15: Execute Operationally: H1 2021 Development Program
Execute Operationally H1 2021 Development Program C Cr ri im ms so on n L La ak ke e C Co om mm me en nt ta ar ry y • Seven well H1 2021 drilling program builds on drilling results with 3 kms R8W5 INDEX MAP wells adjacent to or nearby 2020 wells that produced above average 2 miles production rates a
Slide 16: Crimson Lake
Crimson Lake S Su um mm ma ar ry y E Ec co on no om mi ic cs s • Q1 – Q3 2020 average production of 9,715 boe/d DCET Capex ($MM) $3.2 • Obsidian Energy cornerstone for revitalized primary EUR (Mboe) 229 development on our Cardium acreage Oil IP365 (bbl/d) 157 • Banked oil from historical pressure ma
Slide 17: East Crimson
East Crimson S Su um mm ma ar ry y E Ec co on no om mi ic cs s • Q1 – Q3 2020 average production of 3,127 boe/d DCET Capex ($MM) $2.9 • Continued Eastward extension of the successful Crimson EUR (Mboe) 203 Lake development program Oil IP365 (bbl/d) 136 • Area has been de-risked by recent peer drilli
Slide 18: Central Pembina
Central Pembina S Su um mm ma ar ry y E Ec co on no om mi ic cs s • Q1 – Q3 2020 average production of 4,579 boe/d DCET Capex ($MM) $2.1 • The epicenter of low decline and pressure-maintained EUR (Mboe) 193 development Oil IP365 (bbl/d) 102 • Ability to de-risk inventory and add additional locations
Slide 19: West Pembina
West Pembina S Su um mm ma ar ry y E Ec co on no om mi ic cs s • Q1 – Q3 2020 average production of 4,194 boe/d DCET Capex ($MM) $3.0 • Proven oil rich Cardium trend with undeveloped primary EUR (Mboe) 190 development acreage Oil IP365 (bbl/d) 148 • Significant offsetting production from established
Slide 20: Optimization
Optimization Finding low cost, high value opportunities in our base 2 20 02 20 0 T To ot ta al l O Op pt ti im mi iz za at ti io on n P Pr ro og gr ra am m P Pr ro od du uc ct ti io on n C Co om mm me en nt ta ar ry y Optimization at Obsidian 1,400 • Multi-year inventory of targeted, low 1,200 2020
Slide 21: Alberta Viking
Alberta Viking Strengthening AECO gas prices improving economics S Su um mm ma ar ry y E Ec co on no om mi ic cs s • Q1 – Q3 2020 average production of 882 boe/d DCET Capex ($MM) $1.1 • Sweet, light oil development play with significant drilling EUR (Mboe) 73 inventory, including both low risk infil
Slide 22: Peace River Oil Partnership (PROP)
Peace River Oil Partnership (PROP) Ongoing optimization allowing for continued positive net income S Su um mm ma ar ry y P PR RO OP P • Q1 – Q3 2020 average production of 3,123 boe/d, with an R25 R20 R15W5 INDEX MAP ALBERTA average of 1,701 boe/d shut-in during Q2 2020 in response T90 to low commodi
Slide 23: Reducing Decommissioning Liability
Reducing Decommissioning Liability Commentary D De em mo on ns st tr ra at te ed d R Re ed du uc ct ti io on n i in n W We el ll l A Ab ba an nd do on nm me en nt t C Co os st ts s Compelling Decommissioning Liability reductions • Multi-year trend of decommissioning liability reduction Q3 2020: $605
Slide 24: Current Hedge Strategy and Position
Current Hedge Strategy and Position P Ph hy ys si ic ca al l O Oi il l H He ed dg ge es s ( (C CA AD D$ $//b bb bl l) ) H He ed dg gi in ng g S St tr ra at te eg gy y W WT TI I H He ea av vy y O Oi il l H He ed dg ge e L Li ig gh ht t O Oi il l D Di if ff fe er re en nt ti ia al l • Target to hedge
Slide 25: Environmental, Social & Governance
Environmental, Social & Governance Environmental Social Governance • Obsidian Energy makes it a • Obsidian Energy is committed to • Obsidian Energy is committed to priority to ensure all minimizing the impact of our making a positive impact in the stakeholders have a clear operations on the environm
Slide 26: Experienced management and strong technical team
Experienced management and strong technical team Stephen E. Loukas, Interim President and Chief Executive Officer Financial and commercial • Vast experience in corporate transactions, capital markets, corporate finance and Strong financial, commercial leadership and capital markets $ • Mr. Loukas is
Slide 27: Appendix & Endnotes
Appendix & Endnotes 27Appendix & Endnotes 27
Slide 28: End Notes
End Notes Slide 3: Corporate Overview Slide 15: Execute Operationally Market Capitalization and Enterprise Value was determined at the close of business on January 27, Mid-point of H1 2021 Guidance Range: 10,225 bbl/d light oil, 2,775 bbl/d heavy oil, 1,950 bbl/d NGLs and 49.5 2021. Net Debt, Tax Po
Slide 29: Definitions and Industry Terms
Definitions and Industry Terms PDP means proved developed producing reserves as per Oil and FFO means funds flow from operations, detailed in the Non-GAAP Q1-Q3 2020 means the first 9 months of 2020 Gas Disclosures Advisory measure advisory 1P means proved reserves as per Oil and Gas Disclosures Rec
Slide 30: Non-GAAP Measures Advisory
Non-GAAP Measures Advisory In this presentation, we refer to certain financial measures that are not determined in accordance with IFRS. These measures as presented do not have any standardized meaning prescribed by IFRS and therefore they may not be comparable with calculations of similar measures
Slide 31: Oil and Gas Information Advisory
Oil and Gas Information Advisory Barrels of oil equivalent ( boe ) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner
Slide 32: Reserves Disclosure and Definitions
Reserves Disclosure and Definitions Unless otherwise noted, any reference to reserves in this presentation are based on the report ( Sproule Report ) prepared by Sproule Associates Limited dated February 3, 2020 where they evaluated one hundred percent of the crude oil, natural gas and natural gas l
Slide 33: Forward-Looking Information Advisory
Forward-Looking Information Advisory Certain statements contained in this document constitute forward-looking statements or information (collectively forward-looking statements ) within the meaning of the safe harbour provisions of applicable securities legislation. Forward-looking statements are ty
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