Saturn Oil & Gas Inc. · TSX:SOIL
Saturn Oil & Gas — Investor Presentation (March 2024)
28 slides from Saturn Oil & Gas's investor presentation, March 2024
Slide 1: Corporate Presentation March 2024
Mar 2024 CORPORATE PRESENTATION TSX: SOIL FSE: SMKA OTCQX: OILSF Harvesting A Sustainable Future
Slide 2: Disclaimer
DISCLAIMER This presentation is for informational purposes only and is not intended as a solicitation or offering of securities of Saturn Oil & Gas Inc. (“Saturn” or the “Company") in any jurisdiction. The material presented is not intended to modify, qualify, supplement or amend information disclos
Slide 3: Saturn's Free Cash Flow Strategy
SATURN’S FREE CASH FLOW STRATEGY Quarterly Production Forecast (mboe/d) 30 Harvest Mode 26,890 Q4 2023E Barrels of oil equivalent (Boe) daily production1 26.9 27.0 25 26.0 26.3 20 $365 Million Adjusted EBITDA midpoint forecast for 20242 17.8 15 10 11.0 12.5 $1.93 Cash flow per share midpoints target
Slide 4: Corporate Profile
CORPORATE PROFILE | TSX: SOIL FSE: SMKA OTCQX: OILSF Conservative Balance Sheet Management FINANCIAL 50% of cash flow directed to debt repayment Shares Outstanding (Basic) 161.5 MM ▪ Net debt ~$283M by year end 2024 = 0.8x 2024E EBITDA Options & RSU (avg. exercise $2.50) 4.2 MM Warrants 14.7 MM 50%
Slide 5: Diversified Sustainable Development
DIVERSIFIED SUSTAINABLE DEVELOPMENT Diversified Light Oil Development Platform >145 Four core operating areas offer diversification of light oil plays: MMboe ▪ SE Saskatchewan: Low decline, high rates of return, multi-zone Proforma Proved + Probable Reserves1 ▪ West Central Saskatchewan: Resource pl
Slide 6: Net Asset Value
NET ASSET VALUE Saturn Shares Are Backed With 3 Years of Quality Growth and Solid Asset Value1 Year End 2023 (Pro Forma February 2024 Equity Issue)1 Three Year Finding Development and Acquisition Economics $ millions PDP Proved P+P Cash Flows PV 10% Pre Tax1 $1,402 $1,982 $2,790 Net Debt3 -415 -415
Slide 7: Optimization: Reduce Costs + Increase Netbacks
OPTIMIZATION: REDUCE COSTS + INCREASE NETBACKS Robust Growth Driven By High Netback Production Adds Operating & Transportation Cost1 ($/boe) Robust Operating Netback ($/boe)1,2 $30 19% $90 $100 27.96 2021 to 2023 YTD 25.28 $90 Operating Netback, Net of Derivatives ($/boe)1,2 $20 $80 $85.00 22.46 $8
Slide 8: SE Saskatchewan Consolidation
SE SASKATCHEWAN CONSOLIDATION Multi-Zone Light Oil Oxbow Area ▪ 12,550 boe/d1 (96% oil & NGLs) ▪ Strategic control of the area’s robust infrastructure ▪ Strategic gas processing facility expands netbacks ▪ Over 20 years of booked and unbooked drilling inventory 474 Booked drilling locations 2 235 Un
Slide 9: SE Saskatchewan: Bakken Resource Play
SE SASKATCHEWAN: BAKKEN RESOURCE PLAY New Drilling Technique: ▪ Open Hole Multi-Lateral (OHML) wells open the light oil Bakken fairway for extended development ▪ Up to 8 horizontal legs per well are producing strong industry results: median IP30 of 170 bbl/d ▪ Saturn drilled 2, 100% WI, OHML wells i
Slide 10: SE Saskatchewan: Manor Spearfish
SE SASKATCHEWAN: MANOR SPEARFISH Multi-Zone Development: ▪ Spearfish, new play development in 2023 ▪ IP30 89.0 bbls/d light oil1 → 16% above Type Curve Manor Area ▪ 6 wells on production in Q3 2023 ▪ Up to 5 follow up locations in 2024 ▪ 45 net booked locations2 Spearfish IP30 Production Plot 100 95
Slide 11: West Central Saskatchewan: Viking
WEST CENTRAL SASKATCHEWAN: VIKING Viking Highlights ▪ Historical company experience continues to produce and exceed peers ▪ >200 de-risked locations with strategic facilities offering blending upside ▪ 32 wells drilled in 2022 (100% WI): IP30 93.7 bbls/d Viking Area ▪ 12 wells drilled in 2023 (100%
Slide 12: Central Alberta: Cardium Resource Play
CENTRAL ALBERTA: CARDIUM RESOURCE PLAY Cardium Highlights ▪ Well defined light oil fairway, predictable reservoir characteristics and long-term, stable production ▪ High deliverability with facilities in place for fast online production Lochend Area ▪ 3 Lochend ERH wells and 3 West Pembina ERH wells
Slide 13: North Alberta Assets
NORTH ALBERTA ASSETS Kaybob – Montney Highlights Deer Mountain – Swan Hills Highlights 18 25 Booked locations1 Booked locations1 4 5 Un-booked locations1 Un-booked locations1 5 8 Years of inventory Years of inventory 28,400 25,500 Net acres, 100% WI Net acres, 100% WI 2,300 1,000 Boe/d, 35-45o API l
Slide 14: 2024 Guidance
2024 GUIDANCE WTI Oil Price Assumption $USD FY 20243 75 62 budgeted net Production boe/d 26,500 – 27,500 new wells Pre-Hedge Adjusted EBITDA1 $MM 403 – 419 Post-Hedge Adjusted EBITDA1 $MM 356 – 372 Adjusted Funds Flow (AFF) 1 $MM 300 – 316 85% Development Capital Expenditures1 $MM 146 of development
Slide 15: Peer Comparison & Research Coverage
PEER COMPARISON & RESEARCH COVERAGE Canaccord Genuity Inc. Research - Canadian Listed Oil & Gas Companies 2024E EV/DACF1 Analyst Forecast Total Return1 Average: 3.5X Firm Analyst Rating Target Price Return Beacon Securities Limited, Canada Kirk Wilson | kwilson@beaconsecurities.ca Buy $4.75 103% Can
Slide 16: Head Office, Executive Officers and Directors
TSX: SOIL FSE: SMKA OTCQX: OILSF Head Office Executive Officers Directors Saturn Oil & Gas Inc. John Jeffrey, Chief Executive Officer & Director John Jeffrey, CEO & Director Suite 2800, 525 – 8th Ave SW Scott Sanborn, Chief Financial Officer Grant MacKenzie, CLO & Director Calgary, AB T2P 1G1 Justin
Slide 17: Appendix
APPENDIX TSX: SOIL FSE: SMKA OTCQX: OILSF 17
Slide 18: Our Team
MANAGEMENT Our Team Y OGas A Long History of Value Creation in the Oil and U R S UProduction B T I T L E H E R ESpace John Jeffrey Scott Sanborn Justin Kaufmann Grant Mackenzie Kevin Smith Jamie Kuntz Chief Executive Officer Chief Financial Officer Chief Development Officer Chief Legal Officer VP Co
Slide 19: Directors
DIRECTORS Sound Governance and Strategic Oversight John Jeffrey, MBA, BA Dr. Thomas Gutschlag ▪ Former CFO and founding partner of Axiom Group ▪ Chairman, Cofounder and former CEO/CFO of Deutsche Rohstoff AG, a public company listed on the ▪ Strong background in operations and finance with successfu
Slide 20: Corporate Profile
CORPORATE PROFILE TSX: SOIL FSE: SMKA OTCQX: OILSF Current Share Structure 2023 Average Daily Trade Volume Basic Millions Average Daily Trade Volume TSX 200,952 Shares Outstanding 161.5 Other Canada 124,473 Options & Warrants Millions Expiry Date Strike Price Proceeds ($M) Germany 35,613 Options and
Slide 21: Net Asset Value
NET ASSET VALUE Saturn Shares Are Backed With Solid Asset Value1 Long Life Assets Expected to Generate Strong Cash Flows ▪ 14.8 year P+P Reserve Life Index (RLI)2 $8.98/ share1 ▪ Full exercise of warrants and options provides $50.4M in proceeds Total Proved FD NAV Year End 2023 (Pro Forma February E
Slide 22: Ridgeback Acquisition
RIDGEBACK ACQUISITION Closed February 28, 2023 $525M 1.7x 17,000 boe/d 71% Net Cash Cash Flow Net Production Added Light Oil & Shares at Closing Date & NGLs Attractive Acquisition Metrics1 $500M Transaction Financing Q1 Cash Recycle $375M term debt with New York based family office Mmboe $/boe Netba
Slide 23: 2023 Drilling Outperformance
2023 DRILLING OUTPERFORMANCE 2023 New Well Initial Production 30 Days (IP30) 33 / 45 (Budget 48) 300 3 Wells with IP30 Data Wells 250 1 279.0 Well 233.0 7% above type curve 260 24% 200 49% above Above Type Curve type curve 156 IP30 (Boe/d) Average IP30 vs. Type Curve drilled to date in 2023 150 6 8
Slide 24: Environment, Social & Governance
ENVIRONMENT, SOCIAL & GOVERNANCE Dedicated to Full Cycle Sustainability and Responsible Operations Environment Saturn’s Mission • Released inaugural Sustainability Report outlining our approach to climate-related risks and opportunities “Saturn aims to lead the oil • Aligned with the Task Force on C
Slide 25: Hedging Summary
HEDGING SUMMARY Four Year WTI Hedging Volume % of Oil & % Hedged Low High Year (bbl/d) NGL Hedged1 to CAD (USD) (USD) 2024 12,673 59% 56% 69.77 70.75 2025 10,431 49% 53% 65.19 65.84 2026 8,189 38% 75% 63.30 63.40 2027 1,266 6% 100% 59.09 59.09 54% Hedged 2024 Oil & NGL production1 56% in CAD of the
Slide 26: Ridgeback Acquisition Valuation Review
RIDGEBACK ACQUISITION VALUATION REVIEW $400 MM $600 MM $800 MM $1,000 MM $1,200 MM $1,400 MM 67 mmboe Price/1P BOE $603 $737 ($9 - $11) TRANSACTION MULTIPLES 99 mmboe Price/2P BOE $745 $944 ($7.5 – $9.5) 17,000 boe/d Price/Production $527 $697 ($31k - $41k) $304 MM Price/Cash Flow $578 $761 (1.9x –
Slide 27: Disclaimer – Oil & Gas Advisories
DISCLAIMER – OIL & GAS ADVISORIES Information Regarding Disclosure on Oil and Gas Operational Information and Non-IFRS Measures In this presentation and in other materials disclosed by the Company, we employ certain measures to analyze financial performance, financial position and cash flow. These n
Slide 28: Disclaimer – Oil & Gas Advisories
DISCLAIMER – OIL & GAS ADVISORIES Reserve Assumptions: Reserve evaluation calculations are based on data and expected future production volumes as provided by third party independent evaluators Ryder Scott Company (the “Ryder Scott Report”) for year end December 31, 2023 It should not be assumed tha
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