Spartan Delta Corp · TSX:SDE
Spartan Delta — Investor Presentation (May 2023)
27 slides from Spartan Delta's investor presentation, May 17, 2023
Slide 1: Investor Presentation
INVESTOR PRESENTATION Spartan Delta Corp. (SDE: TSX) May 17, 2023
Slide 2: Corporate Capitalization
CORPORATE CAPITALIZATION Spartan Delta Corp. (SDE:TSX) Capitalization (as at May 16, 2023) Spartan Delta Corp. TSX SDE Share Price(1) $/sh 15.93 Market Capitalization (basic) (1) $MM 2,731 Common Shares Outstanding (basic) (2) MM 171.4 Net Debt(2) $MM 139 Tax Pools (2) $MM 2,057 Enterprise Value (ba
Slide 3: First Quarter 2023 Highlights
FIRST QUARTER 2023 HIGHLIGHTS Record Production Achieved in Q1 2023 UNAUDITED HIGHLIGHTS FY 2021 FY 2022 Q1 2023 Crude Oil boe/d 4,697 12,976 15,034 Condensate boe/d 1,924 2,328 2,994 Average production volumes were 80,200 boe/d (22% oil and condensate, 17% NGLs Natural Gas Liquids (NGLs) boe/d 9,12
Slide 4: Strategic Repositioning Process Outcome
STRATEGIC REPOSITIONING PROCESS OUTCOME Three Outcomes for Shareholders ▪ Spartan Delta Corp. ("Spartan" or the "Company") is pleased to announce the conclusion of its formal strategic repositioning process which was initiated by its board of directors on November 30, 2022 and has resulted in the fo
Slide 5: Outcome for Spartan Shareholders
OUTCOME FOR SPARTAN SHAREHOLDERS Creation of a New Growth-Oriented Pure-Play Montney Company and Spartan Delta Transition I) MONTNEY ASSET SALE II) LOGAN ENERGY CORP. (“LOGAN”) III) SPARTAN DELTA CORP. Eligible Spartan Shareholders receive a cash Spartan Shareholders receive: Spartan Shareholders re
Slide 6: Go-Forward Business Plans
GO-FORWARD BUSINESS PLANS Spartan Delta Corp. and Logan Energy Corp. ▪ The creation of a growth vehicle with a differentiated but complementary strategy to Spartan’s Free Funds Flow generation business plan will drive maximum returns to Spartan Shareholders, unlocking the true value of the Logan ass
Slide 7: Strategic Milestones of Spartan Delta Corp.
STRATEGIC MILESTONES OF SPARTAN DELTA CORP. Continuing to Build Shareholder Value Through Execution of the Business Plan Execution of Acquisition and Integration Strategy Key Corporate Highlights Since Recapitalization(1) 1 Growth Through Targeted Acquisitions in a Depressed Market Debt Adjusted Pro
Slide 8: 2023 Pro Forma Guidance
2023 PRO FORMA GUIDANCE Second Half Guidance Representative of Pro Forma Deep Basin Asset Post Montney Sale 2023 Corporate Guidance(1) H1 Guidance H2 Guidance FY Guidance Average Production boe/d 68,000 - 70,000 36,000 - 38,000 52,000 - 54,000 ▪ Full Year $280MM of capital expenditures Crude Oil and
Slide 9: Deep Basin Year-End 2022 Reserve Evaluation
DEEP BASIN YEAR-END 2022 RESERVE EVALUATION Based on 2023 Average Forecast Pricing of US$80.33/bbl WTI and C$4.23/MMBtu AECO 2022 RESERVE HIGHLIGHTS(2) Volume - Gross (MMboe) Value - NPV10 ($MM) PDP TP TPP PDP TP TPP 2021 86 164 245 $656 $1,233 $1,699 2022 87 156 273 $911 $1,493 $2,213 Δ 1% -5% 12%
Slide 10: Deep Basin Summary
DEEP BASIN SUMMARY Free Funds Flowing with Substantial Inventory Duration Into Owned Infrastructure ▪ Material Free Funds Flow generation CENOVUS SAND CREEK SDE O’CHIESE NEES-OHPAWAGANU’CK 10-09 • 75 MMcf/d (9.6% WI) • 230 MMcf/d Deep Cut (25% WI) CENOVUS ALDER ▪ Top quality resource of delineated l
Slide 11: Infrastructure Advantage
INFRASTRUCTURE ADVANTAGE Infrastructure Footprint Underpins Free Funds Flow Engine ~90% of future inventory requires no new surface construction or infrastructure spending. Infrastructure Control: TIDEWATER BRAZEAU RIVER COMPLEX ▪ Gas gathering, compression and processing in place for 45,000 boe/d T
Slide 12: Spirit River Asset Summary
SPIRIT RIVER ASSET SUMMARY Deep Liquids Rich Gas Inventory with Strong Capital Efficiencies 16,000 2020+ Activity Average (42 Wells) Spirit River 2P 5.8 BCF Type Curve Spirit River 1P 4.1 BCF Type Curve Spartan SPRV Lands 12,000 Raw Gas Rate (mcf/d) Spartan Interest SPRV HZ Well Spartan 2020+ Activi
Slide 13: Cardium Asset Summary
CARDIUM ASSET SUMMARY Oil and Condensate Rich Inventory with Low Declines 4,000 2020+ Activity Average (13 Wells) Cardium 2P 2.9 BCF Type Curve Cardium 1P 2.0 BCF Type Curve Spartan CRDM Lands 3,000 Raw Gas Rate (mcf/d) Spartan Interest CRDM HZ Well Spartan 2020+ Activity (13 Wells) 2,000 Industry C
Slide 14: Spartan's Sustainable Development Goals
SPARTAN’S SUSTAINABLE DEVELOPMENT GOALS Spartan is Committed to Meeting the Needs of the Present, While Protecting the Future Results: Active Initiatives: Inventory 44% reduction Reduction Program in Direct and Indirect GHG Mandatory spend Emissions Intensity from commitment of $5.8 MM 2020 to 2021
Slide 15: Investor Highlights
INVESTOR HIGHLIGHTS Highly Capital Efficient Free Funds Flowing Assets with Infrastructure Control Dominant position in the liquids-rich Deep Basin, yielding some of Canada’s most prolific economics Infrastructure footprint provides enhanced capital efficiencies, netbacks and investment returns Sust
Slide 16: Appendix
& SPARTAN DELTA CORP. May 17, 2023 APPENDIX 16
Slide 17: Montney Asset Sale
MONTNEY ASSET SALE Compelling Value to Spartan Shareholders That Accelerates and Crystalizes Value Transaction Overview ▪ On March 28, 2023, Spartan announced that it had entered into a definitive purchase and sale agreement for the sale of Gold Creek, Karr and Northern Alberta minor properties for
Slide 18: Logan Energy Corp.
LOGAN ENERGY CORP. Corporate Profile Key Corporate Highlights Montney Area Map ▪ Led by Rick McHardy (President and CEO) and Brendan Paton Pro Forma Assets (COO) and certain existing Spartan executives BC AB Logan Energy Corp. ▪ Pure-play Montney growth engine with initial production of Flatrock Mon
Slide 19: Analyst Coverage & Contact Information
ANALYST COVERAGE & CONTACT INFORMATION Institution Analyst EXECUTIVE OFFICE STOCK EXCHANGE LISTING ATB Capital Markets Patrick O’Rourke Spartan Delta Corp. The TSX Exchange 1500, 308 – 4th Avenue SW Trading Symbol: SDE Calgary, Alberta T2P 0H7 BMO Capital Markets Mike Murphy INVESTOR INFORMATION P:
Slide 20: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS MANAGEMENT TEAM Richard McHardy ➢ Former President, CEO and co-founder of Spartan Energy, Spartan Oil and Spartan Exploration Executive Chairman & Director Fotis Kalantzis ➢ Former SVP and co-founder of Spartan Energy, Spartan Oil and Spartan Exploration Presiden
Slide 21: Disclaimer
DISCLAIMER Forward Looking Statements uncertainties resulting from potential delays or changes in plans with respect to exploration or ▪ Certain information included in this presentation constitutes forward-looking information under development projects or capital expenditures. Production forecasts
Slide 22: Disclaimer Cont'd
DISCLAIMER CONT’D Oil and Gas Advisories engineering practices. These type curves were generated by Spartan's internal qualified ▪ BOE Disclosure. The term barrels of oil equivalent ("boe") may be misleading, particularly if reserves evaluators. These type curves incorporate the most recent data fro
Slide 23: Disclaimer Cont'd
DISCLAIMER CONT’D Non-GAAP Measures and Ratios debt and share consideration used to acquire crude oil and natural gas assets, net of cash ▪ This presentation contains certain financial measures and ratios, as described below, which do proceeds received on dispositions. The most directly comparable G
Slide 24: Auditor Price Deck Details
AUDITOR PRICE DECK DETAILS Three Consultant Average (McDaniel, GLJ and Sproule) January 1, 2023 3 Consultant Average (McDaniel, GLJ and Sproule) Summary of Price Forecasts Sunday, January 1, 2023 C rude O il P ric e F o re c a s t s Liquids P ric e F o re c a s t s G a s P ric e F o re c a s t s E d
Slide 25: Auditor Price Deck Details (Logan)
AUDITOR PRICE DECK DETAILS (LOGAN) Strip Pricing as at March 1, 2023 FUTURE COMMODITY PRICE FORECAST WTI Cushing Edm Light Henry Hub AECO-C USD/CAD Oklahoma Crude oil US$/MMBtu Spot Exchange US$/bbl CA$/bbl CA$/GJ CA$/US$ 2023 75.90 100.12 3.27 2.79 0.736 2024 71.41 92.37 3.7 3.23 0.741 2025 67.32 8
Slide 26: Abbreviations
ABBREVIATIONS A&D Acquisitions and Dispositions AECO Alberta Energy Company "C" Meter Station of the NOVA Pipeline System API American Petroleum Institute gravity ARO Asset Retirement Obligations bbl; bbl/d Barrel; barrels per day bcf; bcf/d Billion cubic feet of natural gas; billion cubic feet per
Slide 27: Info@SpartanDeltaCorp.com www.SpartanDeltaCorp.com
Info@SpartanDeltaCorp.com www.SpartanDeltaCorp.com