Logan Energy Corp · TSXV:LGN
Logan Energy — Investor Presentation (November 2023)
27 slides from Logan Energy's investor presentation, November 2023
Slide 1: A Differentiated Growth Company
A Differentiated Growth Company INVESTOR PRESENTATION NOVEMBER 2023
Slide 2: The Logan Opportunity
THE LOGAN OPPORTUNITY A Differentiated Growth Company ABOUT LOGAN INVESTMENT RATIONALE Logan Energy Corp. (“Logan”) is a growth-oriented exploration, development and production company formed through the spin-out of Spartan Delta Corp.’s early stage Montney assets. Track Record of Excess Returns and
Slide 3: Organic Growth Augmented by Strategic Acquisitions to Build a Quality Asset Base
STRATEGY Organic Growth Augmented by Strategic Acquisitions to Build a Quality Asset Base 1 2 3 4 Grow our Assets Identify, Acquire and Execute with Cost Effective Capital Delineate High Quality Discipline Allocation with Inventory Conservative Leverage • Organic growth plan delivers • Build and exp
Slide 4: Building in the Premier Resource Play
THE MONTNEY Building in the Premier Resource Play BC AB T87 Logan Energy ▪ High quality inventory depth is becoming scarce KEL FLATROCK Kelt Exploration ▪ The Montney offers: LGN T85 Arc Resources Tourmaline Oil - Highly competitive play economics FSJ T83 Crew Energy - Scalable production growth CEI
Slide 5: Three Unique Montney Assets, Each Opportunity Rich
LOGAN’S MONTNEY ASSETS Three Unique Montney Assets, Each Opportunity Rich FLATROCK FLATROCK POUCE COUPE GOLD CREEK SIMONETTE ▪ Emerging undeveloped Montney property prospective for both gas Doig WEST (DIVESTED) condensate and oil development ▪ High quality subsurface properties underpin asset potent
Slide 6: Q3 2023 Results
Q3 2023 RESULTS Ahead of Plan on Production, Capital Expenditures on Budget ▪ Since end of Q2, Logan has increased production by 8% (no meaningful new well contribution in the quarter) 5,394 BOE/d $5.2MM Production Adjusted Funds Flow ▪ Production is trending ahead of budget and capital costs are on
Slide 7: 2024 Budget Summary
BUDGET OVERVIEW 2024 Budget Summary CAPITAL ALLOCATION GUIDANCE Previous Updated 2024 H2 2023 H2 2023 % Change ▪ 2024 capital budget of $120MM designed to deliver growth at Simonette, maintain production at Pouce Coupe and advance long-term growth projects like Flatrock Production Crude Oil and Cond
Slide 8: Logan Offers Significant Rate of Change and Operational Leverage
BUDGET OVERVIEW Logan Offers Significant Rate of Change and Operational Leverage PRODUCTION OIL & CONDENSATE OPEX & TRANSPORT ADJUSTED FUNDS AFF PER SHARE GROWTH GROWTH UNIT COST REDUCTION FLOW (AFF) GROWTH + 55% >10,000 Q4-24 + 66% + 109% + 109% $64 MM 2024E (15%) $15 MM H2 23 $31MM Ann. November 2
Slide 9: Organic Growth Trajectory and Capital Allocation
LONGER TERM CONSIDERAIONS Organic Growth Trajectory and Capital Allocation NEAR TERM INDICATIVE ORGANIC GROWTH PLAN ▪ Applying modern well design to historically underinvested asset base to deliver significant near-term production growth on a low decline base ▪ Targeting liquids rich opportunities w
Slide 10: Land Expansion: Building Section by Section
LAND EXPANSION Building Section by Section CORPORATE LAND POSITION EXPANSION SIMONETTE MONTNEY LAND EXPANSION + 32.75 + 29.50 Montney Sections Sections Added in Other Added Plays (not shown) (1) New position in Lator, to be drilled in this winter > 330 15th Montney Sections Total Largest Overall Mon
Slide 11: Simonette: Core Growth Asset with Owned Infrastructure
SIMONETTE Core Growth Asset with Owned Infrastructure ASSET CHARACTERISTICS SIMONETTE NORTH OIL ▪ Opportunity rich asset with owned infrastructure that together present ▪ Existing wells in the oil window have legacy Logan 5-11 (Sept ’23 onstream) a compelling growth opportunity low-intensity frac de
Slide 12: South Simonette: Compelling Early Well Results
SIMONETTE South Simonette: Compelling Early Well Results SOUTH SIMONETTE ANALOGS & OFFSETS OIL & CONDENSATE Legend Logan 02/14-33-61-27W5 (2023) (1) CQE 16-33-61-27W5 (2017) 02/14-33-61-27W5 XTO 9-18-62-2W6 Pad Ave. (2017 - 2018) October 2023 Production Legacy South Simonette Ave. (2011 – 2017) 1,59
Slide 13: North Simonette: Compelling Early Well Results
SIMONETTE North Simonette: Compelling Early Well Results NORTH SIMONETTE ANALOGS & OFFSETS OIL & CONDENSATE 5-11-64-26W5 Legend October 2023 Production 732 boe/d (69% liquids) Logan 5-11-64-26W5 (2023) 494 bbl/d oil Offset 16-12-64-26W5 (2012) 8 bbl/d NGLs Legacy North Simonette Ave. (2011 – 2017) 1
Slide 14: Pouce Coupe: Proven Development Inventory Requiring Additional Infrastructure and Egress
POUCE COUPE Proven Development Inventory Requiring Additional Infrastructure and Egress ASSET CHARACTERISTICS POUCE NORTH GAS ▪ Low risk, high return development in Pouce South oil play segment ▪ Northern play segment defined by high porosity T82 provides repeatable production growth and cashflow an
Slide 15: Flatrock: High Quality Subsurface Properties on Large Contiguous Undeveloped Land Base
FLATROCK High Quality Subsurface Properties on Large Contiguous Undeveloped Land Base Logan MNTN Land ASSET CHARACTERISTS Industry MNTN Wells TCPL ▪ Large contiguous land base Westcoast Pipeline North River HP System - Over 55,000 acres all 100% WI with no encumbrances Pembina Battery/Plants - Good
Slide 16: Egress, Marketing & Hedging: Well Positioned For Growth
EGRESS, MARKETING & HEDGING Well Positioned For Growth HEDGING ▪ Logan is currently unhedged providing full exposure to market prices and maintaining Flatrock flexibility to adjust to market conditions Fort St John Pouce Coupe GAS MARKETING & EGRESS Grande Prairie ▪ All gas currently connected to NG
Slide 17: Our Competitive Advantage
LOGAN ETHOS Our Competitive Advantage Technical Leaders Focused Execution and Entrepreneurially Driven Cost Discipline Highly technical team with a proven track An ownership mindset towards cost reductions Team is aligned through significant equity record of identifying high quality, yet and consist
Slide 18: www.loganenergycorp.com
www.loganenergycorp.com 18
Slide 19: Management Team and Independent Board of Directors
LOGAN TEAM Management Team and Independent Board of Directors MANAGEMENT TEAM Richard McHardy ▪ Former Executive Chairman of Spartan Delta, President, CEO and Director of Spartan Energy, Spartan Oil, and Spartan Exploration and President President & CEO and Director of Titan Exploration Brendan Pato
Slide 20: We are Builders: Substantial Value can be Created Section by Section
SPARTAN MONTNEY LOOKBACK We are Builders: Substantial Value can be Created Section by Section LAND POSITION ASSEMBLY OPERATIONAL EXECUTION ▪ Aggressively built out the Spartan Gold Creek/Karr position through 12 opportunistic and creative deals ▪ Spartan grew production both through acquisitions and
Slide 21: Every Spartan Delta Equity Financing Significantly Outperformed the Index
TRACK RECORD Every Spartan Delta Equity Financing Significantly Outperformed the Index DECEMBER 2019 MAY 2020 MARCH 2021 AUGUST 2021 $25 million at $64 million at $124 million at $150 million at $1.00 per Share $2.00 per Share $4.35 per Share $5.05 per Share Founding Financing Bellatrix Asset Acquis
Slide 22: Leadership has Generated Excess Returns Through Multiple Entities and Cycles
TRACK RECORD Leadership has Generated Excess Returns Through Multiple Entities and Cycles SPARTAN SPARTAN SPARTAN SPARTAN EXPLORATION OIL ENERGY DELTA Period January 2010 to May 2011 June 2011 to January 2013 December 2013 to May 2018 December 2019 to June 2023 Equity Returns (1) Total Equity Issued
Slide 23: Corporate Information and Analyst Coverage
CORPORATE INFORMATION ANALYST COVERAGE EXECUTIVE OFFICE STOCK EXCHANGE LISTING INSTITUTION ANALYST Logan Energy Corp. The TSX Venture Exchange 1800, 736 6 Avenue SW National Bank Financial Dan Payne Trading Symbol: LGN Calgary, Alberta T2P 3T7 Scotia Capital Cameron Bean P: 587 770 2020 INVESTOR INF
Slide 24: Disclaimer
DISCLAIMER Forward Looking Statements Forward Looking Statements (Continued) ▪ Certain information included in this presentation constitutes forward-looking information under applicable securities ▪ (continued from previous column) Actual results may vary materially from forecasts due to changes in
Slide 25: Disclaimer: Oil and Gas Advisories
DISCLAIMER Oil and Gas Advisories ▪ BOE Disclosure. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A ▪ Unbooked locations have been identified by management as an estimation of our multi-year drilling activities BOE conversion ratio of six thousand c
Slide 26: Disclaimer: Non-GAAP Measures and Ratios
DISCLAIMER Non-GAAP Measures and Ratios ▪ This presentation contains certain financial measures and ratios, as described below, which do not have ▪ "Net Debt (Surplus)" includes working capital plus bank debt (if any) outstanding under Logan’s credit facility. Net standardized meanings prescribed by
Slide 27: Abbreviations & Definitions
ABBREVIATIONS & DEFINITIONS A&D Acquisitions and Dispositions MM or mm Million AECO Alberta Energy Company "C" Meter Stations of the NOVA Pipeline System mmboe Million barrels of oil equivalent AFF Adjusted Funds Flow mmboe/sec Million barrels of oil equivalent per section API American Petroleum Ins