Alvopetro Energy Ltd. · TSXV:ALV
Alvopetro Energy — Investor Presentation (June 2024)
27 slides from Alvopetro Energy's investor presentation, Jun 17, 2024
Slide 1: Corporate Presentation June 17, 2024
Corporate Presentation June 17, 2024 TSXV: ALV OTCQX: ALVOF | TSXV: ALV, OTCQX: ALVOF
Slide 2: Alvopetro - A Leading Brazilian Independent Natural Gas Company
Alvopetro - A Leading Brazilian Independent Natural Gas Company First Brazilian integrated onshore natural gas producer Strong operating and financial results well ahead of expectations Balanced reinvestment and stakeholder return model Demonstrated ESG commitment Proven team with successful LatAm t
Slide 3: At a Glance – Value, Yield, Growth
At a Glance – Value, Yield, Growth Market Summary Reserves & Resources, NPV10 before tax (4)(8)(9)(13) Proforma December 31, 2023 Reserves Shares outstanding(1) 36.6 million 1,000 Average daily trading volume(1) 75,786 800 US$ millions Insider ownership(1) 9.6% 600 Market cap/Enterprise value(2) $11
Slide 4: Focused on Delivering Shareholder Returns
Focused on Delivering Shareholder Returns 183-A3 well results -36% quarterly 10.00 197(1) well on dividend production ($0.09/share) 9.00 +17% quarterly dividend Expert decision ($0.14/share) +50% quarterly dividend on ($0.12/share) +17% 2P reserves value Redetermination 8.00 (NPV10BT) Credit Facilit
Slide 5: Brazil a Growing Market with Attractive Fundamentals
Brazil a Growing Market with Attractive Fundamentals Largest oil producer in S. America and 9th globally New natural gas market. 48% of supply is currently imported World’s 12th largest economy Brazil Attractive fiscal regime with 5.5-11% royalties & 15%-34% income tax Stable regulatory framework at
Slide 6: State of Bahia – Reconcavo Basin
State of Bahia – Reconcavo Basin • Oldest producing basin in Brazil: 23.9 Mbopd + 2.2 e6m3/d (77 MMcf/d) • Brazil's 4th largest city Salvador (pop 2.9 million) • Well developed industrialized region • Majority of natural gas consumed in Camacari industrial complex • Highly strategic infrastructure B
Slide 7: Caburé – Asset Overview – 56.2% ALV
Caburé – Asset Overview – 56.2% ALV(13) • The Caburé field is a joint development of a conventional natural gas discovery • Alvopetro’s initial working interest of 49.1% adjusted to 56.2% following the first redetermination which was Murucututu Project completed in April 2024. The new working intere
Slide 8: Midstream - Infrastructure & Marketing (100% ALV)
Midstream - Infrastructure & Marketing (100% ALV) • 11-km transfer pipeline & Gas Plant (UPGN) with 18+ MMcfpd capacity Murucututu Project (100%) • Bahiagás 15-km Distribution pipeline & 70 MMcfpd citygate at our plant site • Price set semi-annually based on Brent, Henry Hub and UK NBP benchmark pri
Slide 9: Gas Sales Agreement (Forward Pricing at 6/14/2024)
Gas Sales Agreement (Forward Pricing at 6/14/2024) As of June 14, 2024 Alvopetro’s contracted natural gas price is at the ceiling. Forecast above reflects forward pricing as of June 14, 2024. Floor & ceiling prices incorporate US inflation of 2%. BRL:USD 5.36:1 | TSXV: ALV, OTCQX: ALVOF 9
Slide 10: Strong Production Results
Strong Production Results Alvopetro - Daily sales volumes (boepd) 3,000 2,642 2,724 2,767 5 5 2,501 2,359 2 2,361 2,459 2 2,432 2 12 117 128 130 2,500 2,175 5 107 99 5 2,143 - 105 103 97 1,975 10 1,950 1,701 1,808 - 98 5 1,696 92 2,000 1,764 - 89 92 18 3 12 79 81 78 79 1,418 9 1,500 2,591 2,633 84 2
Slide 11: Operating Netback
Operating Netback Q1 2024 operating netback margin of 87% Operating Netback(10)- $/boe Operating netback as a % of realized sales price 91% 90% 89% 90% 87% 87% 82% Operating Netback Margin(10) (% of Sales Price) 82% 80.00 72.92 77.41 78.90 2.04 77.60 75.94 Q1 2024 realized price of $75.94/boe 1.97 2
Slide 12: Disciplined Capital Allocation – Balancing Organic Growth & Returns
Disciplined Capital Allocation – Balancing Organic Growth & Returns Funds Flow From Operations(10) & Capital Allocation Allocation of Funds Flow from Operations July 2020 to March 31, 2024 9,618 Building cash 14,972 16,000 13,348 11,047 Share and working 13,193 repurchases capital 12,434 12,393 1% 9
Slide 13: Organic Growth Plan
Organic Growth Plan Near-term goal of 18 MMcfepd Longer-term vision of 35 MMcfepd Caburé Unit and midstream Bom Lugar Field • Gas plant capacity 18+ MMcfpd • Redetermination - Unit working interest and production entitlement increased from 49.1% to 56.2% • Further expand Unit capacity with additiona
Slide 14: Murucututu Gas – Gomo + Caruaçu Development (100% ALV)
Murucututu Gas – Gomo + Caruaçu Development (100% ALV) • 5,460-acre deep basin gas resource Top Maracangalha Seq 7 Time 183-A3 Caruaçu net pay 116.1 metres Murucututu Project (100%) • 2P reserves: 4.6 MMboe (27.4 Bcfe), NPV10BT $129.2 million(4) including three Structure 20ms CI A’ Dev well: ALV 183
Slide 15: 183-1 Recompletion Plan – Caruacu Sequence 6.2
183-1 Recompletion Plan – Caruacu Sequence 6.2 Top Maracangalha Seq 7 Time Structure 20ms CI • Following the net pay identified on logs in 183-A3 we plan to pursue recompletion at 183-1 focused on sequence 6.2 of the Caruaçu Seq 6.2 Sand Seq 5 Geobody from amplitude 1256 Acres Seq 6 above 183-1 well
Slide 16: Regional Seismic Section from Miranga-Murucututu-Caburé-Jaquipe
Regional Seismic Section from Miranga-Murucututu-Caburé-Jaquipe Miranga Caburé Jaquipe N Murucututu S Angular Unconformity Miranga Pojuca Pojuca Miranga Profundo SynRift Caruacu/Gomo/Candeias Candeias Basement Candeias Caburé Jaquipe | TSXV: ALV, OTCQX: ALVOF 16
Slide 17: Murucututu Today
Murucututu Today | TSXV: ALV, OTCQX: ALVOF 17
Slide 18: Murucututu – Positioned for Growth
Murucututu – Positioned for Growth ALV can drill 6+ development wells from 3 well pads all connected to our field production facility at 183-1 that delivers gas to ALV UPGN | TSXV: ALV, OTCQX: ALVOF 18
Slide 19: Murucututu Project Development 183-1 Location
Murucututu Project Development 183-1 Location | TSXV: ALV, OTCQX: ALVOF 19
Slide 20: Murucututu Multi-Year Development Plan
Murucututu Multi-Year Development Plan • 2P Reserves: 3 existing wells + 3 undeveloped locations (183-A2, 197-A2 and 197-A3) • Contingent Resource: 3 development wells • Prospective Resource: 10 additional wells | TSXV: ALV, OTCQX: ALVOF 20
Slide 21: ESG – 2022 Highlights
ESG – 2022 Highlights We are focused on responsibly supplying energy, minimizing our environmental impact, and generating lasting benefits for all our stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE Responsibly Supply Energy Strengthening Our Communities Diversity & Talent NATURAL GAS focused Strategic
Slide 22: ESG - Voluntary Social Investment
ESG - Voluntary Social Investment We want to contribute positively to the communities where we operate. We are investing in projects focused on: Sustainable Development of Rural Communities, Social Entrepreneurship, Education, Cultural and Sporting Activities, and Biodiversity Preservation. | TSXV:
Slide 23: Why Invest?
Why Invest? Results Growth Value Yield | TSXV: ALV, OTCQX: ALVOF 23
Slide 24: TSXV: ALV OTCQX: ALVOF
TSXV: ALV OTCQX: ALVOF Calgary, Canada: Alvopetro Energy Ltd. Suite 1920, 215 – 9th Avenue SW Calgary, Alberta, Canada T2P 1K3 Tel: (587) 794-4224 Email: info@alvopetro.com Salvador, Brazil: Alvopetro S/A Extração de Petróleo e Gás Natural Rua Ewerton Visco, 290, Boulevard Side Empresarial, Sala 200
Slide 25: Cautionary Statements
Cautionary Statements • Forward Looking Statements. This presentation contains forward-looking statements including forecasted future earnings and sales volumes, forecasted natural gas prices under the Company’s long-term gas sales agreement, the anticipated timing of projects, future exploration an
Slide 26: Cautionary Statements
Cautionary Statements • Net Present Value and Reserves Disclosed. The net present value of future net revenue attributable to Alvopetro’s reserves is stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production costs, devel
Slide 27: Endnotes
Endnotes 1. As of June 17, 2024. Average daily trading volume is based on average volumes traded on all Canadian exchanges (TSXV and other Canadian) and on the OTCQX in the six months commencing on December 18, 2023 and ending on June 17, 2024. 2. Enterprise value of $102.5 million is computed as US