Inplay Oil Corp · TSX:IPO
Inplay Oil — Investor Presentation (November 2023)
30 slides from Inplay Oil's investor presentation, November 2023
Slide 1: Corporate Presentation November 2023
Corporate Presentation November 2023 TSX : IPO OTCQX : IPOOF
Slide 2: Investment Highlights
Investment Highlights • Corporate Strategy: “Top-tier production per share growth, strong free adjusted funds flow generation, conservative leverage ratios and increasing returns to shareholders” – FAFF allocated to dividends, share buybacks, tactical capital investments and/or strategic acquisition
Slide 3: Corporate Overview
Corporate Overview OPERATING SUMMARY 2023 Average Production (light oil & liquids %) 9,100 – 9,500 boe/d (58% – 60%)(1) 2023 Hz Drilling Plans 17.1 net 2022 Reserves Proved Developed Producing 17.7 Mmboe Total Proved Reserves 46.5 Mmboe 63% oil & NGL Total Proved and Probable Reserves 61.8 Mmboe in
Slide 4: Management and Directors
Management and Directors Management Directors Strong Technically and Value Creators Experienced Industry Board Doug Bartole, P. Eng., ICD.D Doug Bartole, P. Eng., ICD.D President and CEO, Director Regan Davis, P. Eng., ICD.D Kevin Yakiwchuk, MSc., P. Geol. Joan Dunne, FCPA, FCA, ICD.D Vice President
Slide 5: Consistent Top-Tier Organic Growth
Consistent Top-Tier Organic Growth Historical track record of top-tier growth and debt reduction Production(1) 70,000 Reserves 750 11,000 120 Production/sh (boe/d/mm shares) 10,000 Liquids (bbl) PDP TPP / share (boe/m shares) 110 60,000 TP 9,000 Gas (boe) 100 650 Production (boe/d) TPP Reserves (MBO
Slide 6: 2022 Year End Reserves & Efficiency Highlights
2022 Year End Reserves & Efficiency Highlights Reserve Highlights Reserves Reserves NPV BT10% NAV BT10% Replacement (Mboe) ($000s) ($/share)(2) (%) Proved Developed Producing 17,653 $281,527 $3.18 153 Total Proved 46,464 $630,900 $7.20 117 Total Proved + Probable 61,842 $884,110 $10.11 136 Finding,
Slide 7: IPO Consistently Providing Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels
IPO Consistently Providing Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels IPO Capital Efficiencies Adding Producing Boed • 2022 capital efficiency of $16,529 per boe/d • 3 year average capital efficiency of $15,418 per boe/d The peers above are defined as light oil weighted s
Slide 8: Long-term Forecast
Long-term Forecast Long-term forecast provides top-tier production per share Adjusted Funds Flow(3) growth and strong FAFF generation: 100 Adjusted Funds Flow ($mm) Adjusted Funds Flow ($mm) WTI 150 – Target to provide organic growth of 6% – 10% considering WTI 90 price levels: WTI (US$/bbl) 125 80
Slide 9: Sustainable Top-tier Returns
Sustainable Top-tier Returns Allocation of Adjusted Funds Flow Continued top-tier production per share growth: Capex FAFF (3) Dividends 80% 200 70% DAPPS Growth – InPlay has historically demonstrated and forecasts to Adjusted Funds Flow ($mm) continue to generate measured, top-tier organic 60% 150 p
Slide 10: Focused Asset Base
Focused Asset Base Drilling industry pacesetter horizontal wells and exceeding forecasted volumes InPlay Land InPlay Wells 85% Cardium Industry Cardium Wells ALBERTA production PEMBINA Edmonton WILLESDEN E. BASIN GREEN DUVERNAY PEMBINA Calgary Production(1): ~4,000 boe/d (52% oil & NGL) Upside: 153
Slide 11: Willesden Green
Willesden Green Dominant land position in the Willesden Green Cardium trend Low risk horizontal infill drilling in well established field with large oil in place and low recovery factors Quick payout drilling inventory 188 net drilling locations Two facility upgrades in 2023 increased natural gas pr
Slide 12: Pembina Cardium
Pembina Cardium Low risk infill drilling in well established field with large oil in place and low recovery factors • Minimal infrastructure capital required InPlay Rights InPlay Wells Cardium Vertical Quick payout drilling inventory Cardium Horizontal Acquisition (2020) 153 net drilling locations T
Slide 13: Cardium Type Well Economics
Cardium Type Well Economics The Cardium is a well established play providing some of the best low risk returns in the Western Canada Sedimentary Basin Pembina Willesden Green 1.0 Mile Hz 1.5 Mile Hz 1.0 Mile Hz 1.5 Mile Hz Capex (mm) $2.4 $3.5 $2.2 $3.4 Potential Recovery (mboe) 180 330 205 310 IP90
Slide 14: 2023 Forecast
2023 Forecast Commodity Price Assumptions 2023 Forecast WTI oil price (US$/bbl) $77.15 Edmonton par (C$/bbl) $99.65 AECO gas price ($/GJ) $2.80 Operational Forecast Avg production (boe/d) (% liquids)(1) 9,100 – 9,500 (58% – 60%) Operating netback ($/boe)(2) $33.00 – $36.00 (3) Adjusted funds flow ($
Slide 15: Environmental Leadership
Environmental Leadership • 2022 Sustainability report available on website 50 GHG Emissions • Continuous reduction in emissions intensity 40 • Emissions intensity improvements since 2017 have resulted 30 12% in a reduction of 25,000 tonnes of CO2e (equivalent to 26% 19% removing 5,400 cars from the
Slide 16: Summary
Summary • Executed 2022 strategy of providing shareholders with top-tier production per share growth, significant debt reduction and initiating dividend and share buyback program • 2023 forecast : – AFF(1) of $103 mm – $108 mm – H2/23 AFF of $59 mm – $65 mm ($118 mm – $130 mm on an annualized basis)
Slide 17: Appendix
Appendix Ye INPLAY OIL 17
Slide 18: InPlay Team
InPlay Team Strong Technically and Value Creators Doug Bartole, President and CEO and Director, P. Eng., ICD.D (over 29 years) • Founder of InPlay; Founder, President and CEO of Vero Energy; VP Operations of True Energy; Management and Engineering roles at Husky Energy, Renaissance Energy and PanCan
Slide 19: East Basin Duvernay Shale
East Basin Duvernay Shale Emerging Light Oil Play 25.5 Predominantly Crown Sections in the Huxley Area (16,720 net acres) – Extensive activity directly offsetting InPlay’s land • Long land tenure allows InPlay a measured pace of development as others prove up the play around us Significant Light Oil
Slide 20: Risk Management Hedges
Risk Management Hedges (Commodity derivative contracts) Q4/23 Q1/24 Natural Gas AECO Swap(1) (GJ/d) 4,165 - Hedged price ($AECO/GJ) $3.73 - Natural Gas AECO Costless Collar(2) (GJ/d) 1,655 2,500 Hedged price ($AECO/GJ) ($2.75 - $4.68) ($2.75 - $4.68) (1) Fixed price swaps provide InPlay with a guara
Slide 21: Slide Notes
Slide Notes Slide 2 1. 2023 production, adjusted funds flow, free adjusted funds flow, net debt/EBITDA and relevant growth rates are based on forecasted assumptions outlined in the “Forward Looking Information and Statements” in the Reader Advisories. Slide 3 1. 2023 production rates and drilling pl
Slide 22: Slide Notes (continued)
Slide Notes (continued) Slide 11 (cont’d) 2. The estimated Operating Income, Operating Netback per boe, Adjusted Funds Flow and Free Adjusted Funds Flow for the Prairie Storm Assets in 2022 is based on strip pricing as of September 27, 2021. The key underlying assumptions used in the development of
Slide 23: Reader Advisories
Reader Advisories All amounts in this presentation are stated in Canadian dollars unless otherwise specified. Throughout this presentation, the terms Boe (barrels of oil equivalent) and Mmboe (millions of barrels of oil equivalent) are used. Such terms when used in isolation, may be misleading. In a
Slide 24: Reader Advisories (continued)
Reader Advisories (continued) Oil and Gas Advisories (cont’d) Net Present Value Estimates - It should not be assumed that the net present value of the estimated future net revenues of the reserves of InPlay included in this presentation represent the fair market value of the reserves. There is no as
Slide 25: Reader Advisories: Production Breakdown by Product Type
Reader Advisories (continued) Production Breakdown by Product Type Disclosure of production on a per boe basis in this press release consists of the constituent product types as defined in NI 51-101 and their respective quantities disclosed in the table below: Light and Light and Conventional Conven
Slide 26: Reader Advisories: Non-GAAP and Other Financial Measures
Reader Advisories (continued) Non-GAAP and Other Financial Measures (cont’d) 3 mos. Ended 3 mos. Ended 9 mos. Ended 9 mos. Ended Sep 30/2023 Sep 30/2022 Sep 30/2023 Sep 30/2022 Revenue $000’s 46,672 56,985 131,735 180,429 Royalties $000’s (5,387) (10,607) (16,178) (28,017) Operating expenses $000’s
Slide 27: Reader Advisories (continued)
Reader Advisories (continued) PDP TP TPP 2022 2021 2022 2021 2022 2021 Reserves Mboe 17,653 15,890 46,464 45,891 61,842 60,640 Net Debt $ millions 32.9 80.2 32.9 80.2 32.9 80.2 Year end shares outstanding # millions 87.0 86.2 87.0 86.2 87.0 86.2 Assumed Share price $ 3.39 3.39 3.39 Reserves per debt
Slide 28: Forward Looking Information and Statements
Reader Advisories (continued) Forward Looking Information and Statements This presentation contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing",
Slide 29: Updated Guidance
Reader Advisories (continued) Actuals Updated Guidance Previous Guidance FY 2022 FY 2023 FY 2023(1) Production Boe/d 9,105 9,100 – 9,500 9,100 – 9,500 Opening Working Cap. (Net Debt) $ millions ($80.2) ($33) ($33) Ending Working Cap. (Net Debt) $ millions ($33) ($35) – ($30) ($31) – ($27) Weighted a
Slide 30: Contact Us
Contact Us Doug Bartole President and CEO 587.955.0632 DougB@InPlayOil.com #2000, 350 – 7th Avenue SW Calgary, AB T2P 3N9 www.inplayoil.com