Inplay Oil Corp · TSX:IPO
Inplay Oil — Investor Presentation (December 2021)
28 slides from Inplay Oil's investor presentation, December 2021
Slide 1: Corporate Presentation December 2021
Corporate Presentation December 2021 TSX : IPO OTCQX : IPOOF
Slide 2: Investment Highlights & Recent Events
Investment Highlights & Recent Events • Technically focused team successfully managed InPlay through a challenging environment and now in the strongest position in our corporate history – Continual annual top-tier organic growth amongst peers since inception – Sustainability enhanced with strong bal
Slide 3: Pro Forma Corporate Overview
Pro Forma Corporate Overview OPERATING SUMMARY 2021 Average Production (light oil & liquids %) 5,750 – 6,000 boe/d (67%)(1) 2021 Hz Drilling Plans 10.0 2020 pro forma reserves Proved Developed Producing 14.5 MMboe 64% oil & NGL Proved Reserves 42.8 Mmboe in TPP reserve booking Proved and Probable Re
Slide 4: Q3 Financial Highlights
Q3 Financial Highlights Highlighted values indicate record quarterly results Average production (boe/d) 6,011 5,386 12 3,742 61 Adjusted funds flow ($000s) 15,555 8,219 89 2,008 675 Adjusted funds flow per diluted share ($) 0.22 0.12 83 0.03 633 Revenue ($/boe) 56.66 51.55 10 31.50 80 Operating netb
Slide 5: 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 Joan Dunne, FCPA, FCA, ICD.D Kevin Yakiwchuk, MSc., P. Geol. Craig Golinowski CFA, MBA Vice President E
Slide 6: Consistent Top-Tier Organic Growth
Consistent Top-Tier Organic Growth Extraordinary recovery in production, AFF and debt reduction post COVID 2016 includes only 7 weeks as a new public company, 2020 PF reserves are pro forma the Prairie Storm acquisition closed November 30, 2021 (1) See “Production Breakdown by Product Type” in the R
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 • 2020 capital efficiency of $19,949 per boe/d • 3 year average capital efficiency of $17,702 per boe/d The peers above are defined as light oil weighted s
Slide 8: Focused Asset Base
Focused Asset Base Drilling industry pacesetter horizontal wells and exceeding forecasted volumes ALBERTA 80% Cardium production PEMBINA Edmonton WILLESDEN E. BASIN GREEN DUVERNAY PEMBINA Calgary Production(1): ~4,175 boe/d (65% oil & NGL) Upside: 153 net Hz drilling locations WILLESDEN GREEN Land:
Slide 9: Willesden Green – Cardium Acquisition Highlights
Willesden Green – Cardium Acquisition Highlights Acquisition is complementary to InPlay’s land position (closed Nov 30, 2021) • Positions InPlay as one of the largest acreage holders in the Willesden Green Cardium • Operational synergies provide immediate annual cost savings of $3.0-$3.5 mm • Contig
Slide 10: Pembina Cardium
Pembina Cardium Q4 2020 strategic Cardium asset acquisition (100% WI) InPlay Wells • Built multi-well battery in Q1/21 to handle full field development InPlay Rights • 26 well inventory remaining with ~30% of the locations unbooked Cardium Vertical Cardium Horizontal • 100% WI lands allow developmen
Slide 11: 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) $1.7 $2.8 $2.0 $2.7 Potential Recovery (mboe) 160 345 185 290 IP90
Slide 12: 2021 Forecast and Preliminary 2022 Outlook
2021 Forecast and Preliminary 2022 Outlook(2) Pro forma Pro forma Commodity Price Assumptions 2021 Forecast 2022 Outlook WTI oil price (US$/bbl)(4) $66.90 $69.75 Edmonton par (C$/bbl)(4) $79.00 $81.30 AECO gas price ($/GJ)(4) $3.45 $3.70 Operational Forecast Avg production (boe/d) (% liquids)(1) 5,7
Slide 13: Environmental Leadership
Environmental Leadership GHG Emissions • Reduction in CO2 emissions by 12% in 2018 and 25% in 2019 0.04 compared to prior year. 2% reduction in 2020 compared to 2019, despite COVID-19 production shut-ins and curtailments 0.03 12% • Emissions reduction of 1,540 tonnes of CO2e (equivalent to removing
Slide 14: Deep Value Providing Top-tier Organic Growth
Deep Value Providing Top-tier Organic Growth 2022e EV/DACF and D/CF Multiples 2022e EV/DACF Multiple Bottom 1/3 lowest leverage in covered companies Average EV/DACF multiple equates to $3.32 InPlay share price Deep value indicated by 2022 EV/DACF multiple 2022e DAFCF/EV 2022e FCF Yield High percenta
Slide 15: Summary
Summary • Acquisition improves InPlay’s long term sustainability – Low decline base production requiring minimal capital to keep flat – Significant addition of top-tier operated high working interest inventory • Executing on strategy for top-tier production growth with FAFF(1) focused on maximizing
Slide 16: Appendix
Appendix Ye INPLAY OIL 16
Slide 17: InPlay Team
InPlay Team Strong Technically and Value Creators Doug Bartole, President and CEO and Director, P. Eng., ICD.D (over 27 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 18: East Basin Duvernay Shale
East Basin Duvernay Shale Emerging Light Oil Play 37.4 Crown Sections in the Huxley Area (23,930 net acres) Joffre – Crown lands provide 5% royalties for 4-6 years @ $60-$70 WTI – Extensive activity directly offsetting InPlay’s land • Long land tenure allows InPlay a measured pace of development as
Slide 19: Risk Management Hedges (Commodity derivative contracts)
Risk Management Hedges (Commodity derivative contracts) 2021 2022 Q4 Q1 Natural Gas AECO Swap (GJ/d) 2,925 - Hedged price ($AECO/GJ) $2.40 - Natural Gas AECO Costless Collar (GJ/d) 1,325 2,000 Floor $2.70 $2.70 Hedged price – ($AECO/GJ) Ceiling $3.36 $3.36 Crude Oil WTI Swap (bbl/d) 250 - Hedged pri
Slide 20: Slide Notes
Slide Notes Slide 2 1. 2022 targeted pro-forma production, adjusted funds flow, free adjusted funds flow, FAFF yield, 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. Pro-fo
Slide 21: Slide Notes (continued)
Slide Notes (continued) Slide 9 (cont’d) 1. InPlay’s plans for 2022 and associated targets and outlook, including the plans for the Prairie Storm Assets, remain preliminary in nature and do not reflect a Board approved capital expenditures budget. See table in the “Forward Looking Information and St
Slide 22: 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 23: Reader Advisories (continued)
Reader Advisories (continued) Oil and Gas Advisories (cont’d) Test Results and Initial Production Rates - A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis
Slide 24: Reader Advisories (continued)
Reader Advisories (continued) Payout refers to the time required to pay back the capital expenditures (on a before tax basis) of a project. Reserve Life Index (“RLI”) is calculated by dividing the quantity of a particular reserve category of reserves by the forecast of the first year's production fo
Slide 25: Reader Advisories (continued)
Reader Advisories (continued) Non-GAAP Measures and Ratios (cont’d) Prairie Storm Assets FY 2022 Revenue $ millions $44.5 - $46.5 Royalties $ millions $4.0 - $5.0 Operating Expenses $ millions $8.0 - $10.0 Transportation $ millions $0.0 - $0.2 Operating Income $ millions $31.0 - $33.0 Net considerat
Slide 26: Reader Advisories (continued)
Reader Advisories (continued) Forward Looking Information Assumptions The key budget and underlying material assumptions used by the Company in the development of its planned 2021 and 2022 capital program and associated guidance including forecasted 2021 and 2022 production, funds flow, adjusted fun
Slide 27: Reader Advisories (continued)
Reader Advisories (continued) Forward Looking Information Assumptions (cont’d) Pro-forma Pro-forma FY 2021(4) FY 2022(3)(4) Forecasted Free Adjusted Funds Flow $ millions $17.5 - $20.5 $55.0 - $59.0 Shares outstanding, end of year $/boe 86.2 86.2 Share price $ millions $1.87 $1.87 Market capitalizat
Slide 28: Contact Us
Contact Us Doug Bartole President and CEO 587.955.0632 DougB@InPlayOil.com #920, 640 – 5th Avenue SW Calgary, AB T2P 3G4 www.inplayoil.com