Logan Energy Corp · TSXV:LGN
Logan Energy — Investor Presentation (October 2024)
29 slides from Logan Energy's investor presentation, October 2024
Slide 1: A Differentiated Growth Company
A Differentiated Growth Company I N V E S T O R P R E S E N TAT I O N OCTOBER 2024
Slide 2: The Logan Opportunity: A Differentiated Growth Company
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 the early stage Montney assets of Spartan Delta Corp. Logan was Track Record of Exce
Slide 3: Organic Growth Augmented by Strategic Acquisitions to Build a Quality Asset Base
S T R AT E G Y 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 a
Slide 4: Organic Growth Trajectory and Capital Allocation
LONGER TERM CONSIDERAIONS Organic Growth Trajectory and Capital Allocation NEAR TERM I N D I C AT I V E O R G A N I C G R O W T H P L A N ▪ Applying modern well design to historically underinvested asset base to deliver significant near-term production growth on a low decline base ▪ Targeting liquid
Slide 5: Building in the Premier Resource Play
THE MONTNEY Building in the Premier Resource Play BC AB Logan Energy T87 KEL Kelt Exploration ▪ High quality inventory depth is becoming scarce FLATROCK Arc Resources LGN T85 ▪ The Montney offers: Tourmaline Oil FSJ Crew Energy - Highly competitive play economics Coelacanth CEI T83 - Scalable produc
Slide 6: 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 7: New Platform for Growth and Value Creation
T H E D U V E R N AY New Platform for Growth and Value Creation Logan has assembled a 152 net section position within the ANTE CREEK B-32 Logan Energy greater Kaybob Duvernay oil play. Logan’s Duvernay position is Logan 06-09-069-26W5 (2024 DUC) Hitic comprised of blocks located in North Simonette a
Slide 8: Two Duvernay Development Areas
L O G A N ’ S D U V E R N AY A S S E T S Two Duvernay Development Areas Sturgeon Area ANTE CREEK Logan Duvernay Assets Logan Montney Assets ▪ Northern play extension situated in ideal fluid maturity window and good shale quality ▪ Situated in the oil window with thickness of ~16m and high pressure (
Slide 9: 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 NRM Fourth Creek ▪ Low risk, high return development in Pouce South oil play segment ▪ Northern play segment defined by high porosity T82 provides repeatable production growt
Slide 10: 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 a ▪ Existing wells in the oil window have legacy Duvernay T65 Lands compelling growth opportunity low-intensity frac designs ▪ Majo
Slide 11: Flatrock: High Quality Subsurface Properties on Large Contiguous Undeveloped Land Base
F L AT RO C K High Quality Subsurface Properties on Large Contiguous Undeveloped Land Base ASSET CHARACTERISTS ▪ Large contiguous land base - Over 55,000 acres all 100% WI with no encumbrances - Good year-round access primarily from freehold surfaces, outside Blueberry River First Nations high value
Slide 12: Land Expansion
L A N D E X PA N S I O N Logans Land Base is Equivalent in Size to Many Producers 10x Logans Production MONTNEY D U V E R N AY Net Sections Net Sections 340 300 152 27 15th Largest Overall Montney Land Holder 13th Largest Overall Duvernay Land Holder Logan is constantly expanding and optimizing its
Slide 13: Egress, Marketing & Hedging: Well Positioned For Growth
EGRESS, MARKETING & HEDGING Well Positioned For Growth GAS MARKETING & EGRESS Flatrock Fort St John ▪ All gas currently connected to NGTL and sold into AECO market Pouce Coupe ▪ Logan currently has ~50 mmcf/d of firm transport service on NGTL, providing a significant Grande growth runway Prairie ▪ I
Slide 14: Updated 2024 Corporate Guidance
BUDGET OVERVIEW Updated 2024 Corporate Guidance CAPITAL ALLOCATION 2024 GUIDANCE Previous Updated Guidance Guidance ▪ The 2024 capital budget was expanded from $120 million to $140 million. The increase is predominantly for certain long lead projects connected to the Pouce Coupe facility and to acce
Slide 15: 2025 Preliminary Budget Highlights
BUDGET OVERVIEW 2025 Preliminary Budget Highlights 2025 2024 2025 PRELIMINARY BUDGET Preliminary Updated ▪ $170MM budget for 2025 to deliver material liquids growth and drive class leading cashflow growth while investing heavily in infrastructure and inventory expansion Budget (1) Guidance Change %
Slide 16: 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 81% 100% 47% 61% (24%) $70.00WTI $78.32WTI $75.67WTI $70.00WTI $75.67WTI $78.32WTI $2.50/GJ $
Slide 17: H1 results in-line, setting up for a strong rate of change in H2
S U M M A R Y O F Q U A R T E R LY R E S U LT S H1 results in-line, setting up for a strong rate of change in H2 Q1 2024 Q2 2024 H1 2024 Actuals Actuals Actuals Q2 2024 HIGHLIGHTS Production ▪ Spent $46.1MM in Q2 to advance development in core operating areas: Crude Oil and Condensate boe/d 2,047 2,
Slide 18: Early-Stage Reserve Bookings with Significant Room for Growth
RESERVES Early-Stage Reserve Bookings with Significant Room for Growth VOLUMES VALUE MONTNEY INVENTORY Proven Location Probable Location Unbooked Location Inventory life at end of 5-year plan (>20,000 boe/d corporate prod) 28 years 89% 100% unbooked unbooked 13 years 61% unbooked CONSERVATIVELY BOOK
Slide 19: 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 20: www.loganenergycorp.com
www.loganenergycorp.com 20
Slide 21: Management Team and Independent Board of Directors
LOGAN TEAM Management Team and Independent Board of Directors MANAGEMENT TEAM Richard McHardy ▪ Chairman of Spartan Delta, former President, CEO and Director of Spartan Energy, Spartan Oil, and Spartan Exploration and President and Director of Titan Exploration CEO Brendan Paton, P.Eng. ▪ Former VP,
Slide 22: We are Builders: Substantial Value can be Created Section by Section
S PA R TA N M O N T N E Y L O O K B A C K 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
Slide 23: 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 24: Leadership has Generated Excess Returns Through Multiple Entities and Cycles
TRACK RECORD Leadership has Generated Excess Returns Through Multiple Entities and Cycles S PA R TA N S PA R TA N S PA R TA N S PA R TA N E X P L O R AT I O N OIL ENERGY D E LT A Period January 2010 to May 2011 June 2011 to January 2013 December 2013 to May 2018 December 2019 to June 2023 Equity Ret
Slide 25: Corporate Information and Analyst Coverage
C O R P O R AT E I N F O R M AT I O N A N A LY S T C O V E R A G E 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
Slide 26: 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 27: 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 BOE ▪ Unbooked locations have been identified by management as an estimation of our multi-year drilling activities based on conversion ratio of six t
Slide 28: 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 standardized ▪ "Net Debt (Surplus)" includes bank debt (if any) outstanding under Logan’s credit facility, net of Adjusted Working meanings prescribed by
Slide 29: Abbreviations & Definitions
A B B R E V I AT I O N S & D E F I N I T I O N S A&D Acquisitions and Dispositions mmboe Million barrels of oil equivalent AECO Alberta Energy Company "C" Meter Stations of the NOVA Pipeline System mmboe/sec Million barrels of oil equivalent per section AFF Adjusted Funds Flow mmbtu; mmbtu/d Metric