Logan Energy Corp · TSXV:LGN
Logan Energy — Investor Presentation (May 2024)
29 slides from Logan Energy's investor presentation, May 2024
Slide 1: A Differentiated Growth Company
A Differentiated Growth Company INVESTOR PRESENTATION MAY 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 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 KEL T87 Logan Energy ▪ High quality inventory depth is becoming scarce LGN FLATROCK Kelt Exploration ▪ The Montney offers: T85 Arc Resources FSJ Tourmaline Oil - Highly competitive play economics CEI T83 Crew Energy - Scalable production growth
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: 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 7: 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 8: Latest Phase of Drilling Amongst Best Results To Date
POUCE COUPE Latest Phase of Drilling Amongst Best Results To Date POUCE COUPE 6-18 PHASE 3 & OFFSETS OIL & CONDENSATE Legend Logan Q4 Wells (2023) Existing Offsets Average (Pre-2023) Forecast (1) 6-18 Pad Ph3 Average IP90: (100/10-05, 102/16-05, 102/06-23) 902 boe/d (58% liquids) 506 bbl/d oil 18 bb
Slide 9: 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 a compelling growth opportunity low-intensity frac designs T64 ▪ Major infrastructur
Slide 10: South Simonette: Compelling Early Well Results
SIMONETTE South Simonette: Compelling Early Well Results SOUTH SIMONETTE ANALOGS & OFFSETS OIL & CONDENSATE 02/14-33-61-27W5 IP90: 1,410 boe/d (32% liquids) Legend 412 bbl/d condensate Logan 02/14-33-61-27W5 (2023) (1) 44 bbl/d NGLs 5.7 mmcf/d sales gas 100/16-33-061-27W5/00 XTO 9-18-62-2W6 Pad Ave.
Slide 11: North Simonette: Compelling Early Well Results
SIMONETTE North Simonette: Compelling Early Well Results NORTH SIMONETTE ANALOGS & OFFSETS OIL & CONDENSATE 5-11-64-26W5 IP90: Legend 562 boe/d (65% liquids) 364 bbl/d oil Logan 5-11-64-26W5 (2023) 6 bbl/d NGLs Offset 16-12-64-26W5 (2012) 1.15 mmcf/d sales gas Legacy North Simonette Ave. (2011 – 201
Slide 12: 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 June 24’ onstream > 330 15th Montney Sections Total Largest Overall Montney Land Ho
Slide 13: High Quality Subsurface Properties on Large Contiguous Undeveloped Land Base
FLATROCK 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 regi
Slide 14: Well Positioned For Growth
EGRESS, MARKETING & HEDGING Well Positioned For Growth GAS MARKETING & EGRESS ▪ All gas currently connected to NGTL and sold into AECO market Flatrock Fort St John ▪ Logan currently has ~50 mmcf/d of firm transport service on NGTL, providing a significant Pouce Coupe growth runway ▪ Subsequent to th
Slide 15: 2024 Budget Summary
BUDGET OVERVIEW 2024 Budget Summary Prior Updated CAPITAL ALLOCATION GUIDANCE 2024 2024 ▪ 2024 capital budget of $120MM designed to deliver growth at Simonette and Pouce Coupe and Production advance long-term growth projects like Flatrock Crude Oil and Condensate boe/d 2,380 2,560 Natural Gas Liquid
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 93% 50% 87% (14%) 87% $1.76/GJ $1.76/GJ $75.49WTI $75.49WTI $2.52/GJ $2.52/GJ $78.32WTI $78.3
Slide 17: Q1 2024 On Track with 2024 Guidance
SUMMARY OF QUARTERLY RESULTS Q1 2024 On Track with 2024 Guidance Q3 2023 Actuals Q4 2023 Actuals Q1 2024 Actuals Production Q1 2024 HIGHLIGHTS Crude Oil and Condensate boe/d 1,025 2,300 2,047 Natural Gas Liquids boe/d 273 362 290 ▪ Executed capital budget of $35MM during the first quarter of 2024: N
Slide 18: Early-Stage Reserve Bookings with Significant Room for Growth
RESERVES Early-Stage Reserve Bookings with Significant Room for Growth VOLUMES VALUE 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 BOOKED RELAT
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 ▪ Former Executive Chairman of Spartan Delta, President, CEO and Director of Spartan Energy, Spartan Oil, and Spartan Exploration and President and President & CEO Director of Titan Exploration Brendan Pato
Slide 22: 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 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 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 25: 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 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 ▪ References to “Cash Financing Expense (Income)” includes interest and fees on Logan’s credit facility, net of interest meanings prescribed
Slide 29: 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