Yangarra Resources Ltd. · TSX:YGR
Yangarra Resources — Investor Presentation (March 2024)
22 slides from Yangarra Resources's investor presentation, March 2024
Slide 1: Corporate Presentation
CORPORATE PRESENTATION TSX: YGR MARCH 2024
Slide 2: Introduction
INTRODUCTION ➢ Yangarra focuses on developing unexploited halo Cardium sands in West Central Alberta ➢ Unique Cardium position analogous to plays such as the Montney resource play • PDP RLI of 9.4 years and Proved RLI of 24 years, combined with significant unbooked land base provides for long runway
Slide 3: 2024 Outlook
2024 OUTLOOK ➢ Primary 2024 goal is to hit debt target of $80 million and then focus on shareholder returns ➢ Restricted 2024 capital program of $70 million • First half capital program of $20 - $25 million, depending upon spring breakup • Initial plan is to spend balance of capital program in secon
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT CAPITALIZATION SUMMARY HISTORICAL PERFORMANCE Share Price (Mar 13) $1.11 2021 2022 2023 Basic Shares (1) 98.7 Options/RSUs (1) $8.8 Avg. BOE/D 8,931 11,022 11,936 Fully Diluted(1) 107.5 CAPEX $89 $109 $94 Basic Mkt. Cap. $109.6 FFO $91 $177 $99 2023 YE Net Debt $118.6 Free CF $2 $
Slide 5: Core Principles
CORE PRINCIPLES OWNER MODEL EARNINGS DRIVEN RETURN FOCUSED ➢ Insiders own 19% of basic shares & ➢ Focus on profitability ➢ Economic returns drive capital 26% on a fully diluted basis decisions ➢ 2023 FD EPS $0.47 ➢ G&A per BOE of ~$1-1.50/boe ➢ Infrastructure & integrated services ➢ Share capital of
Slide 6: Expanding Halo Cardium
EXPANDING HALO CARDIUM ➢ Halo Cardium initially unlocked with the development of multi-stage fracked horizontal wells ➢ Recent developments show that the halo Cardium is much larger in aerial extent than just a thin edge around conventional Cardium pools ➢ Virgin halo Cardium can be developed optima
Slide 7: West Ferrier & New Chambers Area
WEST FERRIER & NEW CHAMBERS AREA Pre 2020 West Ferrier 05-16 & 08-16 Pads ➢ Pace of industry activity increased since Chambers 2020, active large producers in the area include: • Peyto, TAQA, Westbrick ➢ Yangarra built Chambers position and recently drilled 3 wells to test acreage ➢ Both West Ferrie
Slide 8: Cow Lake & Chedder
COW LAKE & CHEDDER Chedder ➢ Lower rate wells but sustained by shallower liquids decline profile Chedder ➢ Yangarra recently hired a 3rd party to Cow Lake conduct study on ideal well-spacing & frack stage count Cow Lake ➢ Significant runway of inventory development ➢ Recent results with completions
Slide 9: Willesden Green
WILLESDEN GREEN West Willesden Green East Willesden Green ➢ Typically higher IP rates than West Willesden Green ➢ Plenty of infill opportunities East Willesden Green ➢ Limited ability to grow land base West Willesden Green ➢ Lower gas drive but higher oil cuts, resulting in lower IPs ➢ Yangarra expe
Slide 10: Reserves & Inventory
RESERVES & INVENTORY ➢ As at YE 2023, the Company had • $504 million in PDP NPV10 reserves, PDP RLI 9.4 years • $1.1 billion in total proved NPV10 reserves, total proved RLI 24 years • $1.6 billion in 2P NPV10 reserves, 2P RLI 38 years ➢ Reserve bookings for total proved and 2P reserves a result of
Slide 11: Environment
ENVIRONMENT Scope 1 Emissions & Production Methane & Vent Reductions 14,000 140,000 45,000 1,900 12,000 40,000 130,000 1,700 Scope 1 (CO2e tonnes) Vent (CO2e tonnes) 35,000 Methane (Tonnes) 10,000 1,500 120,000 30,000 8,000 1,300 BOE/D 110,000 1,100 25,000 6,000 900 20,000 100,000 4,000 700 15,000 2
Slide 12: Social
SOCIAL Employee Statistics Employee Safety ➢ Total full-time staff of 72 80 180,000 • Corporate staff at 12 Exposure hours (direct employees) 70 160,000 60 140,000 120,000 ➢ 42% of corporate staff is female 50 100,000 40 80,000 30 ➢ 14% of the Board is female 60,000 20 40,000 10 20,000 0 - 2019 2020
Slide 13: Governance
GOVERNANCE Net Income (millions) Return on Capital Employed $120 25% $100 20% $80 15% $60 10% $40 5% $20 $- 0% 2016 2017 2018 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Report Card Governance Principles ➢ Generated $46.7 million of net income in 2023 ➢ Ownership model focused on profitability
Slide 14: Oil Field Services (OFS) Group
OIL FIELD SERVICES (“OFS”) GROUP ➢ Yangarra’s internally owned & operated OFS group works exclusively on Yangarra projects • Yangarra took advantage of low-pricing during 2020 to buy equipment • OFS group will help offset inflationary pressures ➢ Reduced costs by • 50% for pipeline costs compared to
Slide 15: Leadership
LEADERSHIP MANAGEMENT TEAM BOARD OF DIRECTORS Jim Evaskevich* - 30+ years of extensive executive experience Gordon Bowerman - President of Cove Resources Ltd. CEO - Strong field & drilling operational background Chairman - 50+ years of oil & gas experience Gurdeep Gill, CFA* - 20+ years of experienc
Slide 16: Appendix
APPENDIX RISK MANAGEMENT, PRESENTATION FOOTNOTES & FORWARD LOOKING STATEMENTS yangarra resources ltd. MARCH 2024| PG 16 (Refer to end of presentation for slide notes & advisories)
Slide 17: Presentation Footnotes
PRESENTATION FOOTNOTES MARCH 2024 ➢ Slide 4: For FFO see definition on presentation footnotes; ➢ Slide 5: ROCE: Trailing 12-month EBIT divided by (Total Assets less Current Liabilities) for trailing years ➢ Slide 10: NAV = NPV10 Reserve Value less adjusted Net Debt and excludes undeveloped land valu
Slide 18: Presentation Footnotes
PRESENTATION FOOTNOTES MARCH 2024 Non–IFRS and Additional IFRS Measures This document contains “funds flow from (used in) operations”, which is an additional IFRS measure. The Company uses funds flow generated from (used in) operations as a key measure to demonstrate the Company’s ability to generat
Slide 19: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains a summary of management's assessment of results and should be read in conjunction with the Consolidated Financial Statements and related Management's Discussion and Analysis for the year ended December 31, 2023, as filed on the SEDAR profile of Y
Slide 20: Forward Looking Statements (Cont.)
FORWARD LOOKING STATEMENTS (CONT.) The forward-looking statements contained in this presentation are made as of the date on the front page and the Company assumes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, fut
Slide 21: Non-GAAP Measures & Analogous Information
FORWARD LOOKING STATEMENTS NON-GAAP MEASURES & ANALOGOUS INFORMATION This presentation contains references to measures used in the oil and natural gas industry such as “netback”, “net debt” and “cash flow”. These measures do not have standardized meanings prescribed by International Financial Report
Slide 22: Reserve Definitions
FORWARD LOOKING STATEMENTS RESERVE DEFINITIONS Natural gas has been converted to a barrel of oil equivalent (Boe) using 6,000 cubic feet (6 Mcf) of natural gas equal to one barrel of oil (6:1), unless otherwise stated. The Boe conversion ratio of 6 Mcf to 1 Bbl is based on an energy equivalency conv
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