Calima Energy — Investor Presentation (May 2021)
27 slides from Calima Energy's investor presentation, May 2021
Slide 1: Investor Update – Free Cash Flow Growth Focused Canadian Oil & Gas Producer
INVESTOR UPDATE FREE CASH FLOW GROWTH FOCUSED CANADIAN OIL & GAS PRODUCER MAY 2021
Slide 2: Corporate Disclaimer
2 CORPORATE DISCLAIMER This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in Calima Energy Ltd (the “Company”) - in any j
Slide 3: The New Calima
3 THE NEW CALIMA • Conventional oil & gas producer focused on REGIONAL INFRASTRUCTURE MONTNEY generating free cash flow from the responsible Spectra P/L LNG Canada development of high-quality assets in Western 13-26mtpa (Under Construction) TCPL Nova P/L Alliance P/L Canada North Mont. Mainline Coas
Slide 4: Corporate Snapshot
4 CORPORATE SNAPSHOT FINANCIAL INFORMATION SHAREHOLDER GROUP ASX Trading Symbol CE1 Calima Shares Outstanding (basic) 10.268 billion existing 23% Market Cap on Close @ May 3, 2021 A$72 million Globally Undrawn Credit Facility A$38M diversified C$13 million* Placement Blackspur 53% Net debt estimate
Slide 5: Compelling Investment Opportunity
5 COMPELLING INVESTMENT OPPORTUNITY Calima is a returns-focused growth producer with top tier assets, positive cash flow and an ESG focus De-risked asset base Free cash flow generating LNG market exposure Alberta assets have existing wells and Capital allocation flexibility provided by Future upside
Slide 6: Committed to Returns-Focused Growth for Shareholders
6 COMMITTED TO RETURNS-FOCUSED GROWTH FOR SHAREHOLDERS TODAY MEDIUM TERM LONGER TERM UPSIDE OPPORTUNITY Continue development Grow to 5,500 boe/d2 at Increase production above Acquire offsetting sections drilling to achieve ~3,000 Brooks and Thorsby by YE 5,500 boe/d through through Crown and freehol
Slide 7: Relative Valuation Offers Opportunity
7 RELATIVE VALUATION OFFERS OPPORTUNITY Relative to ASX and TSX-listed peers, Calima has significant re-rating potential EV/2P MULTIPLE1 ASX Peer Average 10x 14 12 10 TSX Peer Average 6x 8 6 Calima 4 3.5x 2 Karoon Cooper Energy Senex Energy Gear Surge Cardinal Tamarack Hemisphere Calima ASX: CE1 1 C
Slide 8: Robust EBITDA with Torque to Rising Energy Prices
8 ROBUST EBITDA WITH TORQUE TO RISING ENERGY PRICES Calima is well positioned to benefit from a strengthening commodity price environment STRONG TORQUE TO COMMODITY PRICES EDITDA (C$MM) Sensitivity to WTI (US$/BBL)1 $80 $73 $58 $60 $42 $40 $31 $25 $19 $20 $- WTI - US$50/bbl WTI - US$60/bbl WTI - US$
Slide 9: Strong Management & Board
9 STRONG MANAGEMENT & BOARD Braydin Brosseau CFO & VP Finance - Blackspur Micheal Dobovich - VP Corporate Sustainability • 6 years at Blackspur Jordan Kevol LEADERSHIP • 14+ years Canadian E&P experience Dorn Cassidy - VP Operations Managing Director & CEO • Ex West Valley Energy, Aston Hill Financi
Slide 10: Cash Flowing Asset Base with Long-Term Upside
10 CASH FLOWING ASSET BASE WITH LONG-TERM UPSIDE BROOKS THORSBY Medium Oil Weighted Production Delivers Consistently High Corporate Netback Area Detail Area Detail 2,3001 Boe/d 5501 Boe/d 94% Working interest 100% Working interest 147 / 35 Net identified / net booked locations 101 / 28 Net identifie
Slide 11: Brooks
11 BROOKS B.C. AB • Large resource in place with multiple oil pools identified, delineated and developed • ~83 net sections across 53,093 net acres in total, with year-round access and 48 wells drilled to date • Owned and operated infrastructure with capacity for sizeable production growth • 147 net
Slide 12: Brooks Economics
12 BROOKS BROOKS ECONOMICS 1,2,3,4 Sunburst Type Curve Economics Sunburst Conventional Frac’d • Open hole Sunburst wells have top tier economics Sources: Company disclosure, geoSCOUT $60 WTI $60 WTI at current pricing (no fracs) EUR – Oil & Liquids/Well Mbbl 168 198 RESOURCE EUR – Gas/Well MMcf 301
Slide 13: Thorsby
13 THORSBY Calima Land = Calima Wells = Calima pipelines = • ~108 net sections on 63,946 net acres total Alberta Highway 39 = Calima Facilities = • 11 wells drilled to date - results competitive HZ Wells = with other economic WCSB plays Key non-op gas plants = Key non-op pipelines = • Multi-well pad
Slide 14: Thorsby Economics
14 THORSBY THORSBY ECONOMICS 1,2 Sparky Type Curve Economics Illustrative 40 • Significant type curve outperformance in the Sparky Sources: Company disclosure, geoSCOUT Tier 1 (a) $60 WTI Tier 2 (b) $60 WTI T/Stage (c) $60 WTI Formation EUR – Oil & Liquids/Well Mbbl 323 288 364 RESOURCE • Additional
Slide 15: World-Class Montney Play
15 WORLD-CLASS MONTNEY PLAY • Among the highest rates of return basins in North America • Diversity of hydrocarbons with light oil, liquids rich natural gas and dry gas • Strong market fundamentals enhanced by three world class LNG projects • Large resource endowment across three high quality assets
Slide 16: Calima's Footprint in the Montney
16 CALIMA’S FOOTPRINT IN THE MONTNEY • 100% interest in >60,000 acres of Montney drilling rights in B.C. AB BC, with 10-year continuation lease over 49 sections (33,643 acres) due to successful 2019 drilling campaign • Owns Tommy Lakes facilities and pipeline infrastructure with replacement cost est
Slide 17: Calima – Future Development Opportunity
17 CALIMA – FUTURE DEVELOPMENT OPPORTUNITY RIGHTS TO LARGE RESOURCE IN PLACE, PROVIDING FOR LONG-TERM VALUE • 192.1 MMboe (2C) resources1 (based on McDaniels & Associates best estimate gross unrisked contingent resource) • 2C resource elevated to Development Pending category; will be recategorized a
Slide 18: 2021 – 2022 Current Guidance / Outlook
18 2021 – 2022 CURRENT GUIDANCE / OUTLOOK Funding the capital program internally with cash flow and generating free cash flow with no debt forecast in 2022 differentiates Calima from peers 2021 CAPITAL BUDGET: C$17.0mm $4.8mm FORECAST1 May - Dec ’21 Calendar 2021 2022 Maintenance Average Production
Slide 19: Asset-Enhancing Upside Opportunities
19 ASSET-ENHANCING UPSIDE OPPORTUNITIES Asset base offers numerous enhancement projects and value creating opportunities BROOKS • Waterflood - implemented at the Brooks J2J pool, highlighting secondary recovery potential of the asset base • Land Acquisition - potential to add offsetting ~49 net sect
Slide 20: Demonstrated ESG Excellence – GHG Intensity
20 DEMONSTRATED ESG EXCELLENCE GHG INTENSITY (tCO2e/tLNG) 1 ENVIRONMENTAL 0.49 0.46 • Montney Gas will support the lowest CO2 emission/tonne 0.40 0.39 LNG project in the world, LNG Canada 0.33 • Low water use due to no fracing at key Brooks asset 0.30 0.28 0.27 0.27 • Multi-well pad drilling reduces
Slide 21: Demonstrated ESG Excellence
21 DEMONSTRATED ESG EXCELLENCE SOCIAL GOVERNANCE • Continue to target zero lost time incidents and • Majority independent board with diversity of exceed regulatory requirements to minimize skillset, backgrounds and experience including both environmental impacts and provide all employees Canadian an
Slide 22: The 'Must-Own' Calima Opportunity
22 THE ‘MUST-OWN’ CALIMA OPPORTUNITY Unique opportunity to own a company Calima can quickly respond to rising with quality free-cash flowing assets, low- energy prices by accelerating its drilling leverage and significant upside potential programs given the Company’s ability to provided by future Mo
Slide 23: Contact Us
Contact Us For further information visit www.calimaenergy.com or contact CALIMA ENERGY LIMITED HEAD OFFICE - BLACKSPUR AUSTRALIAN OFFICE - CALIMA Suite 1000, 205 5 Ave SW 4/246-250 Railway Parade, Calgary, AB T2P 2V7, Canada West Leederville WA 6007 Phone: +1-403-460-0031 Phone: +61 8 6500 3270 Jord
Slide 24: Appendices
CALIMA ENERGY. 9. Appendices
Slide 25: Debt Terms
25 DEBT TERMS At the close of the Blackspur transaction, Calima will repay the existing Non-Revolving and Revolving Credit Facilities and establish a committed revolving credit facility with National Bank of Canada. Interest Pricing Grid Terms Committed Revolving Credit Facility Banker’s Acceptance
Slide 26: History of Blackspur
26 HISTORY OF BLACKSPUR • Private equity backed, founded through the recapitalization of Eiger Energy Ltd. 2012 • Average production of ~80 boe/d • Drilled 3 (3 net) wells and delivered C$1.3 million in operating cash flow 2013 • Exit production of ~250 boe/d and ~20 net sections of land • Completed
Slide 27: Abbreviations
27 ABBREVIATIONS Abbreviation Description Abbreviation Description WI Working Interest B Prefix – Billions C Contingent Resources – 1C/2C/3C – low/most likely/high MM Prefix - Millions NRI Net Revenue Interest (after royalty) M Prefix - Thousands Net Working Interest after Deduction of Royalty Inter