Bonterra Energy Corp. · TSX:BNE
Bonterra Energy — Investor Presentation (March 2025)
28 slides from Bonterra Energy's investor presentation, March 2025
Slide 1: Our Strong Foundation Accelerates Transformation
TSX:BNE Our Strong Foundation Accelerates Transformation. March 2025 Corporate Presentation Grounded in Energy.
Slide 2: Bonterra at a glance
AT A GLANCE Bonterra at a glance Charlie Lake New Core Area: • High-quality asset base Light Oil, Natural Gas & NGLs • Stable and predictable Cardium light oil focused play with large remaining oil in Development ready Charlie Lake asset place, long reserve life and low-risk drilling inventory in No
Slide 3: Why Bonterra? Compelling Value Proposition
W HY BONTERRA? Bonterra Compelling Value Proposition • 2025E EV/DACF of 2.3x1 01 Attractive Valuation • 2024 Funds Flow Per Share $3.18 vs. Current share price $3.552 • PDP Net Asset Value: $8.85/share3 High-Impact Results 02 • Emerging plays account for ~3,250 boe/d4 (~20% of corporate production)
Slide 4: 2024 Recap
YEAR IN REVIEW 2024 Recap Reshaped Asset Portfolio is now Complemented by a Structurally Improved, Stronger and more Resilient Balance Sheet Operational and Financial Highlights Execution of Strategic Priorities Achieved record annual levels in 2024 Expand Capital In March, a Charlie Lake acquisitio
Slide 5: 2025 Guidance
FREE FUNDS FLOW FOCUS 2025 Guidance Fully-funded 2025 Capital Program Designed to Maximize Free Funds Flow Adjusted Free Funds Flow (AFFO) Operating & Financial1 $65 WTI $70 WTI $75 WTI $80 WTI Average Daily Production (BOE per day)1 14,600 – 14,800 55 60 50 Oil and NGL Weighting (percent) 52 - 54 4
Slide 6: 2025 Priorities
STRATEGIC PRIORIT IES 2025 Priorities Maximize Free Funds Flow Pursue Growth Maximize Free Deliver Results in Balance Sheet 01 Funds Flow 02 the Charlie Lake 03 Focus 04 Through Acquisitions Targeting Adjusted Free Funds Follow up on 2024 success Free Funds Flow to be Target accretive acquis
Slide 7: Financial Discipline
Financial Discipline Bonterra.
Slide 8: Balance Sheet Refinancing
REFINANCIN G TRANSACTION Balance Sheet Refinancing $135MM 10.50% Senior Secured 2nd Lien Note Offering Closed January 28, 2025 Strategic Rationale Use of Proceeds Long Term • • Repay in full amounts owing under the second lien term loan (January 28, 2025) Repay in full the Company's senior unsecured
Slide 9: Stable Production + Modest Growth
SUSTAINABILITY FOCUS Stable Production + Modest Growth1 Reduced Capital 2025 capital allocation driven to maximize free funds flow Production and Capital Expenditures (CAPEX) CAPEX (MM$C) Annual Production (Mboe/d) Forecast1 180 14.8 14.6-14.8 16.0 14.2 13.4 12.7 160 14.0 126 140 10.6 12.0 120 101 1
Slide 10: Emerging Plays Driving Improved Capital Efficiencies
SUSTAINABILITY FOCUS Emerging Plays Driving Improved Capital Efficiencies 2025 capital allocation focused on expansion in the Charlie Lake Production Net wells on production CARDIUM CHARLIE LAKE MONTNEY CARDIUM CHARLIE LAKE MONTNEY Forecast1 Forecast1 14.8 14.6-14.8 High impact emerging play results
Slide 11: Balance Sheet Focused
FINANCIAL DISCIPLINE Balance Sheet Focused 2025 Focus on Free Funds Flow generation to enhance financial flexibility Debt reduction and Production Growth Bank Debt (MM$C) Net Debt (MM$C) Production (Mboe/d) $400 Forecast1 16.0 $160 Million 15.0 Net Debt reduction forecasted $316 from 2020 to 2025 $3
Slide 12: Return of Capital
FINANCIAL DISCIPLINE Return of Capital Focus on financial flexibility to support a sustainable return of capital model Sustainable return of capital framework key metrics Forecasted leverage targets 300 Shareholder Return Return of Capital Forecast1 $ Framework 250 200 $135 - $145 Net Debt Target
Slide 13: Pembina Cardium
Pembina Cardium Base Cash Flow Engine
Slide 14: Pembina Cardium: Stable cash flow engine
PEMBINA CARDIUM Pembina Cardium Stable cash flow engine Asset highlights Cardium development Obsidian / Inplay Pembina Cardium Transaction (announced February 19, 2025) 2 One of Canada’s largest oil plays 92% Transaction Value 2 $320 million Sizeable, concentrated position at Pembina and Operated Ke
Slide 15: Charlie Lake
Charlie Lake High Impact Light Oil Play
Slide 16: Charlie Lake: Increasing operational scale
CHARLIE LAKE Charlie Lake Increasing operational scale Asset highlights Charlie Lake development New Battery Economic and de-risked asset 100% constructed Results expected Three well pad to be Long-term development runway with highly Operated in Q1 2025 from new two well completed in Q1 2025 economi
Slide 17: Montney
Montney Emerging Scalable Resource
Slide 18: Montney: Encouraging early-stage results
MONTNEY Montney Encouraging early-stage results Asset highlights Montney development World class asset 100% Top decile light oil play in the Western Operated Canadian Sedimentary Basin Production Large development runway Large development runway providing scalable 52 reserve growth and significant p
Slide 19: Montney Characteristics
MONTNEY Montney Characteristics Doig Future Upper Robust Reservoir Profile Montney Target D4 D3 Reservoir Characteristics Primary Target • Depth 1,925m TVD D3 • Porosity: 8% Avg • Net Pay 70m Gross (20m > 6% porosity) Middle Montney Future • Reservoir Pressure: 19,000 to 20,000 Kpa Target • Oil wind
Slide 20: Play Comparison Summary
CORPORATE INVENTORY Play Comparison Summary1 Robust corporate drilling inventory supports growth and sustainability Corporate inventory economic comparison @ $75 WTI2 Rate of Return (%) Payout (yrs) 110 1.5 102 MTNY CHLK CHLK CRDM 1.2 (2.0 mile) (3.0 mile) (2.0 mile) Tier 1 70 1.0 0.9 CAPEX3 M$C 8,0
Slide 21: 2024 Reserves Evaluation
ROBUST RESERVES 2024 Reserves Evaluation Robust Reserves Underpin Shareholder Value and Value Creation Oil BOE NPV BT 10% (1) Reserve Category (Mbbl) (Mboe) (thousands) 80% Total Proved Reserves on Volume Proved Developed Producing 16,218 34,385 572,134 Proved Developed Non-Producing 2,144 3,633 50,
Slide 22: NAV Highlights Value Proposition
NET ASSET VALUE NAV Highlights Value Proposition Bonterra offers shareholders torque to oil and exposure to a significant low risk drilling inventory YE2024 Net Asset Value Net Asset Value per Share ($/sh) @ US$75WTI / $3.00 GJ AECO (1,2) Flat Price Sensitivities (4) Proved Developed Total Proved To
Slide 23: Management Team / Board of Directors
ENHANCED TEAM & STRONG GOVERANNCE Management Team / Board of Directors Leadership Team Board of Directors Patrick G. Oliver Steve D. Ewens D. Michael G. Stewart Patrick G. Oliver President & CEO VP, Engineering Director, Chair Director, CEO Over 35 years of experience in the Western Joined Bonterra
Slide 24: Corporate Information & Contacts
Corporate Information & Contacts S T OCK E XCHA NGE LIS T IN G INDEPENDENT RESERVE ENGINEER TSX: Sproule Associates Limited BNE LEGAL COUNSEL CALGARY (HEAD OFFICE ) Borden Ladner Gervais LLP Suite 901, 1015 – 4th St SW Calgary, AB T2R 1J4 BANKS AUDITORS 403.262.5307 info@bonterraenergy.com CIBC Delo
Slide 25: Appendix
Appendix Z — Bonterra.
Slide 26: Risk Management: Weighted Average Hedges
SUSTAINABILITY FOCUS Risk Management: Weighted Average Oil Hedges Supports Sustainability Fixed Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Volume bbl/d - 250 250 250 - Price USD $/bbl - 71.75 71.75 71.75 - >30% hedged for Collars Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 next 9 months Volume bbl/d 2,500
Slide 27: Advisories
Advisories FORWARD LOOKING INFORMATION: Actual results, performance or achievements could differ materially from those flow”, “capital expenditures”, “free funds flow”, “adjusted free funds flow”, “net debt”, expressed in, or implied by, this forward-looking information and, accordingly, no “EBITDA”
Slide 28: Advisories
Advisories FREE FUNDS FLOW Three months ended Year ended EBITDA December 31, December 31, December 31, December 31, Management utilizes free funds flow to assess the amount of funds available for ($ millions) 2024 2023 2024 2023 future capital allocation decisions. It is calculated as funds flow plu