Cardinal Energy Ltd. · TSX:CJ

Cardinal Energy — Investor Presentation (April 2022)

15 slides from Cardinal Energy's investor presentation, April 2022

  1. Slide 1: April 2022 Corporate Update

    TSX: CJ April 2022 Corporate Update

  2. Slide 2: Cardinal Energy

    Cardinal Energy 1. Scope one negative for carbon emissions 2. Lowest production decline among conventional producers 3. Business Model undergoing significant de-risking in 2022 4. Begin significant returns to shareholders in 2022 2 | Cardinal Energy Ltd. | TSX: CJ

  3. Slide 3: Cardinal Snapshot

    Cardinal Snapshot Fully Diluted Share Outstanding 166 MM Net Debt (Dec 31, 2021) $178 MM Net Bank Debt (Dec 31, 2021) $165 MM Forecast Production Average 2022 20,500 BOEPD Production Decline +/- 10% Cash Flow Estimate 2022 ($90 WTI) $337 MM CAPEX 2022 $80 MM Cash Flow Sensitivity ($1 WTI) +/- $5.6 M

  4. Slide 4: Our Business Model

    Our Business Model Cash Flow 2022 ($80 WTI) Amount of capital required to maintain our $80 MM Maintenance assets and keep production flat/growth Capital ($30 MM drilling in 2022) Amount of capital required to fulfill our $19 MM ARO/ESG commitment to operating our business in a * SRP Funds responsibl

  5. Slide 5: Corporate Production

    Corporate Production 25,000  Current production >20,500 boepd 20,000  Base decline ~ 10%  Majority of production under established secondary or 15,000 tertiary recovery schemes boepd  84% oil, 4% NGLs, 12% natural gas 10,000  Venturion assets integrated, performing to expectation 5,000  Extrem

  6. Slide 6: 2021 & 2022 Development

    2021 & 2022 Development  2021  8 producers, 2 WAG injectors drilled 3,000  DCET capital ~$15MM (net) 2,500  Net current production ~1600 boepd (90% liquids) 2,000  Performing above expectation  Complete program expected to payout in Q2 2022 boepd 1,500  2022 1,000  4 wells (GP x2, Tide Lake

  7. Slide 7: 2021 YE Reserves Highlights

    2021 YE Reserves Highlights Category Reserves(1) Annual Change NPV10 Annual Change FD&A Recycle Ratio(2) MMBoe $MM $/boe Proved Developed Producing 74.4 +16% $1,050 +75% $5.66 5.2 Total Proved 83.3 +11% $1,100 +77% $6.49 4.6 Total Proved Plus Probable 110.4 +11% $1,376 +70% $5.17 5.7  Strong produc

  8. Slide 8: Sustainability: Drilling Inventory Breakdown

    Sustainability: Drilling Inventory Breakdown Tier 1 Potential Cardinal Growth/Maintenance Drilling District Primary Plan Inventory  Multiple oil targeted play types across asset base South Ellerslie, Glauc, Arcs 40  All tier 1 development 1 year or less payout at $75US WTI Central Infills, seconda

  9. Slide 9: Midale – CCS EOR Simplified

    Midale – CCS EOR Simplified Utilizing CCS EOR reduces emissions while still contributing a low carbon source of energy  Midale CO2EOR project has sequestered over 5 million tonnes of CO2 over its lifetime making it currently the 6th largest storage site in the world(3)  Fully utilized Midale has t

  10. Slide 10: Midale, Sk – 2021 New WAG Injectors

    Midale, Sk – 2021 New WAG Injectors  Midale unit under exploited compared to offsetting Weyburn unit  21% current estimated recovery factor vs 40%  2021 drilled 2 dual leg (M1 + M3) water alternating gas injectors  Targeted under-pressured, under-supported, relatively recovery M1 and M3 reservoi

  11. Slide 11: Midale, Sk – 2021 Injector Program – Results

    Midale, Sk – 2021 Injector Program – Results  Earlier than forecast response  At current production rates payouts reduced (@$80/bbl US WTI : 15 months)  Up to 100 potential follow-up opportunities across unit 2021 new dual leg WAG injectors (M1 + M3) Existing offsetting legacy wells with incremen

  12. Slide 12: Returns to Shareholders

    Returns to Shareholders Phase One: Protect the Business  100% of our Free Cash Flow will go toward repayment of Bank Debt until Bank Debt is reduced to $100 MM (increases Net Asset Value per share by $0.50). Phase Two: Deliver direct returns to shareholders  Upon reaching our Phase One Bank Debt m

  13. Slide 13: Free Cash Flow Forecast – No Dividend

    Free Cash Flow Forecast – No Dividend WTI ($USD/bbl) $65 $70 $75 $80 $85 $90 2022 Cash flow ($MM) $174 $207 $239 $270 $304 $337 Capex/ARO ($MM) $99 $99 $99 $99 $99 $99 Free cash flow ($MM) $75 $103 $135 $166 $200 $233 Closing net debt/(Cash) ($MM)(1) $102 $74 $42 $7 ($23) ($55) 1. Excluding potentia

  14. Slide 14: Advisory

    Advisory Note Regarding Forward Looking Statements operating costs, the performance of existing and future wells, the success Management has included the forward-looking statements above and a of our exploration and development activities, the sufficiency and timing summary of assumptions and risks

  15. Slide 15: Advisory

    Advisory This presentation contains metrics commonly used in the oil and natural Unbooked locations do not have attributed reserves. Unbooked locations depending on the maturity of the Company’s operating areas and gas industry which have been prepared by management, such as "netback“, have been ide

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