Bonterra Energy Corp. · TSX:BNE
Bonterra Energy — Shareholder Meeting (May 2024)
25 slides from Bonterra Energy's shareholder meeting presentation, May 2024
Slide 1: Our Strong Foundation Accelerates Transformation
TSX:BNE Our Strong Foundation Accelerates Transformation. May 2024 Annual General Meeting Grounded in Energy.
Slide 2: It's Time to Revisit Bonterra. Period.
AT A GLANCE It’s Time to Revisit Charlie Lake Bonterra. Period. New Core Area: Light Oil, Natural Gas & NGLs Development ready Charlie Lake asset in Northern Alberta adds locations and One of Canada’s longest standing junior oil and Free Funds Flow gas companies, featuring top-tier operations. • Mod
Slide 3: 2023 Success & 2024 Priorities
STRATEGIC PRIORIT IES 2023 Success & 2024 Priorities METRIC 2023 KPI ACTUAL 2023 Average Production 13,300 – 13,700 boe/d 14,204 boe/d ✓ 2023 Debt / TTM EBITDA <1.0x 0.8x ✓ Success Operating Costs $16.00 - $16.50/boe $16.02/boe ✓ Capital Expenditures $120 - $125 MM $126 MM ✓ Execution + Maintain Exe
Slide 4: Financial Discipline
Financial Discipline Bonterra.
Slide 5: 2024 Guidance
SUSTAINABILITY FOCUS 2024 Guidance Fully-funded 2024 Capital Program Designed to Maximize Free Funds Flow With Modest Production Growth Operating & Financial(1) Average Daily Production (BOE per day) 13,800 – 14,200(2) $90-$100 Million 2024 capital expenditure range Oil and NGL Weighting (percent) 6
Slide 6: Stable Production + Modest Growth
SUSTAINABILITY FOCUS Stable Production + Modest Growth Production Profile Net Wells Drilled & Brought on Production CARDIUM CHARLIE LAKE CARDIUM CHARLIE LAKE 20,000 40 18,000 38 35 16,000 Average Production (Boe/d) 30 32 8 8 14,000 25 4 12,000 Net Wells 10,000 20 23 23 23 8,000 15 6,000 10 4,000 2,0
Slide 7: Enhanced Liquidity
FINANCIAL DISCIPLINE Enhanced Liquidity Debt Reduction With Stable Production Profile $189 Million $400 16,000 Net debt reduction from Q1 2021 to Dec 31, 2023 $350 15,250 ~14,500 boe/d $300 14,500 37% Production (BOE/D) $250 13,750 Production growth Debt ($MM) $200 13,000 from 2020 to 2024(1,2) $150
Slide 8: Return of Capital Model: Getting Back to Our Roots
SUSTAINABILITY FOCUS Return of Capital Model: Getting Back to Our Roots Focus on financial flexibility to support a sustainable return of capital model Sustainable Return of Capital Framework Key Metrics: Forecasted Leverage Targets(1): Return of NET DEBT D/EBITDA Shareholder Capital 1.1 Return Poli
Slide 9: Pembina Cardium
Pembina Cardium* $68 Million CAPEX 19.5 net wells drilled (23.1 net wells on production) 13,400 boe/d annual average production** * Forecast 2024 numbers ** Comprised of ~6,205 bbl/d light and medium crude oil; ~1,424 bbl/d NGLs and ~34,620 mcf/d of conventional natural gas.
Slide 10: Pembina Cardium: Cash Flow Engine
2024 Cardium Drilling Program CARDIUM Pembina Cardium: Pembina Drayton Valley Cash Flow Engine One of Canada’s Largest Oil Plays 92% Sizeable, concentrated position at Pembina Operated Production and Willesden Green Cardium fields Long Runway 19.4 Years 2023 Reserve Life Index Estimated original oil
Slide 11: Charlie Lake
Charlie Lake* $21 Million CAPEX 4.5 net wells drilled (0.9 net drilled & uncompleted) 750 boe/d annual average production** * Forecast 2024 numbers ** Comprised of ~343 bbl/d light and medium crude oil; ~46 bbl/d NGLs and ~2,166 mcf/d of conventional natural gas.
Slide 12: Charlie Lake Acquisition
CHARLIE LAKE Charlie Lake Acquisition Long-term development runway with highly economic drilling locations, driving improved free cash flow profile • Acquired 37 sections through crown land sales in 2022 and 2023 Contiguous Land Block • Recently added 79 (net) adjacent sections, creating a new core
Slide 13: Charlie Lake Development Plan
CHARLIE LAKE Charlie Lake Development Plan Anticipate drilling 5 Gross (4.5 net) wells in 2024 and growing the asset to ~6,000 boe/d with the ability to hold volumes flat assuming ~6 wells per year for over a decade Production Profile NOI and Cumulative Free Funds Flow 8,000 $100 6,000 6,000 6,000 6
Slide 14: Montney
Montney * $8 Million CAPEX – Facility, Pipe, Water Disposal Well Decision on 2nd well expected Q3/24 350 boe/d annual average production** * Forecast 2024 numbers ** Comprised of ~130 bbl/d light and medium crude oil; ~59 bbl/d NGLs and ~966 mcf/d of conventional natural gas.
Slide 15: Montney Development: High Impact Optionality
MONTNEY Montney Development High Impact Optionality First Montney Well (100/04-03-074-06W6/00) 100% Working Interest • Successfully drilled in Q3 2023 Land Base 100/04-03-074-06W6/00 • Successfully completed in Q4 2023 • Peak daily rate: 753 BOE per day during flow test (469 BBL per day and 1,707 MC
Slide 16: Montney Characteristics
MONTNEY Montney Characteristics Doig Future Robust Reservoir Profile Upper Target D4 Montney Primary Target D3 Reservoir Characteristics Internal D3 Type Curve D3 • Depth 1,925m TVD • ~80 identified Montney ‘D3’ locations Middle • Porosity: 8% Avg • Estimated IP365: 487 Boe/d; 50% liquids Montney Fu
Slide 17: Play Comparison Summary
CORPORATE INVENTORY Play Comparison Summary Robust corporate drilling inventory supports growth and sustainability Corporate Inventory Economic Comparison(1) Rate of Return (%) Payout (yrs) 200 1.2 1.1 1.1 MTNY CHLYLK CHLYLK CRDM 153 1.0 0.9 160 (2.0 mile) (3.0 mile) (2.0 mile) Tier 1 0.8 0.8 120 10
Slide 18: 2023 Reserves Evaluation
ROBUST RESERVES 2023 Reserves Evaluation Robust Reserves Underpin Shareholder Value and Value Creation Reserve Category Oil (Mbbl) BOE (Mboe) NPV BT 10% (1) (millions) Proved Developed Producing 16,475 32,763 557,339 80% Total Proved Reserves on Volume Proved Developed Non-Producing 2,485 5,257 76,5
Slide 19: NAV Highlights Value Proposition
VALUE PROPOSIT ION NAV Highlights Value Proposition Bonterra offers shareholders torque to oil and exposure to a significant low risk drilling inventory YE2023 Net Asset Value Net Asset Value per Share ($/sh) @ US$75WTI / $3.00 GJ AECO (1,2) Flat Price Sensitivities (3) Proved Developed Total Proved
Slide 20: Focus on Responsible Operations
SUSTAINABILITY FOCUS Focus on Responsible Operations At our core is a deep commitment to value creation Experienced team reignited with Loyal investor base and We are committed to a new vigour by CEO and return of capital pioneers environmental sustainability refreshed board • Exceptional experience
Slide 21: Strong Leadership Team
ENHANCED TEAM & STRONG GOVERANNCE Strong Leadership Team Leadership Team Board of Directors Patrick G. Oliver Steve 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 in 2014 and holds
Slide 22: 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 23: Appendix
Appendix Z — Bonterra.
Slide 24: Risk Management: Weighted Average Oil Hedges
SUSTAINABILITY FOCUS Risk Management: Weighted Average Oil Hedges Fixed Q2 2024 Q3 2024 Q4 2024 Q1 2025 Supports Sustainability Volume bbl/d 767 900 900 - Price USD $/bbl 80.88 81.13 81.13 - >30% hedged for Collars Q2 2024 Q3 2024 Q4 2024 Q1 2025 next 9 months Volume Ceiling bbl/d USD $/bbl 2,100 92
Slide 25: Advisories
Advisories FORWARD LOOKING INFORMATION: assumptions and analyses made by us in light of our new information, future events or otherwise. and subordinated debt. Field netback is defined as revenue Certain statements contained in this presentation include experience and perception of historical trends