Saturn Oil & Gas Inc. · TSX:SOIL
Saturn Oil & Gas — Investor Presentation (March 2025)
33 slides from Saturn Oil & Gas's investor presentation, March 2025
Slide 1: Corporate Presentation March 2025
CORPORATE PRESENTATION March 2025 TSX: SOIL OTCQX: OILSF
Slide 2: Disclaimer
DISCLAIMER This presentation is for informational purposes only and is not intended as a solicitation or offering of securities of Saturn Oil & Gas Inc. (“Saturn” or the “Company") in any jurisdiction. The material presented is not intended to modify, qualify, supplement or amend information disclos
Slide 3: Company Overview
COMPANY OVERVIEW TSX: SOIL OTCQX: OILSF 3
Slide 4: Deploying the Saturn Blueprint
DEPLOYING THE SATURN BLUEPRINT Saturn is an oil-weighted producer focused on expanding per share metrics through the development of our low-decline, long runway asset base in Saskatchewan & Alberta How Our Blueprint Unlocks Value: ✓ Track record of acquiring assets at attractive valuations and integ
Slide 5: Our Blueprint for Value Creation
OUR BLUEPRINT FOR VALUE CREATION Simple blueprint Saturn follows to enhance size, scale and production per share metrics ACQUIRE 04 REPEAT mid-life cycle assets at continue unlocking value, increasing attractive valuations free funds flow and driving growth with the Saturn Blueprint 01 SATURN’S BLUE
Slide 6: Oil-Weighted Assets Across Core Areas
OIL-WEIGHTED ASSETS ACROSS 3 CORE AREAS Significant Growth in Asset Base, Production and Cash Flow Viking 2020 Generation Since 2020 Kindersley Herschel Viking 2022 Plato Montney 2023 Kaybob Lower Shaunavon / Mannville 2024 Cardium 2023 West Pembina Battrum Brazeau Mississippian 2021 Bakken / Midale
Slide 7: Corporate Profile
CORPORATE PROFILE Saturn is a Low Decline, Low Royalty, Light Oil Producer Leveraging Our Saskatchewan Advantage FINANCIAL & OPERATIONAL (TSX: SOIL OTCQX: OILSF) 3-YEAR PRODUCTION HISTORY (MBoe/d) Shares Outstanding (Basic)(1) 197.2 MM 41.9 Basic Market Capitalization (@$1.86/sh)(1) $366.8 MM 41,908
Slide 8: Fueling Free Cash Flow with Strategic Growth
FUELING FREE CASH FLOW WITH STRATEGIC GROWTH Repeated Success Completing Accretive Acquisitions That Drive Strong Free Funds Flow ADJUSTED FUNDS FLOW(1) (“AFF”) GROWTH CAPITAL RETURN FRAMEWORK ($Millions) 129.2 • Share buybacks commenced Aug 27/24 through $129.2 MM NCIB, improving per share metrics
Slide 9: Q4/24 Highlights from a Record Quarter
Q4/24 HIGHLIGHTS FROM A RECORD QUARTER Applying Saturn’s Blueprint Contributes to Ongoing Margin Expansion OPERATING & TRANSPORTATION COST1 ($/boe) OPERATING NETBACK1 ,2 Operating Expense Transportation Expense $50 $30 $0.74 $0.61 67% $120 $25 $27.22 $45 Operating $1.28 netback vs 2021 Operating N
Slide 10: Robust 2024 Reserves Expansion
ROBUST 2024 RESERVES EXPANSION Long Runway of Reserves with PDP NAV ~3x higher than Saturn’s current share price1 PDP 1P 2P RESERVES GROWTH HISTORY (MMBOE)1 NAV Per Basic Share(3) $ 5.56 $ 8.36 $ 13.77 250 2024 Organic* additions: • PDP of 6.3 mmboe ✓ Expanded inventory of drilling opportunities, wi
Slide 11: A Leading Light Oil, Low Decline Producer
A LEADING LIGHT OIL, LOW DECLINE PRODUCER Track Record of Successful and Efficient Development Drives High Return on Invested Capital • Oil weighting + efficient development supports strong cash netbacks ~18 Yrs • Type curve outperformance across numerous areas drives strong returns • Abandoned / re
Slide 12: Southeast Saskatchewan
SOUTHEAST SASKATCHEWAN High Rate of Return, Abundant Seismic Coverage, Large Scale Infrastructure Oxbow ~ 62% 80 NET Of the total 2025 budget New wells planned in 2025 OHML Bakken Wells Bakken 2025 AREA FOCUS Waterflood Program Viewfield OHML Expand on proven OHML development Spearfish Wells • 8 Bak
Slide 13: West Saskatchewan
WEST SASKATCHEWAN Resource Plays, Repeatability, Steady Production and Cash Flow Kindersley Herschel Viking Resource Development ~ 17% 26 NET Of the total 2025 budget New wells planned in 2025 Plato 2025 AREA FOCUS Viking & Lower Shaunavon further resource development Viking Resource & delineation D
Slide 14: Central Alberta
CENTRAL ALBERTA Resource Play, Large Prospect Inventory, Significant Expansion Potential Kaybob 7-30 Pad Montney Wells ~ 21% 14 NET Of the total 2025 budget New wells planned in 2025 W.Pembina 2025 AREA FOCUS Brazeau E.Pembina Acquisition & Record Increasing capital efficiencies Corporate Wells • Dr
Slide 15: 2025 Guidance & Outlook
2025 GUIDANCE & OUTLOOK TSX: SOIL OTCQX: OILSF 15
Slide 16: 2025 Guidance Overview
2025 GUIDANCE OVERVIEW Fully Funded Development Capital Budget of $300 - $320 Million(1)(2); 85% Allocated to DCET Activities 2025 Guidance(4)(6) SENSITIVITIES Annual Average Production Boe/d 38,000 – 40,000(1) Factor Change Approximate AFF(2)(5) Impact Oil & Liquids Weighting % ~85% WTI Oil Price A
Slide 17: 2025 Operating Guidance Summary
2025 OPERATING GUIDANCE SUMMARY Drive Improved Efficiencies, Continued Type Curve Outperformance and Reduced Opex to Enhance Margins GUIDANCE HIGHLIGHTS 2025 PRODUCTION PROFILE: BASE + DEVELOPMENT 45,000 Base Prod 2025 Dev 2025 Average(1) Continued OHML development 40,000 35,000 • Viewfield Bakken a
Slide 18: Continued Return of Capital in 2025
CONTINUED RETURN OF CAPITAL IN 2025 Phased capital return framework prioritizes net debt reduction, shareholder returns and growing production per share, including through tuck-in acquisitions Key Assumptions 2025 $600 550 - 600 WTI Oil Price (USD / Bbl) $70.00 525 - 575 FX (CAD / USD) 0.72x (25) AE
Slide 19: Maintaining Financial Flexibility
MAINTAINING FINANCIAL FLEXIBILITY Structure of our Senior Notes facilitates ongoing net debt reduction with 10% annual prepayments(2) SR. NOTES TERMED SYSTEMATIC DEBT MEANINGFUL OUT 5 YEARS REPAYMENT LIQUIDITY • No near-term repayment risk • Sr. Notes 10% annual principal • $48.4 MM cash (Dec 31/24)
Slide 20: Three-Year Outlook Pillars
THREE-YEAR OUTLOOK PILLARS Committed to Long-Term Resilience, Financial Strength, and Deploying our Saturn Blueprint 2025 to 2027 Pillars: Forecast Net Debt / Free Funds Flow(2) RESPONSIBLE DEVELOPMENT 2025 - 2027 • 38,000 to 40,000(1) boe/d (~85% oil & liquids) 800 170 Forecast Period End Net Debt(
Slide 21: Peer Comparison & Research Coverage
PEER COMPARISON & RESEARCH COVERAGE Saturn Positioned for Strong Free Cash Flow to Support Debt Repayment and Return of Capital Unhedged Debt Adjusted Free Cash Flow Yield1,3 2025E 2025E EV/DACF2,3 5.0 16% 14% 4.0 Avg: 3.4x 12% Avg: 10% 10% 3.0 8% 2.0 6% 4% 1.0 2% 0% - SOIL 1 2 3 4 5 6 7 8 9 10 11 1
Slide 22: Investment Highlights
INVESTMENT HIGHLIGHTS 1 Light Oil Weighted Assets in Prolific Canadian Basins Offer Attractive Half & Full Cycle Returns 2 Low Decline Rates and Strong Operational Outperformance 3 Strategic Deleveraging and Capital Return Strategy in Place 4 Operating Cost Reductions and Attractive Royalty Regime S
Slide 23: Appendix: Debt & Hedging Overview
APPENDIX DEBT & HEDGING OVERVIEW TSX: SOIL OTCQX: OILSF 23
Slide 24: Summary of Notes Issue and Financial Policies
SUMMARY OF NOTES ISSUE AND FINANCIAL POLICIES US$ 650 million Aggregate Principal Amount of 5 Year Notes, Issued June 14, 2024 • Coupon 9.625%; Interest Payment Dates June 15 and December 15, Maturity Date June 15, 2029 • Mandatory Quarterly Prepayment, the Company will redeem 2.5% original principa
Slide 25: Hedging Overview
HEDGING OVERVIEW Robust Risk Management Program to Secure Cash Flow Stability, and Mitigate Commodity + FX Price Risks ▪ Oil and liquids hedging strategy protects 50-60% of production1 on a forward 12-month basis, with 30-40% hedged up to 18 months out ~55% oil & liquids volumes hedged in 2025 (net
Slide 26: Appendix: Corporate Details
APPENDIX CORPORATE DETAILS TSX: SOIL OTCQX: OILSF 26
Slide 27: Our Team
MANAGEMENT Our Team A Long History of Value Creation in the Oil Y O&UGas R S U Production B T I T L E H E R E Space John Jeffrey, Chief Executive Officer Jamie Kuntz, VP Operations ▪ Former Facility & Pipeline Engineering Manager at Ridgeback Resources ▪ Former CFO and founding partner of Axiom Grou
Slide 28: Directors
DIRECTORS Sound Governance and Strategic Oversight John Jeffrey, MBA, BA Dr. Thomas Gutschlag ▪ Former CFO and founding partner of Axiom Group ▪ Chairman, Cofounder and former CEO/CFO of Deutsche Rohstoff AG, a public company listed on the ▪ Strong background in operations and finance with successfu
Slide 29: Community Involvement
COMMUNITY INVOLVEMENT Driving Positive Change Through Diversified Partnerships, Donations, and Volunteering FOSTERING HEALTHY AND VIBRANT COMMUNITIES Community Support Saturn is committed to driving positive change through strategic partnerships and targeted donations. Our approach emphasizes buildi
Slide 30: Disclaimer – Oil & Gas Advisories
DISCLAIMER – OIL & GAS ADVISORIES Information Regarding Disclosure on Oil and Gas Operational Information and Non-IFRS Measures Throughout this presentation and in other materials disclosed by the Company, Saturn employs certain measures to analyze financial performance, financial position and cash
Slide 31: Disclaimer – Oil & Gas Advisories, Cont'd
DISCLAIMER – OIL & GAS ADVISORIES, CONT’D Net Operating Expenses Net operating expense is calculated by deducting processing income primarily generated by processing third party production at processing facilities where the Company has an ownership interest, from operating expenses presented on the
Slide 32: Disclaimer – Oil & Gas Advisories
DISCLAIMER – OIL & GAS ADVISORIES Oil and Gas Metrics & Reserve Definitions This presentation contains metrics commonly used in the oil and gas industry which have been prepared by Reserve Assumptions: Reserve evaluation calculations are based on data and expected future management, such as “FD&A co
Slide 33: Executive Officers, Directors and Head Office
TSX: SOIL OTCQX: OILSF Executive Officers Directors Head Office John Jeffrey, Chief Executive Officer & Director John Jeffrey, CEO & Director Saturn Oil & Gas Inc. Scott Sanborn, Chief Financial Officer Grant MacKenzie, CLO & Director Suite 2800, 525 – 8th Ave SW Justin Kaufmann, Chief Development O
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