Southern Energy Corp. · TSXV:SOU
Southern Energy — Investor Presentation (April 2024)
24 slides from Southern Energy's investor presentation, April 2024
Slide 1: Uniquely Positioned to Deliver Sustainable Growth
Uniquely Positioned to Deliver Sustainable Growth Corporate Presentation April 2024 TSXV : SOU
Slide 2: Southern Energy - Positioned for Significant Growth
Southern Energy - Positioned for Significant Growth High quality Gulf Coast assets receiving premium pricing • Premium natural gas pricing above NYMEX (Henry Hub) • Stable base production and cash flow with long reserve life AIM, TSXV, OTCQX Listings • Low cost, high margin operations support profit
Slide 3: Focused on Value Creation through Accretive Growth
Focused on Value Creation through Accretive Growth Acquisition Opportunities Organic Development Growth Strong Base Production ✓ Disciplined consolidation strategy ✓ Large scale, under-developed assets utilizing management’s proprietary with low historical recovery from & Asset Optimization database
Slide 4: Strong Fundamentals for the Future of U.S. Natural Gas Pricing
Strong Fundamentals for the Future of U.S. Natural Gas Pricing Positioning Southern for the Future of Natural Gas Significant Incremental Demand in Next Several Years • Additional 10+ Bcf/d LNG export capacity under construction & commissioning; capacity will exceed 24 Bcf/d in next 5 years • Artifi
Slide 5: Positioning Southern in a Strengthening U.S. Gas Price Environment
Positioning Southern in a Strengthening U.S. Gas Price Environment The Growing U.S. Natural Gas Supply & Demand Imbalance 120 • U.S. natural gas demand expected to grow by over 15 Bcf/d in next 4 years Existing infrastructure 115 No Current • Demand growth forecasted to be driven by large increase i
Slide 6: Macro Backdrop – U.S. Gas Demand
Macro Backdrop – U.S. Gas Demand Demand Driver - Expanding LNG Export Proximity to LNG U.S. LNG Export Capacity • Gulf Coast LNG export additions are expected to add 10+ Bcf/d in the next four Export (Bcf/d) 35 Total Potential years; a 75% increase from today’s levels AR Other Certificated 30 Rio Gr
Slide 7: Southern Energy's Gulf Coast Advantage
Southern Energy’s Gulf Coast Advantage High Profit Margin Public North American Gas Producers – 2023 Field Cash Margins • Minimal transportation costs with owned/ $3.00 operated infrastructure All-In Gathering, Processing, Transportation and Operating Cost Field Cash Margin (Before Hedging) • Enable
Slide 8: Year-End 2023 Reserve Summary
Year-End 2023 Reserve Summary 2023 marked a third consecutive year of material reserves growth for Southern Energy Net Present 35,000.0 Company Reserves (1) Value PDP 1P 2P Before Income Total Oil Equivalent % Gas Taxes, Discounted 30,000.0 (Mboe) at 10%/year +21% Reserves Category Gross Net (US M$)
Slide 9: Gwinville Large Scale Natural Gas Redevelopment
Gwinville Large Scale Natural Gas Redevelopment Significant Underdeveloped Gas Resource 2022/2023 Drilling Program Summary • Multi-zone production of 1.5 Tcf, 12 MMbbl, historical decline < 10%; historically, Successfully drilled 10 horizontal wells; Completed 7 wells to date largest gas field in th
Slide 10: Gwinville Horizontal Redevelopment Appraisal Program
Gwinville Horizontal Redevelopment Appraisal Program Appraisal Program Results 1 mile • Successfully drilled 10 horizontal laterals in three separate reservoirs to delineate resource • Achieved pacesetter wells and associated cost efficiencies with larger program 14-6 #3 • Gathered key reservoir, ge
Slide 11: Accelerating the Gwinville Production Ramp Up
Accelerating the Gwinville Production Ramp Up 3 Potential High-Rate Wells Ready for Completion Upper Selma Chalk GH 14-06 #3 Completed Lower Selma Chalk • Wells were left uncompleted in Q1 2023 when natural gas prices Dec. 2023 City Bank dropped below $3 / MMBtu Drilled, Uncompleted DUC • Successful
Slide 12: Upper Selma Chalk Well Results to Date
Upper Selma Chalk Well Results to Date 14-06 #3 Declining as Expected – Similar EUR as 19-03 #2 Well at a ~ 50% Completion Cost Savings Gas Rate Per 1000' "Effective" Length 10,000 PREVIOUS OPERATOR SOU $4,000 2006-2009 2022 2023 2024 $3,000 $ / lateral ft $2,000 Gas Rate (Mcf/d) 1,000 $1,000 DUC DU
Slide 13: Opportunity Rich Consolidation Fairway
Opportunity Rich Consolidation Fairway Strategic Advantage Consolidation & Development Focus Area • Self-generated opportunities utilizing proprietary database • Digital workflow has proven management successful in previous companies Oklahoma • Significant amount of work completed in advance on mult
Slide 14: Investment Thesis
Investment Thesis Why Invest in Southern Energy? Experience TEAM HAS 10 YEARS OPERATING HISTORY IN THE U.S. GULF COAST AREA • Highly experienced management team with proven track record • Extensive operations experience in southeastern U.S. core area SOUTHERN IS 6% INSIDER OWNED (NON-DILUTIVE BASIS)
Slide 15: Appendix
Appendix TSXV: SOU, AIM: SOUC, OTCQX: SOUTF www.southernenergycorp.com 14
Slide 16: Mississippi Oil & Gas History – Home of Core Assets
Mississippi Oil & Gas History – Home of Core Assets Mississippi Oil & Gas Highlights > 2.0 > 10 > 34,000 Billion bbl cumulative oil Tcf cumulative gas Wells drilled to date • Significant hydrocarbon recovery – Superior production on a per well basis than Texas or Louisiana • First commercial oil wel
Slide 17: Southern Energy Asset Base in Mississippi
Southern Energy Asset Base in Mississippi > 38,000 Acres ~ 2,850 boe/d $119.3 MM < $7.00/boe > 98% held by production (HBP) Current Production (1) 2P PV10 (2) All-In Lifting/Processing Cost Mechanicsburg Production Magee Mississippi • Liquids rich; > 25 bbl/MMcf oil & NGL gas 270 30 • Field producti
Slide 18: Gwinville – Large Scale Natural Gas Redevelopment
Gwinville – Large Scale Natural Gas Redevelopment Significant Underdeveloped Gas Resource Gwinville Field – Jefferson Davis County, MS • 1+ Tcf OGIP in Selma Chalk, current recovery ~ 15% Multi Tcf Gas in Place Bcf MMbbl • Multi-zone production of 1.5 Tcf, 12 MMbbl, historical decline Wilcox 1 0.0 <
Slide 19: Leadership Team
Leadership Team Experienced and successful management team with a history of creating shareholder value together Strong technical expertise combined with a modern approach to data and workflow creates proven early mover advantage Ian Atkinson Calvin Yau Gary McMurren Erin Buschert Jim McFadyen Jeff
Slide 20: Board of Directors
Board of Directors Experienced and talented leadership to guide the Execution of Southern Energy’s Business Plan Board of Directors Ian Atkinson, P. Eng., ICD.D Bruce Beynon, P. Geol. (Chairman) Former founder and EVP of Athabasca Oil Vice President, Light Oil at Athabasca Oil Former VP Engineering
Slide 21: Modern Energy Company - Environment, Social & Governance
Modern Energy Company - Environment, Social & Governance Southern’s near term mission is to support the U.S. transition to cleaner sources of electricity generation by delivering low cost, conventional natural gas Core Values at Southern – Not Buzz Words Central Mississippi Operations Team Environme
Slide 22: Disclaimers
Disclaimers General The information contained in this presentation (the "Presentation") has been provided solely for informational purposes and does not purport to be comprehensive or contain all the information that may be required by recipients to evaluate Southern Energy Corp. ("Southern" or the
Slide 23: Disclaimers
Disclaimers FOFI This Presentation contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Southern's prospective results of operations, production, investor yields, working capital, capital expenditures, share price, investment yield, debt, NPV1
Slide 24: Disclaimers
Disclaimers Analogous Information This Presentation provides certain information relating to properties in close proximity to the Company's properties, which is "Analogous Information" as defined by applicable securities laws. This analogous information is derived from publicly available information