Cardinal Energy Ltd. · TSX:CJ

Cardinal Energy — Investor Presentation (August 2023)

28 slides from Cardinal Energy's investor presentation, August 2023

  1. Slide 1: Low Debt, Low Decline, Low Emissions

    TSX: CJ LOW DEBT LOW DECLINE LOW EMISSIONS

  2. Slide 2: Our Business

    Our Business Cash Flow  Amount of capital required to maintain our assets and keep production flat Maintenance Capital  Amount of capital required to fulfill our commitment to operating our business in a responsible manner ARO/ESG  Capital available to our shareholders  Increase the value of the

  3. Slide 3: Annual Results and Budget 2023

    Annual Results and Budget 2023 2022 Annual Budget 2023 Q1 2023 Q2 2023 Adjusted Funds Flow ($MM) $363 $270 $52.3 $56.2 Capital Expenditures ($MM) $120 $97 $25.3 $20.4 ARO Expenditures ($MM) $20 $23 $4.8 $4.1 Dividend Rate per month per share $0.05 - $0.06 $0.06 $0.06 $0.06 NCIB purchases (3.7 MM sha

  4. Slide 4: Corporate Production

    Corporate Production 25000  Current production >22,000 boe/d 20000  Majority of production under established water flood and/or CO2 recovery schemes 15000  Base decline less than 10% Boe/d  Large OOIP properties continue to outperform 10000  Successful optimization initiatives across asset base

  5. Slide 5: 2023 Plan - $97 MM Capital / $23 MM ARO

    2023 Plan - $97 MM Capital / $23 MM ARO 2023 2023 H1 Budget Actuals Development $43 MM $21 MM  Focused drilling program designed to expand Drill, Complete, Equip and Tie In (17.6 net wells) inventory Optimization $23 MM $11 MM  Continue to optimize existing production to Well Optimization – workov

  6. Slide 6: 2023 Drilling Program – Update

    2023 Drilling Program – Update Success Across all Districts  18 (16.6 net) new wells planned. 15 producers, 3 injectors. First 8 producers on stream producing >1,800 boe/d net(1)  North  Central  Nipisi Clearwater 4 well pad drilled in  Currently completing 4 well program Q1, on-stream April 20

  7. Slide 7: North Area

    North Area Production 8,000  Several long-life oil pools (House Mountain, Mitsue, Mica) under water flood complemented by high return 6,000 Clearwater (Nipisi) and Dunvegan (GP) drilling boe/d inventory 4,000 2,000  Q2 2023 production impacted by ~700 boe/d due to 0 forest fires in the House Mount

  8. Slide 8: Clearwater: Nipisi, Heart River, Gift

    Clearwater : Nipisi, Heart River, Gift CJ Nipisi Clearwater 1,200 1,000 800 boe/d 600 400 200 0 0 100 200 300 400 500 600 Production day 2022 Wells (4) 2023 Wells (4)  Phase One Nipisi 2022 - 2024  2023 wells outperforming very successful 2022 wells by ~30%  Phase Two Heart River  Increased over

  9. Slide 9: Central Area

    Central Area  Several long-life medium gravity oil pools under waterflood  Very low decline area +/- 5%  2023 Focus proving size of 2022 Wainwright Rex oil discovery Production 7,000 6,000 5,000 4,000 boe/d 3,000 2,000 1,000 0 9 | Cardinal Energy Ltd. | TSX: CJ Please see "Advisory"

  10. Slide 10: Central – Wainwright Rex

    Central – Wainwright Rex  Estimated 200MM barrels original oil in place(1), ~20o API  Q1 23 consolidated land position (green) 2023 planned locations  Adds up to 90 multi-laterals to inventory (3 wells booked at year end)  Existing infrastructure in place  4 well drilling program expected to be

  11. Slide 11: Southern Area

    Southern Area  Combination of older pools under waterflood and new drilling  2023 Focus expand Ellerslie multilateral deployment areas Production 8,000 7,000 6,000 5,000 boe/d 4,000 3,000 2,000 1,000 0 2022-01-01 2022-04-01 2022-07-01 2022-10-01 2023-01-01 2023-04-01 11 | Cardinal Energy Ltd. | TS

  12. Slide 12: Ellerslie – Southern Alberta

    Ellerslie – Southern Alberta  4 wells planned for summer 2023 2023 planned locations  Tide Lake (2 wells) objective is to extend multilateral development west and south  Alderson (2 wells) following up 2021 success and increasing 0% royalty production • Drilled and on stream in Q3 very promising

  13. Slide 13: Midale, Saskatchewan – Long Term Development

    Midale, Saskatchewan – Long Term Development Midale & Weyburn Background  ~29o API oil, discovered early 1950’s Weyburn Midale  Same zone similar reservoir properties Operator Whitecap Cardinal Cardinal Working Interest >0.1% 77.1% OOIP (internal estimate, MMBbls) 1480 760 Cumulative Production 12

  14. Slide 14: Midale, Saskatchewan

    Midale, Saskatchewan  Low decline, long life production  Minimal drilling since acquisition in 2017 Production  6 producers and 4 injectors 4,000  Free cash flow machine, low maintenance capital required 3,500  2022 Free cash flow : $62 MM 3,000 2,500 2023 Focus  Continue EOR development add 3

  15. Slide 15: Inventory Identified for the Long Term

    Inventory Identified for the Long Term Potential Locations (Gross) 2023 Drilling District Tier 1 Tier 2 Current Focus Long Term Opportunities Program Continue to expand multilateral applications to other Expanding Ellerslie multi-lateral development at Tide South 23 63 4 zones/areas Lake and Alderso

  16. Slide 16: Focusing on a Sustainable Future – ESG Focus

    Focusing on a Sustainable Future – ESG Focus Environment Social Governance  Indigenous Engagement &  Corporate Governance  CO2 injection exceeds Support  Diversity Scope 1 emissions  Sponsorships  Executive Compensation  Accelerating ARO activity  Standing with Ukraine tied to performance 

  17. Slide 17: 2022 Year End Reserves

    2022 Year End Reserves  Top tier 2022 results  Performance driven by both strong base production NPVBT10 FD&A optimization and better than forecast drilling results Year End 2022 MMBOE (1) (2)(3) Recycle Ratio (4) (MM) ($/boe)  Cardinal 3 average year PDP FD&A $8.61/boe  Large inventory of unboo

  18. Slide 18: Net Negative Carbon Emissions

    Net Negative Carbon Emissions 2022 Cardinal Energy Corporate Emissions 50 100 Thousands Thousands  Differentiated from our Peers Monthly Emissions (t CO2e) / Sequestration (t CO2) Cumulative Emissions (t CO2e) against 'Net Zero' 25 50  Negative Corporate Net Scope 1 CO2e Emissions  Midale, Sask C

  19. Slide 19: ARO Focus

    ARO Focus  A demonstrated financial 2020 2021 2022 2023 commitment Budget Total (million $'s)  Cardinal continues to exceed all regulatory mandated spend CJ ARO Spend $6 $8 $22 $25 $61 requirements & Ongoing Remediation Government Funded Programs $14 $9 $5 - $28  Successful execution of all gover

  20. Slide 20: 2022 ARO Work Completed

    2022 ARO Work Completed Operated Work Completed in 2022  150 Wells Cut and Capped  9 Facilities Abandoned and Decommissioned Spent 3.6 x required  116 wells/sites reclaimed (6 facilities) Regulatory  43 Well Reclamation Certificates Requirement  Abandoned 99 segments (250.76 km) of pipeline  2

  21. Slide 21: Overview

    Overview Drilling Inventories  Established significant 5-20+ year drilling inventories in each operating area. Reduce Business Risk  Less business risk by reducing debt to 0.2x cashflow. Focus on ARO  Significant focus on being good stewards of our land use, supporting sustainability with substan

  22. Slide 22: 2022 Total Recordable Injury Frequency (TRIF)

    2022 Total Recordable Injury Frequency (TRIF*) 12 Month Rolling TRIF 1.0 40,000 0.9 35,000  Annualized recordable injury frequency per 0.8 200,000 hours worked. 30,000 0.7  There were no lost time, or medical aid injuries to 0.6 25,000 Cardinal staff during 2022. 0.49 0.49 0.49 0.49 0.49 0.48 0.48

  23. Slide 23: Regulatory: 2022 Alberta Energy Regulator Cardinal Inspections

    Regulatory: 2022 Alberta Energy Regulator Cardinal Inspections Alberta Cardinal Industry 2022 AER Inspections 109 7,883 % Compliant/Satisfactory 90% 73% 23 | Cardinal Energy Ltd. | TSX: CJ

  24. Slide 24: Tax Pools

    Tax Pools Tax Pool Balance ($ MM) YE 2022 YE 2021 COGPE 454 492  Based on available tax pools, forecasted capital CEE and non capital losses 533 720 expenditures and forecasted commodity prices at December 31, 2022 from the average of three CDE 167 149 independent third party reserve evaluators, Ca

  25. Slide 25: 2023 Budget – Enhance Free Cash Flow

    2023 Budget – Enhance Free Cash Flow Budget  Continue to reduce debt $80 WTI 2023 Budget $3.50/mcf AECO  Increase production volumes ~22,000 boe/d Production (boe/d) ~22,000  Continue to optimize existing asset base Adjusted Funds Flow $270 MM  Execute focused drilling program (17.6 net wells) D

  26. Slide 26: Advisory

    Advisory Note Regarding Forward Looking Statements These forward-looking statements are subject to numerous risks and uncertainties, certain of which are This presentation contains forward-looking statements and forward-looking information (collectively beyond Cardinal's control. Such risks and unce

  27. Slide 27: Advisory

    Advisory Production & Product Type Information by dividing operating netback for 2022 of $49.30/boe by F&D costs per boe or FD&A costs per boe References to petroleum, crude oil and natural gas liquids ("NGLs"), natural gas and average daily for the year. Reserve Life Index ("RLI") is calculated by

  28. Slide 28: Advisory

    Advisory Other Financial Measures" in the Company's MD&A as at and for the three and nine months ended Netback per boe September 30, 2022 for an explanation of each measure noted below, as well as a detailed calculation and Cardinal utilizes netback per boe to assess Cardinal’s operating performance

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