Cardinal Energy Ltd. · TSX:CJ
Cardinal Energy — Investor Presentation (January 2016)
23 slides from Cardinal Energy's investor presentation, January 2016
Slide 1: Built to Last
BUILT TO LAST January 2016
Slide 2: Built to Last
Built to Last Low Debt Low Decline Strong Capital Efficiencies 2
Slide 3: Cardinal Energy Profile
Cardinal Energy Profile Shares Outstanding(1): TSX: CJ nergy Ltd. Basic 65,124,209 Fully Diluted 67,506,424 Annual Dividend ($/share) $0.42 2015 forecast average production (boe/d): 11,200 Q3 2015 average production (boe/d) 11,220 2015 forecast exit production (boe/d) 14,500 2016 forecast average pr
Slide 4: Cardinal Asset Base
Cardinal Asset Base Solid Base of Oil Production from 3 Core Areas WAINWRIGHT Appr. 5,400 boe/d production for Q3 2015 BANTRY Appr. 5,800 boe/d production for Q3 2015 SLAVE LAKE Appr. 3,300 boe/d production net to Cardinal at closing on October 30, 2015. All areas have extensive development drilling
Slide 5: Wainwright
Wainwright Dominant land position with over 55 sections of land Oil production under waterflood with less than 10% decline 98% operated, average 95% working interest Multiyear drilling inventory in excess of 40 unbooked locations Control key infrastructure 5,400 boe/d By pass uphole oil
Slide 6: Bantry
Bantry Dominant land position The majority of base production is currently under waterflood with less than a 12% decline 97% operated, average 94% working interest oil production Control key infrastructure resulting in ½ cycle drilling program Solid Glauc drilling results to date 5,800 boe
Slide 7: Slave Lake
Slave Lake New Core Area 3,300 boe/d 78% liquid production, 41 API light crude oil Large OOIP Oil production under waterflood with less than a 10% decline 7
Slide 8: Mitsue Gilwood Units
Mitsue Gilwood Units Large OOIP, current estimates between 800 million and 1 billion barrels in place Opportunity to significantly expand the reserves and recovery factors Consolidation opportunities 4 initial concepts for growth Reactivations Overall volume increase Water flood optimi
Slide 9: Mitsue vs Nipisi
Mitsue vs Nipisi 37,300 Area (ha) 61,500 140 Producing Wells 160 2,800 bbl/day Production 3,070 bbl/day 15% Porosity 13.2% 35% Water Saturation 36% 41 Oil API Gravity 43 385,000,000 CUM Production (bbls) 400,000,000 2,310,000,000 Water Injected (bbls) 1,305,000,000 1. The above information is from t
Slide 10: Mitsue vs Nipisi Gilwood Units
Mitsue vs Nipisi Gilwood Units Nipisi Mitsue Nipisi Mitsue Nipisi Mitsue Production Production AUG AUG # of Wells # of Wells BOPD BOPD WCT WCT Less than 50% WCT 12 53 140 1,100 20% 10% 50% - 90% WCT 31 28 440 500 77% 81% 90% - 95% WCT 17 15 220 200 93% 93% 55% - 98% WCT 6 34 600 820 97% 97% Greater
Slide 11: 2015 Capital Efficiency
2015 Capital Efficiency 3,300 boed 4,825 boed 4,825 boed(1) 1,525 1,525boed boed(1) 1,085/boed(1) 1,525 boed(1) 1,525 boed(1) 1. Based on IP365 average not on actual production per year 11
Slide 12: Hedging
Hedging 1. 1,000 boe/d of WCS differential hedges in place for 2016 at a differential of $18 2. 3,000 gj/d of natural gas collared at $2.00 X $2.93 for 2016. 12
Slide 13: 2015 Q3 Results
2015 Q3 Results Q3 2015 Q3 2014 % change OPERATIONAL Average production (boe/d) 11,220 7,587 48% Percentage of liquids 92% 90% 2% Development capital ($MM)(1) $11.7 $9.2 28% FINANCIAL Cash flow from operations ($MM) $24.8 $25.9 (4%) -per share (basic) $0.43 $0.60 (28%) Total dividend ($MM) $12.1 $8.
Slide 14: 2015 and 2016 Guidance
2015 and 2016 Guidance Operational 2016e 2015e 2014 Average Oil Price $ 40 WTI $ 55 WTI $93 WTI Average production (boe/d) 14,600 11,200 7,815 Development capital ($MM)(1) $ 25 $ 30 $ 36 Wells Drilled 8 8 7 Financial Cash flow from operations ($MM) $60(3) $95(2) $95 - per share (basic) $0.90 $1.67 $
Slide 15: Per Share Growth
Per Share Growth boe/d 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Production Growth Since IPO 221 Q1 2014 Q2 201403 2014 24 20141 2015Q2 2015Q3 2015 2015 2016 Forecast Forecast mmm Total (boe/d) Production / MM shares basic 225 215 205 195 185 175 165 155 Production / MM shares - basic 14%
Slide 16: Operating Costs
Operating Costs oe ENERGY LTD. OPERATING COSTS ($/BOE) $34.00 (1) Bantry Acquisition (2) Wainwright Acquisition #1 (3) Wainwright Acquisition #2 ry = Q Lal uw $32.00 (4) Mitsue Acquisition $30.00 o a nN a uy $28.00 x 4 $26.00 Bi ° : be s g uy * $24.00 od o uw : : a g no o 3 a uw - | l $20.00 | 1Q13
Slide 17: Sensitivities
Sensitivities (1) Oil (USD WTI) $35.00 $40.00 $45.00 $50.00 $60.00 $70.00 WCS (CAD) $31.72 $37.34 $45.75 $49.67 $56.50 $62.75 FX (USD/CAD) 0.69 0.71 0.73 0.75 0.79 0.83 Aeco (CAD) $2.50 $2.50 $2.50 $2.50 $2.50 $2.50 Netback ($/boe) after risk management $11.76 $14.50 $19.25 $21.00 $24.50 $27.50 Aver
Slide 18: ARO
ARO Millions $200 $180 $160 $140 $120 $100 $80 $11,000,000 $60 $40 $20 $0 0‐9 years 10‐20 years 21‐35 years 36‐50 years Facilities Wells NPV 10 = $42 MM 18
Slide 19: Corporate Information
Corporate Information Corporate Headquarters Cardinal Energy Ltd. 600, 400 – 3rd Avenue S.W. Calgary, AB T2P 4H2 Bankers ATB Financial CIBC World Markets Inc. RBC Dominion Securities Inc. Scotia Capital Inc. National Bank of Canada Auditors KPMG LLP Legal Burnet Duckworth & Palmer LLP Reserves Sprou
Slide 20: Analyst Coverage
Analyst Coverage Firm Analyst Phone Email BMO Nesbitt Burns Ray Kwan 403-515-1500 Ray.kwan@bmo.com CIBC Adam Gill 403-216-3405 adam.gill@cibc.com Clarus Securities Inc. Josie Ho 403-767-0823 jho@clarussecurities.com Dundee Securities Chad Ellison 403-509-2663 cellison@dundeesecurities.com FirstEnerg
Slide 21: Advisory
Advisory Forward-looking Statements This presentation contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Cardinal's plans and other aspects of Cardinal's anticipated future
Slide 22: Advisory
Advisory This presentation contains future-oriented financial information and financial outlook information (collectively, "FOFI") about our prospective results of operations, cash flows, payout ratio and components thereof, all of which are subject to the same assumptions, risk factors, limitations
Slide 23: Advisory
Advisory Advisory Regarding Oil and Gas Information The crude oil, natural gas and natural gas liquid reserves and related future net revenue of Cardinal presented herein were evaluated by Sproule Associates Limited ("Sproule") and GLJ Petroleum Consultants (“GLJ“), Cardinal's independent reserves e
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