Bonterra Energy Corp. · TSX:BNE
Bonterra Energy — Investor Presentation (April 2021)
21 slides from Bonterra Energy's investor presentation, April 2021
Slide 1: Corporate Presentation
CORPORATE PRESENTATION TSX: BNE APRIL 2021 1
Slide 2: Corporate Snapshot
Corporate Snapshot Financial TSX: BNE Common Shares Outstanding 33.5 million Insider Ownership 15% Tax Pools at Dec 31, 2020 $422 million Tax Horizon ~2023 2020 Exit Net Debt ~$316 million Bank Line $300 million Drawn $252 million at YE 2020 Operational Oil and Liquids Production Weighting 67% Natur
Slide 3: Focused on Free Funds Flow Generation
Focused on Free Funds Flow Generation Bonterra’s focus will remain on generating strong, sustainable, free funs flow which can be directed to debt reduction and capital spending when supported by commodity prices DISCRETIONARY As debt is reduced, focus on generating long-term, CAPITAL sustainable va
Slide 4: Financial Flexibility Drives Production Growth
Financial Flexibility Drives Production Growth Bonterra is one of the first Canadian energy producers to qualify and be approved for both the EDC and BDC government support programs, a condition of which is financial viability. $45 Million Business Development Bank of Canada (BDC) Term Loan • 2nd li
Slide 5: Forecast Activity Levels 2021-2022
Forecast Activity Levels 2021-2022 Focused on accelerated value creation by deploying $65 - $75 Million to Bonterra’s drilling program and abandonment initiatives PLANNED DRILL PROGRAM (1) PLANNED ABANDONMENT PROGRAM (1) 36 Net Well Count (On Production) Net Well Count (Abandoned) 16 100 14 90 14 80
Slide 6: Forecast Production
Forecast Production Priming the pump for future free funds flow BASE PRODUCTION 2020 CAPEX 2021 CAPEX 2022 CAPEX 16,000 14,000 12,000 10,000 8,000 6,000 SHUT IN PRODUCTION 4,000 2020 CAPEX SUSPENDED $45 MILLION 2,000 BDC FINANCING DEPLOYED 0 (1) 2022 plans are preliminary in nature and do not reflec
Slide 7: 2021 - 2022 Cash Flow Analysis
2021 - 2022 Cash Flow Analysis Positioned to generate significant free funds flow while meaningfully deleveraging over the next two years YEAR 2021 ESTIMATED PRODUCTION boe/d 13,000 OIL & LIQUID RATIO % 68% PRICE SCENARIO STRIP $50 WTI $55 WTI $60 WTI 65 WTI AVERAGE ANNUAL BNE REALIZED PRICE $/bbl 7
Slide 8: Free Funds Flow Sensitivity 2021 - 2022
Free Funds Flow Sensitivity 2021 - 2022 Bonterra’s asset base generates significant free funds flow FREE FUNDS FLOW HEDGE LOSS (3) 100 90 80 77 60 63 62 40 20 45 14 14 20 25 14 3 8 15 0 6 (5) STRIP $50 $55 $60 $65 STRIP $50 $55 $60 $65 2021 2022 -20 (1) Price Assumptions: Edmonton light differential
Slide 9: Forecast – Debt Structure and Price Sensitivity
Forecast – Debt Structure and Price Sensitivity Significant torque to oil prices amplifies efforts to deleverage when combined with increasing production Bank Debt BDC Debt Sub Debt D/CF $350 7.0 $300 $20 6.0 $20 $20 $46 $20 $46 $20 $46 $46 $20 $250 $46 5.0 $250 $45 $20 $239 $20 $230 $229 DEBT/CASH
Slide 10: Deep Drilling Inventory
Deep Drilling Inventory Concentrated assets in the Pembina Cardium oil pool support efficient operations and offer exposure to significant upside through a large inventory of low-risk, highly economic undrilled locations Pembina & Willesden Green Lands by the Numbers Cynthia West Pembina Keystone 47
Slide 11: Pembina Cardium Features
Pembina Cardium Features Original-Oil-in-Place per Section Recovery Factor 0 to 5,000 Mbbl 0% 5,000 to 10,000 Mbbl 5% 10,000 to 20,000 Mbbl 10% 20,000 to 25,000 Mbbl 15% 25,000+ Mbbl 20% 25% • Pembina is the largest conventional oilfield in Canada with large oil-in-place and low recovery to date, of
Slide 12: Pembina Cardium Geology
Pembina Cardium Geology Shale Conglomerate Sandstone Bioturbated Mudstone Sandstone Shale • Interbedded sandstone and shale with local conglomerate and prevalent underlying low permeability bioturbated mudstone • Depths range from 1,200m TVD in NE Pembina to 2,000m TVD in SW Pembina 12
Slide 13: Average BNE Cardium Economics
Average BNE Cardium Economics Cardium wells are repeatable, predictable and generate strong returns even in a weak commodity price environment 200 Reserves per well (MBOE) 140 150 IP (12 months) (boe/d) 110 BOE/D 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BNE Type Curve:
Slide 14: Our Responsibility – Environmental, Social and Governance
Our Responsibility – Environmental, Social and Governance HEALTH, SAFETY AND ENVIRONMENT (HS&E) • Apply minimal disturbance drilling techniques to reduce the overall impact to the environment • 99% routine gas conservation • Fugitive emission leak detection program in place to identify leaks or unin
Slide 15: Strategy: Positioned for Success
Strategy: Positioned for Success Our proven track record has been built on a model of generating long-term, sustainable value through disciplined capital allocation aligned with prevailing commodity prices Insiders own ~15% Experienced & Aligned Management Low Industry low ~19.5% decline Corporate D
Slide 16: Appendix
Appendix 16
Slide 17: Risk Management / Hedge Strategy
Risk Management / Hedge Strategy WTI CRUDE OIL HEDGE HEDGE STRATEGY PERIOD INSTRUMENT CURRENCY VOLUME (bbl) FLOOR ($/bbl) CEILING ($/bbl) Target to hedge 30% of pre-royalty volumes JAN 2021 - DEC 2021 COSTLESS COLLAR USD 2,250 $36.67 $48.71 JAN 2022 - MAR 2022 COSTLESS COLLAR USD 2,250 $48.00 $66.14
Slide 18: Reserves Summary – December 31, 2020
Reserves Summary – December 31, 2020 NPV BT 10% (1) Reserve Category Oil (Mbbl) BOE (Mboe) (millions) Proved Developed Producing 18,442 33,243 401,988 Proved Developed Non-Producing 1,748 2,571 21,224 Proved Undeveloped 22,877 39,505 219,293 Total Proved 43,067 75,319 642,505 Proved + Probable Devel
Slide 19: Forward Looking Information
Forward Looking Information Certain statements contained in this Presentation include statements which contain words such as “anticipate”, “could”, “should”, “expect”, “seek”, “may”, “intend”, “likely”, “will”, “believe” and similar expressions, statements relating to matters that are not historical
Slide 20: Forward Looking Information
Forward Looking Information DRILLING LOCATIONS: This presentation discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations, which are sometimes collectively referred to as “booked locations”
Slide 21: Corporate Information
Corporate Information OFFICERS BANKS George F. Fink CIBC CEO & Chairman of the Board National Bank of Canada Robb D. Thompson The Toronto Dominion Bank CFO & Corporate Secretary Alberta Treasury Branches Adrian Neumann Business Development Bank of Canada Chief Operating Officer Export Development Ca