Inplay Oil Corp · TSX:IPO
Inplay Oil — Investor Presentation (January 2023)
31 slides from Inplay Oil's investor presentation, January 2023
Slide 1: Corporate Presentation January 2023
Corporate Presentation January 2023 TSX : IPO OTCQX : IPOOF
Slide 2: Investment Highlights
Investment Highlights • Technically focused team with 8 year track record of delivering per share growth through multiple cycles – Continual annual top-tier organic growth amongst peers since inception – Sustainability enhanced with strategic accretive acquisitions and strong balance sheet – Focused
Slide 3: Corporate Overview
Corporate Overview OPERATING SUMMARY 2023 Average Production (light oil & liquids %) 9,500 – 10,500 boe/d (58% – 61%)(1) 2023 Hz Drilling Plans 17.0 – 18.0 net 2021 Reserves Proved Developed Producing 15.9 Mmboe Total Proved Reserves 45.9 Mmboe 63% oil & NGL Total Proved and Probable Reserves 60.6 M
Slide 4: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights Average production (boe/d)(1) 9,495 6,011 58 Adjusted funds flow ($000s)(2) 30,232 15,555 94 Adjusted funds flow per share ($)(3) 0.35 0.23 52 Free adjusted funds flow ($000s)(4) 5,690 5,100 12 Revenue ($/boe) 65.24 56.66 15 Operating netback ($/boe)(4) 39.55 37.09 7 Ope
Slide 5: Management and Directors
Management and Directors Management Directors Strong Technically and Value Creators Experienced Industry Board Doug Bartole, P. Eng., ICD.D Doug Bartole, P. Eng., ICD.D President and CEO, Director Regan Davis, P. Eng., ICD.D Kevin Yakiwchuk, MSc., P. Geol. Joan Dunne, FCPA, FCA, ICD.D Vice President
Slide 6: Consistent Top-Tier Organic Growth
Consistent Top-Tier Organic Growth Extraordinary recovery in production, AFF and debt reduction post COVID Production(1) 70,000 Reserves 750 11,000 120 PDP Production/sh (boe/d/mm shares) Liquids (bbl) 10,000 TPP / share (boe/m shares) 110 TP Gas (boe) 60,000 9,000 100 TPP 650 Production (boe/d) Pro
Slide 7: Long-term Forecast
Long-term Forecast Long-term forecast provides top-tier production per share Adjusted Funds Flow(3) growth and strong FAFF generation: 100 Adjusted Funds Flow ($mm) Adjusted Funds Flow ($mm) WTI – Target to provide organic growth of 6% – 10% considering WTI 150 90 price levels: WTI (US$/bbl) 80 • ~U
Slide 8: Sustainable Top-tier Returns
Sustainable Top-tier Returns Continued top-tier production per share growth: Allocation of Adjusted Funds Flow 60% Capex FAFF (3) Dividends 200 DAPPS Growth – InPlay has historically demonstrated and forecasts to continue to 50% Adjusted Funds Flow ($mm) generate measured, top-tier organic productio
Slide 9: IPO Consistently Providing Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels
IPO Consistently Providing Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels IPO Capital Efficiencies Adding Producing Boed • 2021 capital efficiency of $12,583 per boe/d • 3 year average capital efficiency of $15,354 per boe/d The peers above are defined as light oil weighted s
Slide 10: Focused Asset Base
Focused Asset Base Drilling industry pacesetter horizontal wells and exceeding forecasted volumes InPlay Land InPlay Wells 85% Cardium Industry Cardium Wells ALBERTA production PEMBINA Edmonton WILLESDEN E. BASIN GREEN PEMBINA DUVERNAY Calgary Production(1): ~4,000 boe/d (52% oil & NGL) Upside: 153
Slide 11: Willesden Green
Willesden Green Dominant land position in the Willesden Green Cardium trend Low risk horizontal infill drilling in well established field with large oil in place and low recovery factors Quick payout drilling inventory (6 months or less) 188 net drilling locations Recent acquisition complementary to
Slide 12: Pembina Cardium
Pembina Cardium Low risk infill drilling in well established field with large oil in place and low recovery factors • Minimal infrastructure capital required InPlay Rights InPlay Wells Cardium Vertical Quick payout drilling inventory (6 months or less) Cardium Horizontal Acquisition (2020) 153 net d
Slide 13: Cardium Type Well Economics
Cardium Type Well Economics The Cardium is a well established play providing some of the best low risk returns in the Western Canada Sedimentary Basin Pembina Willesden Green 1.0 Mile Hz 1.5 Mile Hz 1.0 Mile Hz 1.5 Mile Hz Capex (mm) $2.4 $3.5 $2.2 $3.4 Potential Recovery (mboe) 180 330 205 310 IP90
Slide 14: 2023 Forecast
2023 Forecast Commodity Price Assumptions 2023 Forecast WTI oil price (US$/bbl) $80.00 Edmonton par (C$/bbl) $105.25 AECO gas price ($/GJ) $3.40 Operational Forecast Avg production (boe/d) (% liquids)(1) 9,500 – 10,500 (58 – 61%) Operating netback ($/boe)(2) $37.25 – $40.25 Adjusted funds flow ($mm)
Slide 15: Environmental Leadership
Environmental Leadership – Inaugural sustainability report released in September 2022, GHG Emissions available on website 50 – Reduction in CO2 emissions (scope 1 and 2) of 23% in 2021 40 compared to prior year 30 12% – Emissions reduction of 1,540 tonnes of CO2e (equivalent to 20 26% removing 335 c
Slide 16: Summary
Summary • Providing top-tier production growth with strong FAFF(1), focused on low leverage and managing a highly sustainable company • Positioned to execute on additional disciplined and accretive acquisitions • 2023 forecast : – Adjusted funds flow(1) of $126mm – $138mm – FAFF(2) of $46mm – $63mm,
Slide 17: Appendix
Appendix Ye INPLAY OIL 17
Slide 18: InPlay Team
InPlay Team Strong Technically and Value Creators Doug Bartole, President and CEO and Director, P. Eng., ICD.D (over 27 years) • Founder of InPlay; Founder, President and CEO of Vero Energy; VP Operations of True Energy; Management and Engineering roles at Husky Energy, Renaissance Energy and PanCan
Slide 19: East Basin Duvernay Shale
East Basin Duvernay Shale Emerging Light Oil Play 36.5 Crown Sections in the Huxley Area (23,168 net acres) – Extensive activity directly offsetting InPlay’s land • Long land tenure allows InPlay a measured pace of development as others prove up the play around us Significant Light Oil Resource (hig
Slide 20: Risk Management
Risk Management Hedges (Commodity derivative contracts) Q1/23 Q2/23 Q3/23 Q4/23 Natural Gas AECO Swap(1) (GJ/d) - 10,000 10,000 3,370 Hedged price ($AECO/GJ) - $3.96 $3.96 $3.96 (1) Fixed price swaps provide InPlay with a guaranteed price in lieu of realization of floating index prices. (2) Costless
Slide 21: Slide Notes
Slide Notes Slide 2 1. 2023 production, adjusted funds flow, free adjusted funds flow, net debt/EBITDA and relevant growth rates are based on forecasted assumptions outlined in the “Forward Looking Information and Statements” in the Reader Advisories. Slide 3 1. 2023 production rates and drilling pl
Slide 22: Slide Notes (continued)
Slide Notes (continued) Slide 11 (cont’d) 2. The estimated Operating Income, Operating Netback per boe, Adjusted Funds Flow and Free Adjusted Funds Flow for the Prairie Storm Assets in 2022 is based on strip pricing as of September 27, 2021. The key underlying assumptions used in the development of
Slide 23: Reader Advisories
Reader Advisories All amounts in this presentation are stated in Canadian dollars unless otherwise specified. Throughout this presentation, the terms Boe (barrels of oil equivalent) and Mmboe (millions of barrels of oil equivalent) are used. Such terms when used in isolation, may be misleading. In a
Slide 24: Reader Advisories (continued)
Reader Advisories (continued) Oil and Gas Advisories (cont’d) Net Present Value Estimates - It should not be assumed that the net present value of the estimated future net revenues of the reserves of InPlay included in this presentation represent the fair market value of the reserves. There is no as
Slide 25: Reader Advisories (continued)
Reader Advisories (continued) Production Breakdown by Product Type Disclosure of production on a per boe basis in this press release consists of the constituent product types as defined in NI 51-101 and their respective quantities disclosed in the table below: Light and Light and Conventional Conven
Slide 26: Reader Advisories (continued)
Reader Advisories (continued) Non-GAAP and Other Financial Measures (cont’d) Operating Income/Operating Netback per boe/Operating Income Profit Margin - InPlay uses “operating income”, “operating netback per boe” and “operating income profit margin” as key performance indicators. Operating income is
Slide 27: Reader Advisories (continued)
Reader Advisories (continued) Capital Management Measures Adjusted Funds Flow - Management considers adjusted funds flow to be an important measure of InPlay’s ability to generate the funds necessary to finance capital expenditures. Adjusted funds flow is a GAAP measure and is disclosed in the notes
Slide 28: Reader Advisories (continued)
Reader Advisories (continued) Key Budget and Underlying Material Assumptions to FLI The key budget and underlying material assumptions used by the Company in the development of its current and previous 2022 guidance, 2023 guidance and preliminary forecasts for 2024 and 2025 are as follows: Current G
Slide 29: Reader Advisories (continued)
Reader Advisories (continued) Actuals Updated Guidance Guidance Updated Forecast Updated Forecast FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Production Boe/d 5,768 9,100 – 9,200 9,500 – 10,500 10,250 – 11,250 10,950 – 11,950 Opening Working Cap. (Net Debt) $ millions ($73.7) ($80.2) ($31) – ($32) ($2)
Slide 30: Reader Advisories (continued)
Reader Advisories (continued) Previous Guidance Previous Forecast Previous Forecast Previous Forecast FY 2022(1) FY 2023(1) FY 2024(1) FY 2025(1) Adjusted Funds Flow $ millions $139 – $143 $134 – $140 $136 – $142 $133 – $139 Interest $/boe 1.20 – 1.60 0.00 – 0.50 0.00 – 0.10 0.00 – 0.10 EBITDA $ mil
Slide 31: Contact Us
Contact Us Doug Bartole President and CEO 587.955.0632 DougB@InPlayOil.com #2000, 350 – 7th Avenue SW Calgary, AB T2P 3N9 www.inplayoil.com