Spartan Delta Corp · TSX:SDE
Spartan Delta — Investor Presentation (January 2024)
19 slides from Spartan Delta's investor presentation, Jan 2, 2024
Slide 1: Spartan Delta Corp. Investor Presentation
SPARTAN DELTA CORP. Investor Presentation January 2, 2024
Slide 2: Spartan Delta Corporate Strategy: Three Pillar Strategy
SPARTAN DELTA CORPORATE STRATEGY Three Pillar Strategy I . D E E P B A S I N O P T I M I Z AT I O N I I . D E E P B A S I N C O N S O L I D AT I O N I I I . N E W D U V E R N AY C O R E A R E A 7% organic growth(1) Technical expertise Low cost of entry Free Funds Flow generation Operational and G&A
Slide 3: Corporate Summary
CORPORATE SUMMARY Building a Sustainable Energy Company C A P I TA L I Z AT I O N : DEEP BASIN ~39,500 boe/d 2024E Spartan Delta Corp. TSX SDE ~$130 MM 2024 Capital ~19.2 net wells Share Price(1) $/sh 2.94 ▪ >130,000 net acres ▪ >790 net drilling locations Market Capitalization (1) $MM 509 ▪ 2024 Gu
Slide 4: 2024 Guidance
2024 GUIDANCE Delivering Results Year-Over-Year GUIDANCE: H1 2023 H2 2023 FY 2023 FY 2024 2024 AFF Δ Crude Oil & Condensate boe/d 13,900 2,300 8,100 2,700 Natural Gas Liquids (NGLs) boe/d 11,900 8,600 10,200 9,700 Natural Gas MMcf/d 259 157 208 163 ~$11 MM Average Production boe/d 68,000 - 70,000 36
Slide 5: Spartan's Strategic Milestones
SPARTAN’S STRATEGIC MILESTONES Continuously Building Shareholder Value UNAUDITED HIGHLIGHTS FY 2022 Q1 2023 Q2 2023 Q3 2023 THIRD QUARTER 2023 HIGHLIGHTS: Crude Oil boe/d 12,976 15,034 7,489 478 Condensate boe/d 2,328 2,994 2,269 1,653 Natural Gas Liquids (NGLs) boe/d 12,612 13,202 11,161 8,670 37,5
Slide 6: I. Deep Basin Optimization
I. DEEP BASIN OPTIMIZATION Free Funds Flow with Substantial Inventory Duration Into Owned Infrastructure S U M M A R Y: ▪ Spartan’s foundational asset generating 7% organic growth(1) resulting in significant Free Funds Flow Belly River ▪ Targeting >20% capital efficiency improvements in 2024 compare
Slide 7: II. Deep Basin Consolidation
II. DEEP BASIN CONSOLIDATION Fairway Poised for Consolidation D E E P B A S I N F A I R W AY: ▪ Spartan has a proven consolidation and integration record and a clean balance sheet position ▪ Deep Basin offers scale and operational synergies ▪ Spartan possesses technical expertise in the fairway ▪ Ex
Slide 8: III. New Duvernay Core Area
III. NEW DUVERNAY CORE AREA Prolific Liquids-Rich Shale Asset Offers Significant Scalability and Commerciality W E S T S H A L E B A S I N D U V E R N AY: ▪ Spartan has accumulated >130,000 net acres to date and acquired ~400 BOE/d of production ▪ Geotechnical attributes comparable to the Duvernay i
Slide 9: Spartan's Sustainable Development Goals
SPARTAN’S SUSTAINABLE DEVELOPMENT GOALS Spartan is Committed to Meeting the Needs of the Present, While Protecting the Future R E S U LT S : A C T I V E I N T I AT I V E S : n to n v ersio Maintained Sa fety co ps th 0% lar pumpumps by discount ove e max r i 5 so rive 24 n with perfo the las mum rma
Slide 10: Spartan's Sustainable Development Goals
SPARTAN’S SUSTAINABLE DEVELOPMENT GOALS Spartan is Committed to Meeting the Needs of the Present, While Protecting the Future Dominant position in the liquids-rich Deep Basin, yielding some of Canada’s most prolific economics Infrastructure footprint provides enhanced capital efficiencies, netbacks
Slide 11: www.SpartanDeltaCorp.com
www.SpartanDeltaCorp.com 11
Slide 12: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS MANAGEMENT TEAM: Fotis Kalantzis ▪ Chairman, Director and co-founder of Logan Energy; former SVP and co-founder of Spartan Energy, Spartan Oil and Spartan Exploration President, CEO & Director Ronald Williams ▪ Former Director, Finance, Spartan Delta; former VP F
Slide 13: Spartan's Historical Performance
SPARTAN’S HISTORICAL PERFORMANCE Spartan Delta’s Financings Have Significantly Outperformed the TSX Energy Index DECEMBER 2020 MAY 2020 MARCH 2021 AUGUST 2021 Founding Financing: Bellatrix Asset Acquisition: Montney Acquisitions: Velvet Acquisition: $25 million at $1.00 per share $64 million at $2.0
Slide 14: Previous Iterations Historical Performance
PREVIOUS ITERATIONS HISTORICAL PERFORMANCE Spartan Has Significantly Outperformed the TSX Energy Index Through Multiple Iterations and Cycles SPARTAN SPARTAN SPARTAN SPARTAN EXPLORATION OIL ENERGY DELTA January 2010 – May 2011 June 2011 – January 2013 December 2013 – May 2018 December 2019 – June 20
Slide 15: Analyst Coverage & Corporate Information
ANALYST COVERAGE & CORPORATE INFORMATION EXECUTIVE OFFICE STOCK EXCHANGE LISTING INSTITUTION: A N A LY S T : Spartan Delta Corp. The TSX Exchange 1600, 308 – 4th Avenue SW Trading Symbol: SDE ATB Capital Markets Patrick O’Rourke Calgary, Alberta T2P 0H7 P: 403 265 8011 I N V E S T O R I N F O R M AT
Slide 16: Abbreviations
ABBREVIATIONS A&D Acquisitions and Dispositions mmboe/sec Million barrels of oil equivalent per section AECO Alberta Energy Company "C" Meter Station of the NOVA Pipeline System mmbtu; mmbtu/d Metric million British thermal unit; metric million British thermal unit per day ARO Asset Retirement Oblig
Slide 17: Disclaimer
DISCLAIMER Forward Looking Statements: projections relating to production, costs and expenses and health, safety and environmental risks), incorrect assessment of the value of acquisitions, failure to complete or realize the benefits of acquisitions, constraint in the ▪ Certain information included
Slide 18: Disclaimer
DISCLAIMER Oil and Gas Advisories: (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the McDaniel Report and account for drilling locations that have associated proved and/or probable reserves, as ▪ BOE Disclosure. The term barrels of oil
Slide 19: Disclaimer
DISCLAIMER Non-GAAP M easures and Ratios: ▪ “Adjusted Net Capital Acquisitions” is used by Spartan to measure the aggregate of cash, debt and share consideration used to acquire crude oil and natural gas assets, net of cash proceeds received on dispositions. The ▪ This presentation contains certain