Saturn Oil & Gas Inc. · TSX:SOIL
Saturn Oil & Gas — Investor Presentation (December 2023)
28 slides from Saturn Oil & Gas's investor presentation, December 2023
Slide 1: Corporate Presentation
Dec 2023 CORPORATE PRESENTATION TSX: SOIL FSE: SMKA OTCQX: OILSF Harvesting A Sustainable Future
Slide 2: Disclaimer
DISCLAIMER This presentation is for informational purposes only and is not intended as a solicitation or offering of securities of Saturn Oil & Gas Inc. (“Saturn” or the “Company") in any jurisdiction. The material presented is not intended to modify, qualify, supplement or amend information disclos
Slide 3: Saturn's Free Cash Flow Strategy
SATURN’S FREE CASH FLOW STRATEGY 30 Quarterly Production Forecast (mboe/d) Harvest Mode 26,265 Barrels of oil equivalent (Boe) daily production1 25 26.0 26.3 26.3 20 $375M Adjusted EBITDA forecast for 20232 17.8 15 12.5 $2.25 Cash flow per share target 2023e3 10 11.0 5 7.0 7.3 7.5 7.3 1x Cash Flow3
Slide 4: Ridgeback Acquisition
RIDGEBACK ACQUISITION Closed February 28, 2023 $525M 1.7x 17,000 boe/d 71% Net Cash Cash Flow Net Production Added Light Oil & Shares at Closing Date & NGLs Attractive Acquisition Metrics1 $500M Transaction Financing Q1 Cash Recycle $375M term debt with New York based family office Mmboe $/boe Netba
Slide 5: Corporate Profile
CORPORATE PROFILE | TSX: SOIL FSE: SMKA OTCQX: OILSF Conservative Balance Sheet Management FINANCIAL 60% of cash flow directed to debt repayment Shares Outstanding (Basic) 139.3M ▪ Net debt ~$455M by year end 2023 = 1.2x EBITDA Options & RSU (avg. exercise $2.50) 4.2M Warrants 14.7M 40% of cash flow
Slide 6: Diversified Sustainable Development
DIVERSIFIED SUSTAINABLE DEVELOPMENT Diversified Light Oil Development Platform >150 Four core operating areas offer diversification of light oil plays: ▪ SE Saskatchewan: Low decline, high rates of return, multi-zone ▪ West Central Saskatchewan: Resource play, repeatability, steady MMboe Proforma Pr
Slide 7: 2023 Drilling Outperformance
2023 DRILLING OUTPERFORMANCE 2023 New Well Initial Production 30 Days (IP30) 3 32 / 48 300 Wells Wells with IP30 Data 279.0 250 7% above type curve 260 22% 200 Above Type Curve Average IP30 vs. Type Curve IP30 (Boe/d) drilled to date in 2023 150 6 8 15 100 Wells Wells 113.8 Wells 103.2 $33.5M 88.3 1
Slide 8: Optimization: Reduce Costs + Increase Netbacks
OPTIMIZATION: REDUCE COSTS + INCREASE NETBACKS Robust Growth Driven By High Netback Production Adds Operating & Transportation Cost1 ($/boe) Robust Operating Netback ($/boe)1,2 $30 19% $90 $85.00 $100 27.96 2021 to 2023 YTD 25.28 $80 $90 $20 22.46 Operating Netback, Net of Derivatives ($/boe)1,2 $8
Slide 9: SE Saskatchewan Consolidation
SE SASKATCHEWAN CONSOLIDATION Saturn’s Core Area Strategically Extended by Viewfield Acquisition Oxbow Area ▪ 70% increase in production to 12,250 boe/d1 (96% oil & NGLs) ▪ Operational synergies with integration to Field HQ in Carlyle, SK ▪ Strategic gas processing facility expands netbacks ▪ Over 2
Slide 10: SE Saskatchewan: Bakken Resource Play
SE SASKATCHEWAN: BAKKEN RESOURCE PLAY New Drilling Techniques: ▪ Opens light oil Bakken fairway – similar to Clearwater operations ▪ Features Open Hole Multi-Leg (OHML) unstimulated horizontal development ▪ Strong performance from recent 8-leg horizontal industry wells: IP30 170 bbl/d (100% oil) Vie
Slide 11: SE Saskatchewan: Manor Spearfish
SE SASKATCHEWAN: MANOR SPEARFISH Multi-Zone Development: ▪ Spearfish, the focus of Saturn’s 2023 drilling ▪ IP30 89.0 bbls/d light oil1 → 16% above Type Curve Manor Area ▪ 6 wells on production in Q3 2023 ▪ Up to three follow up locations in Q1 2024 ▪ 35+ booked locations2 Spearfish IP30 Production
Slide 12: West Central Saskatchewan: Viking
WEST CENTRAL SASKATCHEWAN: VIKING Viking Highlights ▪ Historical company experience continues to produce and exceed peers ▪ >300 de-risked locations with strategic facilities offering blending upside ▪ 32 wells drilled in 2022: IP30 93.7 bbls/d Viking Area ▪ 12 wells drilled in 2023: IP30 103.2 bbls
Slide 13: Central Alberta: Cardium Resource Play
CENTRAL ALBERTA: CARDIUM RESOURCE PLAY Cardium Highlights ▪ Well defined light oil fairway, predictable reservoir characteristics and long-term, stable production ▪ High deliverability with facilities in place for fast online production Lochend Area ▪ 3 Lochend wells drilled in Q3 2023 – online in O
Slide 14: North Alberta Assets
NORTH ALBERTA ASSETS Kaybob – Montney Highlights Deer Mountain – Swan Hills Highlights 26 25 Booked locations1 Booked locations1 4 17 Un-booked locations1 Un-booked locations1 8 10+ Years of inventory Years of inventory 28,400 25,500 Net acres, 100% WI Net acres, 100% WI 2,300 1,000 Boe/d, 35-45o AP
Slide 15: 2023 Guidance
2023 GUIDANCE Updated FY 20233 2023 WTI Oil Price Assumption $USD 80.00 2023E Production boe/d 24,100 Dec 2023E Production boe/d 27,000 Pre-Hedge Adjusted EBITDA1 $M $430 Post-Hedge Adjusted EBITDA1 $M $375 Adjusted Funds Flow (AFF) 1 $M $285 Development Capital Expenditures $M $130 Free Funds Flow1
Slide 16: Peer Comparison & Research Coverage
PEER COMPARISON & RESEARCH COVERAGE Canaccord Genuity Inc. Research - Canadian Listed Oil & Gas Companies 2024E EV/DACF1 Analyst Forecast Total Return1 Average: 2.6X Firm Analyst Rating Target Price Return Beacon Securities Limited, Canada Kirk Wilson | kwilson@beaconsecurities.ca Buy $4.75 116% Can
Slide 17: TSX: SOIL FSE: SMKA OTCQX: OILSF
TSX: SOIL FSE: SMKA OTCQX: OILSF Head Office Executive Officers Directors Saturn Oil & Gas Inc. John Jeffrey, Chief Executive Officer & Director John Jeffrey, CEO & Director Suite 2800, 525 – 8th Ave SW Scott Sanborn, Chief Financial Officer Grant MacKenzie, CLO & Director Calgary, AB T2P 1G1 Justin
Slide 18: Appendix
APPENDIX TSX: SOIL FSE: SMKA OTCQX: OILSF 18
Slide 19: Environment, Social & Governance
ENVIRONMENT, SOCIAL & GOVERNANCE Dedicated to Full Cycle Sustainability and Responsible Operations Environment Saturn’s Mission • Released inaugural Sustainability Report outlining our approach to climate-related risks and opportunities “Saturn aims to lead the oil • Aligned with the Task Force on C
Slide 20: Our Team
MANAGEMENT Our Team A Long History of Value Creation in the Oil and Y OGas U R SProduction U B T I T L E H E R Space E John Jeffrey Scott Sanborn Justin Kaufmann Grant Mackenzie Kevin Smith Chief Executive Officer Chief Financial Officer Chief Development Officer Chief Legal Officer VP Corporate Dev
Slide 21: Directors
DIRECTORS Sound Governance and Strategic Oversight John Jeffrey, MBA, BA Dr. Thomas Gutschlag ▪ Former CFO and founding partner of Axiom Group ▪ Chairman, Cofounder and former CEO/CFO of Deutsche Rohstoff AG, a public company listed on the ▪ Strong background in operations and finance with successfu
Slide 22: Net Asset Value
NET ASSET VALUE Saturn Shares Are Backed With Solid Asset Value1 $12.81/ share1 Long Life Assets Expected to Generate Strong Cash Flows ▪ 13.8 year P+P Reserve Life Index (RLI)2 ▪ Full exercise of warrants and options provides $52.3M in proceeds Total Proved FD NAV Year End 2022 (not including Ridge
Slide 23: Hedging Summary
HEDGING SUMMARY Q4 2023 Hedging Volume Low High (bbl/d) CAD Hedging 7,491 C$102.01 C$102.01 USD Hedging 5,833 U$63.90 U$67.52 Total Hedging 13,324 U$69.84 U$73.03 61% Hedged of Q4 2023 oil & NGL production1 Five Year Hedging Year Volume (bbl/d) % of Oil & NGL Hedged3 % Hedged to CAD Low (USD) High (
Slide 24: Corporate Profile
CORPORATE PROFILE TSX.V: SOIL FSE: SMKA OTCQX: OILSF Current Share Structure YTD Average Daily Trade Volume1 Basic Millions Average Daily Trade Volume 2023 to Date TSX-V 220,249 Shares Outstanding 139.3 Other Canada 119,432 Options & Warrants Millions Expiry Date Strike Price Proceeds ($M) Germany 4
Slide 25: Ridgeback Acquisition Valuation Review
RIDGEBACK ACQUISITION VALUATION REVIEW $400 MM $600 MM $800 MM $1,000 MM $1,200 MM $1,400 MM 67 mmboe Price/1P BOE $603 $737 ($9 - $11) TRANSACTION 99 mmboe MULTIPLES Price/2P BOE $745 $944 ($7.5 – $9.5) 17,000 boe/d Price/Production $527 $697 ($31k - $41k) $304 MM Price/Cash Flow $578 $761 (1.9x –
Slide 26: Disclaimer – Oil & Gas Advisories
DISCLAIMER – OIL & GAS ADVISORIES Information Regarding Disclosure on Oil and Gas Operational Information and Non-IFRS Measures In this presentation and in other materials disclosed by the Company, we employ certain measures to analyze financial performance, financial position and cash flow. These n
Slide 27: Disclaimer – Oil & Gas Advisories
DISCLAIMER – OIL & GAS ADVISORIES Supplemental Information Regarding Corporate Reserves 1 Reserve Assumptions: Reserve evaluation calculations are based on data and expected future Natural production volumes as provided by third party independent evaluators Ryder Scott Company (the Light & Heavy Nat
Slide 28: TSX: SOIL FSE: SMKA OTCQX: OILSF
TSX: SOIL FSE: SMKA OTCQX: OILSF Head Office Executive Officers Directors Saturn Oil & Gas Inc. John Jeffrey, Chief Executive Officer & Director John Jeffrey, CEO & Director Suite 2800, 525 – 8th Ave SW Scott Sanborn, Chief Financial Officer Grant MacKenzie, CLO & Director Calgary, AB T2P 1G1 Justin
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