Inplay Oil Corp · TSX:IPO
Inplay Oil — Investor Presentation (March 2022)
32 slides from Inplay Oil's investor presentation, March 2022
Slide 1: Corporate Presentation March 2022
Corporate Presentation March 2022 TSX : IPO OTCQX : IPOOF
Slide 2: Investment Highlights & Recent Events
Investment Highlights & Recent Events • Technically focused team successfully managed InPlay through a challenging environment and now in the strongest position in our corporate history – Continual annual top-tier organic growth amongst peers since inception – Sustainability enhanced with strong bal
Slide 3: Corporate Overview
Corporate Overview OPERATING SUMMARY 2022 Average Production (light oil & liquids %) 8,900 – 9,400 boe/d (62% - 63%)(1) 2022 Hz Drilling Plans ~17.0 net 2021 Reserves Proved Developed Producing 15.9 Mmboe 63% oil & NGL Total Proved Reserves 45.9 Mmboe in TPP reserve booking Total Proved and Probable
Slide 4: 2021 Financial Highlights
2021 Financial Highlights Highlighted values indicate record results Average production (boe/d)(1) 5,768 3,985 45 5,000 15 Adjusted funds flow ($000s)(2) 47,028 7,436 532 32,541 45 Adjusted funds flow per share ($)(3) 0.67 0.11 509 0.48 40 Free adjusted funds flow ($000s)(4) 13,594 (17,310) - 342 -
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 Joan Dunne, FCPA, FCA, ICD.D Kevin Yakiwchuk, MSc., P. Geol. Craig Golinowski CFA, MBA Vice President E
Slide 6: Consistent Top-Tier Organic Growth
Consistent Top-Tier Organic Growth Extraordinary recovery in production, AFF and debt reduction post COVID (1) See “Production Breakdown by Product Type” in the Reader Advisories (2) Non-GAAP measure or ratio. See “Non-GAAP and Other Financial Measures” in Reader Advisories (3) Capital management me
Slide 7: 2021 Year End Reserves & Efficiency Highlights
2021 Year End Reserves & Efficiency Highlights Reserve Highlights Reserves BOE NPV BT10% RLI Replacement (Mboe) ($000s) (Years) (%) Proved Developed Producing 15,890 206,481 395 7.5 Total Proved 45,891 471,100 1,253 21.8 Total Proved + Probable 60,640 685,513 1,422 28.8 Finding, Development & Acquis
Slide 8: 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 9: Focused Asset Base
Focused Asset Base Drilling industry pacesetter horizontal wells and exceeding forecasted volumes InPlay Land InPlay Wells 80% Cardium Industry Cardium Wells ALBERTA production PEMBINA Edmonton WILLESDEN E. BASIN GREEN PEMBINA DUVERNAY Calgary Production(1): ~4,550 boe/d (63% oil & NGL) Upside: 153
Slide 10: Willesden Green
Willesden Green Dominant land position in the Willesden Green Cardium trend Low risk infill drilling in well established field with large oil in place and low recovery factors • Minimal infrastructure capital required Quick payout drilling inventory Recent acquisition complementary to InPlay’s land
Slide 11: 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 Quick payout drilling inventory InPlay Rights 2020 strategic Cardium asset acquisition InPlay Wells Cardium Vertical • Cost of acquisition, fi
Slide 12: 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) $2.1 $3.1 $2.2 $3.0 Potential Recovery (mboe) 150 330 200 305 IP90
Slide 13: 2022 Forecast
2022 Forecast Commodity Price Assumptions 2022 Forecast WTI oil price (US$/bbl) $90.00 Edmonton par (C$/bbl) $109.50 AECO gas price ($/GJ) $4.30 Operational Forecast Avg production (boe/d) (% liquids)(1) 8,900 – 9,400 (62 - 63%) Operating netback ($/boe)(2) $45.75 - $48.75 Adjusted funds flow ($mm)(
Slide 14: 2022 Key Metrics at Various $WTI Pricing
2022 Key Metrics at Various $WTI Pricing US $WTI $70 $80 $90 $100 $110 Production (boe/d)(1)(2) 9,150 9,150 9,150 9,150 9,150 Debt adjusted prod. per share growth (%)(3) 67% 79% 90% 102% 109% AFF ($ millions)(4) $121 $134 $146 $156 $162 FAFF ($ millions)(3) $63 $76 $88 $98 $104 FAFF Yield (%)(3)(6)
Slide 15: 2021 Year End Net Asset Value
2021 Year End Net Asset Value PDP TP TPP ($000s) ($000s) ($000s) NPV BT10% 206,481 471,100 685,513 Undeveloped Land 33,474 Net Debt(1) (80,196) Net Asset Value 159,759 424,378 638,791 Basic Common Shares 86,215 2021 NAV / Share $1.85 $4.92 $7.41 2020 NAV / Share $1.02 $1.94 $3.50 • WTI prices in the
Slide 16: Environmental Leadership
Environmental Leadership • Inaugural sustainability report expected to be released by summer 2022 GHG Emissions • Reduction in CO2 emissions (scope 1 and 2) of 20% in 2021 compared 0.04 to prior year 0.03 • Emissions reduction of 1,540 tonnes of CO2e (equivalent to removing 12% 26% 335 cars for one
Slide 17: Deep Value and Providing Top-tier Organic Growth
Deep Value and Providing Top-tier Organic Growth Analyst verification of value, low leverage and growth 2022 EV/DACF vs 2022 DAPPSG + FCF 2022 EV/DACF vs 2022 Net Debt/CF Domestic E&Ps Domestic E&Ps International E&Ps International E&Ps Avg: 85% Avg: 0.0x Avg: 2.0x Avg: 2.0x • InPlay offers one of t
Slide 18: Summary
Summary • Executing on strategy for top-tier production growth with strong FAFF(1) focused on maximizing returns for shareholders • Latest acquisition improves InPlay’s long term sustainability – Low decline base production requiring minimal capital to keep flat – Significant addition of top-tier op
Slide 19: Appendix
Appendix Ye INPLAY OIL 19
Slide 20: InPlay Team
InPlay Team Strong Technically and Value Creators Doug Bartole, President and CEO and Director, P. Eng., ICD.D (over 27 years) • Founder of InPlay; Founder, President and CEO of Vero Energy; VP Operations of True Energy; Management and Engineering roles at Husky Energy, Renaissance Energy and PanCan
Slide 21: East Basin Duvernay Shale
East Basin Duvernay Shale Emerging Light Oil Play 36.5 Crown Sections in the Huxley Area (23,168 net acres) – Extensive activity directly offsetting InPlay’s land • Long land tenure allows InPlay a measured pace of development as others prove up the play around us Significant Light Oil Resource (hig
Slide 22: Risk Management Hedges
Risk Management Hedges (Commodity derivative contracts) Q1/22 Q2/22 Q3/22 Q4/22 Natural Gas AECO Swap(1) (GJ/d) 1,000 5,250 5,250 1,769 Hedged price ($AECO/GJ) $2.30 $3.64 $3.64 $3.64 Natural Gas AECO Costless Collar(2) (GJ/d) 7,000 4,750 2,750 2,720 Hedged price ($AECO/GJ) ($2.56 - $4.25) ($2.50 -
Slide 23: Slide Notes
Slide Notes Slide 2 1. 2022 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. 2022 production rates and drilling pl
Slide 24: Slide Notes (continued)
Slide Notes (continued) Slide 10 (cont’d) 6. Accretion metrics and acquisition accretion is based on an estimated 2022 annual average production of 2,755 boe/d, operating netback of $31.75/boe, adjusted funds flow of $29.5 - $31.5 million, capital expenditures of $10.0 - $12.0 million and free adjus
Slide 25: 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 26: 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 27: 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 28: Reader Advisories (continued)
Reader Advisories (continued) Non-GAAP and Other Financial Measures (cont’d) Free Adjusted Funds Flow Yield - InPlay uses “free adjusted funds flow yield” as a key performance indicator. Free adjusted funds flow is calculated by the Company as free adjusted funds flow divided by the market capitaliz
Slide 29: Reader Advisories (continued)
Reader Advisories (continued) Non-GAAP and Other Financial Measures (cont’d) EV / DAAFF - InPlay uses “enterprise value to debt adjusted AFF” or “EV/DAAFF” as a key performance indicator. EV/DAAFF is calculated by the Company as enterprise value divided by debt adjusted AFF for the relevant period.
Slide 30: Reader Advisories (continued)
Reader Advisories (continued) In addition, this presentation contains certain forward-looking information relating to economics for drilling opportunities in the areas that InPlay has an interest. Such information includes, but is not limited to, anticipated payout rates, rates of return, profit to
Slide 31: Reader Advisories (continued)
Reader Advisories (continued) Actuals Previous Guidance Updated Guidance FY2021 FY 2022(1) FY 2022 Production Boe/d 5,768 8,900 – 9,400 8,900 – 9,400 Opening Net Debt $ millions $73.7 $76.5 - $79.5 $80.2 Ending Net Debt/(Pos. working capital, in $ millions $80.2 $22.0 - $28.0 ($1) – ($10) excess of
Slide 32: 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