Cardinal Energy Ltd. · TSX:CJ
Cardinal Energy — Investor Presentation (March 2021)
18 slides from Cardinal Energy's investor presentation, March 2021
Slide 1: March 2021 Corporate Presentation
TSX: CJ March 2021 Corporate Presentation
Slide 2: 2020 Highlights
2020 Highlights Fourth quarter adjusted funds flow of $13.6 million funded a conservative capital program of $3.6 million and supported a $12.5 million reduction in net debt compared to the third quarter of 2020; Average production increased 5% over the prior quarter to average 18,625 boe per da
Slide 3: 2020 Highlights
2020 Highlights Q4 2020 2020 Production Boe/d 18,625 18,442 Adjusted funds flow $ mm 13.6 43.8 Basic and diluted per share ($ per share) 0.12 0.39 Net bank debt $ mm 202.4 Convertible debentures/secured notes $ mm 44.4 Total debt $ mm 246.8 Capital expenditures $ mm 3.6 31.5 ARO expenditures $ mm 0.
Slide 4: Original budget versus Upside Scenario
Original budget versus Upside Scenario 2021 Budget 2021 Upside Case Change % At $70 WTI(1) Production Boe/d 17,751 17,751 - Adjusted funds flow $ mm 74.8 134.3 80 Basic per share ($ per share) 0.61 0.95 61 Diluted per share ($ per share) 0.55 0.87 53 Net bank debt $ mm 161.2 101.7 (37) Convertible d
Slide 5: Budget and Upside Assumptions and Sensitivities
Budget and Upside Assumptions and Sensitivities Budget Assumptions Annualized Sensitivities 2021 Budget 2021 Upside Adjusted Funds Flow ($ mm) WTI $ US/bbl 52.00 70.00 Δ US$1 WTI 3.8 Δ US$1 WCS Differential 2.9 WCS Differential $ US/bbl (13.50) (11.00) Δ US$1 MSW Differential 1.5 MSW Differential $
Slide 6: Debt Repayment Scenarios
Debt Repayment Scenarios WTI Capital/ARO Debt Repayment Closing Net Bank Debt ($/bbl) ($ mm) ($ mm) ($ mm) $42(1) 31.7 (2.7) 199.6 $52 31.7 (41.1) 161.2 Free Cash Flow $60Dividends (1) 31.7 (71.8) to Shareholders 130.4 NCIB $70(1) 31.7 (100.6) 101.7 1. Scenarios illustrative for debt repayment optio
Slide 7: 2021 Current Hedging
2021 Current Hedging Product Q1 Q2 Q3 Q4 WTI - Volume (bbl/d) 9,333 6,000 2,500 1,500 - Avg Price (CAD$) $55.16 $56.42 $57.10 $55.83 - % of production 59% 38% 16% 10% WCS Differential - Volume (bbl/d) 2,000 2,000 - - - Avg Price (CAD$) ($16.18) ($16.18) - - - % of production 24% 24% - - Natural Gas
Slide 8: Production
BOEPD - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000 23,000 2018-01-01 2018-02-01 2018-03-01 2018-04-01 2018-05-01 2018-06-01 Production 2018-07-01 2018-08-01 8 | Cardinal Energy Ltd. | TSX: CJ 2018-0
Slide 9: Significant Torque to Oil Prices
Significant Torque to Oil Prices 25% 20% 15% 10% 5% 0% TVE CR LXE BIR TPZ CJ FRU ATH AAV ARX POU PIPE KEL TOU SRX NVA PSK PEY CPG VII % change in 2021 estimated cash flow (+$5/bb change in WTI. Source: RBC Capital Markets 9 | Cardinal Energy Ltd. | TSX: CJ
Slide 10: North Operating Area
North Operating Area 2021 Forecast Oil Price $50 $60 20% 2021 Average Production: 5,500 boe/d (USD/bbl) (change in WTI) NOI $27,158 $36,233 33% FCF $22,063 $31,137 41% House Mountain – Oil Decline Mitsue – Oil Decline Annual Decline 5.0% Annual Decline 4.5% 10 | Cardinal Energy Ltd. | TSX: CJ
Slide 11: Central Operating Area
Central Operating Area 2021 Forecast 2021 Average Production: 4,500 boe/d Oil Price $50 $60 20% (USD/bbl) (change in WTI) NOI $26,455 $44,664 69% Central District 5,500 2021 Production Forecast FCF $20,653 $38,862 88% 5,000 4,642 4,500 4,132 4,000 Production (boe/d) 3,500 3,000 2,500 2,000 1,500 1,0
Slide 12: South Operating Area
South Operating Area 2021 Forecast Oil Price $50 $60 20% 2021 Average Production: 4,800 boe/d (USD/bbl) (change in WTI) NOI $28,200 $51,600 83% FCF $21,300 $36,900 73% Production decline 17% Production decline 0% 12 | Cardinal Energy Ltd. | TSX: CJ
Slide 13: Saskatchewan Operating Area
Saskatchewan Operating Area 2021 Average Production: 3,000 bo/d 2021 Forecast Oil Price $50 $60 20% (USD/bbl) (change in WTI) NOI $27,300 $38,300 40% FCF $19,800 $30,800 56% Production decline 2% 13 | Cardinal Energy Ltd. | TSX: CJ
Slide 14: Drilling Inventory Breakdown
Drilling Inventory Breakdown Cardinal Growth/Maintenance Drilling No drilling in 2021 Budget (may be revisited in second half Drill Ready Tier 1 Tier 2 Follow ups of the year based on commodity prices) South 51 35 Focus of drilling investment is the production maintenance Central 37 90 and growt
Slide 15: 2021 ARO Budget
2021 ARO Budget 2021 ARO Budget As an ABC participant, Cardinal’s required spend for 2020 Original 2020 Spent, 2021 Budget, 2021 ABC program is $5.55 million less the Budget, M$ M$ M$ approximately $1.8 million = $3.75 million which is being credited from its 2020 spend. Alberta Operated Projects
Slide 16: Federal Government Abandonment Program
Federal Government Abandonment Program On April 17, 2020 the Canadian Federal government announced a $1.7 billion to go to the provinces for work on liability cleanup for the oil and gas industry. The province of Alberta was allocated $1 billion of the federal government funding for the Alberta Si
Slide 17: Advisory
Advisory Note Regarding Forward Looking Statements performance of existing and future wells, the success of our exploration expressed in, or implied by, these forward-looking statements and, and development activities, the sufficiency and timing of budgeted capital accordingly, no assurance can be g
Slide 18: Advisory
Advisory This presentation contains metrics commonly used in the oil and natural the characteristics of the reservoir and therefore these is more uncertainty current decommissioning obligation and current lease liabilities). "Net gas industry which have been prepared by management, such as "netback"