Spartan Delta Corp · TSX:SDE
Spartan Delta — Investor Presentation (August 2022)
32 slides from Spartan Delta's investor presentation, Aug 9, 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION Spartan Delta Corp. (SDE: TSX) August 9, 2022
Slide 2: Spartan Delta Corporate Strategy
SPARTAN DELTA CORPORATE STRATEGY Building a Sustainable Energy Company CONCENTRATED ASSET BASE DEEP BASIN MONTNEY Sustaining capital ~30% of asset level NOI(1) Largest producer and acreage holder in the oil window of the Montney Low OPEX and high margin liquids-rich gas led by operated deep cu
Slide 3: Company Overview
COMPANY OVERVIEW Spartan Delta Corp. (SDE:TSX) Capitalization (as at August 9, 2022) Spartan Delta Corp. TSX SDE MONTNEY: (1) Spartan is the largest Share Price $/sh 12.55 producer and land holder in (1) the Montney oil window Market Capitalization (basic) $MM 1,950 Deep inventory of Common Shar
Slide 4: Second Quarter 2022 Highlights
SECOND QUARTER 2022 HIGHLIGHTS Operational Execution into Commodity Tailwinds UNAUDITED HIGHLIGHTS FY 2021 Q1 2022 Q2 2022 Average production volumes were 72,966 boe/d (21% oil and condensate, 17% NGLs Crude Oil boe/d 4,697 11,270 13,009 and 62% natural gas) in the second quarter. Condensate boe/d 1
Slide 5: 2022 Guidance
2022 GUIDANCE Total Return Focused Model of Organic Growth and Free Funds Flow Generation (1) 2022 Guidance Updated Guidance Previous Guidance Average Production boe/d 71,000 - 73,000 68,500 - 72,500 Crude Oil and Condensate boe/d 15,100 14,900 Natural Gas Liquids boe/d 12,550 13,200 Natural Gas mcf
Slide 6: Year-End 2021 Reserve Evaluation
YEAR-END 2021 RESERVE EVALUATION Based on 2022 Average Forecast Pricing of U$72.83/bbl WTI and C$3.56/MMBtu AECO Independent qualified reserves evaluation effective December 31, 2021 (3) 2021 RESERVE HIGHLIGHTS Volume - Gross (MMboe) Value - NPV10 ($MM) PDP TP TPP PDP TP TPP 2020 67.289 134.977 20
Slide 7: 2022 Development
2022 DEVELOPMENT Maintaining Strong Free Funds Flow While Advancing Selected Growth Projects BC AB MONTNEY 34,281 boe/d (Q2 2022)(1) ~$303 MM 2022 capital ~25 net wells 430,000 net acres > 1,000 net drilling locations identified (277 booked)(2)(4) Self-funding growth core area Development dr
Slide 8: The Montney Oil Fairway
THE MONTNEY OIL FAIRWAY A Differentiated Montney Play Targeting >50% Oil Weighted Production Montney Thermal Maturity ~430,000 acres (670 sections) of prospective Montney with in-place Flatrock volumes of up to 45 mmboe/section Over 1,000 net identified drilling locations with 277 net locations
Slide 9: Montney Overview
MONTNEY OVERVIEW Deep Inventory of Growth Projects in the Montney Oil Window Montney Asset Characteristics: BC AB Flatrock Largest land position (~430,000 net acres) and production base within the prolific Montney oil window Flatrock Deep inventory of economic drilling locations (>1,000 net) acr
Slide 10: Gold Creek East Asset Overview
GOLD CREEK EAST ASSET OVERVIEW Repeatable Results with Available Infrastructure Capacity Asset Characteristics: Development asset with exceptional Production(1): 20,319 boe/d (53% liquids) economics contributing significant free (Q2 2022) funds flow Inventory 131 Booked (230m spacing) 5-7 PAD Re
Slide 11: Gold Creek West Asset Overview
GOLD CREEK WEST ASSET OVERVIEW Development Asset with Step Out Growth Opportunities Asset Characteristics: Development asset with strong economics Production(1): 4,802 boe/d (55% liquids) (Q2 2022) Grande Prairie Spartan owned battery and gathering system to 8,000 boe/d capacity Inventory 56 Boo
Slide 12: Karr Asset Overview
KARR ASSET OVERVIEW Top Oil Wells in the Montney Asset Characteristics: Production(1): 2,550 boe/d (79% liquids) Amongst the most prolific oil (Q2 2022) wells in the basin Inventory 26 Booked (350m spacing) (net): 61 Unbooked (350m spacing) Low decline Montney oil wells 87 Total (3,000-3,700m HZ
Slide 13: Pouce Coupe Asset Overview
POUCE COUPE ASSET OVERVIEW Repeatable Economic Drilling Asset Characteristics: Repeatable economic development Production(1): 2,286 boe/d (35% liquids) drilling yielding strong economics (Q2 2022) Inventory 47 Booked (350m spacing) Development pace measured while (net): 50 Unbooked (350m spacing
Slide 14: Simonette Asset Overview
SIMONETTE ASSET OVERVIEW Growth Asset with Owned Infrastructure Asset Characteristics: Low decline asset with owned Production(1): 3,231 boe/d (18% liquids) infrastructure and compelling (Q2 2022) growth opportunities Inventory 17 Booked (350-400m WS) Karr (net): 175 Unbooked (350-400m WS) Asset
Slide 15: Deep Basin Overview
DEEP BASIN OVERVIEW Robust Economics and Infrastructure Footprint Underpin Free Funds Flow Engine Deep Basin Asset Characteristics: Top quality resource of delineated liquids-rich Spirit River and condensate- rich Cardium gas development (~130,000 net acres) Deep inventory of economic drilling l
Slide 16: Risk Management
RISK MANAGEMENT Minimal Hedging Portfolio Provides Exposure to Commodity Prices ~16% ~27% Natural Gas US$ NYMEX - AECO 7A Basis Of production hedged in 2022 Of natural gas hedged in 2022 US$ NYMEX Swaps - Short US$ NYMEX Swaps - Collar Swaps - Short ~4% ~7% Period Volume (Mmbtu/d) US$/Mmbtu Volume (
Slide 17: Spartan's Sustainable Development Goals
SPARTAN’S SUSTAINABLE DEVELOPMENT GOALS Spartan is Committed to Meeting the Needs of the Present, While Protecting the Future Results in 2021: Active Initiatives: Water Recycling 44% reduction Award winning produced water recycling program at in Direct and Indirect GHG Gold Creek, resulting in Emiss
Slide 18: Investor Highlights
INVESTOR HIGHLIGHTS Concentrated Core Development Areas with Torque to both Oil and Natural Gas Tailwinds Dominant position in two core areas, the Montney and Deep Basin, yielding some of Canada’s most prolific economics Financial sustainability with prudent leverage and strong Adjusted Funds Flow(1
Slide 19: Appendix
2) SPARTAN August 9, 2022 DELTA CORP. APPENDIX 19
Slide 20: Montney Targets and Reservoir Parameters
MONTNEY TARGETS AND RESERVOIR PARAMETERS Extensive Inventory Developed Primarily With a Single Layer to Maximize Returns A A’ Doig Flatrock Pouce Coupe Gold Creek West Gold Creek East Karr Simonette Upper Montney Upper Middle Montney Lower Middle Montney/D1 Lower Montney Porosity >3% Primary Target
Slide 21: Area Montney Map
AREA MONTNEY MAP Spartan’s Positioning in the Montney Fairway Flatrock Coelacanth Vermilion Arc Tourmaline Pouce Coupe Birchcliff Kelt Murphy TAQA Ovintiv Advantage CNRL Grande Prairie Pipestone Gold Creek NuVista Shell Paramount Cenovus Karr Whitecap Simonette Kiwetinohk XTO August 9, 2022 21
Slide 22: Analyst Coverage & Contact Information
ANALYST COVERAGE & CONTACT INFORMATION Institution Analyst EXECUTIVE OFFICE STOCK EXCHANGE LISTING ATB Capital Markets Patrick O’Rourke Spartan Delta Corp. The TSX Exchange 1500, 308 – 4th Avenue SW Trading Symbol: SDE Calgary, Alberta T2P 0H7 BMO Capital Markets Mike Murphy INVESTOR INFORMATION P:
Slide 23: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS MANAGEMENT TEAM Richard McHardy Former President, CEO and co-founder of Spartan Energy, Spartan Oil and Spartan Exploration Executive Chairman & Director Fotis Kalantzis Former SVP and co-founder of Spartan Energy, Spartan Oil and Spartan Exploration Presiden
Slide 24: Disclaimer
DISCLAIMER Forward Looking Statements the timing of expenditures and production additions. In addition, Spartan cautions that current Certain information included in this presentation constitutes forward-looking information under global uncertainty with respect to the spread of the COVID-19 virus
Slide 25: Disclaimer Cont'd
DISCLAIMER CONT’D Oil and Gas Advisories well. Management considers payout an important measure to evaluate its operational BOE Disclosure. The term barrels of oil equivalent ("boe") may be misleading, particularly if performance and capital allocation processes. It demonstrates the return of cash
Slide 26: Disclaimer Cont'd
DISCLAIMER CONT’D Oil and Gas Advisories Drilling Locations / Inventory. This presentation discloses drilling inventory in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the McDaniel Report and
Slide 27: Disclaimer Cont'd
DISCLAIMER CONT’D Non-GAAP Measures and Ratios financial instrument assets and liabilities and lease liabilities. As at March 31, 2022 and at This presentation contains certain financial measures and ratios, as described below, which do December 31, 2021, the Adjusted Working Capital deficit (surp
Slide 28: Price Deck Details
PRICE DECK DETAILS Guidance Pricing All guidance, forecasts and economics are based on the following budget price deck (unless otherwise stated): August 9, 2022 28
Slide 29: Auditor Price Deck Details
AUDITOR PRICE DECK DETAILS Three Consultant Average (McDaniel, GLJ and Sproule) January 1, 2022 3 Consultant Average (McDaniel, GLJ and Sproule) Summary of Price Forecasts Saturday, January 1, 2022 C rude O il P ric e F o re c as t s Liquids P ric e F o re c a s t s G a s P ric e F o re c as t s E d
Slide 30: Auditor Price Deck Details
AUDITOR PRICE DECK DETAILS Three Consultant Average (McDaniel, GLJ and Sproule) January 1, 2021 3 Consultant Average (McDaniel, GLJ and Sproule) Summary of Price Forecasts Friday, January 1, 2021 C rude O il P ric e F o re c as t s Liquids P ric e F o re c a s t s G a s P ric e F o re c as t s E dm
Slide 31: Abbreviations
ABBREVIATIONS AECO Alberta Energy Company "C" Meter Station of the NOVA Pipeline System API American Petroleum Institute gravity ARO Asset Retirement Obligations bbl; bbl/d Barrel; barrels per day bcf; bcf/d Billion cubic feet of natural gas; billion cubic feet per day of natural gas BN Billion boe;
Slide 32: Info@SpartanDeltaCorp.com www.SpartanDeltaCorp.com
Info@SpartanDeltaCorp.com www.SpartanDeltaCorp.com