Journey Energy, Inc. · TSX:JOY
Journey Energy — Investor Presentation (March 2025)
29 slides from Journey Energy's investor presentation, March 2025
Slide 1: Corporate Presentation
JOURNEY TSX: JOY OTCQX: JRNGF @AlexVergeJOY Corporate Presentation March, 2025
Slide 2: Journey Today Is…
Journey Today Is… Sustainable ❖ Growing free cash flow with low maintenance capital Safe ❖ Low decline predictable base ❖ Stable revenue stream (power sales) to offset largest operating cost ❖ Reduced debt and now termed out to 2029 ❖ Trades below PDP NAV ❖ Low risk development in mature fields ✓ Du
Slide 3: Snapshot: Low Decline Production, Power Generation, Duvernay Growth
LOW DECLINE PRODUCTION,2025 POWER GENERATION, DUVERNAY GROWTH SNAPSHOT 2025 annual average daily sales volumes 10,800 – 11,200 boe/d; 58% crude oil and NGL’s 13% corporate decline Management, directors and AIMCo own 30% of 67.1 million OS shares Adjusted Funds Flow of $68-70 million (1) Central: 6,5
Slide 4: Steps Taken in 2023 and 2024 Position Journey for 2025+
STEPS TAKEN IN 2023 AND 2024 POSITION JOURNEY FOR 2025+ Driving down debt by $40 million (2022 – 2024) Issued $38 million in convertible debentures (March 2024) to term out 63% of 2024 YE debt to March 2029 Hedged one third of 2025 natural gas production at $3.20/mcf Restructured AIMCO term debt pay
Slide 5: Corporate Growth Guidance
Corporate 2025 Growth GUIDANCE Returns in 2022 2021 2022 2023 2024 2025 Operating Highlights Actual Actual Actual Unaudited Forecast Production Average (boe/d) 8,004 9,778 12,415 11,275 10,800 – 11,200 Oil and NGLs (%) 47% 49% 54% 57% 58% Corporate Decline Rate (%) 14% 14% 13% 13% 13% Reference Pric
Slide 6: Price Sensitivity: Adjusted Funds Flow
PRICE Reserves SENSITIVITY Value CHART WTI ($USD/BBL) Adjusted Funds Flow ($MM) $68.00 $69.00 $70.00 $71.00 $72.00 $73.00 $74.00 $75.00 $76.00 $1.85 56.6 58.8 61.1 63.3 65.4 67.6 69.7 71.7 73.7 $1.90 57.1 59.3 61.6 63.8 65.9 68.1 70.1 72.2 74.2 $1.95 57.5 59.8 62.1 64.3 66.4 68.6 70.6 72.7 74.7 AECO
Slide 7: Growing Net Asset Value Per Share
GROWING NET ASSET VALUE PER SHARE $12.65/share $12.27/share P+P P+P $10.78/share P+P $7.67/share $7.14/share P+PDP P+P $6.14/share $5.90/share PDP P+PDP $5.53/share P+PDP $4.56/share $4.33/share PDP PDP $3.17/share $3.26/share P+P P+PDP $2.34/share PDP JOY Shares Feb 2025 $0.79/share $2.00/share P+P
Slide 8: Year End 2024 Reserves Summary
DECEMBER Stable Base -–2020 2021 31, 2024 2023 YE YEReserves Reserves YEAR END Summary Summary RESERVES Company Gross (WI) Reserves(1) / Value (January 1, 2025 3 Consultants Pricing) Oil Gas NGLs NPV10 ($million) Reserve Category Mboe RLI FDC ($ million)(2) (Mbbl) (Bcf) (Mbbl) Before Tax (1) Proved
Slide 9: Key Asset: Duvernay
KEYReserves Value ASSET: DUVERNAY 128 Section Joint Venture land block; 104 sections currently controlled JV land block is within the thick Duvernay oil fairway Journey current WI in JV land block is 30% Spartan Delta Corp current WI in JV land block is 70% 5 wells on production; 8 well drilling pro
Slide 10: Joint Venture Lands Support Over 60 Net Well Locations
ReservesOVER JOINT VENTURE LANDS SUPPORT Value60 NET WELL LOCATIONS Single Well Economics(2) DCET(1) Capex ($,000) 12,500 o JV Outline Reserves (MBOE) 750 o Currently Licensed JV Locations Oil Reserves (MBBL) 450 o Current Program Drilled or Drilling % Oil and NGLs 70% o Duvernay Penetrations IP30 (
Slide 11: Key Asset: Power Business Expanding (4 MW to 35 MW in 2025)
KEY ASSET: POWER BUSINESS EXPANDING (4 MW TO 35 MW IN 2025) Countess (2020) 4 MW on stream September 2020 Fuel gas supplied by long life natural gas (Countess field) Connected to Alberta power grid Project has paid out original investment Gilby (ISD October 2025)* 15.1 MW capacity currently under co
Slide 12: Key Asset: Medicine Hat (WCS Oil)
KEY ASSET:Reserves MEDICINEValue HAT (WCS OIL) Flagship asset in Q4 2022 acquisition, 72% WI, operated Multi year development plan, already yielding favourable results 34 undrilled locations currently identified Drilled 4 wells in Q4 2023 and 4 wells in Q1 2024 Small portion of the pool under polyme
Slide 13: Journey's Low Decline Results in a Higher NAV for a Given Multiple of Cash Flow
JOURNEY’S LOW DECLINE RESULTS IN A HIGHER NAV FOR A GIVEN MULTIPLE OF CASH REVALUING OF JOURNEY SHARES FLOW Corporate Production Decline Rates (%/year) 50% 45% Why Is Journey’s decline rate (13%) less than half of the 40% Peer Average: 29%/yr Base Decline industry average (29%)? 35% 30% 75% of our a
Slide 14: Increasing Price Favors Companies with Larger Reserve Bases
Increasing Price EDMONTON LIGHTFavors Companies PRICE Reserves REVERSING with Larger Value TREND SINCEReserve JANUARYBases 2021 2015 2025 2025 Budget Rising Price 2022 Trend 2021 INCREASING PRICE GLJ FORECASTED FAVORS EDMONTON Journey’s COMPANIES LIGHT Enterprise PRICE Value 1,WITH REVERSING August
Slide 15: Unbooked Duvernay Provides Growth for Years to Come
UNBOOKED DUVERNAY PROVIDES GROWTH FOR YEARS TO COME Journey has identified 477 (283 net) horizontal drilling opportunities Drilling Locations(1) % Booked(2) in Total(1) Reserve Report Region Gross Net South 112 100 30% Central 165 123 40% Duvernay 200 60 22% Total 477 283 33% Booked Projects(2) Unbo
Slide 16: How to Make a Low Decline Even Lower: Waterflood Expansion
HOW TO MAKE A LOW DECLINE EVEN LOWER 760 MM bbl on waterflood 15 MM bbl JOY net barrels of 250 MM bbl conventional future potential DOOIP by category for waterflood 1.0 Billion net bbl of DOOIP(3) 760 MM bbl 265 MM bbl convert 250 MM bbl future on waterflood/Polymer conventional conventional potenti
Slide 17: Extracting Future Value
Extracting Future Value 1.0 Billion net barrels of DOOIP(3) 3.0% of booked recovery 84.0% of oil left behind Ultimate 13.0% recovered to date Recovery 16.0% ultimate recovery Oil left behind becomes Target Resource Journey can double its PDP oil reserves by recovering 2.0% more of the oil left behin
Slide 18: In 2025, Journey will…
In 2025, Journey will… Begin commercial Duvernay development drilling on its JV block Advance power projects … material increase in PDP Net Asset Value per Share when energized Improve financial flexibility to fund future Duvernay Development Position the company for dramatic growth in the Duvernay
Slide 19: Energized and Engaged Team
Energized and Engaged Team Alex G. Verge, P.Eng., M.Eng. President and Chief Executive Officer, and Director – Previously President and CEO of NuVista Energy, VP Engineering at Bonavista, and senior positions at Poco Petroleums, Rising Resources, Shell, and Gulf. Gerry N. Gilewicz, CPA, CMA Chief Fi
Slide 20: Directors – Strong Governance
Directors – Strong Governance Craig Hansen Chairman of the Board – Independent businessman, Former President and Chief Executive Officer of Zargon Oil & Gas Ltd. and its predecessor, Zargon Energy Trust. Thomas Mullane Reserves Committee Chair – Independent businessman and former President and Chief
Slide 21: Appendix
Appendix 21
Slide 22: Value of Inventory Appreciates with Pricing
VALUE OF INVENTORY APPRECIATES WITH PRICING AECO $2.75/Mmbtu(1) Note: Based upon December 2024 estimated capital costs, operating costs and royalties (1) One third of Journey’s 2025 gas volumes are hedged at $3.20/MMbtu 22
Slide 23: Journey Has Over 30 Years of Drilling Inventory
JOURNEY HAS OVER 30 YEARS OF DRILLING INVENTORY AECO $2.75/Mmbtu(1) Note: Based upon December 2024 estimated capital costs, operating costs and royalties (1) One third of Journey’s 2025 gas volumes are hedged at $3.20/MMbtu 23
Slide 24: Future Development (Excluding Duvernay)
Reserves FUTURE DEVELOPMENT Value (EXCLUDING DUVERNAY) (As at December 31, 2024) Journey’s $397 million of P+P future development capital (FDC) adds reserves at $11.08/P+P boe Over 71% of Journey’s identified capital projects are unbooked Journey’s P+P FDC adds $403 million of NPV@10%, or $1.02 of N
Slide 25: Environment, Social and Governance: Environmental
ENVIRONMENT, SOCIAL AND GOVERNANCE Environmental Journey is striving to reduce direct emissions intensity from year end 2022 levels for scope 1 and 2 emissions. We chose this time period for this target to focus on new reductions rather than accounting for reductions already achieved. We reuse 99.9%
Slide 26: Environment, Social and Governance (Continued): Social
ENVIRONMENT, SOCIAL AND GOVERNANCE (CONTINUED) Social Journey takes pride in maintaining its operations with the highest of standards and ensures its suppliers of goods and services do so as well. Journey operates in nine key areas in the province of Alberta and is very active in the communities in
Slide 27: Environment, Social and Governance (Continued): Governance
ENVIRONMENT, SOCIAL AND GOVERNANCE (CONTINUED) Governance In recognition of the key role that sustainability plays in our business, Journey has mandated that the Board of Directors (the “Board”) take an active role in evaluating our corporate sustainability strategy, improving our risk management pr
Slide 28: Forward-Looking Statements and Financial Measures
FORWARD-LOOKING STATEMENTS AND FINANCIAL MEASURES This presentation contains “forward-looking statements” including estimates of future production, cash flows and reserves, business plans for drilling and exploration, the estimated amounts and timing of capital expenditures, the assumptions upon whi
Slide 29: Oil and Gas Advisory
OIL AND GAS ADVISORY The crude oil, natural gas and natural gas liquid reserves and related future net revenue of Journey presented herein were evaluated by GLJ, Journey’s independent reserves evaluators, in accordance with the requirements of National Instrument 51-101 (“NI 51-101”) and the Canadia