Cardinal Energy Ltd. · TSX:CJ
Cardinal Energy — Investor Presentation (January 2021)
17 slides from Cardinal Energy's investor presentation, January 2021
Slide 1: January 2021 Corporate Presentation
TSX: CJ January 2021 Corporate Presentation
Slide 2: Message to Shareholders
Message to Shareholders Enclosed is our update for Cardinal as of January 2021. 2020 started off in a bullish fashion with oil prices moving up significantly and Cardinal beginning an 8 well drill program. Then, as we all experienced, the world changed. We spent the balance of 2020 in a survival mod
Slide 3: 2021 Budget Highlights
2021 Budget Highlights 2021 Budget 2020 Forecast Change % Production Boe/d 17,751 18,345 -3% Adjusted Funds Flow $ mm 74.8 43.2 73% Basic per share ($ per share) 0.61 0.38 61% Diluted per share ($ per share) 0.55 0.36 53% Net bank debt $ mm 161.2 202.2 -20% Debentures/Term Debt $ mm 47.2 45.1 5% Tot
Slide 4: Budget Assumptions and Sensitivities
Budget Assumptions and Sensitivities Budget Assumptions Sensitivities 2021 Budget 2020 Est Adjusted Funds Flow ($ mm) WTI $ US/bbl 52.00 39.40 Base budget 74.8 WCS Differential $ US/bbl (13.50) (12.59) Δ US$1 WTI 3.8 MSW Differential $ US/bbl (5.50) (5.45) Δ US$1 WCS Differential 2.9 Dividends NCIB
Slide 5: 2021 Debt Repayment Scenarios
2021 Debt Repayment Scenarios WTI Capital/ARO Debt Repayment Closing Net Bank Debt ($/bbl) ($ mm) ($ mm) ($ mm) $42 31.7 (2.7) 199.6 $52 31.7 (41.1) 161.2 Free Cash Flow $60Dividends 31.7 (71.8) to Shareholders 130.4 NCIB 5 | Cardinal Energy Ltd. | TSX: CJ
Slide 6: 2021 Current Hedging
2021 Current Hedging Product Q1 Q2 Q3 Q4 WTI - Volume (bbl/d) 9,333 6,000 2,500 1,500 - Avg Price (CAD$) $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 7: 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 7 | Cardinal Energy Ltd. | TSX: CJ 2018-0
Slide 8: 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 8 | Cardinal Energy Ltd. | TSX: CJ
Slide 9: 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% 9 | Cardinal Energy Ltd. | TSX: CJ
Slide 10: 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 11: 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% 11 | Cardinal Energy Ltd. | TSX: CJ
Slide 12: Saskatchewan Operating Area
Saskatchewan Operating Area 2021 Forecast Oil Price $50 $60 20% 2021 Average Production: 3,000 bbl/d (USD/bbl) (change in WTI) NOI $27,300 $38,300 40% FCF $19,800 $30,800 56% Production decline 2% 12 | Cardinal Energy Ltd. | TSX: CJ
Slide 13: Drilling Inventory Breakdown
Drilling Inventory Breakdown Cardinal Growth/Maintenance Drilling Drill Ready Tier 1 Tier 2 Follow ups No drilling in 2021 Budget (may be revisited in second half South 51 35 of the year based on commodity prices) Central 37 90 North 40 65 Focus of drilling investment is the production maintenan
Slide 14: 2021 ARO Budget
2021 ARO Budget 2021 ARO Budget As an ABC participant, Cardinal’s required spend for 2021 ABC program is $5.55 million less the 2020 Original 2020 Spent, 2021 Budget, approximately $1.8 million = $3.75 million which is Budget, M$ M$ M$ being credited from its 2020 spend. Alberta Operated Projects
Slide 15: 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 16: Advisory
Advisory Note Regarding Forward Looking Statements future commodity prices and exchange rates, applicable royalty with a more complete perspective on Cardinal's future operations rates, tax laws, future well production rates and reserve volumes, and such information may not be appropriate for other
Slide 17: Advisory
Advisory Oil and Gas Advisories purposes. Refer below to the Non-GAAP Measures section of this have a standardized meaning prescribed by International Financial presentation for additional disclosure on "operating netback" or Reporting Standards ("IFRS" or, alternatively, "GAAP") and The term "boe"
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