Bonterra Energy Corp. · TSX:BNE
Bonterra Energy — Investor Presentation (November 2022)
21 slides from Bonterra Energy's investor presentation, November 2022
Slide 1: Corporate Presentation
CORPORATE PRESENTATION TSX: BNE NOV 2022 1
Slide 2: Corporate Snapshot
Corporate Snapshot Financial TSX: BNE Common Shares Outstanding MM 36 Insider Ownership % 15 Tax Pools at Sept 30, 2022 $MM 247 Tax Horizon Year 2022 Forecasted 2022 Funds Flow $MM 192 Forecasted 2022 Exit Net Debt $MM 165 Forecasted 2022 Exit Debt/EBITDA Ratio 0.8 PEMBINA & WILLESDEN GREEN Operatio
Slide 3: Focused on Free Funds Flow Generation
Focused on Free Funds Flow Generation Bonterra remains focused on generating sustainable Free Funds Flow which can be directed to debt reduction, capital spending and returns to shareholders when supported by commodity prices Free Funds Flow Debt Repayment Core Area Distribution Generation Acquisiti
Slide 4: Production and Activity Forecast
Production and Activity Forecast Modest production growth year over year ensures sustainability and supports the generation of significant free funds flow BASE PRODUCTION 2021 CAPEX 2022 CAPEX 16,000 12,000 BOE/D 8,000 4,000 2022 Guidance: 13,300 to 13,700 boe/d 0 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul
Slide 5: 2022 Forecasted Funds Flow & Free Funds Flow
2022 Forecasted Funds Flow & Free Funds Flow Bonterra is forecasted to generate $192 Million of Funds Flow and $109 Million of Free Funds Flow in 2022 under current strip pricing(1,2) QUARTERLY ANNUAL 100 200 90 180 192 80 160 70 140 60 120 62 MM$C MM$C 50 100 109 40 47 46 48 80 30 35 33 60 20 40 10
Slide 6: Debt Reduction Execution
Debt Reduction Execution Free Funds Flow generation driving significant $164 Million Forecasted Net Debt reduction since Q1 2021. (1) (1,3) NET DEBT D/EBITDA 350 7.00 329 300 6.37 6.00 250 5.00 NET DEBT (MM$C) 200 4.30 4.00 165 150 3.00 3.17 100 2.00 2.09 1.68 50 1.00 1.10 0.94 0.78 0 - (2) 2021 Q1
Slide 7: Cardium Assets
Cardium Assets 7
Slide 8: Deep Drilling Inventory
Deep Drilling Inventory Concentrated assets in the Pembina Cardium oil pool support efficient operations and offer exposure to significant upside through a large inventory of low-risk, highly economic undrilled locations Pembina & Willesden Green Lands by the Numbers 92% Operated Production 473 gros
Slide 9: Pembina Cardium Features
Pembina Cardium Features Pembina is the largest conventional oilfield in Canada with large oil-in-place and low recovery to date, offering long-term stable production, high-quality oil, and attractive netbacks Original-Oil-in-Place per Section Recovery Factor 0 to 5,000 Mbbl 0% 5,000 to 10,000 Mbbl
Slide 10: Pembina Cardium Geology
Pembina Cardium Geology Shale Conglomerate Sandstone Bioturbated Mudstone Sandstone Shale • Interbedded sandstone and shale with local conglomerate and prevalent underlying low permeability bioturbated mudstone • Depths range from 1,200m True Vertical Depth (TVD) in NE Pembina to 2,000m TVD in SW Pe
Slide 11: Average BNE Cardium Economics
Average BNE Cardium Economics Cardium wells are repeatable, predictable and generate strong returns 200 Reserves per well (MBOE) 140 150 IP (12 months) (boe/d) 110 BOE/D 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 BNE Type Curve: Full Cycle Capital and Price Sensitivities
Slide 12: Net Asset Value Price Sensitivities
Net Asset Value Price Sensitivities Bonterra offers shareholders torque to oil and exposure to a significant low risk drill inventory YE2021 Net Asset Value Net Asset Value per share Flat Price (@ Oct 26, 2022 Strip)(1,2) Sensitivities(1,3) Proved Total Proved Developed Producing Total Proved Total
Slide 13: Our Responsibility – Environmental, Social and Governance
Our Responsibility – Environmental, Social and Governance Committed to maintaining credibility, integrity and trust with all stakeholders ENVIRONMENTAL RESPONSIBILITY • Apply minimal disturbance drilling techniques to reduce the overall impact to the environment • Employ a vigorous asset integrity p
Slide 14: Strategy: Positioned for Success
Strategy: Positioned for Success Our proven track record has been built on a model of generating long-term, sustainable value through disciplined capital allocation aligned with prevailing commodity prices Insiders own ~15% Experienced & Aligned Management Predictable and long-life asset Free Funds
Slide 15: Appendix
Appendix 15
Slide 16: Risk Management / Hedge Strategy
Risk Management / Hedge Strategy 30% of pre-royalty volumes are hedged to fulfill bank covenants and to protect Free Funds Flow WEIGHTED AVERAGE OIL HEDGES FIXED Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 VOLUME bbl/d 500 - - - - - - - PRICE USD $/bbl 91.00 - - - - - - - COLLARS
Slide 17: 2021 Reserves Summary
2021 Reserves Summary Oil BOE NPV BT 10% (1) Reserve Category (Mbbl) (Mboe) (millions) Proved Developed Producing 18,522 32,495 542,915 Proved Developed Non-Producing 2,335 3,562 55,012 Proved Undeveloped 22,613 42,174 388,505 Total Proved 43,470 78,231 986,432 Probable 10,761 19,200 279,419 Total P
Slide 18: Appendix – Strip as at 10/26/2022
Appendix – Strip as at 10/26/2022 STRIP Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 2022 2023 2024 WTI USD $82.98 $91.63 $108.26 $101.64 $109.26 $114.34 $99.38 $91.48 $83.80 $88.00 $88.42 $87.42 $95.55 $80.28 $70.67 Diff USD -$4.77 -$2.40 -$1.71 $0.61 -$0.90 -
Slide 19: Forward Looking Information
Forward Looking Information Certain statements contained in this Presentation include statements which contain words such as “anticipate”, “could”, “should”, “expect”, “seek”, “may”, “intend”, “likely”, “will”, “believe” and similar expressions, statements relating to matters that are not historical
Slide 20: Forward Looking Information
Forward Looking Information USE OF NON-IFRS FINANCIAL MEASURES: Throughout this presentation the Company uses the terms “funds flow”, “free funds flow”, "net debt" and "field netback" to analyze operating performance, which are not standardized measures recognized under IFRS and do not have a standa
Slide 21: Corporate Information
Corporate Information OFFICERS BANKS Patrick G. Oliver President & CEO CIBC Robb D. Thompson CFO & Corporate Secretary National Bank of Canada Adrian Neumann Chief Operating Officer The Toronto Dominion Bank Brad A. Curtis Senior VP, Business Development Alberta Treasury Branches Business Developmen
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