Spartan Delta Corp · TSX:SDE
Spartan Delta — Investor Presentation (February 2024)
22 slides from Spartan Delta's investor presentation, Feb 26, 2024
Slide 1: Spartan Delta Corp. Investor Presentation
SPARTAN DELTA CORP. I N V E S TO R P R E S E N TAT I O N F E BRUARY 2 6 , 2 0 2 4
Slide 2: Spartan Delta Corporate Strategy
SPARTAN DELTA CORPORATE STRATEGY Three Pillar Strategy I . D E E P B A S I N O P T I M I Z AT I O N I I . D E E P B A S I N C O N S O L I D AT I O N I I I . N E W D U V E R N AY C O R E A R E A 5% ORGANIC GROWTH(1) TECHNICAL EXPERTISE LOW COST OF ENTRY FREE FUNDS FLOW GENERATION OPERATIONAL AND G&A
Slide 3: Corporate Summary
CORPORATE SUMMARY Building a Sustainable Energy Company C A P I TA L I Z AT I O N DEEP BASIN ~39,100 boe/d 2024E SPARTAN DELTA CORP TSX SDE ~$125 MM 2024 Capital Share Price(1) $/sh 3.08 ▪ >130,000 net acres ▪ >790 net drilling locations Market Capitalization (1) $MM 533 ▪ Free Funds Flow generation
Slide 4: Spartan's Strategic Milestones
SPARTAN’S STRATEGIC MILESTONES Continuously Delivering Shareholder Value C O R P O R AT E H I G H L I G H T S S I N C E I N C E P T I O N ( 1 ) T R A C K R E C O R D O F E X E C U T I N G S T R AT E G Y $537 MM $1,578 MM $904 MM Growth Through Targeted Strategic Acquisitions in a Depressed 1 Market.
Slide 5: 2023 Highlights
2023 HIGHLIGHTS Reflecting on a Transformational Year UNAUDITED HIGHLIGHTS Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 FOURTH QUARTER 2023 HIGHLIGHTS Crude Oil bbls/d 15,034 7,489 478 570 5,838 Condensate bbls/d 2,994 2,269 1,653 1,870 2,192 37,664 BOE/D 8% Natural Gas Liquids (NGLs) bbls/d 13,202 11,16
Slide 6: 2023 Reserves
2023 RESERVES Based on 2024 Average Forecast Pricing of US$73.67/bbl WTI and C$2.20/MMBtu AECO R ESERVE VOLUMES I M P L I E D N E T P R E S E N T VA L U E P E R S H A R E (1)(2) 300,000 10.00 250,000 8.00 200,000 6.00 $/Share MBOE 150,000 4.00 100,000 2.00 50,000 0 0.00 PDP TP TPP PDP TP TPP N E T P
Slide 7: 2024 Hedging Profile
2024 HEDGING PROFILE Balance Sheet and Free Funds Flow Protection 2024 HEDGES HEDGING HIGHLIGHTS AECO 7a AECO BASIS WTI 41% @ $2.79/GJ ~42% GJ/d C$/GJ mmbtu/d U$/mmbtu bbl/d C$/bbl NET NATURAL GAS GREATER THAN 2024 AECO Q1 2024 25,000 3.01 20,000 (1.00) 204 101.06 PRODUCTION HEDGED S T R I P P R I C
Slide 8: 2024 Updated Guidance
2024 UPDATED GUIDANCE Optimizing Spartan PREVIOUS U P D AT E D G U I D A N C E (1) FY 2024 FY 2024 G U I D A N C E H I G H L I G H T S (1) Crude Oil & Condensate bbls/d Natural Gas Liquids (NGLs) bbls/d 2,700 2,700 9% 39,500 BOE/D 9,700 9,700 Natural Gas MMcf/d DECREASE IN MIDPOINT 163 163 Average P
Slide 9: I. Deep Basin Optimization
I. DEEP BASIN OPTIMIZATION Free Funds Flow with Substantial Inventory Duration Into Owned Infrastructure SUMMARY ▪ Spartan’s foundational asset generating 5% organic growth(1) resulting in significant Free Funds Flow Belly River ▪ Targeting >20% capital efficiency improvements in 2024 compared to 20
Slide 10: II. Deep Basin Consolidation
II. DEEP BASIN CONSOLIDATION Fairway Poised for Consolidation D E E P B A S I N F A I R W AY ▪ Spartan has a proven consolidation and integration record and a clean balance sheet position ▪ Deep Basin offers scale and operational synergies ▪ Spartan possesses technical expertise in the fairway ▪ Exi
Slide 11: III. New Duvernay Core Area
III. NEW DUVERNAY CORE AREA Prolific Liquids-Rich Shale Asset Offers Significant Scalability and Commerciality W E S T S H A L E B A S I N D U V E R N AY ▪ Spartan has accumulated >170,000 net acres to date and acquired ~400 BOE/d of production ▪ Geotechnical attributes comparable to the Duvernay in
Slide 12: Spartan's Sustainable Development Goals
SPARTAN’S SUSTAINABLE DEVELOPMENT GOALS Spartan is Committed to Meeting the Needs of the Present, While Protecting the Future R E S U LT S : A C T I V E I N T I AT I V E S : n to n v ersio Maintained Sa fety co ps th 0% lar pumpumps by discount ove e max r i 5 so rive 24 n with perfo the las mum rma
Slide 13: Spartan's Sustainable Development Goals
SPARTAN’S SUSTAINABLE DEVELOPMENT GOALS Spartan is Committed to Meeting the Needs of the Present, While Protecting the Future Dominant position in the liquids-rich Deep Basin, yielding some of Canada’s most prolific economics Infrastructure footprint provides enhanced capital efficiencies, netbacks
Slide 14: www.SpartanDeltaCorp.com
www.SpartanDeltaCorp.com 14
Slide 15: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS MANAGEMENT TEAM Fotis Kalantzis ▪ Chairman, Director and co-founder of Logan Energy; former SVP and co-founder of Spartan Energy, Spartan Oil and Spartan Exploration President, CEO & Director Ronald Williams ▪ Former Director, Finance, Spartan Delta; former VP Fi
Slide 16: Spartan's Historical Performance
SPARTAN’S HISTORICAL PERFORMANCE Spartan Delta’s Financings Have Significantly Outperformed the TSX Energy Index DECEMBER 2019 MAY 2020 MARCH 2021 AUGUST 2021 Founding Financing: Bellatrix Asset Acquisition: Montney Acquisitions: Velvet Acquisition: $25 million at $1.00 per share $64 million at $2.0
Slide 17: Previous Iterations Historical Performance
PREVIOUS ITERATIONS HISTORICAL PERFORMANCE Spartan Has Significantly Outperformed the TSX Energy Index Through Multiple Iterations and Cycles SPARTAN SPARTAN SPARTAN SPARTAN EXPLORATION OIL ENERGY DELTA January 2010 – May 2011 June 2011 – January 2013 December 2013 – May 2018 December 2019 – June 20
Slide 18: Analyst Coverage & Corporate Information
ANALYST COVERAGE & CORPORATE INFORMATION EXECUTIVE OFFICE STOCK EXCHANGE LISTING INSTITUTION: A N A LY S T : Spartan Delta Corp. The TSX Exchange 1600, 308 – 4th Avenue SW Trading Symbol: SDE ATB Capital Markets Patrick O’Rourke Calgary, Alberta T2P 0H7 P: 403 265 8011 I N V E S T O R I N F O R M AT
Slide 19: Abbreviations
ABBREVIATIONS A&D Acquisitions and Dispositions mmboe/sec Million barrels of oil equivalent per section AECO Alberta Energy Company "C" Meter Station of the NOVA Pipeline System mmbtu; mmbtu/d Metric million British thermal unit; metric million British thermal unit per day ARO Asset Retirement Oblig
Slide 20: Disclaimer
DISCLAIMER Forward Looking Statements: adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Production forecasts are directly impacted ▪ Certain information included i
Slide 21: Disclaimer
DISCLAIMER Oil and Gas Advisories: certainty that we will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which we drill wells will ▪ BOE Disclosure. The
Slide 22: Disclaimer
DISCLAIMER Non-GAAP M easures and Ratios: property, plant and equipment, before acquisitions and dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities. ▪ This presentation contains certain financial measures and ratios, as described below, wh
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