Inplay Oil Corp · TSX:IPO
Inplay Oil — Investor Presentation (October 2022)
31 slides from Inplay Oil's investor presentation, October 2022
Slide 1: Corporate Presentation October 2022
Corporate Presentation October 2022 TSX : IPO OTCQX : IPOOF
Slide 2: Investment Highlights
Investment Highlights • Technically focused team successfully managed InPlay through a challenging environment and now in the strongest position in our corporate history – Continual annual top-tier organic growth amongst peers since inception – Sustainability enhanced with strategic accretive acquis
Slide 3: Corporate Overview
Corporate Overview OPERATING SUMMARY 2022 Average Production (light oil & liquids %) 9,150 – 9,400 boe/d (58% - 59%)(1) 2022 Hz Drilling Plans ~17.5 net 2021 Reserves Proved Developed Producing 15.9 Mmboe Total Proved Reserves 45.9 Mmboe 63% oil & NGL Total Proved and Probable Reserves 60.6 Mmboe in
Slide 4: Q2 2022 Financial Highlights
Q2 2022 Financial Highlights Highlighted values indicate quarterly record results Average production (boe/d)(1) 9,063 5,386 68 8,221 10 Adjusted funds flow ($000s)(2) 40,922 8,219 398 29,379 39 Adjusted funds flow per share ($)(3) 0.47 0.12 291 0.34 39 Free adjusted funds flow ($000s)(4) 23,072 3,57
Slide 5: Management and Directors
Management and Directors Management Directors Strong Technically and Value Creators Experienced Industry Board Doug Bartole, P. Eng., ICD.D Doug Bartole, P. Eng., ICD.D President and CEO, Director Joan Dunne, FCPA, FCA, ICD.D Kevin Yakiwchuk, MSc., P. Geol. Craig Golinowski CFA, MBA Vice President E
Slide 6: Consistent Top-Tier Organic Growth
Consistent Top-Tier Organic Growth Extraordinary recovery in production, AFF and debt reduction post COVID • 2021 growth of 45% over 2020 (15% over 2019) • Significant growth in 2021 with top-tier FD&A costs • 2022 forecast growth of 83% - 92% per debt adjusted share(2) over 2021 (PDP +61%, TP +106%
Slide 7: Long-term Forecast
Long-term Forecast Long-term forecast provides top-tier production per share growth and strong FAFF generation: – Target to provide organic growth of 6% - 10% considering WTI price levels: • ~US $80/bbl WTI: ~10% production growth • ~US $60/bbl WTI: ~6% production growth Material FAFF available for
Slide 8: Sustainable Top-tier Returns
Sustainable Top-tier Returns Continued top-tier production per share growth: – InPlay has historically demonstrated and forecasts to continue to generate measured, top-tier organic production growth per share FAFF available for dividends, share buybacks, tactical capital investments, or strategic ac
Slide 9: 2021 Year End Reserves & Efficiency Highlights
2021 Year End Reserves & Efficiency Highlights Reserve Highlights Reserves BOE NPV BT10% RLI Replacement (Mboe) ($000s) (Years) (%) Proved Developed Producing 15,890 206,481 395 7.5 Total Proved 45,891 471,100 1,253 21.8 Total Proved + Probable 60,640 685,513 1,422 28.8 Finding, Development & Acquis
Slide 10: IPO Consistently Providing Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels
IPO Consistently Providing Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels IPO Capital Efficiencies Adding Producing Boed • 2021 capital efficiency of $12,583 per boe/d • 3 year average capital efficiency of $15,354 per boe/d The peers above are defined as light oil weighted s
Slide 11: Focused Asset Base
Focused Asset Base Drilling industry pacesetter horizontal wells and exceeding forecasted volumes InPlay Land InPlay Wells 85% Cardium Industry Cardium Wells ALBERTA production PEMBINA Edmonton WILLESDEN E. BASIN GREEN DUVERNAY PEMBINA Calgary Production(1): ~4,800 boe/d (56% oil & NGL) Upside: 153
Slide 12: Willesden Green
Willesden Green Dominant land position in the Willesden Green Cardium trend Low risk infill drilling in well established field with large oil in place and low recovery factors • Minimal infrastructure capital required Quick payout drilling inventory (6 months or less) Recent acquisition complementar
Slide 13: Pembina Cardium
Pembina Cardium Low risk infill drilling in well established field with large oil in place and low recovery factors • Minimal infrastructure capital required InPlay Rights InPlay Wells Quick payout drilling inventory (6 months or less) Cardium Vertical Cardium Horizontal 2020 strategic Cardium asset
Slide 14: Cardium Type Well Economics
Cardium Type Well Economics The Cardium is a well established play providing some of the best low risk returns in the Western Canada Sedimentary Basin Pembina Willesden Green 1.0 Mile Hz 1.5 Mile Hz 1.0 Mile Hz 1.5 Mile Hz Capex (mm) $2.4 $3.5 $2.2 $3.4 Potential Recovery (mboe) 180 330 205 310 IP90
Slide 15: Environmental Leadership
Environmental Leadership – Inaugural sustainability report released in September 2022, GHG Emissions available on website 50 – Reduction in CO2 emissions (scope 1 and 2) of 23% in 2021 40 compared to prior year 30 12% – Emissions reduction of 1,540 tonnes of CO2e (equivalent to 20 26% removing 335 c
Slide 16: Summary
Summary • Executing on strategy for top-tier production growth with strong FAFF(1) focused on sustainability • Positioned to execute on additional disciplined and accretive acquisitions • 2022 forecast : – Adjusted funds flow(1) of $139mm - $143mm – FAFF(2) of $67mm - $73mm, resulting in FAFF yield(
Slide 17: Appendix
Appendix Ye INPLAY OIL 17
Slide 18: InPlay Team
InPlay Team Strong Technically and Value Creators Doug Bartole, President and CEO and Director, P. Eng., ICD.D (over 27 years) • Founder of InPlay; Founder, President and CEO of Vero Energy; VP Operations of True Energy; Management and Engineering roles at Husky Energy, Renaissance Energy and PanCan
Slide 19: 2021 Year End Net Asset Value
2021 Year End Net Asset Value PDP TP TPP ($000s) ($000s) ($000s) NPV BT10% 206,481 471,100 685,513 Undeveloped Land 33,474 Net Debt(1) (80,196) Net Asset Value 159,759 424,378 638,791 Basic Common Shares 86,215 2021 NAV / Share $1.85 $4.92 $7.41 2020 NAV / Share $1.02 $1.94 $3.50 • WTI prices in the
Slide 20: East Basin Duvernay Shale
East Basin Duvernay Shale Emerging Light Oil Play 36.5 Crown Sections in the Huxley Area (23,168 net acres) – Extensive activity directly offsetting InPlay’s land • Long land tenure allows InPlay a measured pace of development as others prove up the play around us Significant Light Oil Resource (hig
Slide 21: Risk Management Hedges (Commodity derivative contracts)
Risk Management Hedges (Commodity derivative contracts) Q3/22 Q4/22 Natural Gas AECO Swap(1) (GJ/d) 6,550 3,115 Hedged price ($AECO/GJ) $3.82 $4.19 Natural Gas AECO Costless Collar(2) (GJ/d) 2,750 2,720 Hedged price ($AECO/GJ) ($2.50 - $3.64) ($2.34 - $4.49) Crude Oil WTI Three-way Collar(3) (bbl/d)
Slide 22: Slide Notes
Slide Notes Slide 2 1. 2022 production, adjusted funds flow, free adjusted funds flow, net debt/EBITDA and relevant growth rates are based on forecasted assumptions outlined in the “Forward Looking Information and Statements” in the Reader Advisories. Slide 3 1. 2022 production rates and drilling pl
Slide 23: Slide Notes (continued)
Slide Notes (continued) Slide 12 (cont’d) 2. The estimated Operating Income, Operating Netback per boe, Adjusted Funds Flow and Free Adjusted Funds Flow for the Prairie Storm Assets in 2022 is based on strip pricing as of September 27, 2021. The key underlying assumptions used in the development of
Slide 24: Reader Advisories
Reader Advisories All amounts in this presentation are stated in Canadian dollars unless otherwise specified. Throughout this presentation, the terms Boe (barrels of oil equivalent) and Mmboe (millions of barrels of oil equivalent) are used. Such terms when used in isolation, may be misleading. In a
Slide 25: Reader Advisories (continued)
Reader Advisories (continued) Oil and Gas Advisories (cont’d) Net Present Value Estimates - It should not be assumed that the net present value of the estimated future net revenues of the reserves of InPlay included in this presentation represent the fair market value of the reserves. There is no as
Slide 26: Reader Advisories (continued)
Reader Advisories (continued) Production Breakdown by Product Type Disclosure of production on a per boe basis in this press release consists of the constituent product types as defined in NI 51-101 and their respective quantities disclosed in the table below: Light and Light and Conventional Conven
Slide 27: Reader Advisories (continued)
Reader Advisories (continued) Non-GAAP and Other Financial Measures (cont’d) Free Adjusted Funds Flow Yield - InPlay uses “free adjusted funds flow yield” as a key performance indicator. Free adjusted funds flow is calculated by the Company as free adjusted funds flow divided by the market capitaliz
Slide 28: Reader Advisories (continued)
Reader Advisories (continued) Non-GAAP and Other Financial Measures (cont’d) EV / DAAFF - InPlay uses “enterprise value to debt adjusted AFF” or “EV/DAAFF” as a key performance indicator. EV/DAAFF is calculated by the Company as enterprise value divided by debt adjusted AFF for the relevant period.
Slide 29: Reader Advisories (continued)
Reader Advisories (continued) In addition, this presentation contains certain forward-looking information relating to economics for drilling opportunities in the areas that InPlay has an interest. Such information includes, but is not limited to, anticipated payout rates, rates of return, profit to
Slide 30: Reader Advisories (continued)
Reader Advisories (continued) Actuals Previous Guidance Updated Guidance Forecast Forecast Forecast FY2021 FY 2022(1) FY 2022(1) FY 2023 FY 2024 FY 2025 Production Boe/d 5,768 8,900 – 9,400 9,150 – 9,400 9,900 – 10,400 10,650 – 11,200 11,300 – 11,900 Opening Working Cap. (Net Debt) $ millions ($73.7
Slide 31: Contact Us
Contact Us Doug Bartole President and CEO 587.955.0632 DougB@InPlayOil.com #2000, 350 – 7th Avenue SW Calgary, AB T2P 3N9 www.inplayoil.com