Rubellite Energy Corp. · TSX:RBY
Rubellite Energy — Investor Presentation (May 2024)
33 slides from Rubellite Energy's investor presentation, May 13, 2024
Slide 1: Rubellite Energy Inc. Corporate Overview
Rubellite Energy Inc. Corporate Overview May 13, 2024
Slide 2: Corporate Profile
Corporate Profile Growth-focused, pure play Clearwater E&P company (TSX:RBY) Since inception in 2021, Rubellite has grown from 350 bbl/d to >4,500 bbl/d and assembled access to ~530 net sections across the Clearwater fairway~ ▪ Rubellite acquired all of Perpetual’s Clearwater Assets for total consid
Slide 3: Investment Highlights
Investment Highlights Robust growth opportunity in the prolific Clearwater play ▪ Growth-focused, pure play Clearwater E&P company Expanding ▪ Access to over 530 net sections of prospective Clearwater lands Pure Play ▪ Multiple exploration prospects captured with material location inventory potentia
Slide 4: Clearwater Play Landscape
Clearwater Play Landscape Amongst the best single well economics of any play in North America Clearwater Play Evolution Clearwater Play ▪ Since 2017, close to 1,600 wells have been drilled, growing play production from nil to >130,000 bbl/d by year-end 2023 • ~75% of production at Marten Hills and N
Slide 5: Rubellite Asset Profile
Rubellite Asset Profile 474 net sections of prospective land; ~240 development / step-out Clearwater locations Asset Map Asset Summary Land Well Count Production Q1 2024 Area (net sections)(1) (net producing)(2) (bbl/d)(3) Figure Lake/Edwand 240.1 71.0 3,709 Cadotte Ukalta 34.0 25.0 516 Marten Hills
Slide 6: Corporate Performance: Operational Momentum Continues
Corporate Performance Operational Momentum Continues Adjusted Funds Flow and Sales Production (bbl/d) Q1 2024 Production By Area 5,000 20,000 30 Adjusted Funds Flow ($M) 4,600 – 4,900 bbl/d(1) 4,500 4,000 16,000 516 259 Production (bbl/d) 3,500 Marten Hills 3,000 12,000 2,500 Figure Lake / 2,000 8,0
Slide 7: 2023 Reserves Highlights
2023 Reserves Highlights Focused capital spending program at Figure Lake achieving strong reserve additions 2023 Corporate Reserves Additions Reserves Growth(1) ▪ TPP increased 56% year-over-year 18,000 ▪ TPP per Debt Adjusted Share increased 23% year-over-year 16,000 ▪ TPP additions replaced 5.8 ti
Slide 8: 2023 Net Present Value of Reserves
2023 Net Present Value of Reserves Reserve additions through the drill bit drove 50% increase in NPV10 value year-over-year YE 2023 Reserve Value NPV(10) $MM(1) $116 $148 $58 PDP PUD Probable TP $206 MM ($3.30/share) TPP $322 MM ($5.15/share) 1. Proved Developed Producing (PDP), Proved Undeveloped (
Slide 9: Southern Clearwater Play History
Southern Clearwater Play History Active Development and Extension Activity Ongoing Southern Clearwater Play Fairway Play History Figure Lake – Development & Step-out Delineation Fueling RBY Growth ▪ 3,709 bbl/d Q1 2024 sales Exploration and Development History ▪ One 2.5-leg producing well drilled in
Slide 10: Acquisition
Acquisition P&S executed October 19, 2023 – Closed November 8, 2023 Acquisition Summary ❑ Purchase Price: $34.0 MM – Effective Oct 1, 2023 ❑ Production: 800 bbl/d (estimated at closing November 8, 2023) ▪ 15 producing wells in Greater Figure Lake ▪ Contributed 436 bbl/d to RBY Q4 2023 sales producti
Slide 11: Rubellite Asset Profile | Greater Figure Lake
Rubellite Asset Profile | Greater Figure Lake Pool Development and Extension – Q2 - Q4 2024 Locations Asset Map Activity Summary Working Interest: 100% Q1 2024 Production: 3,709 bbl/d heavy oil ▪ 71.0 net multi-laterals on sales production (including 3 exploratory wells at Skeleton and Alpen) 2023 A
Slide 12: Rubellite Asset Profile | Figure Lake
Rubellite Asset Profile | Figure Lake 2023 Development Results Outperformed Type Curve; 2024 Focus on De-Risking Contingent Inventory Type Curve and Production Results Type Curve Assumptions Tier 1 Tier 2 2023 Drilling Results Assumptions (8-leg multi-lateral ~9,500m) McDaniel PUD McDaniel PPUD McDa
Slide 13: Rubellite Asset Profile | Ukalta
Rubellite Asset Profile | Ukalta Evaluating Enhanced Recovery and Secondary Zones Asset Map Asset Summary Working Interest: 100% Q1 2024 Production: 516 bbl/d heavy oil ▪ 25 gross (25.0 net) Primary Zone multi-laterals on sales production ▪ Harvest free cash flow to fund growth at Figure lake ▪ Opex
Slide 14: Rubellite Asset Profile | Marten Hills
Rubellite Asset Profile | Marten Hills Secondary Recovery Schemes to Maximize Recovery and Value Asset Map Asset Summary Working Interest: 30% ▪ 3 gross (0.9 net) sections ▪ Converted to after payout working interest May 1, 2023 Q1 2024 Production(1): 259 bbl/d heavy oil ▪ 11 gross (3.3 net) wells o
Slide 15: Dawson - Northern Clearwater Exploration
Dawson - Northern Clearwater Exploration Encouraging early results at Dawson Asset Map Opportunity Summary Dawson Exploration: ▪ 1 earning well (50% WI) drilled in Q1 2023 • ~7,500m horizontal open hole • IP30 81 bbl/d ▪ 5-16 well on production in Q1 2023 for 47 days at an average rate of 80 bbls/d
Slide 16: Rubellite Guidance
Rubellite Guidance Development plan funded out of Adjusted Funds Flow at current strip prices Guidance (May 13, 2024) Development Parameters Q1 2024A 2024 ▪ Single pad batteries with minimal infrastructure ▪ Oil sales from new wells forecast approximately 5 weeks post E&D Capital Expenditures (1)(2)
Slide 17: Commodity Price Risk Management
Commodity Price Risk Management Price protection on ~2,617 bbl/d at average WCS price of $84.48 Cdn/bbl over the balance of 2024 2024 Oil Price Management Commodity Price Hedge Positions (as at May 13, 2024) Q2 24 Q3 24 Q4 24 Cal 25 Current RBY Hedges WTI CAD/bbl Swap 3,000 90% Volume (bbl/d) 1,750
Slide 18: ESG Excellence
ESG Excellence Strong ESG performance driven by living our values Water ▪ No fracture stimulation required in Clearwater play with multi-lateral drilling technology therefore minimal fresh water usage Land ▪ Surface footprint minimized with multi-well pad development Environment ▪ Onsite drill cutti
Slide 19: Creating Differentiated Value for Shareholders
Creating Differentiated Value for Shareholders Fully funded growth opportunity in the prolific Clearwater play Robust Organic Production Growth Profile Expanding Conservative Pure Play Capitalization Clearwater and Risk Asset Base Mitigation Fully Funded Management Development Alignment and Unlockin
Slide 20: Experienced Management and Independent Board of Directors
Experienced Management and Independent Board of Directors Cost-effectively managed under a Management and Operating Services Agreement with Perpetual Overview of MSA with Perpetual Independent Board of Directors (Non-Executive) ▪ Full overlap of Perpetual and Rubellite Executive Officers Tamara MacD
Slide 21: Additional Information
Additional Information Sue Riddell Rose, President & CEO Ryan Shay, Vice President, Finance & CFO 3200, 605 – 5 Avenue SW Calgary, Alberta Canada T2P 3H5
Slide 22: Slide Notes
Slide Notes Slide 1 1. Current shares outstanding as at May 13, 2024, 3.7 million share awards outstanding and 4.0 million share purchase warrants (expire October 5, 2026; $3.00 exercise price owned by Perpetual Energy) 2. Enterprise value is a non-GAAP measure. See “Non-GAAP and Other Financial Mea
Slide 23: Slide Notes (continued)
Slide Notes (continued) Slide 5 1. “Net asset value” is non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 2. “Operating netback per boe" is determined by deducting royalties, production and operating expenses, and transportation costs form oil and natural gas revenue, a
Slide 24: Slide Notes (continued)
Slide Notes (continued) Slide 6 1. Capital is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 2. “Operating netback per boe" is determined by deducting royalties, production and operating expenses, and transportation costs form oil and natural gas revenue, as determ
Slide 25: Slide Notes (continued)
Slide Notes (continued) Slide 7 1. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 2. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserves, prepared by McDaniel with an effective date
Slide 26: Slide Notes (continued)
Slide Notes (continued) Slide 11 1. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 2. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserves, prepared by McDaniel with an effective date
Slide 27: Slide Notes (continued)
Slide Notes (continued) Slide 13 1. See “Drilling Locations” in the Advisories 2. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 3. “McDaniel Reserve Report” means the independent engineering evaluation of the crude oil, natural gas and NGL reserve
Slide 28: Slide Notes (continued)
Slide Notes (continued) Slide 16 1. Prices reported are the weighted average prices for the period 2. Western Canadian Select (“WCS”) 3. Adjusted funds flow is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 4. Capital is a non-GAAP measure. See “Non-GAAP and Other
Slide 29: Advisories
Advisories General This presentation is for discussion and information purposes only and any unauthorized use is strictly prohibited. These materials should be read in conjunction with the Company's Annual Information Form for the year ended December 31, 2023 and the Management's Discussion and Anal
Slide 30: Advisories (continued)
Advisories (continued) “Free funds flow” is calculated by taking adjusted funds flow and subtracting capital expenditures, excluding acquisitions and dispositions. Management uses certain industry benchmarks, such as free funds flow, to analyze financial and operating performance. Management believe
Slide 31: Advisories (continued)
Advisories (continued) “Operating costs” is comprised of production and operating expense, as determined in accordance with IFRS, divided by the Company’s total sales oil production. “Transportation costs” is comprised of transportation expense, as determined in accordance with IFRS, divided by the
Slide 32: Advisories (continued)
Advisories (continued) Oil and Gas Industry Metrics This presentation contains certain oil and gas industry metrics which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not
Slide 33: Advisories (continued)
Advisories (continued) Reserve Estimates The reserves estimates contained in this presentation are as at December 31, 2023 and are based on based on an independent reserves evaluation report prepared by McDaniel & Associates Consultants Ltd. in accordance with NI 51-101. It should not be assumed tha