Bonterra Energy Corp. · TSX:BNE
Bonterra Energy — Investor Presentation (August 2024)
25 slides from Bonterra Energy's investor presentation, August 2024
Slide 1: Our Strong Foundation Accelerates Transformation
Our Strong Foundation TSX:BNE Accelerates Transformation. August 2024 Corporate Presentation Grounded in Energy.
Slide 2: It's Time to Revisit Bonterra. Period.
AT A GLANCE It’s Time to Revisit Charlie Lake Bonterra. Period. New Core Area: Light Oil, Natural Gas & NGLs Development ready Charlie Lake asset in Northern Alberta adds locations and One of Canada’s longest standing junior oil and free funds flow gas companies, featuring top-tier operations. • Mod
Slide 3: 2023 Success & 2024 Priorities
STRATEGIC PRIORITIES 2023 Success & 2024 Priorities 2023 SUCCESS 2023 KPI ACTUAL 2023 2023 Average Production 13,300 – 13,700 boe/d 14,204 boe/d ✓ Success Debt / TTM EBITDA <1.0x 0.8x ✓ Operating Costs $16.00 - $16.50/boe $16.02/boe ✓ Capital MM$120 - MM$125 MM$126 ✓ Execution + Maintain Exercise Fi
Slide 4: Financial Discipline
Financial Discipline Bonterra.
Slide 5: 2024 Guidance
SUSTAINABILITY FOCUS 2024 Guidance Fully-funded 2024 Capital Program Designed to Maximize Free Funds Flow With Modest Production Growth Operating & Financial1 Average Daily Production (BOE per day) 13,800 – 14,2002 $90-$100 MM 2024 capital expenditure range Oil and NGL Weighting (percent) 60 Net Cap
Slide 6: Stable Production + Modest Growth
SUSTAINABILITY FOCUS Stable Production + Modest Growth Enter the Charlie Lake and Montney Production Profile Net Wells Brought on Production CARDIUM CHARLIE LAKE MONTNEY CARDIUM CHARLIE LAKE MONTNEY 20,000 40 18,000 35 38 16,000 32 Average Production (Boe/d) 30 14,000 12,000 25 2 2 Net Wells 4 2 9 1
Slide 7: Enhanced Liquidity
FINANCIAL DISCIPLINE Enhanced Liquidity Debt Reduction With Stable Production Profile $189 Million $400 16,000 Net Debt reduction from Q1 2021 to Dec 31, 2023 $350 15,250 ~14,500 boe/d $300 14,500 34% Production (BOE/D) $250 13,750 Production growth Debt ($MM) $200 13,000 from 2020 to 2023 $150 12,2
Slide 8: Return of Capital Model: Getting Back to Our Roots
SUSTAINABILITY FOCUS Return of Capital Model: Getting Back to Our Roots Focus on financial flexibility to support a sustainable return of capital model Sustainable Return of Capital Framework Key Metrics: Forecasted Leverage Targets(1): Return of Capital NET DEBT D/EBITDA Shareholder Return Policy 2
Slide 9: Pembina Cardium
Pembina Cardium $60 Million CAPEX 16.5 Net wells Drilled (20.0 Net wells On Production) 13,500 boe/d annual average production
Slide 10: Pembina Cardium: Cash Flow Engine
2024 Cardium Drilling Program CARDIUM Pembina Cardium: Pembina Drayton Valley Cash Flow Engine One of Canada’s Largest Oil Plays 92% Sizeable, concentrated position at Pembina Operated Production and Willesden Green Cardium fields Long Runway 19.4 Years 2023 Reserve Life Index Estimated original oil
Slide 11: Charlie Lake
Charlie Lake $20 Million CAPEX 3.6 Net Wells Drilled 750 boe/d annual average production
Slide 12: Charlie Lake Acquisition
CHARLIE LAKE Charlie Lake Acquisition Long-term development runway with highly economic drilling locations, driving improved free cash flow profile • Acquired 37 sections through crown land sales in 2022 and 2023 Contiguous Land Block • Recently added 79 (net) adjacent sections, creating a new core
Slide 13: Charlie Lake Development Plan
CHARLIE LAKE Charlie Lake Development Plan Anticipate drilling 4 Gross (3.6 net) wells in 2024 and growing the asset to ~6,000 boe/d with the ability to hold flat, with ~6 wells per year for over a decade Production Profile NOI and Cumulative Free Funds Flow 8,000 100 5,824 6,000 6,000 6,000 6,000 7
Slide 14: Montney
Montney $20 Million CAPEX 2nd well planned for Q3 - Q4 350 boe/d annual average production
Slide 15: Montney Development
MONTNEY Montney Development High Impact Optionality First Montney Well (100/04-03-074-06W6/00) 100% Working Interest • Successfully drilled in Q3 2023 Land Base 100/04-03-074-06W6/00 • Successfully completed in Q4 2023 • Peak daily rate: 753 BOE per day during flow test (469 BBL per day and 1,707 MC
Slide 16: Montney Characteristics
MONTNEY Montney Characteristics Doig Future Robust Reservoir Profile Upper Target D4 Montney Primary Target D3 Reservoir Characteristics Plan D3 • Depth 1,925m TVD • Drilled a two-mile lateral in Q3 2023: ~$3.5 Million Middle • Porosity: 8% Avg • Completed in Q4 2023: ~$4.2 Million Sliding sleeve, M
Slide 17: Play Comparison Summary
CORPORATE INVENTORY Play Comparison Summary Robust corporate drilling inventory supports growth and sustainability Corporate Inventory Economic Comparison (1) Rate of Return (%) Payout (yrs) 200 1.2 1.1 1.1 MTNY CHLK CHLK CRDM 153 1.0 0.9 160 (2.0 mile) (3.0 mile) (2.0 mile) Tier 1 0.8 0.8 120 105 1
Slide 18: 2023 Reserves Evaluation
ROBUST RESERVES 2023 Reserves Evaluation Robust Reserves Underpin Shareholder Value and Value Creation Oil BOE NPV BT 10% (1) 80% Reserve Category (Mbbl) (Mboe) (thousands) Proved Developed Producing 16,475 32,763 557,339 Total Proved Reserves on Volume Proved Developed Non-Producing 2,485 5,257 76,
Slide 19: NAV Highlights Value Proposition
VALUE PROPOSITION NAV Highlights Value Proposition Bonterra offers shareholders torque to oil and exposure to a significant low risk drilling inventory YE2023 Net Asset Value Net Asset Value per Share ($/sh) @ US$75WTI / $3.00 GJ AECO (1,2) Flat Price Sensitivities (3) Proved Developed Total Proved
Slide 20: Focus on Responsible Operations
SUSTAINABILITY FOCUS Focus on Responsible Operations At our core is a deep commitment to value creation Experienced Team reignited with Loyal investor base and We are committed to a new vigour by CEO and return of capital pioneers environmental sustainability refreshed board • Exceptional experience
Slide 21: Strong Leadership Team
ENHANCED TEAM & STRONG GOVERANNCE Strong Leadership Team Leadership Team Board of Directors Patrick G. Oliver Steve Ewens D. Michael G. Stewart Patrick G. Oliver President & CEO VP, Engineering Director, Chair Director, CEO Over 35 years of experience in the Western Joined Bonterra in 2014 and holds
Slide 22: Corporate Information & Contacts
Corporate Information & Contacts STOCK EXCHANGE LISTING INDEPENDENT RESERVE ENGINEER TSX: Sproule Associates Limited BNE LEGAL COUNSEL Borden Ladner Gervais LLP CALGARY (HEAD OFFICE) Suite 901, 1015 – 4th St SW Calgary, AB T2R 1J4 BANKS AUDITORS 403.262.5307 info@bonterraenergy.com CIBC Deloitte LLP
Slide 23: Appendix
Appendix \y <= Bonterra.
Slide 24: Risk Management: Weighted Average Oil Hedges
SUSTAINABILITY FOCUS Risk Management: Weighted Average Oil Hedges Fixed Q3 2024 Q4 2024 Q1 2025 Q2 2025 Supports Sustainability Volume bbl/d 900 900 - - Price USD $/bbl 81.13 81.13 - - >30% hedged for Collars Q3 2024 Q4 2024 Q1 2025 Q2 2025 next 9 months Volume Ceiling bbl/d USD $/bbl 2,000 88.15 2,
Slide 25: Advisories
Advisories FORWARD LOOKING INFORMATION: assumptions and analyses made by us in light of our new information, future events or otherwise. and subordinated debt. Field netback is defined as revenue Certain statements contained in this presentation include experience and perception of historical trends
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