Inplay Oil Corp · TSX:IPO
Inplay Oil — Investor Presentation (March 2024)
30 slides from Inplay Oil's investor presentation, March 2024
Slide 1: Corporate Presentation March 2024
Corporate Presentation March 2024 TSX : IPO OTCQX : IPOOF
Slide 2: Investment Highlights
Investment Highlights • Corporate Strategy: “Disciplined light oil growth developing high rate of return assets to generate strong free adjusted funds flow with conservative leverage ratios while maximizing returns to shareholders” • Technically focused team with 8 year track record of shareholder r
Slide 3: Corporate Overview
Corporate Overview OPERATING SUMMARY 2024 Average Production (light oil & liquids %) 9,000 – 9,500 boe/d (59% – 61%)(1) 2024 Hz Drilling Plans 14.0 – 15.0 net 2023 Reserves Proved Developed Producing 17.3 Mmboe Total Proved Reserves 45.9 Mmboe 63% oil & NGL Total Proved and Probable Reserves 61.6 Mm
Slide 4: 2023 Highlights
2023 Highlights • Returned $16.5 million (7.8% yield) to shareholders through dividends and NCIB • Generated $91.8 million ($1.03 per basic share(1)) of AFF(2), our second highest ever, despite WTI and AECO prices decreasing 18% and 50% respectively compared to 2022 • Strong operating income profit
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 Regan Davis, P. Eng., ICD.D Kevin Yakiwchuk, MSc., P. Geol. Joan Dunne, FCPA, FCA, ICD.D Vice President
Slide 6: Year Track Record
8 Year Track Record Historical track record of Per Share Growth, Free Cash Flow and Debt Reduction Production(1) 70,000 Reserves 11,000 120 Production/sh (boe/d/mm shares) Liquids (bbl) PDP 700 10,000 TPP / share (boe/m shares) 110 60,000 TP 9,000 Gas (boe) 100 600 Production (boe/d) TPP Reserves (M
Slide 7: 2023 Year End Reserves & Efficiency Highlights
2023 Year End Reserves & Efficiency Highlights Reserve Highlights Reserves NPV BT10% NAV BT10% RLI (Mboe) ($000s) ($/share)(3) (yrs) Proved Developed(1) 18,295 $260,898 $2.63 5.6 Total Proved 45,919 $571,097 $6.07 13.9 Total Proved + Probable 61,594 $823,589 $8.87 18.7 Significant NPV despite weaker
Slide 8: 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 boe/d 3 year average capital efficiency of $18,825 per boe/d The peers above are defined as light oil weighted small to large cap exploration and development co
Slide 9: 2024 Forecast
2024 Forecast Commodity Price Assumptions 2024 Forecast WTI oil price (US$/bbl) $75.00 Edmonton par (C$/bbl) $96.00 AECO gas price ($/GJ) $2.35 Operational Forecast Average production (boe/d) (% liquids)(1) 9,000 – 9,500 (59% – 61%) Operating netback ($/boe)(2) $29.50 – $34.50 Adjusted funds flow ($
Slide 10: 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): • Cardium ~3,450 boe/d (52% oil & NGL) •
Slide 11: Willesden Green
Willesden Green Dominant land position in the Willesden Green Cardium trend Low risk horizontal infill drilling in well established field with large oil in place and low recovery factors Quick payout drilling inventory 176 net drilling locations Two required facility upgrades in 2023 increased natur
Slide 12: Pembina
Pembina Low risk drilling with quick payouts; well established field with large oil in place and low recovery factors J J Cardium: 89 net drilling locations EID IS IIDJ E SE J L InPlay Rights • Secured long-term access to gas processing capacity allowing Cardium Vertical S E I EIE I J SI I JJ InPlay
Slide 13: Well Economics
Well Economics The Cardium and Belly River are well established plays providing some of the best low risk returns in the Western Canada Sedimentary Basin Pembina Cardium Willesden Green Cardium Belly River 1.0 Mile Hz 1.5 Mile Hz 1.0 Mile Hz 1.5 Mile Hz 1.0 Mile Hz Capex (mm) $2.65 $3.85 $2.65 $3.75
Slide 14: Environmental Leadership
Environmental Leadership • 2022 Sustainability report available on website 50 GHG Emissions • Continuous reduction in emissions intensity 40 • Emissions intensity improvements since 2017 have resulted 30 12% in a reduction of 25,000 tonnes of CO2e (equivalent to 26% 19% removing 5,400 cars from the
Slide 15: Investment Summary
Investment Summary • Executing Our Strategy of Managing a Highly Sustainable Company – Smart, sustainable light oil production growth – Maximize FAFF ensuring sustainable return of capital to shareholders – Maintain clean balance sheet with low leverage ratios – Position company to be opportunistic
Slide 16: Appendix
Appendix @) INPLAY OIL 16
Slide 17: InPlay Team
InPlay Team Strong Technically and Value Creators Doug Bartole, President and CEO and Director, P. Eng., ICD.D (over 29 years) • Founder of InPlay; Founder, President and CEO of Vero Energy; VP Operations of True Energy; Management and Engineering roles at Husky Energy, Renaissance Energy and PanCan
Slide 18: East Basin Duvernay Shale
East Basin Duvernay Shale Emerging Light Oil Play 21 Predominantly Crown Sections in the Huxley Area (13,485 net acres) – Extensive activity directly offsetting InPlay’s land • Long land tenure allows InPlay a measured pace of development as others prove up the play around us Significant Light Oil R
Slide 19: Risk Management Hedges
Risk Management Hedges (Commodity derivative contracts) Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 Natural Gas AECO Swap (mcf/d) (1) - 1,900 1,900 640 - Hedged price ($AECO/mcf) - $2.00 $2.00 $2.00 - Natural Gas AECO Costless Collar (mcf/d) (2) 4,870 3,790 3,790 5,050 3,790 Hedged price ($AECO/mcf) $2.48 - $3.82
Slide 20: Slide Notes
Slide Notes Slide 2 1. 2024 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. 2024 production rates and drilling pl
Slide 21: Slide Notes (continued)
Slide Notes (continued) Slide 11 (cont’d) 2. The estimated 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 these estimates are as follows: US $69.75/bbl
Slide 22: 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 23: 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 24: Reader Advisories (continued)
Reader Advisories (continued) Production Breakdown by Product Type Disclosure of production on a per boe basis in this document 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 Conventiona
Slide 25: Reader Advisories (continued)
Reader Advisories (continued) Non-GAAP and Other Financial Measures (cont’d) 3 mos. Ended 3 mos. Ended Year Ended Year Ended Dec 31/2023 Dec 31/2022 Dec 31/2023 Dec 31/2022 Revenue $000’s 47,631 58,161 179,366 238,590 Royalties $000’s (6,339) (10,375) (22,516) (38,392) Operating expenses $000’s (13,
Slide 26: Reader Advisories (continued)
Reader Advisories (continued) Non-GAAP and Other Financial Measures (cont’d) Capital Management Measures Adjusted Funds Flow - Management considers adjusted funds flow to be an important measure of InPlay’s ability to generate the funds necessary to finance capital expenditures. Adjusted funds flow
Slide 27: Reader Advisories (continued)
Reader Advisories (continued) Forward Looking Information and Statements This document contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “
Slide 28: Reader Advisories (continued)
Reader Advisories (continued) Key Budget and Underlying Material Assumptions to FLI The key budget and underlying material assumptions used by the Company in the development of its 2024 guidance are as follows: Actuals Guidance Guidance FY 2023 FY 2023(1) FY 2024(1) WTI US$/bbl $77.62 $77.61 75.00 N
Slide 29: Reader Advisories (continued)
Reader Advisories (continued) Key Budget and Underlying Material Assumptions to FLI (cont’d) Actuals Guidance FY 2023 FY 2023(1) Production Boe/d 9,025 9,000 – 9,100 Opening Net Debt $ millions $33 $33 Ending Net Debt $ millions $46 $45 – $47 Weighted avg. outstanding shares # millions 89.1 89.1 Ass
Slide 30: 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