Yangarra Resources Ltd. · TSX:YGR
Yangarra Resources — Investor Presentation (October 2020)
20 slides from Yangarra Resources's investor presentation, October 2020
Slide 1: Corporate Presentation
CORPORATE PRESENTATION TSX: YGR OCTOBER 2020
Slide 2: Yangarra Highlights
YANGARRA HIGHLIGHTS 2020 RESET POSITIONS YANGARRA FOR STRONGER & SUSTAINABLE BUSINESS PLAN ➢ Responsible allocator of capital optimizing full-cycle returns for shareholders by generating 20+ years positive net-income earnings in the energy sector of inventory • 2019 EPS of $0.51 vs. 2018 EPS of $0.2
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT WELL CAPITALIZED, STRONG INSIDER OWNERSHIP & A DEFINED RESOURCE BASE CAPITALIZATION SUMMARY CARDIUM LAND POSITION Additional Information Basic Shares mm 85.4 17% Insider Ownership Options mm 5.0 $0.87 Weighted Average Ex. Price Fully Diluted mm 90.4 22% Total Insider Ownership Mar
Slide 4: Guiding Principles
GUIDING PRINCIPLES EMPHASIS ON LONG-TERM RETURNS, MITIGATE SHORT-TERM VOLATILITY ➢ Be experts in core area of operations OPERATIONAL ➢ Meticulously concentrate on cost structure FOCUS ➢ Leverage off capital spent to date; go-forward focus on low-risk step-out drilling ➢ Addressing short-term market
Slide 5: Leadership
LEADERSHIP EXPERIENCED & GEARED FOR DEVELOPMENT MANAGEMENT TEAM BOARD OF DIRECTORS Jim Evaskevich - 30+ years of extensive executive experience Gordon Bowerman - President of Cove Resources Ltd. President & CEO - Strong field & drilling operational background Chairman - 50+ years of oil & gas experi
Slide 6: Cardium Evolution: Technological Shift
CARDIUM EVOLUTION CARDIUM PAYOUTS COMPETE WELL WITH OTHER NORTH AMERICAN PLAYS; CHEDDERVILLE STACKS UP EVEN BETTER CONVENTIONAL CARDIUM HALO CARDIUM CARDIUM RELATIVE TO NORTH AMERICA North American Oil and Natural Gas Plays Half-Cycle Payout Period Clearwater Marten Hills/Nipisi Mississippian Conven
Slide 7: Cardium Revolution: Technology Progression
CARDIUM REVOLUTION BIOTURBATED ZONE CONTRIBUTES MATERIALLY TO HALO CARDIUM POTENTIAL ORIGINAL LOG & BIOTURBATED CORE EXAMPLE NEW FRAC PLANE Willesden Green T41-R6W/5 Net Pay Old Well Path Upper 2.5-4.0m TECHNOLOGY PROGRESSION Upper Sand Core analysis Porosity 10-15% ➢ Yangarra approach: Bioturb. • C
Slide 8: Revised 2020 Plans
REVISED 2020 PLANS HALF CYCLE ECONOMICS TO DRIVE PROFITABILITY & GROWTH PRE-2018 LANDS ➢ Infrastructure & land capture in place ➢ Remaining 2020 capital devoted to drilling & completions ➢ Flexible capital spending plan allows Yangarra to modulate capital program based on commodity prices; Yangarra
Slide 9: Cardium Inventory
CARDIUM INVENTORY DISCIPLINED APPROACH DRIVES LAND ACQUISITION STRATEGY LAND & INVENTORY SUMMARY ILLUSTRATIVE SECTION EXPLOITATION STRATEGY EXPLOITATION STRATEGY Gross Net WI 4 WELLS / 8 WELLS / Total Sections 165.5 147.8 ONE WELL SECTION SECTION ➢ Currently drill high-rate, high GOR Total Acres 105
Slide 10: Risked Economics
RISKED ECONOMICS APPLYING 20% RISK FACTOR TO PREVIOUS UN-RISKED TYPE CURVES RISKED WEIGHTED-AVERAGE TYPE CURVE PRODUCTION PROFILE RISKED WEIGHTED-AVERAGE TYPE CURVE ASSUMPTIONS 1.5 Mile 450 Total (boe/d) DCET $mm $3.75 % Oil EURs & IPs will 400 IP30 - Oil bbl/d 241 62% vary across land Oil (bbl/d) P
Slide 11: Production Logistics
PRODUCTION LOGISTICS INSTRUMENTAL IN CREATING SUSTAINABLE LOW-OP COST STRUCTURE YANGARRA INFRASTRUCTURE CONVENTIONAL THINKING ➢ Build massive contiguous land base ➢ Drive down costs by overcapitalizing infrastructure (oil pipelines & gas-processing) YANGARRA: LOOK FORWARD NOT BACKWARDS ➢ Create flex
Slide 12: Environment Social Governance Strategy
ENVIRONMENT SOCIAL GOVERNANCE STRATEGY PRAGMATIC APPROACH ADDRESSES INVESTOR CONCERNS WHILE DRIVING RETURNS Yangarra focuses on creating long-term shareholder value through financial discipline while minimizing Yangarra’s environmental footprint and by operating in a safe & diverse culture Environme
Slide 13: Appendix
APPENDIX RISK MANAGEMENT, ANALYST COVERAGE, PRESENTATION FOOTNOTES & FORWARD LOOKING STATEMENTS yangarra resources ltd. OCTOBER 2020| PG 13 (Refer to end of presentation for slide notes & advisories)
Slide 14: Analyst Coverage
ANALYST COVERAGE BROADLY COVERED BY THE STREET Acumen Capital Finance Partners Ltd. Cormark Securities Inc. Peters & Co Trevor Reynolds Amir Arif, CFA Dan Grager treynolds@acumencapital.com aarif@cormark.com dgrager@petersco.com (403) 410-6842 (403) 750-7200 (403) 261-2215 AltaCorp Capital Inc. Indu
Slide 15: Presentation Footnotes
PRESENTATION FOOTNOTES OCTOBER 2020 ➢ Slide 2: ROCE: Trailing 12-month EBIT as at December 31, 2019 divided by (Total Assets less Current Liabilities); ROE: Trailing 12-month net income as at December 31, 2019 divided by Shareholders Equity; NAV = NPV10 Reserve Value less adjusted Net Debt and exclu
Slide 16: Presentation Footnotes
PRESENTATION FOOTNOTES OCTOBER 2020 Non–IFRS and Additional IFRS Measures This document contains “funds flow from (used in) operations”, which is an additional IFRS measure. The Company uses funds flow generated from (used in) operations as a key measure to demonstrate the Company’s ability to gener
Slide 17: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains a summary of management's assessment of results and should be read in conjunction with the Consolidated Financial Statements and related Management's Discussion and Analysis for the year ended December 31, 2019, as filed on the SEDAR profile of Y
Slide 18: Forward Looking Statements (Cont.)
FORWARD LOOKING STATEMENTS (CONT.) The forward-looking statements contained in this presentation are made as of the date on the front page and the Company assumes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, fut
Slide 19: Non-GAAP Measures & Analogous Information
FORWARD LOOKING STATEMENTS NON-GAAP MEASURES & ANALOGOUS INFORMATION This presentation contains references to measures used in the oil and natural gas industry such as “netback”, “net debt” and “cash flow”. These measures do not have standardized meanings prescribed by International Financial Report
Slide 20: Reserve Definitions
FORWARD LOOKING STATEMENTS RESERVE DEFINITIONS Natural gas has been converted to a barrel of oil equivalent (Boe) using 6,000 cubic feet (6 Mcf) of natural gas equal to one barrel of oil (6:1), unless otherwise stated. The Boe conversion ratio of 6 Mcf to 1 Bbl is based on an energy equivalency conv
Yangarra Resources — Investor Presentation (October 2020) on 6ix