Inplay Oil Corp · TSX:IPO
Inplay Oil — Investor Presentation (September 2021)
30 slides from Inplay Oil's investor presentation, September 2021
Slide 1: Corporate Presentation September 2021
Corporate Presentation September 2021 TSX : IPO OTCQX : IPOOF
Slide 2: Investment Highlights
Investment Highlights • Technically focused team successfully managed Company through a challenging environment positioning InPlay in the strongest position of its corporate history “Executing on our strategy of measured production per share growth with excess FAFF focused on maximizing returns to s
Slide 3: Corporate Overview
Corporate Overview OPERATING SUMMARY 2021 Average Production (light oil & liquids %) 5,500 – 5,750 boe/d (68%)(1) 2021 Hz Drilling Plans Proved Reserves 21,624 mboe 8.4 68% oil & NGL in TPP reserve booking Proved and Probable Reserves 32,816 mboe Proved and Probable NPV BT10% ($mm) $263.7 mm MARKET
Slide 4: Management and Directors
Management and Directors Management Directors Strong Technically and Value Creators Experienced Industry Board Doug Bartole, P. Eng., ICD.D Doug Bartole, P. Eng., ICD.D President and CEO, Director Joan Dunne, FCPA, FCA, ICD.D Kevin Yakiwchuk, MSc., P. Geol. Craig Golinowski CFA, MBA Vice President E
Slide 5: Consistent Top-Tier Organic Growth
Consistent Top-Tier Organic Growth Extraordinary recovery in production, AFF and debt reduction post COVID Production(1) Adjusted Funds Flow(2) Reserves 6,500 100 80 1.20 35,000 32816 Adjusted Funds Flow / share ($/share) Production/sh (boe/d/mm shares) 6,000 90 70 30,000 5,500 1.00 27295 Adjusted F
Slide 6: 2020 Year End Reserves & Efficiency Highlights
2020 Year End Reserves & Efficiency Highlights Reserve Highlights Reserves BOE NPV BT10% RLI Replacement (Mboe) ($000s) (Years) (%) Proved Developed Producing 9,677 94,599 166 6.6 Total Proved 21,624 157,201 309 14.8 Total Proved + Probable 32,816 263,691 479 22.5 Finding, Development & Acquisition
Slide 7: IPO Providing Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels
IPO Providing Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels IPO Capital Efficiencies Adding Producing Boed • 2020 capital efficiency of $19,949 per boe/d • 3 year average capital efficiency of $17,702 per boe/d 2019 PDP FDA & Recycle Ratios Versus Peers 2020 PDP FDA & Recycl
Slide 8: Environmental Leadership
Environmental Leadership GHG Emissions • Reduction in CO2 emissions by 12% in 2018 and 25% in 2019 0.04 compared to prior year. 2% reduction in 2020 compared to 2019, despite COVID-19 production shut-ins and curtailments 0.03 12% • Emissions reduction of 1,540 tonnes of CO2e (equivalent to removing
Slide 9: Focused Light Oil Producer with Low Decline
Focused Light Oil Producer with Low Decline High Margin Operations 2021e Production Net Drilling ALBERTA Formations boe/d (% liquids)(1) Inventory Cardium Pembina 3,350 (74%) 153 Belly River PEMBINA Edmonton Willesden Green 2,100 (60%) 102 Cardium Mannville, 90% Cardium WILLESDEN GREEN E. BASIN DUVE
Slide 10: Pembina
Pembina Drilling industry pacesetter 1.0 mile horizontal InPlay Wells InPlay Rights wells and exceeding forecasted volumes Acquisition Wells 2019 Hz Drilling Activity : 3 (3.0 net) Acquisition Rights Cardium Vertical 2020 Hz Drilling Activity : 3 (3.0 net) Cardium Horizontal 2021 Hz Drilling Plans :
Slide 11: Recent Pembina Acquisition & Initial Results
Recent Pembina Acquisition & Initial Results Q4 2020 Strategic Cardium asset acquisition (100% WI) • Purchase Price - $1.9mm (net of adjustments) Reserves Category Evaluator Reserves (Mboe) Btax 10% (M$) YE 2019 1,041 13,744 PDP IPO Sproule YE 2020 1,641 18,592 YE 2019 1,041 13,744 TP IPO Sproule YE
Slide 12: Willesden Green Cardium
Willesden Green Cardium Consistently drilling industry pacesetter 1.5 mile horizontal wells and exceeding forecasted volumes 2019 Hz Drilling Activity : 8 (4.8 net) 2020 Hz Drilling Activity : 4 (4.0 net) 2021 Hz Drilling Plans : 1 (0.2 net) non-operated – Redirected operated capital to 3-6 month qu
Slide 13: 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) $1.7 $2.8 $2.0 $2.7 Potential Recovery (mboe) 160 345 185 290 IP90
Slide 14: 2021 Forecast and Preliminary 2022 Outlook
2021 Forecast and Preliminary 2022 Outlook Commodity Price Assumptions 2021 Forecast 2022 Outlook WTI oil price (US$/bbl) $64.50 $66.30 Edmonton par (C$/bbl) $75.80 $78.00 AECO gas price ($/GJ) $3.35 $3.30 Operational Forecast Average production (boe/d) (% liquids) (1) 5,500 – 5,750 (68%) 6,300 – 6,
Slide 15: H2 2021 Commodity Price Sensitivities
H2 2021 Commodity Price Sensitivities Majority of 2020 hedges ended on June 30, 2021 resulting in a significant increase to anticipated funds flow in H2 and beyond H2 Commodity Price Assumptions Forecast H2 WTI oil price (US$/bbl) $60.00 $67.00 $70.00 $80.00 FX rate 0.77 0.80 0.79 0.83 H2 Edmonton p
Slide 16: Deep Value Providing Top-tier Organic Growth
Deep Value Providing Top-tier Organic Growth 2022e EV/DACF and D/CF Multiples 2022e EV/DACF Multiple IPO IPO Bottom 1/3 lowest leverage in covered companies Average EV/DACF multiple equates to $2.65 InPlay share price Deep value indicated by 2022 EV/DACF multiple 2022e DAFCF/EV 2022e FCF Yield IPO I
Slide 17: Summary
Summary • Strong team successfully managed Company through a challenging environment – InPlay is in the strongest position of its corporate history • Executing on strategy for measured production growth with FAFF(1) focused on maximizing returns for shareholders – Forecasted 2021 FAFF of $15.5mm - $
Slide 18: Appendix
Appendix Ye INPLAY OIL 18
Slide 19: 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 20: 2020 Year End Net Asset Value
2020 Year End Net Asset Value PDP TP TPP ($000s) ($000s) ($000s) NPV BT10% 94,599 157,201 263,691 Undeveloped Land 49,029 Net Debt (73,681) Net Asset Value (1) 69,947 132,549 239,039 Basic Common Shares 68,257 2020 NAV / Share $1.02 $1.94 $3.50 2019 NAV / Share $1.70 $2.87 $4.56 Future Development C
Slide 21: East Basin Duvernay Shale
East Basin Duvernay Shale Emerging Light Oil Play 37.4 Crown Sections in the Huxley Area (23,930 net acres) Joffre – Crown lands provide 5% royalties for 4-6 years @ $60-$70 WTI – Extensive activity directly offsetting InPlay’s land • Long land tenure allows InPlay a measured pace of development as
Slide 22: Risk Management Hedges
Risk Management Hedges (Commodity derivative contracts) 2021 2022 Q3 Q4 Q1 Natural Gas AECO Swap (GJ/d) 4,750 2,925 - Hedged price ($AECO/GJ) $2.46 $2.40 - Natural Gas AECO Costless Collar (GJ/d) - 1,325 2,000 Floor $2.70 $2.70 Hedged price – ($AECO/GJ) - Ceiling $3.36 $3.36 Crude Oil WTI Swap (bbl/
Slide 23: Slide Notes
Slide Notes Slide 2 1. Production and adjusted funds flow growth rates and free adjusted funds flow are based on forecasted assumptions outlined in the “Forward Looking Information and Statements” in the Reader Advisories. Slide 3 1. Production rates and 2021 drilling plans are based on forecasted a
Slide 24: Slide Notes (continued)
Slide Notes (continued) Slide 11 1. See “Type Curves and Potential Recovery Estimates” under “Oil and Gas Advisories” in the Reader Advisories. 2. See “Drilling Locations” within “Oil and Gas Advisories” in the Reader Advisories. 3. Reserves and NPV are derived from InPlay’s independent reserve eval
Slide 25: 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 26: Reader Advisories (continued)
Reader Advisories (continued) Oil and Gas Advisories (cont’d) Type Curves and Potential Recovery Estimates - The type curves presented herein reflect a selection from a type curves library provided by InPlay’s independent reserve evaluator. In each case the type curve presented is that which in mana
Slide 27: Reader Advisories (continued)
Reader Advisories (continued) Forward Looking Information and Statements (cont’d) Additionally, readers are advised that historical results, growth and transactions described in this presentation may not be reflective of future results, growth and transactions with respect to InPlay. The forward-loo
Slide 28: 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 29: Reader Advisories (continued)
Reader Advisories (continued) Non-GAAP Measures and Ratios (cont’d) Operating Income Profit Margin - InPlay uses “operating income profit margin” as key performance indicators. Operating income should not be considered as an alternative to or more meaningful than net income as determined in accordan
Slide 30: Contact Us
Contact Us Doug Bartole President and CEO 587.955.0632 DougB@InPlayOil.com #920, 640 – 5th Avenue SW Calgary, AB T2P 3G4 www.inplayoil.com