Rubellite Energy Corp. · TSX:RBY
Rubellite Energy — Investor Presentation (November 2024)
43 slides from Rubellite Energy's investor presentation, Nov 12, 2024
Slide 1: Corporate Overview
Rubellite Energy Corp. Corporate Overview November 12, 2024
Slide 2: Corporate History
Corporate History Incorporated in July 2021 as pure play Clearwater multi-lat focused junior E&P ▪ In September 2021, Rubellite acquired Perpetual’s Clearwater Assets for $65.5 MM • 350 bbl/d of heavy oil production and 100 net sections of undeveloped land RBY ▪ Executing growth focused business pla
Slide 3: 2024 Strategic Transactions
2024 Strategic Transactions Strategic transactions since Q2 2024 drive scale, enhanced financial flexibility and optionality Buffalo Mission and Perpetual Recombination Transactions Production (boe/d)(1) Development Inventory (net locations)(2) Land (net sections)(3) +240% +146% +167% 1. Rubellite ~
Slide 4: Buffalo Mission Energy Corp. Acquisition – Closed August 2, 2024
Buffalo Mission Energy Corp. Acquisition – Closed August 2, 2024 Highly complimentary Mannville Stack Asset Base added to existing Clearwater operations Acquisition Highlights Clearwater and Mannville Stack Play Fairways ▪ $97.5 million total consideration(1) • $23.5 million of assumed net debt, $62
Slide 5: Rubellite & Perpetual Recombination – Closed October 31, 2024
Rubellite & Perpetual Recombination – Closed October 31, 2024 Valuable synergies with increased scale, greater liquidity, funds flow diversification and optionality Perpetual shareholders Perpetual senior notes Rubellite shareholders received 1 New Share for ($26.2 MM face value) received 1 New Shar
Slide 6: Corporate Profile
Corporate Profile Fully funded growth-focused heavy oil multi-lat E&P Company TSX:RBY Investment Highlights Capitalization Large scale, focused asset base in the South Clearwater and Mannville Stack fairways ▪ Rank as some of the top conventional plays in the WCSB on half-cycle returns TSX RBY Fully
Slide 7: Rubellite Asset Profile
Rubellite Asset Profile Current heavy oil production of 7,292 bbl/d & total production of ~11,579 boe/d proforma Recombination Asset Map Asset Summary Land Well Count Current Production Area Oct 2024 (net sections)(1) (net producing)(2) (boe/d)(3) Panny Figure Lake/Edwand 246.3 79.0 4,526 Frog Lake
Slide 8: Highly Economic Heavy Oil Development Inventory
Highly Economic Heavy Oil Development Inventory 340 booked and unbooked drilling location inventory with attractive type curve investment returns Frog Lake Top half inventory Waseca South >200% IRR contribution Frog Lake Waseca North Figure Lake Ukalta Marten Hills Frog Lake Waseca Central 1. Before
Slide 9: Heavy Oil Asset Performance
Heavy Oil Asset Performance Strong Operational Momentum in Heavy Oil Asset Base Heavy Oil Sales (bbl/d)(1) Key Operational Metrics 8,000 7,400 – 7,800 bbl/d 7,000 >900 >10,000m >100 Production (bbl/d) 6,000 Lateral legs drilled Average meters per well Multi-lats drilled to date 5,000 4,000 3,000 2,0
Slide 10: Southern Clearwater Play History
Southern Clearwater Play History Active development, pool extension and well design optimization activity ongoing Southern Clearwater Play Fairway Play History Figure Lake – Development & Step-out Delineation Fueling RBY Growth ▪ 3,807 bbl/d Q3 2024 sales Newbrook ▪ 4,526 bbl/d Oct Field estimate sa
Slide 11: Rubellite Asset Profile | Greater Figure Lake
Rubellite Asset Profile | Greater Figure Lake 2024 Activity – Clearwater Pool Development, Extension and Down-Space Pilot Asset Map Asset Summary Working Interest: 100% Q3 2024 Production: 3,807 bbl/d 100% heavy oil ▪ 4,526 bbl/d October Field estimate ▪ 79.0 net multi-laterals on sales production F
Slide 12: Figure Lake Type Curve and Performance
Rubellite Asset Profile | Figure Lake Type Curve and Performance 2023-2024 development and step-out delineations wells average production performance on Type Curve 2024 Development Drilling Results Year to Date McDaniel Type Curve Assumptions – Figure Lake • 21 wells drilled and rig released to date
Slide 13: Figure Lake Down-Space Pilot
Rubellite Asset Profile | Figure Lake Down-Space Pilot Targeting to accelerate production and improve recovery factor per well across same drainage area ▪ Decreasing Inter-Leg Spacing from 50m to 33m to: ▪ Preliminary results encouraging for 1:1 length-scaled • Increase IRR by up to 38% acceleration
Slide 14: Rubellite Asset Profile | Frog Lake
Rubellite Asset Profile | Frog Lake H2 2024 Activity – Waseca development and operations optimization Asset Map Asset Summary Primarily targeting the Waseca A member of the Mannville Stack with upside in the Sparky and General Petroleum Working Interest: ~50% North ▪ Joint Economic Development Agree
Slide 15: Frog Lake 2024 Results and Type Curve Economics
Rubellite Asset Profile | Frog Lake 2024 Results and Type Curve Economics Type Curve and Production Results Type Curve Assumptions Resource Development on First Nation Lands Waseca Waseca Waseca Figure South(1) North(1) Central(1) Lake(2) • Activity on Frog Lake First Nation subject to Joint Economi
Slide 16: Project Pipeline
Project Pipeline Feeding a “pipeline” of primary development projects from new exploration plays Exploration Projects in Appraisal Stage: Dawson Clearwater – 13.2 net Locations • 23.0 net sections • Horizontal test well drilled in Q1 2023 – Winter production only • Up to 2 new wells expected to be d
Slide 17: Rubellite Asset Profile | Calling Lake Exploration
Rubellite Asset Profile | Calling Lake Exploration Q4 2024 drill to advance evaluation of multi-lat development potential Asset Map Opportunity Summary Calling Lake Exploration: ▪ 1 test well (100% WI) drilled in October, currently recovering KCL load fluid • 4 Leg Horizontal well to confirm product
Slide 18: Rubellite Asset Profile | East Edson
Rubellite Asset Profile | East Edson Deep Basin Liquids-Rich Gas Asset Map Asset Summary To Rosevear Working Interest: 50% ▪ Non-operated interest with best-in-class operator (Tourmaline – TSX:TOU) Q3 2024 Net Production: 4,385 boe/d (23.6 MMcf/d; 450 bbl/d NGL) ▪ Oct field estimate production 4,287
Slide 19: East Edson Liquids Rich Gas
Rubellite Asset Profile | East Edson Liquids Rich Gas Provides commodity diversification, financial flexibility and material optionality Generates sustainable free funds flow at current strip Strip (1) $3/GJ $4/GJ $5/GJ Significant exposure to higher gas prices Capital DCET $MM (2) $5.8 2 net wells/
Slide 20: Guidance and Balance Sheet
Guidance and Balance Sheet Growth-focused development plans funded out of Adjusted Funds Flow at current strip prices Guidance (November 12, 2024) Balance Sheet Q4 2024 2024 Exit Perpetual Rubellite Proforma (1) (1)(2)(3) Q2 2024 Q3 2024 E&D Capital Expenditures ($ MM) $26 - $29 Average Sales Produc
Slide 21: Commodity Price Risk Management
Commodity Price Risk Management Price protection on over 50% of 2025 production (1) net of royalties Oil Price Risk Management Gas Price Risk Management Oil Hedges (bbl/d) Natural Gas Hedges (GJ/d) 16,000 90% 6,000 90% 14,000 80% 80% 5,000 70% 70% 12,000 60% 4,000 60% 10,000 50% 50% 3,000 8,000 40%
Slide 22: Operational Excellence
Operational Excellence Striving for continuous performance improvement Environment Water :Oil based mud drillings with no fresh water based fracture stimulation in Clearwater play Land: Surface footprint minimized with multi-well pad development. Onsite drill cutting cleaning and oil-based mud recov
Slide 23: Investment Highlights
Investment Highlights Junior E&P growth opportunity in the Clearwater and Mannville Stack multi-lat heavy oil plays ▪ Access to over 600 net sections of prospective Clearwater, Mannville Stack and Heavy Oil exploration lands Expanding Pure ▪ Major producing properties at Figure Lake (Clearwater) and
Slide 24: Creating Differentiated Value for Shareholders
Creating Differentiated Value for Shareholders Junior E&P growth opportunity in the prolific Clearwater and Mannville Stack Multi-lat plays Robust Organic Production Growth Profile Expanding Conservative Pure Play Capitalization Heavy Oil and Risk Multi-lat Mitigation Asset Base Fully Funded Managem
Slide 25: 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 26: Appendix
APPENDIX Rubellite Energy Corp. 25
Slide 27: Historical Financing
Historical Financing Strong insider support for equity and subordinated debt financings ▪ Rubellite acquired all of Perpetual’s Clearwater Assets for total consideration of $65.5 MM (including $59.2 MM in cash) • Incorporated on July 12, 2021; Clearwater Assets conveyed on July 15th • Plan of Arrang
Slide 28: Experienced Management and Independent Board of Directors
Experienced Management and Independent Board of Directors Board expanded through Recombination Transaction Rubellite Independent Board of Directors (Non-Executive) Perpetual Independent Board of Directors (Non-Executive) Tamara MacDonald, Independent Director Geoffrey Merritt, Independent Director ▪
Slide 29: Commodity Price Risk Management
Commodity Price Risk Management Position Details Nov/Dec 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 WTI CAD/bbl Swap Volume (bbl/d) 1,750 2,300 1,900 1,400 - - ($CAD/bbl) $104.48 $99.54 $99.16 $98.89 - - WTI USD/bbl Swap Volume (bbl/d) 1,300 2,400 1,900 1,600 400 - ($USD/bbl) $78.25 $78.25 $73.22 $72.20 $74.8
Slide 30: Slide Notes and Advisories
SLIDE NOTES AND ADVISORIES Rubellite Energy Corp. 29
Slide 31: Slide Notes (continued)
Slide Notes (continued) Slide 1 1. Current shares outstanding as at November 12, 2024 and 4.7 million share awards outstanding (excluding 2.5 million legacy Perpetual awards that are settled outside of treasury) 2. All the land is shown net to Rubellite’s working interest 3. Free funds flow is a non
Slide 32: Slide Notes (continued)
Slide Notes (continued) Slide 4 1. See “Drilling Locations” in the Advisories 2. All the land is shown net to Rubellite’s working interest 3. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 4. “McDaniel Reserve Report” means the independent engineer
Slide 33: Slide Notes (continued)
Slide Notes (continued) Slide 6 1. See “Drilling Locations” in the Advisories 2. All the land is shown net to Rubellite’s working interest 3. Before Payout and After Payout is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” in the Advisories Slide 7 1. See “Drilling Locations” in the A
Slide 34: Slide Notes (continued)
Slide Notes (continued) Slide 10 1. See “Drilling Locations” in the Advisories 2. All the land is shown net to Rubellite’s working interest 3. IRR is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” in the Advisories 4. "McDaniel" means McDaniel & Associates Consultants Ltd., independen
Slide 35: Slide Notes (continued)
Slide Notes (continued) Slide 12 1. See “Drilling Locations” in the Advisories 2. All the land and the drilling locations shown are net to Rubellite’s working interest 3. Payout is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” in the Advisories 4. Capital is a non-GAAP measure. See “
Slide 36: Slide Notes (continued)
Slide Notes (continued) Slide 14 1. See “Drilling Locations” in the Advisories 2. Capital is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 3. IRR is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” in the Advisories 4. "McDaniel" means McDaniel & Asso
Slide 37: Slide Notes (continued)
Slide Notes (continued) Slide 18 1. See “Drilling Locations” in the Advisories 2. IRR is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” in the Advisories 3. "McDaniel" means McDaniel & Associates Consultants Ltd., independent qualified reserves evaluators 4. “McDaniel Reserve Report”
Slide 38: Slide Notes (continued)
Slide Notes (continued) Slide 20 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 39: Slide Notes (continued)
Slide Notes (continued) Slide 22 1. See “Drilling Locations” in the Advisories 2. Capital is a non-GAAP measure. See “Non-GAAP and Other Financial Measures” in the Advisories 3. All the land and the drilling locations shown are net to Rubellite’s working interest 4. Free funds flow is a non-GAAP mea
Slide 40: Advisories
Advisories General This Corporate Overview (this "presentation") of Rubellite Energy Corp. ("Rubellite" or the "Company") is for discussion and information purposes only and any unauthorized use is strictly prohibited. These materials should be read in conjunction with the Rubellite Energy Inc.'s An
Slide 41: Advisories (continued)
Advisories (continued) “Free funds flow” or “funds flow” is calculated as adjusted funds flow generated less capital expenditures. “Operating costs” is comprised of production and operating expense, as determined in accordance with IFRS, divided by the Company’s total sales oil production. “Transpor
Slide 42: 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 43: Advisories (continued)
Advisories (continued) There is no certainty that the Company will drill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company actually drills wells
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