Inplay Oil Corp · TSX:IPO
Inplay Oil — Investor Presentation (January 2022)
27 slides from Inplay Oil's investor presentation, January 2022
Slide 1: Corporate Presentation January 2022
Corporate Presentation January 2022 TSX : IPO OTCQX : IPOOF
Slide 2: Investment Highlights & Recent Events
Investment Highlights & Recent Events • Technically focused team successfully managed InPlay through a challenging environment and now in the strongest position in our corporate history – Continual annual top-tier organic growth amongst peers since inception – Sustainability enhanced with strong bal
Slide 3: Pro Forma Corporate Overview
Pro Forma Corporate Overview OPERATING SUMMARY 2022 Average Production (light oil & liquids %) 8,900 – 9,400 boe/d (62% - 63%)(1) 2022 Hz Drilling Plans ~17.0 net 2020 pro forma reserves Proved Developed Producing 14.5 MMboe 64% oil & NGL Proved Reserves 42.8 Mmboe in TPP reserve booking Proved and
Slide 4: Q3 Financial Highlights
Q3 Financial Highlights Highlighted values indicate record quarterly results Average production (boe/d) 6,011 5,386 12 3,742 61 Adjusted funds flow ($000s) 15,555 8,219 89 2,008 675 Adjusted funds flow per diluted share ($) 0.22 0.12 83 0.03 633 Revenue ($/boe) 56.66 51.55 10 31.50 80 Operating netb
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 Joan Dunne, FCPA, FCA, ICD.D Kevin Yakiwchuk, MSc., P. Geol. Craig Golinowski CFA, MBA Vice President E
Slide 6: Consistent Top-Tier Organic Growth
Consistent Top-Tier Organic Growth Extraordinary recovery in production, AFF and debt reduction post COVID 2016 includes only 7 weeks as a new public company, 2020 PF reserves are pro forma the Prairie Storm acquisition closed November 30, 2021 (1) See “Production Breakdown by Product Type” in the R
Slide 7: 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 Boed • 2020 capital efficiency of $19,949 per boe/d • 3 year average capital efficiency of $17,702 per boe/d The peers above are defined as light oil weighted s
Slide 8: Focused Asset Base
Focused Asset Base Drilling industry pacesetter horizontal wells and exceeding forecasted volumes InPlay Land InPlay Wells 80% Cardium Industry Cardium Wells ALBERTA production PEMBINA Edmonton WILLESDEN E. BASIN GREEN PEMBINA DUVERNAY Calgary Production(1): ~4,175 boe/d (65% oil & NGL) Upside: 153
Slide 9: Willesden Green
Willesden Green Dominant land position in the Willesden Green Cardium trend Low risk infill drilling in well established field with large oil in place and low recovery factors • Minimal infrastructure capital required Quick payout drilling inventory Recent acquisition is complementary to InPlay’s la
Slide 10: Pembina Cardium
Pembina Cardium Low risk infill drilling in well established field with large oil in place and low recovery factors • Minimal infrastructure capital required Quick payout drilling inventory InPlay Wells 2020 strategic Cardium asset acquisition InPlay Rights • Built multi-well battery to handle full
Slide 11: 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 $2.7 Potential Recovery (mboe) 160 345 185 290 IP90
Slide 12: 2022 Forecast
2022 Forecast Commodity Price Assumptions 2022 Forecast WTI oil price (US$/bbl) $72.50 Edmonton par (C$/bbl) $88.10 AECO gas price ($/GJ) $3.30 Operational Forecast Avg production (boe/d) (% liquids)(1) 8,900 – 9,400 (62 - 63%) Operating netback ($/boe)(2) $36.25 - $39.25 Adjusted funds flow ($mm) $
Slide 13: Environmental Leadership
Environmental Leadership Scope 1 GHG Emissions • Forecasting a reduction in CO2 emissions of 21% in 2021 compared to 0.04 prior year 0.03 • Emissions reduction of 1,540 tonnes of CO2e (equivalent to removing 12% 335 cars for one year(1)) since Q2 2019 as a result of environmental 0.02 26% investment
Slide 14: Deep Value and Providing Top-tier Organic Growth
Deep Value and Providing Top-tier Organic Growth Analyst verification of value, low leverage and growth 2022e Debt Adj. Total Return* 2022e EV/DACF and D/CF Multiples(1) vs. 2022e EV/DACF(2) 2.0x Domestic E&Ps International E&Ps 1.5x Avg: 2.9x D/CF 1.0x Avg: 0.5x 0.5x IPO 0.0x 1.0x 1.5x 2.0x 2.5x 3.
Slide 15: Summary
Summary • Acquisition improves InPlay’s long term sustainability – Low decline base production requiring minimal capital to keep flat – Significant addition of top-tier operated high working interest inventory • Executing on strategy for top-tier production growth with FAFF(1) focused on maximizing
Slide 16: Appendix
Appendix Ye INPLAY OIL 16
Slide 17: InPlay Team Strong Technically and Value Creators
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 18: East Basin Duvernay Shale
East Basin Duvernay Shale Emerging Light Oil Play 37.4 Crown Sections in the Huxley Area (23,930 net acres) – Crown lands provide 5% royalties for 4-6 years @ $60-$70 WTI – Extensive activity directly offsetting InPlay’s land • Long land tenure allows InPlay a measured pace of development as others
Slide 19: Risk Management Hedges (Commodity derivative contracts)
Risk Management Hedges (Commodity derivative contracts) Q1/22 Q2/22 Q3/22 Q4/22 Natural Gas AECO Swap(1) (GJ/d) 1,000 2,750 2,750 925 Hedged price ($AECO/GJ) $2.30 $3.19 $3.19 $3.19 Natural Gas AECO Costless Collar(2) (GJ/d) 7,000 4,750 2,750 2,720 Hedged price ($AECO/GJ) ($2.56 - $4.25) ($2.50 - $3
Slide 20: Slide Notes
Slide Notes Slide 2 1. 2022 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. 2022 production rates and drilling pl
Slide 21: Slide Notes (continued)
Slide Notes (continued) Slide 9 (cont’d) 6. Accretion metrics and acquisition accretion is based on an estimated 2022 annual average production of 2,755 boe/d, operating netback of $31.75/boe, adjusted funds flow of $29.5 - $31.5 million, capital expenditures of $10.0 - $12.0 million and free adjust
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) Test Results and Initial Production Rates - A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis
Slide 24: Reader Advisories (continued)
Reader Advisories (continued) Payout refers to the time required to pay back the capital expenditures (on a before tax basis) of a project. Reserve Life Index (“RLI”) is calculated by dividing the quantity of a particular reserve category of reserves by the forecast of the first year's production fo
Slide 25: Reader Advisories (continued)
Reader Advisories (continued) Non-GAAP Measures and Ratios (cont’d) Prairie Storm Assets FY 2022 Revenue $ millions $44.5 - $46.5 Royalties $ millions $4.0 - $5.0 Operating Expenses $ millions $8.0 - $10.0 Transportation $ millions $0.0 - $0.2 Operating Income $ millions $31.0 - $33.0 Net considerat
Slide 26: Reader Advisories (continued)
Reader Advisories (continued) Forward Looking Information Assumptions The key budget and underlying material assumptions used by the Company in the development of its 2022 guidance including forecasted production, operating income, capital expenditures, adjusted funds flow, free adjusted funds flow,
Slide 27: 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