Alvopetro Energy Ltd. · TSXV:ALV
Alvopetro Energy — Investor Presentation (August 2024)
26 slides from Alvopetro Energy's investor presentation, Aug 7, 2024
Slide 1: Corporate Presentation August 2024
Corporate Presentation August 2024 TSXV: ALV OTCQX: ALVOF | TSXV: ALV, OTCQX: ALVOF
Slide 2: Alvopetro - A Leading Brazilian Independent Natural Gas Company
Alvopetro - A Leading Brazilian Independent Natural Gas Company First Brazilian integrated onshore natural gas producer Strong operating and financial results well ahead of expectations Balanced reinvestment and stakeholder return model Demonstrated ESG commitment Proven team with successful LatAm t
Slide 3: At a Glance – Value, Yield, Growth
At a Glance – Value, Yield, Growth Market Summary Reserves & Resources, NPV10 before tax (4)(8)(9)(13) Proforma December 31, 2023 Reserves Shares outstanding(1) 36.6 million 1,000 Average daily trading volume(1) 70,203 800 US$ millions Insider ownership(1) 9.3% 600 400 Market cap/Enterprise value(2)
Slide 4: Focused on Delivering Shareholder Returns
Focused on Delivering Shareholder Returns 183-A3 well results 10.00 197(1) well on production -36% quarterly dividend +17% quarterly dividend ($0.09/share) 9.00 Expert decision ($0.14/share) +50% quarterly dividend on +17% 2P reserves value Redetermination 8.00 ($0.12/share) (NPV10BT) Credit Facilit
Slide 5: Brazil a Growing Market with Attractive Fundamentals
Brazil a Growing Market with Attractive Fundamentals Largest oil producer in S. America and 9th globally New natural gas market. 48% of supply is currently imported World’s 12th largest economy Brazil Attractive fiscal regime with 5.5-11% royalties & 15%-34% income tax Stable regulatory framework at
Slide 6: State of Bahia – Reconcavo Basin
State of Bahia – Reconcavo Basin • Oldest producing basin in Brazil: 23.9 Mbopd + 2.2 e6m3/d (77 MMcf/d) • Brazil's 4th largest city Salvador (pop 2.9 million) • Well developed industrialized region • Majority of natural gas consumed in Camacari industrial complex • Highly strategic infrastructure B
Slide 7: Caburé – Asset Overview – 56.2% ALV
Caburé – Asset Overview – 56.2% ALV(13) • The Caburé field is a joint development of a conventional natural gas discovery • Alvopetro’s initial working interest of 49.1% adjusted to 56.2% following the first redetermination which was Murucututu Project completed in April 2024. The new working intere
Slide 8: Midstream - Infrastructure & Marketing (100% ALV)
Midstream - Infrastructure & Marketing (100% ALV) • 11-km transfer pipeline & Gas Plant (UPGN) with 18+ MMcfpd capacity Murucututu Project (100%) • Bahiagás 15-km Distribution pipeline & 70 MMcfpd citygate at our plant site • Price set semi-annually based on Brent, Henry Hub and UK NBP benchmark pri
Slide 9: Gas Sales Agreement (Forward Pricing at 8/7/2024)
Gas Sales Agreement (Forward Pricing at 8/7/2024) Forecast above reflects forward pricing as of August 7, 2024. Floor & ceiling prices incorporate US inflation of 2%. BRL:USD 5.61:1 | TSXV: ALV, OTCQX: ALVOF 9
Slide 10: Strong Production Results
Strong Production Results Alvopetro - Daily sales volumes (boepd) 3,000 2,642 2,724 2,767 5 5 2,459 2,432 2,501 2,359 2 130 2,432 2,361 2 2 12 117 128 19 2,500 2,175 5 107 99 5 2,143 - 105 103 97 1,975 10 118 1,950 - 98 5 92 2,000 1,764 - 89 92 1,696 1,701 1,629 3 12 12 79 81 78 1,500 76 2,390 2,523
Slide 11: Operating Netback
Operating Netback Q2 2024 operating netback margin of 89% Operating Netback(10)- $/boe Operating netback as a % of realized sales price 91% 90% 89% 90% 89% 87% 87% Q2 2024 realized price of $71.97/boe Operating Netback Margin(10) (% of Sales Price) 82% 82% 77.41 78.90 77.60 80.00 75.94 72.92 2.04 71
Slide 12: Disciplined Capital Allocation – Balancing Organic Growth & Returns
Disciplined Capital Allocation – Balancing Organic Growth & Returns Allocation of Funds Flow from Operations Funds Flow From Operations(10) & Capital Allocation July 2020 to June 30, 2024 9,618 16,000 14,972 Share Building cash 13,348 repurchases 11,047 and working 13,193 1% capital 12,434 12,393 9%
Slide 13: Organic Growth Plan
Organic Growth Plan Near-term goal of 18 MMcfepd Longer-term vision of 35 MMcfepd Caburé Unit and midstream Bom Lugar Field • Gas plant capacity 18+ MMcfpd • Redetermination - Unit working interest and production entitlement increased from 49.1% to 56.2% • Further expand Unit capacity with additiona
Slide 14: Murucututu Gas – Gomo + Caruaçu Development (100% ALV)
Murucututu Gas – Gomo + Caruaçu Development (100% ALV) • 5,460-acre deep basin gas resource Top Maracangalha Seq 7 Time 183-A3 Caruaçu net pay 116.1 metres Murucututu Project (100%) • 2P reserves: 4.6 MMboe (27.4 Bcfe), NPV10BT $129.2 million(4) including three Structure 20ms CI A’ Dev well: ALV 183
Slide 15: 183-1 Recompletion Plan – Caruacu Sequence 6.2
183-1 Recompletion Plan – Caruacu Sequence 6.2 Top Maracangalha Seq 7 Time Structure 20ms CI • Following the net pay identified on logs in 183-A3 we plan to pursue recompletion at 183-1 focused on sequence 6.2 of the Caruaçu Seq 6.2 Sand Seq 5 Geobody from amplitude 1256 Acres Seq 6 above 183-1 well
Slide 16: Murucututu Today
Murucututu Today | TSXV: ALV, OTCQX: ALVOF 16
Slide 17: Murucututu – Positioned for Growth
Murucututu – Positioned for Growth ALV can drill 6+ development wells from 3 well pads all connected to our field production facility at 183-1 that delivers gas to ALV UPGN | TSXV: ALV, OTCQX: ALVOF 17
Slide 18: Murucututu Project Development 183-1 Location
Murucututu Project Development 183-1 Location | TSXV: ALV, OTCQX: ALVOF 18
Slide 19: Murucututu Multi-Year Development Plan
Murucututu Multi-Year Development Plan • 2P Reserves: 3 existing wells + 3 undeveloped locations (183-A2, 197-A2 and 197-A3) • Contingent Resource: 3 development wells • Prospective Resource: 10 additional wells | TSXV: ALV, OTCQX: ALVOF 19
Slide 20: ESG – 2022 Highlights
ESG – 2022 Highlights We are focused on Competition Actresponsibly Disclaimersupplying energy, minimizing our environmental impact, and generating lasting benefits for all our stakeholders AlvopetroENVIRONMENTAL SOCIAL has temporarily removed ESG content from GOVERNANCE our website including our cor
Slide 21: Voluntary Social Investment
Voluntary Social Investment We want to contribute positively to the communities where we operate. We are investing in projects focused on: Sustainable Development of Rural Communities, Social Entrepreneurship, Education, Cultural and Sporting Activities, and Biodiversity Preservation. | TSXV: ALV, O
Slide 22: Why Invest?
Why Invest? Results Growth Value Yield | TSXV: ALV, OTCQX: ALVOF 22
Slide 23: TSXV: ALV OTCQX: ALVOF
TSXV: ALV OTCQX: ALVOF Calgary, Canada: Alvopetro Energy Ltd. Suite 1920, 215 – 9th Avenue SW Calgary, Alberta, Canada T2P 1K3 Tel: (587) 794-4224 Email: info@alvopetro.com Salvador, Brazil: Alvopetro S/A Extração de Petróleo e Gás Natural Rua Ewerton Visco, 290, Boulevard Side Empresarial, Sala 200
Slide 24: Cautionary Statements
Cautionary Statements • Forward Looking Statements. This presentation contains forward-looking statements including forecasted future earnings and sales volumes, forecasted natural gas prices under the Company’s long-term gas sales agreement, the anticipated timing of projects, future exploration an
Slide 25: Cautionary Statements
Cautionary Statements • Net Present Value and Reserves Disclosed. The net present value of future net revenue attributable to Alvopetro’s reserves is stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production costs, devel
Slide 26: Endnotes
Endnotes 1. As of August 7, 2024. Average daily trading volume is based on average volumes traded on all Canadian exchanges (TSXV and other Canadian) and on the OTCQX in the six months commencing on February 8, 2024 and ending on August 7, 2024. 2. Enterprise value of $111.9 million is computed as U
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