Cardinal Energy Ltd. · TSX:CJ
Cardinal Energy — Peters & Co. Winter Energy Conference 2022
12 slides from Cardinal Energy's conference presentation, January 2022
Slide 1: Peters & Co. Winter Energy Conference 2022
TSX: CJ Peters & Co. Winter Energy Conference 2022
Slide 2: Cardinal Energy
Cardinal Energy 1. Scope one negative for carbon emissions 2. Lowest production decline among conventional producers 3. Business Model undergoing significant de-risking in 2022 4. Begin significant returns to shareholders in 2022 2 | Cardinal Energy Ltd. | TSX: CJ
Slide 3: Cardinal Snapshot
Cardinal Snapshot Fully Diluted Share Outstanding 166 MM Net Debt December 31 (approx.) $177 MM Bank Debt December 31 (approx.) $164 MM Production Average 2022 20,500 BOEPD Production Decline +/- 10% Cash Flow Estimate 2022 ($80 WTI) $270 MM CAPEX 2022 $75 MM Cash Flow Sensitivity ($1 WTI) +/- $5.6
Slide 4: Midale – CCS EOR Simplified
Midale – CCS EOR Simplified Utilizing CCS EOR reduces emissions while still contributing a low carbon source of energy Midale CO2EOR project has sequestered over 5 million tonnes of CO2 over its lifetime making it currently the 6th largest storage site in the world(3) Fully utilized Midale has t
Slide 5: Corporate Production
Corporate Production 25,000 Base decline ~ 10% 20,000 Majority of production under established secondary or tertiary recovery schemes 15,000 84% oil, 4% NGLs, 12% natural gas boe/d 10,000 Venturion assets performing to expectation 2021 new drills performing on average 50% 5,000 above expec
Slide 6: Our Business Model
Our Business Model Cash Flow 2022 ($80 WTI) Amount of capital required to maintain our $75 MM Maintenance assets and keep production flat/growth Capital ($30 MM drilling in 2022) Amount of capital required to fulfill our $9 MM ARO/ESG commitment to operating our business in a responsible manner Free
Slide 7: Sustainability: Drilling Inventory Breakdown
Sustainability: Drilling Inventory Breakdown Identified Tier 1 Potential Cardinal Growth/Maintenance Drilling District Primary Plan Inventory Multiple oil targeted play types across asset base South Ellerslie, Glauc, Arcs 45 All tier 1 development 1 year or less payout at $75US WTI Central Infil
Slide 8: Returns to Shareholders
Returns to Shareholders Phase One Protect the Business 100% of our Free Cash Flow will go toward repayment of Bank Debt until Bank Debt is reduced to $100 MM (increases Net Asset Value per share by $0.50). Phase Two Deliver direct returns to shareholders Upon reaching our Phase One Bank Debt mil
Slide 9: Free Cash Flow Forecast – No Dividend
Free Cash Flow Forecast – No Dividend WTI ($USD/bbl) $65 $70 $75 $80 $85 $90 2022 Cash flow ($MM) $174 $207 $239 $272 $304 $337 Capex/ARO ($MM) $85 $85 $85 $85 $85 $85 Free cash flow ($MM) $89 $122 $154 $187 $219 $252 Closing net debt/(Cash) ($MM)(1) $83 $55 $23 ($10) ($42) ($74) 1. Excluding potent
Slide 10: Estimated Second Half 2022 Dividend Level Scenarios
Estimated Second Half 2022 Dividend Level Scenarios The dividend rate is expected to be fixed at the prevailing oil price at the time Phase One debt level is achieved. Below assumes that level is reached July 1, 2022. WTI ($USD/bbl) $65 $70 $75 $80 $85 $90 2H 2022 Dividend ($MM) $15 $30 $40 $50 $60
Slide 11: Advisory
Advisory Note Regarding Forward Looking Statements performance of existing and future wells, the success of our exploration expressed in, or implied by, these forward-looking statements and, and development activities, the sufficiency and timing of budgeted capital accordingly, no assurance can be g
Slide 12: Advisory
Advisory This presentation contains metrics commonly used in the oil and natural regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, as bank debt plus the principal amount of convertible unsecured gas industry which have been prepared by management, such as "netback" actu
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