Athabasca Oil Corporation · TSX:ATH
Athabasca Oil — Investor Presentation (January 2025)
27 slides from Athabasca Oil's investor presentation, January 2025
Slide 1: Athabasca Oil Corporation
ATHABASCA OIL CORPORATION FOCUSED | EXECUTING | DELIVERING JANUARY 2025
Slide 2: Corporate Snapshot
CORPORATE SNAPSHOT ~38,500 BOE/D / 98% LIQUIDS / LOW BASE DECLINE ATHABASCA ASSETS CAPITALIZATION (CONSOLIDATED) THERMAL OIL THERMAL OIL Dover ~300,000 gross acres o Predictable, low decline projects West Basic Shares (ATH‐TSX) 533MM o Efficient brownfield SAGD development Hangingstone Market Cap. (
Slide 3: 2025 Budget & Guidance
2025 BUDGET & GUIDANCE THERMAL OIL BUDGET HIGHLIGHTS 2025 GUIDANCE (US$70 WTI, US$12.50 DIFF) o Efficient capital expansion at Leismer to 40K bbl/d Thermal Oil DEC (100%) Consolidated o Competitive and resilient break‐evens 37,500 – 39,500 boe/d Production 33,500 – 35,500 bbl/d ~4,000 boe/d ~41,000
Slide 4: Robust Free Cash Flow Profile
ROBUST FREE CASH FLOW PROFILE BUSINESS OUTLOOK NET PRODUCTION (BOE/D)1 80,000 Thermal Oil 200 o Thermal Oil assets with low base decline Duvernay Energy Production per share (RHS) • Leismer brownfield growth to 40,000 bbl/d 60,000 150 o Duvernay Energy enhances growth 13% CAGR >20% per share CAGR •
Slide 5: Thermal Oil – Asset Overview
» pT ae THERMAL OIL - ASSET OVERVIEW
Slide 6: Thermal Oil Division
THERMAL OIL DIVISION PREDICTABLE, LOW DECLINE HIGHLIGHTS THERMAL PROPERTIES 2025e Production 33,500 ‐ 35,500 bbl/d 100% Working Interest Fort McMurray 2025e Capital ~$250MM Expenditures AOC Hangingstone ~US$40 WTI Operating <US$50 WTI Sustaining Resilient Break‐Evens Enbridge Sustaining Capital Chee
Slide 7: Leismer – Overview
LEISMER – OVERVIEW TOP TIER OIL SANDS PROJECT DEVELOPMENT MAP Pad 10 4 well pairs o Long reserve life; ~70 year current Reserve Life Index • 697MMbbl 2P reserves; 384MMbbl Best Est. Contingent Resource • ~50 year 2P RLI at 40,000 bbl/d o Excellent reservoir underpins low corporate decline Pad 8 Sout
Slide 8: Leismer – 40,000 bbl/d Expansion
LEISMER – 40,000 BBL/D EXPANSION HISTORICAL PRODUCTION & GROWTH OUTLOOK (BBL/D) 40,000 PROJECT OVERVIEW 30,000 Project Cost ~$300MM Incremental Rate 12,000 bbl/d 20,000 Capital Efficiency ~$25,000/bbl 10,000 Growth to ~28,000 bbl/d sanctioned in 2023 budget ‐ Leismer NPV10 @ 40,000 bbl/d 2022 2023 2
Slide 9: Hangingstone – Overview
HANGINGSTONE – OVERVIEW DEVELOPMENT MAP PROJECT HIGHLIGHTS o Long reserve life; ~65 year Reserve Life Index • 167 MMbbl 2P reserves o Improved SOR due to the field wide NCG co‐injection • 3.4x year to date average 2025 ACTIVITY (~$15MM) o Two new extended reach sustaining well pairs on production in
Slide 10: Corner – Overview
CORNER – OVERVIEW REGIONAL MAP TOP TIER OIL SANDS PROJECT o Large De‐risked Asset • 351 MMbbl 2P reserves and 520 MMbbl Contingent Resource (Best Est.) • 304 delineation wells with ~80% 3D seismic coverage o High Quality Reservoir • Up to ~45 m of pay in initial development with high quality sands •
Slide 11: Duvernay Energy Corporation
DUVERNAY ENERGY CORPORATION
Slide 12: Duvernay Energy – Corporate Snapshot
DUVERNAY ENERGY – CORPORATE SNAPSHOT CREATION OF NEW PRIVATE COMPANY DEC ASSETS o Athabasca and Cenovus combine Duvernay assets • Athabasca operates DEC Halo Energy o Unparalleled exposure to Kaybob Duvernay oil window GMT Exploration Hitic Energy ASSET HIGHLIGHTS Veren o ~200,000 gross acres; ~500
Slide 13: Duvernay Energy – Kaybob Activity Map
DUVERNAY ENERGY – KAYBOB ACTIVITY MAP CNRL Cygnet GMT Oil Halo Hitic Window Kiwetinohk Paramount PetroChina Veren Liquids Rich Whitecap Gas Window DEC 30% JV ASSETS Duvernay Hz Wells 2024 Duv. spuds DEC 100% NEW OPERATED ASSETS 2023 Duv. Spuds DEC 2024 Multi‐well pads DEC 2025 Multi‐well pads ATHABA
Slide 14: Duvernay Energy – Development Plans
DUVERNAY ENERGY – DEVELOPMENT PLANS KAYBOB EAST ILLUSTRATIVE ECONOMICS 2025 ACTIVITY (~$85MM CAPITAL) 4,000M LATERAL & 1,500 LB/FT (US$70 WTI) o 100% working interest operated activity 2‐WELL 4+ MULTI PAD WELL PAD • Complete three‐well pad in H1 2025 Capital (DCET) per well $MM $14 $10 IP365 per wel
Slide 15: Why Own Athabasca
WHY OWN ATHABASCA MANAGING FOR TOP TIER, LONG LIFE SHAREHOLDER RETURNS & ASSET BASE PER SHARE GROWTH • ~1.2 billion boe 2P reserves; ~1 billion bbl Cont. Resource • ~$1.8 billion Free Cash Flow at US$70 WTI (2025‐29) • Low decline and sustaining capital (~$8/bbl 5‐year avg.) • Return 100% of Free Ca
Slide 16: Appendix
APPENDIX
Slide 17: Management Team
MANAGEMENT TEAM o President and Chief Executive Officer since 2015; 12 Years at Athabasca Rob Broen, P.Eng. o Over 30 years of exploration and production experience including 18 years with Talisman Energy with roles as President & Chief Executive President, Talisman Energy USA Inc. and Senior Vice P
Slide 18: Capitalization & Hedging
CAPITALIZATION & HEDGING LONG‐TERM DEBT CONSOLIDATED CAPITAL STRUCTURE o C$200MM 2029 Unsecured Notes • Issued August 2024; 5‐year term to 2029 • 6.75% coupon ~$2,900MM Market Cap STRONG LIQUIDITY ($5.50/share) o AOC Liquidity of ~$375MM, including $304MM cash $31MM DEC Cash o DEC Liquidity of ~$80M
Slide 19: Exposure to a Bullish Heavy Oil Thesis
EXPOSURE TO A BULLISH HEAVY OIL THESIS CANADIAN HEAVY DIFFERENTIALS WCS HEAVY DIFFERENTIALS (US$) AOC o Positive structural changes for Canadian heavy oil ACTUAL FORECAST • Trans Mountain Expansion (+590 mbbl/d); May 1st start‐up o Stronger and less volatile WCS heavy pricing expected • Canadian oil
Slide 20: Differentiated Long-Life Reserves
DIFFERENTIATED LONG-LIFE RESERVES 2023 RESERVE OVERVIEW 2P RESERVES BY ASSET (MMBOE) o Deep resource inventory 167 • ~1.2 billion boe 2P reserves; ~100 year Reserve Life Index • ~1 billion bbl Contingent Resource 351 • 113 of ~500 gross estimated Duvernay locations booked 697 o Significant intrinsic
Slide 21: Valuable Tax Pools
VALUABLE TAX POOLS TAX POOL SUMMARY (Q3 2024) ILLUSTRATIVE TAX POOL VALUATION (NPV10) $250MM annual deduction ~$270MM ~$0.50/sh $500MM annual deduction ~$420MM ~$0.80/sh ~$2.4B $750MM annual deduction ~$470MM ~$0.90/sh Fully Maximized ~$530MM ~$1.00/sh ~$1.9B Tax pool valuations as at September 30,
Slide 22: Thermal Oil – Crown Royalty Advantage
THERMAL OIL – CROWN ROYALTY ADVANTAGE CROWN ROYALTY OVERVIEW OIL SANDS ROYALTY RATES o Royalty structure depends on whether a project is in 25‐40% Royalty on Gross Revenue less Opex & Capex pre‐payout or post‐payout phase o Pre‐payout advantage designed to support the recovery of the initial investm
Slide 23: Duvernay Energy – Infrastructure
DUVERNAY ENERGY – INFRASTRUCTURE INFRASTRUCTURE ADVANTAGE o Operated strategic infrastructure o Underutilized capacity with flexibility for future expansions o Oil infrastructure directly connected to the Pembina Peace liquids system o Gas infrastructure dually connected to Pembina Gas Infrastructur
Slide 24: Kaybob Duvernay >1,000 Industry Wells
KAYBOB DUVERNAY >1,000 INDUSTRY WELLS 2010‐2014 HISTORICAL SPUDS BY OPERATOR ~240 WELLS 150 Veren CNRL 125 Kiwetinohk & PetroChina Whitecap 100 Paramount Athabasca/Murphy 75 Athabasca 100% 2015‐16 50 ~500 WELLS CTD 25 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2017‐
Slide 25: Reader Advisory
READER ADVISORY Forward Looking Statements This Presentation contains forward‐looking information that involves various risks, uncertainties and other factors. Within this Reader Advisory and Forward Looking Statements, references to the “Company” means Athabasca and Duvernay Energy, as and where ap
Slide 26: Reader Advisory Cont'd
READER ADVISORY CONT’D Initial Production Rates Test Results and Initial Production Rates: The well test results and initial production rates provided herein should be considered to be preliminary, except as otherwise indicated. Test results and initial production rates disclosed herein may not nece
Slide 27: Reader Advisory Cont'd
READER ADVISORY CONT’D Sustaining Capital is management’s assumption of the required capital to maintain the Company’s production base. Net Cash is defined as the face value of term debt, plus accounts payable and accrued liabilities, plus current portion of provisions and other liabilities plus inc