Bonterra Energy Corp. · TSX:BNE
Bonterra Energy — Investor Presentation (December 2023)
24 slides from Bonterra Energy's investor presentation, December 2023
Slide 1: Building resilience in Canadian energy, from the ground up.
Building resilience TSX:BNE in Canadian energy, from the ground up. December 2023 Corporate Presentation Grounded in Energy.
Slide 2: It's Time to Revisit Bonterra. Period.
AT A GLANCE It’s Time to Revisit Bonterra. Period. Montney One of Canada’s longest standing junior oil and Future Development Opportunity Light Oil, Natural Gas & NGLs gas companies, featuring top-tier operations. Emerging Montney asset in • Moderate growth focus through organic development & potent
Slide 3: Multiple Strategic Advantages
W HY BONT ERRA Multiple Strategic Advantages Long-Life & Liquids-Weighted Asset Base High netbacks & IRRs from Cardium asset Compelling Value Opportunity Substantial drilling inventory with <1 year payouts • Focus on implementing a sustainable dividend Montney Growth Upside underpinned by strategic
Slide 4: Staying Grounded in Energy
S T R A T E G IC P R IO R IT IE S Staying Grounded in Energy Maintain Operational Exercise Financial Pursue Prudent M&A + Set the Stage for a Return Excellence Discipline Exploration of Capital Model • Cardium execution = steady • Focus on free funds flow • Target accretive M&A • 2024 budget priorit
Slide 5: Operational Excellence
Operational Excellence Bonterra.
Slide 6: Pembina Cardium: Expansive Drilling Inventory
Expansive Drilling Inventory OPERATIONAL EXCELLENCE Pembina Cardium: Cash Flow Engine Drayton Valley One of Canada’s Largest Oil Plays 92% Operated Production Sizeable, concentrated position at Pembina and Willesden Green Cardium fields Pembina 20.5 Years Long Runway 2022 Reserve Life Index Estimate
Slide 7: Repeatability Drives Strong Returns
O P E R A T IO N A L E X C E L L E N C E Repeatability Drives Strong Returns Cardium Type Curve 113 MBOE Reserves per well 200 150 112 Boe/d IP365 BOE/D 100 0.9 Years 50 Before Tax Payout @ $80 WTI 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 112% Months Rate of Return @ $80 WTI
Slide 8: 2022 Reserves Evaluation
ROBUST RESERVES 2022 Reserves Evaluation Robust Reserves Underpin Shareholder Value and Value Creation Reserve Category Oil (Mbbl) BOE (Mboe) NPV BT 10% (1) (millions) 80% Total Proved Reserves on Volume Proved Developed Producing 18,072 33,702 632,115 Proved Developed Non-Producing 2,403 3,799 55,7
Slide 9: NAV/Share
V A L U E P R O P O S IT IO N NAV Highlights Value Proposition Bonterra offers shareholders torque to oil and exposure to a significant low risk drill inventory YE2022 Net Asset Value Net Asset Value per Share (@ Dec 18, 2023 Strip)(1,2) Flat Price Sensitivities(1,3) Proved Developed Total Proved NA
Slide 10: Montney Development
E X P A N D IN G O U R F O O T P R IN T Montney Development High Impact Optionality 100/04-03-074-06W6/00 First Montney Test Well (100/04-03-074-06W6/00) Successfully drilled in Q3 2023; currently exploring options to tie-in to third party gas processing facilities. 100% Working Interest Well Comple
Slide 11: Montney Deep Dive
E X P A N D IN G O U R F O O T P R IN T Montney Deep Dive Doig Upper Future Target D4 Montney Primary Target D3 Reservoir Characteristics Internal D3 Type Curve D3 • Depth 1,925m TVD • ~80 identified Montney ‘D3’ locations Middle Montney • Porosity: 8% Avg • Estimated IP365: 550 Boe/d; 50% liquids F
Slide 12: Financial Discipline
Financial Discipline Bonterra.
Slide 13: 2024 Guidance
S U S T A IN A B IL IT Y F O C U S 2024 Guidance Fully-funded 2024 Capital Program Designed to Maximize Free Funds Flow With Modest Production Growth Operating & Financial1 Average Daily Production (BOE per day) 13,800 – 14,2002 $90-$100 MM 2024 capital expenditure range Oil and NGL Weighting (perce
Slide 14: Stable Production + Modest Growth
S U S T A IN A B IL IT Y F O C U S Stable Production + Modest Growth Production Profile Net Wells Drilled & Brought on Production 16,000 45 40 14,000 4 35 38 12,000 Average Production (Boe/d) 34 3 30 32 10,000 30 Net Wells 25 8,000 20 6,000 15 4,000 10 2,000 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 15: Enhanced Liquidity
F IN A N C IA L D IS C IP L IN E Enhanced Liquidity Debt Reduction With Stable Production Profile ~$200 Million $350 14,500 Forecast Net Debt reduction from Q1 2021 to Dec 31, 2023 14,000 $300 13,500 $250 13,000 ~33% Production (BOE/D) Production Growth Debt($MM) $200 12,500 from 2020 to 2023 $150 1
Slide 16: Debt Metrics Drive Dividend Implementation
F IN A N C IA L D IS C IP L IN E Debt Metrics Drive Dividend Implementation 2024 Net Debt and Debt/EBITDA Sensitivity to WTI Prices $13 MM $37 MM $58 MM Annual Free Funds Flow Annual Free Funds Flow Annual Free Funds Flow 1.0x 1.0x $200 0.9x 1.00 0.9x 0.8x 0.8x 0.8x $160 0.7x 0.80 0.7x Debt / EBITDA
Slide 17: Return of Capital Model: Getting Back to Our Roots
S U S T A IN A B IL IT Y F O C U S Return of Capital Model: Getting Back to Our Roots Base Case Focus on financial flexibility to support a sustainable Free Funds Flow Allocation return of capital model Sustainable Return of Capital Framework Key Metrics Dividend Shareholder Return Free Funds Trigge
Slide 18: The Right Acquisitions
E X P A N D IN G O U R F O O T P R IN T The Right Acquisitions Targeted M&A Strategy Bonterra actively reviewing opportunities with goal to expand the operational footprint Specific and disciplined criteria for assessing acquisition opportunities: ✓ Accretive on base fundamentals (CF/Reserves) ✓ Dri
Slide 19: A Long History of Focus on Value
S U S T A IN A B IL IT Y F O C U S A Long History of Focus on Value At our core is a deep commitment to value creation Experienced Team reignited with Loyal investor base and We are committed to a new vigour by CEO and return of capital pioneers Environmental Sustainability refreshed board Exception
Slide 20: Strong Leadership Team
ENHANCED T EAM & ST RONG GOVERANNCE Strong Leadership Team Leadership Team Board of Directors Patrick G. Oliver Brad A. Curtis D. Michael G. Stewart Patrick G. Oliver President & CEO Senior VP, Business Development Director, Chair Director, CEO Over 35 years of experience in the Western Joined Bonte
Slide 21: Corporate Information & Contacts
Corporate Information & Contacts S T O C K E X C H A N G E L IS T IN G IN D EPEN D EN T R ESER VE EN G IN EER TSX: Sproule Associates Limited BNE LEGAL COUNSEL C A L G A R Y ( H E A D O F F IC E ) Borden Ladner Gervais LLP Suite 901, 1015 – 4th St SW Calgary, AB T2R 1J4 BANKS A U D IT O R S 403.262.
Slide 22: Appendix
Appendix Z — Bonterra.
Slide 23: Risk Management: Weighted Average Oil Hedges
S U S T A IN A B IL IT Y F O C U S Risk Management: Weighted Average Oil Hedges Fixed Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Supports Sustainability Volume bbl/d 500 - - - - Price USD $/bbl 90.25 - - - - 30% hedged for Collars Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 next 9 months Volume Ceiling bbl
Slide 24: Advisories
Advisories FORWARD LOOKING INFORMATION: All such forward-looking information is based on certain benefits will be derived there from. Except as required by law, The company defines funds flow as funds provided by Certain statements contained in this presentation include assumptions and analyses made
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