Cardinal Energy Ltd. · TSX:CJ
Cardinal Energy — Q1 2022 Earnings Presentation
19 slides from Cardinal Energy's earnings presentation, May 2022
Slide 1: Q1 Results and Corporate Update
TSX: CJ May 2022 Q1 Results and Corporate Update
Slide 2: Cardinal Snapshot
Reinstating monthly dividend @ $0.05/share Cardinal Snapshot Record date June 30, 2022, payment date July 15, 2022 As at March 31, 2022 • Lowest decline among • Reinstate monthly dividend conventional producers Q2 2022 Shares Outstanding – Fully Diluted 165 MM • >500 identified locations Net Debt $1
Slide 3: Our Business
Our Business Cash Flow Maintenance Amount of capital required to maintain Capital our assets and keep production flat ARO/ESG Amount of capital required to fulfill our commitment to operating our business in a responsible manner Free Cash Flow Capital available to our shareholders 3 | Cardinal
Slide 4: Q1 Results
Q1 Results Q1 2022 Adjusted Funds Flow $87 MM Record Adjusted Funds Flow Capital Expenditures $36 MM Debt Reduction On Track with Shareholder Returns Plan ARO Expenditures $4 MM Net Debt Reduction $31 MM Production Above Budget Production 20,596 boepd Strong Realized Pricing and Netbacks Pro
Slide 5: Corporate Production
Corporate Production 25,000 Current production exceeding budget 20,000 Majority of production under established secondary or tertiary recovery schemes Base decline currently less than 10% 15,000 Large OOIP properties continue to outperform boepd 10,000 Successful optimization initiatives a
Slide 6: 2021 Year End Reserves
2021 Year End Reserves NPVBT10 (2)(3) FD&A PROB PNP Year End 2021 MMBOE (1) Recycle Ratio (4) & 5% (MM) ($/boe) PUD 8% Proved Producing 74.4 $1,050 $5.66 5.2 Probable Proved Total Proved 83.3 $1,110 $6.49 4.6 Producing Producing 19% 68% 87% of Reserves are Producing RLI Total Proved plus 110.4 $1,37
Slide 7: 2021 & 2022 Development
2021 & 2022 Development 2,000 1,800 2021 1,600 1,400 8 producers, 2 water alternating gas (“WAG”) injectors drilled Complete program expected to payout in Q2 1,200 Lower than expected decline boepd 1,000 800 2022 600 400 14 wells drilled, 13 in various phases of initial production Very
Slide 8: YTD 2022 Drilling Program Results
YTD 2022 Drilling Program Results Nipisi - Clearwater Four (6 leg horizontals) oil wells on stream - current rate >750 bbls/d Grande Prairie - Dunvegan Two (multifrac horizontals) oil wells on stream - current rate >500 boepd South – Ellerslie/Glauc channel Two (3 leg horizontals) Ellers
Slide 9: Clearwater - Nipisi
Clearwater - Nipisi Nipisi First 4 well pad on production : currently >750 bbls/d Mobile (18-19o API), low viscosity (200-300 cP) oil Reservoir quality as expected 2023/2024 – develop follow up pads 7-76-6W5 pad 1,000 800 600 bbls/d 400 200 0 Land positions on 2 additional Clearwater prosp
Slide 10: Tide Lake Ellerslie Project - Activity
Tide Lake Ellerslie Project - Activity Up to 10 meters thick, 10-20% porosity Estimated OOIP up to 12 MM barrels per section Ellerslie Fairway 4 wells drilled in Q1 2022 – 9 CJ wells drilled in total along fairway Consolidated land position in Q2 >20 potential locations 2022 Ellerslie Dr
Slide 11: Midale, Sk – 2021 Injector Program – Results
Midale, Sk – 2021 Injector Program – Results Total 2021 Flood Development Program 250 Incremental oil production (bbl/d gross) 200 150 100 50 0 Type Curve 2021 Flood Development Actual oil production Drilled 2 WAG injectors Earlier than forecast response from offset production wells At current
Slide 12: Sustainability: Drilling Inventory Breakdown
Sustainability: Drilling Inventory Breakdown Cardinal Identified Cardinal Growth/Maintenance Drilling District Primary Plan Locations Multiple oil targeted play types across asset base South Ellerslie, Glauc, Arcs 89 Multiple years of inventory to maintain current Central Infills, secondary zone
Slide 13: Focusing on a Sustainable Future – ESG Focus
Focusing on a Sustainable Future – ESG Focus Environment Social Governance Indigenous Engagement & Corporate Governance CO2 injection exceeds Support Diversity Scope 1 emissions Sponsorships Executive Compensation Accelerating ARO activity Standing with Ukraine tied to performance
Slide 14: Returns to Shareholders
Returns to Shareholders Phase One: Protect the Business 100% of our Free Cash Flow will go toward repayment of debt until Net Debt is reduced to $100 MM. Q2 2022 Phase Two: Deliver direct returns to shareholders Upon reaching our Phase One Debt milestone, our Free Cash Flow will be allocated, 50
Slide 15: Advisory
Advisory Note Regarding Forward Looking Statements This presentation contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to Cardinal's plans and other aspects of Cardinal's anticipa
Slide 16: Advisory
Advisory Any references in this presentation to initial production rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter. While encouraging, readers are cautioned not to
Slide 17: Advisory
Advisory This presentation contains metrics commonly used in the oil and natural gas industry which have been prepared by management, such as "netback“, "operating netback“, “capital efficiency”, “FD&A costs”, “recycle ratio” and “reserve life index”. These terms do not have standardized meaning and
Slide 18: Advisory
Advisory Net operating expenses Net operating expenses is calculated as operating expense less processing and other revenue primarily generated by processing third party volumes at processing facilities where the Company has an ownership interest, and can be expressed on a per boe basis. As the Comp
Slide 19: Advisory
Advisory Free cash flow Management utilizes free cash flow as a measure to assess Cardinal’s ability to generate cash, after taking into account the development capital expenditures, to increase returns to shareholders, repay debt, or for other corporate purposes. Free cash flow is calculated as adj