Argent Energy Trust Snapshot Income: 20% cash-on-cash yield Distribution stability: Argent has maintained the current level of distribution (C0.0875/unit/month) since IPO Argents 2014E production is expected to average 7,000 BOE/d…
Corporate Overview (AET.un) Market Capitalization: 325 MM Enterprise Value: 575 MM Units Outstanding (basic): 61.5 MM Unit Price Range: 5.05 10.84 per unit Annual Distribution: 1.05 per unit (40% cash payout ratio) Current Yield: 20%…
Is The Distribution Sustainable Operating cash flow forecasted to be approximately 60 million Actual cash required to pay Unitholder distributions, net of DRIP, is approximately 20 million annually (DRIP participation is currently…
Argent Assets Diversified portfolio of opportunities in Asset Location Texas, Oklahoma, Kansas and Wyoming Eagle Ford oil growth Texas, Oklahoma, Kansas and Wyoming oil Legacy fields Manvel oil field (CO2 upside) SE Texas natural…
Key Reserves Information 2P Reserves Growth - Working Interest Net Asset Value CMM 50 0.80 Reserve Value 1 679.3 42.0 MMboe Land Value 2 44.8 Proved + Probable Reserves (MMboe) Proved + Probable Reserves Per Unit 0.75 40 Less:…
Delivering Production Growth Argent remains on track to grow production by 333% since inception1, while at the same time shifting its commodity weighting to 65% oil Similarly, Argent is on track to achieve production per unit growth of…
Improving Corporate Netbacks Argents corporate netback has improved by 60% since inception1 reflecting strong growth in oil production and its relative weighting on a corporate basis Netback Growth1 40 35 30 Netback (/boe)…
Advantages of Southern U.S. Production Existing Pipelines Proposed Keystone XL Pipeline Edmonton Par Calgary Transportation cost from Edmonton Par to WTI = 5 to 20 WTI Hub (Cushing Oklahoma) Transportation cost…
Eagle Ford Oil (20,000 acres) Eagle Ford acreage in rapidly developing Eagle Ford area One of the most active shale plays in the U.S. with high levels of operational and acquisition activity Argent acreage offset activity since Jan…
Highlights Since Argent IPO (August 2012) Argent IPO of Denali assets: 1,600 BOE/d, 30% oil and 70% gas Organic Growth: Drilling program has added 2,500 BOE/d to date Drilled 11 Eagle Ford (EF) light oil wells 9 successful producing EF…
Wyoming Acquisition Acquisition and Performance Metrics Purchase price of US102 MM, 13.60/boe 2P reserves Operating netback 40/boe Base decline of 13% Accretive on cash flow per unit, payout ratio and sustainability ratio measures…
Kansas Acquisition Acquisition and Performance Metrics Purchase price of US45 MM, < 5x CF, 18/boe 2P reserves Operating netback 42/boe Base decline of 15% Accretive on cash flow per unit, payout ratio and sustainability ratio…
Wapiti Acquisition Acquisition and Performance Metrics Purchase price of 114 MM, 3.9x CF, 13/boe 2P…
EQ Acquisition Acquisition and Performance Metrics Purchase price of 132 MM, 23/boe 2P reserves Operating netback 50/boe Base decline of 10% Texas Manvel Field Oklahoma NE Davis Field, Payne Field (East Located in Brazoria County,…
South Texas Natural Gas South Escobas Geology South Texas Natural Gas Wilcox formation adjacent to fields that have produced 600 Bcf to date Downdip Wilcox trend has produced over 3.5 Tcf to date Low break-even gas price 1.00/Mcfe…
Hedging Summary Prudent hedging program focused on supporting distribution and sustainability Oil Hedges - Average Floor Prices Natural Gas Hedges - Average Floor Prices 70% 100.00 80% 5.00 90.00 60% 70% Average Floor Price…
Summary Attractive annual distribution paid in cash monthly 20% cash-on-cash yield Distribution stability Argent has maintained the current level of distribution (C0.0875/unit/month) since IPO Long life assets P+P Reserve Life Index…
Income, Growth & Value Contact: Eric Tremblay, Executive Chairman Brian Prokop, CEO Sean Bovingdon, CFO Lindsay Rimell, Manager of IR 500, 321 6th Ave SW Calgary, AB T2P 3H3 403.770.4809 infoargentenergytrust.com…
Sensitivities C/US FX, WTI, NYMEX1 1 decrease US1/Bbl increase 1/MMcf increase in C vs. US in WTI in NYMEX nat gas = = = 600K 1MM 3MM increase in increase in increase in operating operating operating cash flow cash flow cash…
Trading Comparables Selected Trading Comparables Fully Diluted Total Debt / Daily Production 4 Cash on Payout 6 Sustainability EV / EV / 1 Share/Unit Market Entity EBITDA 2,3,4 2014E RLI 5 Cash Yield Ratio Ratio 7 EBITDA 3,4 Reserves…
Argent Advantage for U.S. Investors Attractive yield of 20% (versus MLP average of 10%) Current cash dividend C1.05/unit/year 60% Return of Capital (ROC) and 40% Qualified Dividend (2014 est) C-Corp. for tax purposes Form 1099…
Structure Tax efficient mutual fund trust structure Interest and operating deductions result in no Unitholders Administrator Shareholder material U.S. taxes for several years No SIFT tax in Canada Investment Income and Capital…
Leadership Strong management and board of directors with years of experience relating to trusts, oil & gas operations, legal, tax and capital markets Officers Directors Eric Tremblay, Eric Tremblay, Executive Chairman Executive…
Argent Energy Trust Executive Team Executive Background Eric Tremblay Over 20 years of executive experience acquiring, producing and developing oil & gas assets in Canada Executive Chairman & and the U.S. Director CEO of Aston Hill…
Argent Energy Trust Board of Directors Director Background Eric Tremblay See management bios Director & Executive Chairman Brian Prokop See management bios Director & CEO Rick Louden Former Co-CEO & President of Argent Energy Ltd.…
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