Argent Energy Trust Snapshot Income: 10% cash-on-cash yield Production growth: 5% to 10% per annum Sustainability: Able to fund cash distributions and maintain production within cash flow Argents 2013E production is expected to…
Corporate Overview (AET.un) Market Capitalization: 505 MM Units Outstanding (basic): 49.1 MM Unit Price Range: 8.95 10.84 per unit Annual Distribution: 1.05 per unit (30% cash payout ratio) Current Yield: 10% Q1 2013 Debt: US58.5 MM…
Argent Assets Diversified portfolio of low risk, low Asset Location decline and high impact opportunities in Texas and Oklahoma Austin Chalk oil and Eagle Ford oil growth Texas & Oklahoma oil Legacy fields Manvel oil field (CO2…
Advantages of a U.S. Asset Trust Q1 2013 Oil Netback Comparison1 95/B WTI ARGENT ENERGY Existing Pipelines TRUST Proposed Keystone XL Pipeline Edmonton Par Calgary Transportation cost from Edmonton Par to WTI = 5…
Investment Strategy Financially conservative Prudent debt to projected EBITDA ratio Active hedging program Up to 70% of after royalty forecasted production 12 months forward, Up to 60% going 24 months forward, and Up to 50% going 36…
Impressive Reserves Performance Reserves replacement ratio of 316% Added reserves (mostly oil) at an attractive finding, development and acquisition (FD&A) cost of 13.82/BOE Recycle ratio of 2.3X based on a netback of 31.72/BOE…
Eagle Ford Progress to Argent Acreage Completions 2008 2008-2009 Argent Leases Argent Leases Override Interest Override Interest Oil Oil Gas Gas 2008-2010 2008-2012 Argent Leases Argent Leases Override Interest Override…
Austin Chalk Resource Play 70s 80s 80s 90s NOW Longer horizontal laterals encounter more 150-200 MBO natural fractures. DRY 25-40 MBO 80-120 MBO Statistical data from 1600 wells shows reserves per well are proportional to horizontal…
Austin Chalk & Eagle Ford (25,000 acres) Austin Chalk formation is statistically predictable Austin Chalk and Eagle Ford and creates legacy oil production (25+ locations) WEBER ENERGY CORP High-return, horizontal accessed/drilled oil…
Accelerating the Eagle Ford 180+ potential development locations identified in Fayette and Gonzales Counties based on 80 acre spacing (previously 95 locations identified based on 160 acre spacing) Industry now averaging 80 acre spacing…
Wapiti Acquisition - Newton, Double A, Livingston Acquisition and Performance Metrics Purchase price of 120 MM, 70,000 per flowing boe/d, 13.80 per 2P boe reserves Reserves of 8.7 MMBOE (70% oil and NGLs, 77% proved) 11% decline,…
Legacy Oil Assets Manvel, NE Davis, Payne, SW Mayville Texas - Manvel Field Oklahoma - NE Davis Field, Payne Field Located in Brazoria County, Texas on Gulf Coast (East Criner), SW Mayville Field Frio and Miocene formations Ordovician…
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 0.80/Mcfe…
Oil Price Sensitivities 2013 Payout Ratio(1) Cash payout ratio of 30%* *Assuming US90/B WTI, full year production of 5,500 boe/d and 75% DRIP participation (1) Assumes forward strip pricing for natural gas and forward exchange…
Trading Comparables Selected Trading Comparables 5 8 Fully Diluted Total Debt / Daily Production Cash on Sustainability EV / EV / Share/Unit Market Entity 1 EBITDA 2,3,4 2013E 2014E Prod. RLI 8 Cash Yield Ratio EBITDA 3,4 Reserves…
Summary Attractive annual distribution paid in cash monthly 10% cash-on-cash yield and expected normalized production growth of 5% to 10% per annum Long life assets P+P Reserve Life Index (RLI) = 17 years Proved RLI = 10 years Large…
Income, Growth & Value Contact: Brian Prokop, CEO Sean Bovingdon, CFO Lindsay Rimell, IR 500, 321 6th Ave SW Calgary, AB T2P 3H3 403.770.4809 infoargentenergytrust.com www.argentenergytrust.com TSX:AET.un
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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…
Hedging Summary Prudent hedging to mitigate commodity price risk Focus on ensuring distribution and sustainability Hedges Oil 2013: 2,000 B/d, primarily WTI between US90/B and US96.50/B 2014: 1,700 B/d, primarily WTI between…
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 19 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 & Co-CEO & President Rick Louden See management bios Director & Co-CEO…
U.S. Management Success Record (Denali & Coastal) Denalis overall results have been impressive Since 2003, total of 176 million investor capital deployed, no current debt; revenues of 456 million as of 12/31/11 Denali I: Investor IRR…
Material Agreements Eagle Ford Shale Deep Rights US Opco has been assigned a 75% net revenue interest below the Austin Chalk oil formation (the Deep Rights) Denali reserves 4% override (ORRI) in deep rights US Opco is required to pay…
Austin Chalk Type Curve Argent Energy Austin Chalk Type Curve Fayette County, TX 1,000 Argent Type Curve TOTAL RESERVES: 180 MBOE 83% OIL, 8% NGL, 9% GAS 3 Million Well Cost Type Curve using 0.9 b-factor 100 Oil Price modeled…
Eagle Ford Type Curve Argent Energy Eagle Ford Type Curve Fayette & Gonzales County, TX 1,000 Argent Type Curve TOTAL RESERVES: 308 MBOE 91% OIL, 3% NGL, 6% GAS 7 Million Well Cost 100 Type Curve using 1.3 b-factor Oil Price…
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