Argent Energy Trust Snapshot Income: 10% to 11% cash-on-cash yield Production growth: 5% to 10% per annum Sustainability: Fund distributions and capital expenditures with cash flow Current production is 5,300 BOE/d with a 17 year 2P…
Corporate Overview (AET.un) Market Capitalization: 490 Million Units Outstanding (basic): 48.5 Million Unit Price Range: 8.95 10.70 per unit Annual Distribution: 1.05 per unit (simple payout ratio 48%) Current Yield: 10.5% Current…
Advantages of a U.S. Asset Trust 120 Superior Economics - Southern U.S. assets ARGENT typically enjoy favorable characteristics compared ENERGY TRUST to Canada 100 Higher realized prices for oil south of WTI pricing point 10/B…
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…
Structure Tax efficient mutual fund trust structure Unitholders Administrator Shareholder Interest and operating deductions result in no material U.S. taxes for several years Investment Income and Capital Minimal withholding tax…
Investment Strategy Financially conservative Prudent debt to projected EBITDA ratio (not to exceed 1.5 times) Currently only 62 MM drawn on a 95 MM credit line Active hedging program Up to 70% of after royalty forecasted production…
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…
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 and Eagle Ford current production of Austin Chalk and Eagle Ford 1,825 boe/d(1) WEBER ENERGY CORP 2 wells tested a total of 610 Austin Chalk formation is statistically…
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) Current production…
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 Current production of 450 boe/d (99%…
South Texas Natural Gas Current production of 1,025 boe/d (1) South Texas Natural Gas South Escobas Geology Wilcox formation adjacent to fields that have produced 600 Bcf to date Downdip Wilcox trend has produced over 3.5 Tcf to…
Oil Price Sensitivities 2013 Payout and Sustainability Ratio(1) Payout Ratio(1) 100 130 Peer group average(2) 90 120 Payout and Sustainability Ratio (%) 110 80 100 70 Payout Ratio (%) 90 60 80 70 50 60 40…
Trading Comparables As of March 6, 2013 Selected Trading Comparables Fully Diluted Total Debt / Daily Production 4 Cash on Payout 6 Sust 7 EV / EV / Share/Unit Market Entity 1 EBITDA 2,3,4 2013E RLI 5 Cash Yield Ratio Ratio 3,4…
Summary Attractive annual distribution paid in cash monthly 10% to 11% cash-on-cash yield and expected normalized production growth of 5% to 10% per annum, all while funding distributions and capital within cash flow (sustainability…
Income, Growth & Value Contact: Brian Prokop, CEO Sean Bovingdon, CFO 500, 321 6th Ave SW Calgary, AB T2P 3H3 403.770.4809 infoargentenergytrust.com www.argentenergytrust.com TSX:AET.un
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Hedging Summary Prudent hedging to mitigate commodity price risk Focus on ensuring distribution and sustainability Hedges Oil 2013: 2,000 B/d between US90/B and US96.50/B WTI 2014: 1,500 B/d between US90/B and US96.40/B WTI…
Argent Energy Trust Executive Team Executive Background Eric Tremblay Over 19 years of executive experience acquiring, producing and developing oil & gas assets in Canada Director & Executive and the U.S. Chairman 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 See management bios Director & President John…
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…
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