Argent Energy Trust Snapshot Income: 13% cash-on-cash yield Distribution stability: Argent expects to maintain the current level of distribution (C0.0875/unit/month) throughout 2014 Argents 2014E production is expected to average…
Corporate Overview (AET.un) Market Capitalization: 485 MM Enterprise Value: 715 MM Units Outstanding (basic): 60.4 MM Unit Price Range: 7.16 10.84 per unit Annual Distribution: 1.05 per unit (35% cash payout ratio) Current Yield: 13%…
Argent Assets Diversified portfolio of low risk, low Asset Location decline and high impact opportunities in Texas, Oklahoma, Kansas and Wyoming Eagle Ford oil and Austin Chalk oil growth Texas, Oklahoma, Kansas and Wyoming oil…
Highlights Since Argent IPO (August 2012) Argent IPO of Denali assets, 1,600 BOE/d, 30% oil and 70% gas Drilled Austin Chalk wells Drilled Buda test wells Drilled Eagle Ford wells Drilled dual lateral test wells Currently drilling…
Delivering Production Growth Argent remains on track to grow production by 333% since inception, while at the same time shifting its commodity weighting to 70% oil Similarly, Argent is on track to achieve production per unit growth of…
Advantages of a U.S. Asset Trust 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 from WTI…
Improving Corporate Netbacks Argents corporate netback has improved by 81% since inception reflecting strong growth in oil production and its relative weighting on a corporate basis TSX:AET.un 9
Investment Strategy Financially conservative 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 months forward Prudent and…
Eagle Ford Progress to Argent Acreage Completions TSX:AET.un 11
Eagle Ford & Austin Chalk (20,000 acres) Eagle Ford acreage in rapidly developing area Eagle Ford and Austin Chalk (100+ potential locations) One of the most active shale plays in the U.S. with high levels of operational and…
Accelerating the Eagle Ford 100+ 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…
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…
Oil Price Sensitivities Projected 2013 Cash Payout Ratio(1) Cash payout ratio of 35%* *Assuming US90/B WTI and 70% DRIP participation (1) Assumes forward strip pricing for natural gas and forward exchange rate TSX:AET.un 19
Summary Attractive annual distribution paid in cash monthly 13% cash-on-cash yield Distribution stability Argent expects to maintain the current level of distribution (C0.0875/unit/month) throughout 2014 Long life assets P+P Reserve…
Income, Growth & Value Contact: Eric Tremblay, Executive Chairman Brian Prokop, Co-CEO and President Sean Bovingdon, CFO Lindsay Rimell, Manager of IR 500, 321 6th Ave SW Calgary, AB T2P 3H3 403.770.4809 infoargentenergytrust.com…
Appendix TSX:AET.un 22
Trading Comparables Selected Trading Comparables Fully Diluted Total Debt / Daily Production 5 Cash on Payout 7 Sust. 8 EV / EV / Share/Unit Market Entity 1 EBITDA 2,3,4 2014E RLI 6 Cash Yield Ratio Ratio EBITDA 3,4 Production 5…
Argent Advantage for U.S. Investors Attractive yield of 13% (versus MLP average of 9.5%) Current cash dividend C1.05/unit/year 50% Return of Capital (ROC) and 50% Qualified Dividend C-Corp. for tax purposes Form 1099 (versus MLP…
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 2014: 3,100 B/d, WTI and LLS between US90/B (WTI) and US103.55/B (LLS) 2015: 2,000 B/d, WTI and LLS…
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 & Co-CEO & President Rick Louden See management bios Director & Co-CEO…
Loading...
