Built to Last Low Debt Low Decline Strong Capital Efficiencies 2
Operating the Business Amount of capital required to keep Committed Capital production flat year over year Cash flow from Target 30 35% simple Dividend Payments Operations payout ratio Balance increased Free Cash Flow decline…
Cardinal Energy Profile Shares Outstanding(1) TSX: CJ Basic 73,506,303 Fully Diluted 77,106,876 Annual Dividend (/share) 0.42 Q2 2016 average production (boe/d) 14,621 Q4 2016 forecast average production (boe/d) 15,100 % Oil and NGLs…
Convertible Debentures TSX: CJ.DB Issue Size: 50,000,0001 Face Value: 100 Issued: October 6, 2015 Term: 5 Years Conversion Price: 10.50 Coupon Rate: 5.5% 1. Can be Redeemed in Whole or in Part after Year 3. 5
Cardinal Asset Base Solid Base of Oil Production from 3 Core Areas WAINWRIGHT Appr. 5,450 boe/d production BANTRY Appr. 5,550 boe/d production SLAVE LAKE Appr. 3,600 boe/d production All areas have extensive development…
Wainwright Dominant land position with over 55 sections of land Oil production under waterflood with less than 10% decline 98% operated, average 95% working interest Multiyear drilling inventory in excess of 40 unbooked locations…
Lowering the Decline Wainwright decline reduction through property management Limited spending to hold production Flat Wainwright was purchased with less than 10% decline 9
10 (mboepd) Net Production 6 5 4 3 2 1 0 Jun-16 May-16 Apr-16 Mar-16 Feb-16 Jan-16 Dec-15 Wainwright Production Nov-15 Oct-15 Sep-15 Wainwright Area Aug-15 Jul-15 Jun-15 May-15 Apr-15…
Bantry The majority of base production is currently under waterflood with less than a 12% decline 97% operated, average 94% working interest oil production Control key infrastructure resulting in cycle drilling program Excellent…
Slave Lake Comprises of the Mitsue Gilwood unit and approximately 1,200 Boe/d of non operated 3,600 boe/d (75% working interest) production Net production from the Slave Lake area is approximately 3,600 boe/d Light sweet 41 API…
Mitsue Gilwood Units Discovery in 1964 Developed with vertical drilling from 1964-1988 Pool underwent miscible flood then converted to water flood. Voidage replacement maintained at 1:1 2016/2017 Development Plan 1. Reduce…
Mitsue Unit Production Mitsue Area Operated Production 10% 3 Oil Cut 9% 8% 7% Net Production (mboepd) 6% Oil Cut 5% 2 4% 3% 2% 1% 0% 1 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16…
Reserves by Region Reserves, mboe NPV10, M PDP TP TPP PDP TP TPP South (Bantry) 8,043 9,411 13,320 148,582 161,058 209,989 North (Mitsue) 13,221 13,604 18,402 201,855 207,193 245,736 Central (Wainwright) 18,108 18,827 24,957 338,832…
Reserve Growth Per Share 3,300 boed (PV10/share fd) 4,825 boed 4,825 boed(1) 1,525 boed (1) 1,525 boed 1,085/boed(1) 1,525 boed(1) 1,525 boed(1) 1. Net present value before tax discounted at 10%. See…
Hedging Hedging 1. Natural gas - 3,000 gj/d collared at 2.00 X 2.93 for 2016 and 3,000 gj/d swapped at 2.12 for 2016, 4,496 gj/d swapped at 2.37 for 2017 and 2,329 gj/d swapped at 2.59 for 2018. 2. 6,000 bbl/d swapped for…
Realized Hedging 20
2016 Guidance Operational 2016e(2) 2015 2014 Average Oil Price 44 WTI 49 WTI 93 WTI Average production (boe/d) 14,600 11,838 7,815 Development capital (MM)(1) 35 37 38 Wells Drilled 9 8 7 Financial Cash flow from operations…
Sensitivity Free Cash Flow 2016 2017 (WTI) Budget 45 50 55 60 Base Capital Program (MM) 35 30 30 30 30 Dividend (MM) 28 30 30 30 30 Free Cash Flow (MM) 0 2 23 47 71 *Assumes Q4 2016 average production of 15,100 boe/d and a flat…
Sensitivity Q4 2016 Annualized 23
Sensitivity Q4 2016 Annualized 24
Operating Costs 25
2016 Q2 Results Q2 Q2 2016 2015 % change Operational Average production (boe/d) 14,621 11,294 29% Percentage of liquids 88% 92% -4% Development capital (MM)(1) 12.1 11.1 9% Financial Cash flow from operations (MM) 16.9 29.9…
Corporate Information Corporate Headquarters Cardinal Energy Ltd. 600, 400 3rd Avenue S.W. Calgary, AB T2P 4H2 Bankers ATB Financial CIBC World Markets Inc. RBC Dominion Securities Inc. Scotia Capital Inc. National Bank of Canada…
Analyst Coverage Firm Analyst Phone Email BMO Nesbitt Burns Ray Kwan 403-515-1500 Ray.kwanbmo.com CIBC Adam Gill 403-216-3405 adam.gillcibc.com Canaccord Genuity Corp. Sam Roach 403-691-7809 sroachcanaccordgenuity.com Clarus…
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