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October 2017 Back To Basics Presentation – Cardinal Energy Ltd.

Cardinal Energy Ltd. · Oct 30, 2017 · 22 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 1
    BACK TO BASICS October 2017
  2. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 2
    Cardinal Profile Shares Outstanding TSX: CJ Basic(1) 110.2 MM Fully Diluted (excluding debentures) 113.2 MM Annual Dividend (/share) 0.42 H2 2017 average production (boe/d) 21,000 Reserves (Mmboe)(2)(3) Total Proved and Developed…
  3. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 3
    Back to Basics Increase Operating Margins Reduce Debt Maintain Dividend Organic Growth 3
  4. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 4
    Increasing Operating Margins Reduce Operating Costs Focus Development on High Netback Properties Capital Projects For Long Term Operating Cost Reductions Cost Allocation Review 4
  5. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 5
    Reduce Debt Free cash flow to debt repayment(1) Sale of Gross Overriding Royalties and Fee Title land GOAL: Reduce bank debt to less than 1X run rate adjusted flow (1) See Advisory, free cash flow is adjusted funds flow after…
  6. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 6
    Maintain Dividend Historical simple dividend payout ratio of 31% to 49% between 2014 and 2017. 6
  7. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 7
    2018 Free Cash Flow Scenario1 H2 2017 WTI (USD) FX WCS Differential (CAD) 50.00 0.80 17.00 BOEPD CASH FLOW Opening Production + Operating Income 21,000 120,000,000 Decline (10%) - 2,100 -12,000,000 18,900 108,000,000…
  8. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 8
    Sensitivities Production Level 21,000 boe/d Annual Adjusted Funds Flow Change WTI +/- US 1.00 5 million FX +/- USD/CAD 0.01 2.1 million Aeco +/- 0.10 0.6 million 8
  9. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 9
    Organic Growth ( millions) Drilling & Optimization Facilities Total(1) 2015 14 15 29 2016 21 20 41 2017 39 17 56 (1) excludes land, geological and geophysical and corporate capital Low decline enables lower Capex Flat…
  10. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 10
    Acquisition Accretion 50 WTI CJ June Acquisition ProForma % Change Wellhead 38.05 51.60 41.27 8% Royalties -5.33 -8.00 -5.96 12% Netback 11.92 26.17* 15.31 28% % Liquid 80% 100% 85% 6% Shares outstanding (basic)(000s) 79,262 30,926…
  11. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 11
    Risk Management Hedging 1. Natural gas 8,500 gj/d at 2.42 for 2017, 7,333 gj/d at 2.37 for 2018 and 1,000 gj/d at 2.12 for Q1 2019. 2. WCS differential 7,500 bbl/d for 2017 at 19.12 and 2,583 bbl/d for 2018 at 18.78. 11
  12. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 12
    Reserve Comparison Cardinal Proforma 3,300 boed 4,825 boed 4,825 boed(1) Peers FDC is 4.8x 2017 forecast adjusted funds flow 1,525 boed (1) 1,525 boed Proved Developed Proved producing RLI, (yrs)(1) 9.3 Proved and…
  13. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 13
    Core Operating Areas Solid Base of Oil Production H2 2017 Budgeted Production North 7200 boe/d (Slave Lake) (House Mountain) (Grand Prairie) Central (Wainwright) 5,500 boe/d South (Bantry) 5,300 boe/d SE Saskatchewan…
  14. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 14
    North North Operating Area Mitsue Gilwood Unit Slave Lake (Non-operated) Dunvegan House Mountain 14
  15. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 15
    House Mountain High working interest Operating working interests in 4 units plus non-unit production. Low decline light oil Upside: Op cost reduction Increased water flood performance Frac existing horizontals Horizontal…
  16. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 16
    Central Low decline medium Mannville oil production Lowest decline property in portfolio, entire property under waterflood. 16
  17. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 17
    South The majority of base production is currently under waterflood with less than a 12% decline 97% operated, average 94% working interest Mannville oil production Control key infrastructure resulting in cycle drilling program…
  18. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 18
    SE Saskatchewan Assets include: 68.84% working interest in the Midale Unit 0.01% working interest in the Weyburn unit Various GORs on both the Midale and Weyburn Units Fee title lands in the Weyburn unit Non-unit lands and…
  19. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 19
    Midale Location and StratigraphyMidale Field Location Midale Carbonate Fairway Midale field NE Structural updip flank of Williston basin. Weyburn Field Midale Field Depositional downdip NW-SE Cross Section of…
  20. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 20
    Midale Upside Unit OOIP: 761 MMbbl Unit OOIP: 1300 MMbbl Recovered: 157 MMbbl (20.6% RF) Recovered: 492 MMbbl (37.8% RF) EUR: 192 MMbbl (25.2% RF) EUR: 695 MMbbl (53.4% RF) Base Case 25.2% R.F. Upside Case 38.9% R.F. 20
  21. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 21
    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…
  22. October 2017 Back To Basics Presentation – Cardinal Energy Ltd. – slide 22
    Analyst Coverage Firm Analyst Phone Email BMO Nesbitt Burns Ray Kwan 403-515-1500 Ray.kwanbmo.com Clarus Securities Inc. Robert Pare 403-767-0823 rpareclarussecurities.com FirstEnergy Capital Corp. Cody Kwong 403-262-0600…

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