Annual and Special Meeting May 13, 2013 (TSX: EQU, NYSE: EQU)
Agenda: Introduction Strategic Overview & Update (Dan Botterill, outgoing Chairman of the Board) Operations Overview & Update (Don Klapko, President & CEO) Equal Energy AGM PRESENTATION - MAY 2013 2
Board & Management Team: Board Management Lee Canaan, CFA Don Klapko, CET Founding Partner and Portfolio Manager of a private President & CEO investment management firm Michael Coffman, BBA Dell Chapman, CA, CFA President, Chief…
Strategic Overview & Update - Dan Botterill 1. 2012 Achievements 2. Go Forward Strategy 3. Special Committee Status 4. Shareholder Action 5. Transition Update Equal Energy AGM PRESENTATION - MAY 2013 5
2012 Achievements: Completed Strategic Review Accretive Asset Sales - 160MM Placed Company on Firm Financial Footing Strengthened Balance Sheet Sharpened Strategic Focus Equal Energy AGM PRESENTATION - MAY 2013 6
Strategic Review Process Results: Sale of 133MM of Assets Exit from Canadian Operations Focused, single asset strategy in liquids-rich Hunton Major debt reduction to 18MM from 176MM Debt-to-cash flow ratio reduced to 0.5 from 3.1…
2012 Canadian Peer Group Stock Growth 40 20 Equal 0 Anderson Angle Bellatrix 20 % Growth Blackpearl Crew 40 Delphi Announce Conclude Paramount Strategic Strategic Santonia Review May 3 60 Review Nov 27…
Strategic Review What was Achieved Share price increase from 2.99 to 3.54/share Positioned for further market improvements: Strong balance sheet USD0.20 dividend Assets that will generate significant value/return Hunton multi-year…
Equal Energy AGM PRESENTATION - MAY 2013 10
Go Forward Strategy Balanced and Prudent Approach: Maintain strong balance sheet Retain financial flexibility in order to: 1. Optimize production growth through selective drilling 2. Consider dividend increase 3. Consider possible…
Special Committee Formed: Board continues to consider all opportunities The board has formed an independent Special Committee to consider proposals Retained Global Hunter Securities as its financial advisor Equal will not disclose…
Shareholder Action: Filed suit on January 24, 2013 against a group of dissident shareholders Alleged violation of disclosure requirements of the U.S. Securities Exchange Act Equal believes course of action was required in order to…
Transition Update: Three new, highly-qualified, US-based Directors Part of the boards commitment to add US professionals Experience in US operations, geology, capital markets, business development Officially relocated to Oklahoma…
Operations Update Don Klapko 1. Overview 2. Land and Inventory 3. Production and Water Handling 4. Opex 5. Drilling Results 6. Financial Overview 7. Go Forward Strategy Equal Energy AGM PRESENTATION - MAY 2013 15
Overview: Principal Properties Located in Lincoln and Logan 650 boe/d Counties, Oklahoma Key producing horizon is the Hunton 350 boe/d formation Liquids weighted production Q1 2013 production of 6,280 boe/d 5,500 boe/d…
Land & Production Summary: Focused production base in liquids rich natural gas play in Central Oklahoma. Undeveloped Total Number of Near Term Land Gross Sections Prospect December 2012 with Land Holdings Inventory Total 8,800 net…
Historical Hunton Hydrocarbon and Water Production: BWP/D Equal Energy AGM PRESENTATION - MAY 2013 18
Equal Energy AGM PRESENTATION - MAY 2013 19
Drilling Results: Three wells spudded during Q1 2013 100% drilling success rate all three wells performing at or above production type curve Fourth well of 2013 has been drilled, not yet completed Drilling on the fifth well is…
Drilling Costs: Average capital expenditures for the first three new wells drilled in 2013 has decreased by 8% (USD2.7MM per well down from USD2.9MM spent in 2012) Cost savings from: 1. Five well rig commitment decreased day rate 2.…
Oklahoma Twin Cities-Central Dolomite Horizontal Type Well Economics Per Well Internal Estimates (USD million) Capital Costs 2.7 Reserves/well 440 540 (Mboe) F&D (per boe) 6.14 5.00 Historical Current Flat Pricing Recycle…
2013 Financial Overview: Production average: 2013E 6,400 boe/d Cash flow: 2013E - 33 million Capital expenditures: 2013E - 36 million - 30 million drilling and infrastructure - 6 million land and maintenance 2013 dividend:…
Going Forward: Our 2013 Operational Strategy A Balanced Prudent approach Stay focused on costs on both the capital and operating sides Maintain Equals balance sheet by keeping net debt to cash flow…
Why Equal Energy Strong balance sheet with commodity price upside Focus on a single asset base Dividend return combined Oklahoma Hunton with long term volume growth opportunity Established play with strong track record,…
Equal Energy Ltd. 4801 Gaillardia Parkway, Suite 325 Oklahoma City, OK 405.242.6000 infoequalenergy.ca www.equalenergy.ca Don Klapko Scott Smalling, CFA President & CEO Chief Financial Officer 403.536.8373 405.242.6020 Dell…
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