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April 2020 Corporate Presentation – Canacol Energy Ltd.

Canacol Energy Ltd. · Apr 7, 2020 · 30 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. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 1
    Corporate Presentation April 2020
  2. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 2
    Why Canacol Colombias Largest Independent Natural Gas Producer Best in Class Assets & Management Sustainability Financial Strength & Discipline Large exploration resource inventory Strong balance sheet; low leverage Experienced,…
  3. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 3
    Canacol at a Glance TSX : CNE BVC : CNE.C OTCQX : CNNEF Basic Shares O/S (MM) 1 181.3 Share Price (C) 2 3.57 Market Cap (USMM) 3 460 South America Net Debt (USMM) 4 342 Enterprise Value (USMM) 802 Quarterly Divendend (C/sh) 0.052…
  4. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 4
    Why Colombia A Large and Growing Economy Growing Gas Demand (bcf/d)2 (GDP, US bn PPP)1 800 History Forecast 1.600 600 1.200 400 800 200 400 0 0 2000 2003 2006 2009 2012 2015 2018 1999 2004 2009 2014 2019 2024 2029…
  5. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 5
    Colombia plans to use a lot more gas in its transition to renewables Climate Change: Energy Demand Projections (PJ)2 Colombia plans to use more gas to meet its Paris Agreement CO2 Emission Target: 20% by 2050 2.000 Gas produces 50%…
  6. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 6
    Meeting Colombias Natural Gas Demand Colombias Proved Reserves (TCF)1 6 8% Colombias historic gas supply glut ended as Canacol entered the gas 6% business 4 Colombia national proved reserves 4% declining at 7% per year 2…
  7. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 7
    Solving Colombias Looming Natural Gas Supply Deficit Colombia Gas Supply / Demand vs Canacol planned Sales (MMcf/d) 1.500 Canacols planned future sales expansion expected to coincide with forecast supply shortfall post 1.000…
  8. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 8
    Track Record of Growing Gas Sales 350 Sales (MMscfd) 300 330 Pivot to High Margin Natural Gas 250 Business Complete 200 New 100 MMcf/d pipeline brought 205 onstream in Q3/19 150 2020 Guidance: 205 MMcf/d 100 143 113 70 81 2023…
  9. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 9
    Steady Reserves Additions Underpin Plans For Future Production Growth 800 2P Working Interest Gas Reserves (bcf) 700 624 600 559 696 bcf added through discoveries 505 and technical revisions since 2012 500 411 400 372 300…
  10. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 10
    Driving Value Reserves Growth and Efficient Development Drives Growing Reserves Value After-Tax NPV10 (USMM) 1.583 1.500 2P FD&A Costs (US/Mcf)1 1.136 1.083 1-Year 0.87 1.033 1.000 945 3-Year 0.67 873 783 785 638 639 651…
  11. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 11
    Long-Term Supply Shortage = High and Stable Gas Prices For 2020, 80% of 205 mmcfd sales guidance is on long- term fixed Price take or pay contracts. Realized Gas Price History (US/Mcf)1, 2 Canacols sales and transportation contracts…
  12. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 12
    Infrastructure Secures Market Access Positioned for Growth 1. 2012 Acquired Shona 80 km pipeline to Cerromatoso 2. 2016 190 km pipeline expansion to Cartagena 3. 2017 82 km pipeline Jobo Bremen 2 4. 2019 190 km pipeline twinning to…
  13. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 13
    Positioned for Growth Large Resource base with significant upside Continue Utilizing Best-in-Class Technology and Expertise to De-Risk Large Resource Potential Lower Expanding Core Area Magdalena Valley New Gas Exploration Blocks…
  14. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 14
    Industry-Leading Exploration Success Utilizing AVO* Uncalibrated 3D Calibrated 3D for AVO analysis Includes pay in ft. TVD Discovery Arandala-1 Prospect Cacahuate-1 30 ft. Datil-1 Breva-1 Carambolo-1 29 ft.…
  15. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 15
    2020 Plan Aggressive Exploration Drilling Program Budget 2020 Sales 205 mmcfd of 4.80/mcf 11 Drill 12 wells 12 9 exploration 1 appraisal 114 MM 2 development 19 72 Execute agreements to construct new gas pipeline to…
  16. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 16
    2020 Drilling 12 Wells All 100% Interest and Operated Largest Exploration Investment in Canacols History 2020 Investor Presentation 16
  17. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 17
    Canacols Financial Policy Canacols New Quarterly Dividend 2020 Free Cash Flow (FCF) Waterfall US 28MM per annum (USMM) 5.8% yield (as of Mar 31, 2020) 265 30 265 30 40 Debt Reduction 40 2.1x consolidated leverage ratio(1) as…
  18. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 18
    High Margins + Growth = Funds Flow And Share Price Growth Funds from operation (per f.d. share)1 Relative share price performance 2 0,20 1 -0,10 0 Q1/15 Q1/16 Q1/17 Q1/18 Q1/19 dic-14 dic-15 dic-16 dic-17 dic-18 dic-19…
  19. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 19
    Top Quartile Growth and Free Cash Flow Yield; No Valuation Premium 80% 2020E CFPS Growth1 10,0,x 2020E EV/DACF1 CNE, 52% 40% Colombia E&P Avg: 7.2x 0% 5,0,x -40% CNE, 3,3x -80% Colombia E&P Average: -82% -120% 0,0,x 50% 2020E…
  20. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 20
    Environment - Operating Responsibly Investing for continued reduction of emissions per unit of production, Canacol is Emitting 70% less GHGs per unit of production than Colombian oil and gas industry averages1 Annual direct CO2…
  21. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 21
    Sustainability Highlights Environment 2018 vs 2017 CO2 & PM Emissions HSE Energy Water Management & Peer Comparison Reduction Biodiversity Consumption Waste Reduction vs Colombian Operators(2) : Replacing Diesel. 90% of 0…
  22. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 22
    Sustainability Highlights Social Governance COP 61,000 million invested in projects for local communities(1) 45% invested in projects with our indigenous communities 6 out of 7 board members are independent 40,000 people have…
  23. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 23
    Colombias Largest Independent Natural Gas Producer Focused Leader Well Positioned Conventional natural Largest supplier to the Caribbean Coast Only active onshore gas operator gas pure play focused in and largest independent…
  24. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 24
    Advisories This presentation is provided for informational purposes only as of March 2020, is not complete and may not contain certain material information about Canacol Energy Ltd. (Canacol or the Company), including important…
  25. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 25
    Advisories Oil and Gas Information Barrels of oil equivalent (boe) Boe may be misleading, particularly if used in isolation. A boe conversion ratio of cubic feet of natural gas to barrels of oil equivalent is based on an energy…
  26. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 26
    Carolina Orozco Phil Heinrich Mauricio Hernandez Tascon Vice President, Investor Relations Investor Relations Manager Investor Relations Manager +44 755.537.3873 +1 403.269.1754 +57 1.621.1747 corozcocanacolenergy.com…
  27. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 27
    Appendix Upcoming Drilling Activity
  28. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 28
    Clarinete-5 Development Well (PUD), VIM 5 Clarinete-1 Clarinete-1 Clarinete-2ST Drilled 2015 500 m Clarinete-5 Clarinete-4 Current production 18 MMcf/d Cumulative production 18 BCF N W E Clarinete-2ST E Clarinete-1…
  29. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 29
    Fresa-1 Exploration Well, VIM 21 Fresa-1 JOB-11 (17 BCF) A B JOB-9 (27 BCF) JOB-4 (11 BCF) JOB-10 (15 BCF) COR-2 (6 BCF) JOB-1 (7 BCF) JOB-2 (D&A) JOB-8 (6 BCF) B KAT-1 (2 BCF) JOB-3 (D&A) Fresa-1 1 KM A…
  30. April 2020 Corporate Presentation – Canacol Energy Ltd. – slide 30
    Porro Norte-1 Exploration Well, VIM 5 A Porro Norte-1 SAN BENITO-1 A San Benito-1 Porro Norte-1 Mid Miocene UC Porro Norte Contours 100 Line PO-1310-2011 3 km B Porro Norte-1 B Well objective: Drill 4-way…

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