OVERVIEW TSX symbol SRX, started Sep 2010 fourth Storm since Nov 1998 historically disciplined with capital investment Market cap 240 MM (2/share) H1/20 FF 28 MM (23,941 boe/d, 20% liquids), debt 130 MM 121 MM shares + 10 MM…
Q2/20 prodn per share +124% since Q1/15 (5 yrs) PRODUCTION GROWTH 3
higher prodn in 2020 largely offset by lower Chicago nat gas price FINANCIAL RESULTS 2019 reduced by outages further improvement once Nig Crk GP is full Q4/20 2019 profit reduced with 63% of capex for Nig Crk GP and no PDP…
simple business; FD&A and recycle are the most important metrics RESERVES PDP FD&A 2019 11.43/boe 3 yr 6.79/boe 3 yr PDP recycle 1.6 X 5
reflects focus on achieving attractive full-cycle rate of return RETURN ON CAPITAL CROCE is better indicator, ROCE is affected by non-cash hedging gain/loss return on 2019 +2 MM capital reflects 2018 -6 MM PDP recycle 2017 +25 MM (3…
UMBACH/NIG CREEK/FIREWEED (NE BC) 0.1% - 1.2% H2S Montney liquids rich gas requires processing raw gas 1,200 - 1,300 btu/scf at sour gas plant 20% liquids McMahon GP accesses 3 sales pipelines 40 bbls/mmcf, 50% condensate 80 hzs…
material future upside, only 8% lands with PDP (25% with 2P) LARGE LAND POSITION 170 net sections 120,000 net acres Growth from Nig Creek & Fireweed Montney productive across the area learning from offsetting hz results…
high ROR with gas plant reducing op cost and increasing % liquids NIG CREEK (100% WI) H2S 0.1% 16 net sections, 7 hzs drilled Q2/20 8,500 boe/d (22% liquids) 48 bbls/mmcf (42% cond) Q4/20 forecast 11 - 13,000 boe/d 50 mmcf/d gas…
growth 2021+, increases condensate prodn (CGR 2 5 X vs Umbach) FIREWEED (50% WI) JV 50/50, 24 net sections, 3 hzs drilled Q1/20: drill 2 hz, compl 1 hz advance 2021 if WTI US40, Initially 2,500 - 5,000 Boe/d net 1st prodn possibly…
large land position, liquids recovery varies by area RECOVERIES BY AREA Estimated well recoveries by area Ultimate field Raw Gas Sales Liquids Condensate condensate Bcf/hz Gas Plant Mboe Mbbls Mbbls avg life CGR(1) Umbach upr 8.0(2)…
OPPORTUNITIES NEAR TERM Nig Creek fill gas plant Q4/20 with 4 new hzs (current 40 mmcf/d, est capacity 60 mmcf/d vs design 50 mmcf/d) add inlet compression at gas plant to increase rates 10% from existing wells (possibly Q1/21)…
hzs improving by adding length, targeting better quality areas HZ RESULTS 14
FIELD CONDENSATE-GAS RATIO 15
DAILY GAS RATES 16
DAILY FIELD CONDENSATE RATES 17
Storm has higher quality land position in Montney fairway COMPARING RESULTS 18
2020 cost declining 10% - 20% UMBACH & NIG CREEK HZ COST includes all costs (roads, lease construction, & water handling) reducing FD&A with longer hzs, Umbach 2017-18 vs 2014-16: length +42% D&C cost +13% 2P EUR +33% (excl Nig…
growth contingent on achieving attractive ROR NEAR TERM GROWTH PLAN preliminary 2021 forecast 28,000 boe/d with capex 75 - 80 MM (incl 30 MM at Fireweed) 21
with low maintenance capex, majority of capex for growth CAPITAL INVESTMENT reinvesting free cash flow in growth 2020 capex targeted to be approx equal to or less than funds flow 2019 free cash flow 24 MM when Nig Crk Gas…
objective is diversifying sales to mitigate regional price volatility NATURAL GAS SALES estimated sales split: 2020 2021 Chicago 56% 46% AECO 18% 11% Stn 2 12% 36% Sumas 9% ATP 5% 7% 23
US NAT GAS SUPPLY/DEMAND/PRICE US supply/demand has rebalanced quickly: 1) prodn decline, -7 Bcf/d since peak Nov/19 2) demand growth, Jan-Jun/20 +1.3 Bcf/d YOY US demand +25% from 2015 to 2019 (consumption + net imports)…
SUMMARY Results reflect per share growth with return on capital From 2015 to 2019, funds flow per share +44% & CROCE avg 14% Low maintenance capex as hzs improve & decline flattens Majority of recent capex directed to growth invested…
STORM RESOURCES LTD CONTACT INFO For further information please contact: Brian Lavergne, President and Chief Executive Officer Michael Hearn, Chief Financial Officer Carol Knudsen, Manager Corporate Affairs Address: 600, 215 2nd…
APPENDIX 26
increase in debt since 2018 partially funded Nig Crk GP (total 84 MM with 73 MM in 2019 20) GUIDANCE & RESULTS 2021 2020 Guidance Preliminary Aug 12/20 2019 2018 2017 2016 Average Boe/d 26,000 30,000 22,500 24,000 20,182 20,538…
growth is not hedged HEDGING (to Aug 12/20) H2/20 2021 Natural Gas Hedges % Current Nat Gas Prodn (1) 49% 48% Collars 31,800 Mcf/d (2) 8,400 Mcf/d (2) Floor Cdn2.82/Mcf (3) Floor Cdn3.83/Mcf (3) Ceiling Cdn3.06/Mcf (3) Ceiling…
avoid overcommitting, reduces capex flexibility when prices decline PROCESSING & TRANSPORTATION Processing totals 130 mmcf/d raw (firm contracts + Nig Crk GP) H1/20 actual 125 mmcf/d raw McMahon GP 65 mmcf/d Storm Nig Crk GP 50…
PLANT GATE NAT GAS PRICE CALCULATION 2021 FWD STRIP (Aug 10/20) Sell in Chicago (Alliance pipeline) NYMEX US2.79/mmbtu Chicago price US2.68/mmbtu NYMEX - Chicago diff -US0.11/mmbtu Chicago price cdn3.39/GJ Alliance fuel -cdn0.15/GJ…
decline in flows to BC Stn 2 bullish pricing WESTERN CANADA STN 2 34
MARCELLUS/UTICA NAT GAS PRODUCERS from AR, ASCENT, CNX, COG, EQT, GPOR, MR, RRC, SWN (60% Appalachia 2019 prodn) financially challenged by high debt vs funds flow rising cash costs funds flow netback comparison for 2019…
more renewables is increasing demand for gas fired generation BP REVIEW OF WORLD ENERGY 2020 wind typically generates 25% of nameplate capacity (40% offshore) and solar 20%; requires other source of generation to offset low…
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