OVERVIEW TSX symbol SRX, started Sep 2010 fourth Storm since Nov 1998, disciplined with capital investment officer + director ownership 12% (16% FD) Market cap 240 MM (2/share) Q1-Q3/20 FF 34 MM (22,291 boe/d, 20% liquids), debt 138…
2020 YTD prodn per share +120% since 2015 (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
focused on achieving attractive full-cycle rate of return RETURN ON CAPITAL ROCE affected by non- cash hedging gain/loss return on capital 2020 YTD -21 MM reflected by PDP 2019 +2 MM recycle (3 yr 1.6 X) 2018 -6 MM 2017 +25…
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 40 bbls/mmcf, 50% condensate 3 sales pipelines 83 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…
facility underutilized, growth depends on Stn 2 price UMBACH (100% WI) H2S 1.2% 113 net sections, 70 hzs drilled Q3/20 10,975 boe/d (19% liquids) 38 bbls/mmcf (45% cond) Q3 McMahon GP outages 34 days Facility capacity 150 mmcf/d…
high ROR with gas plant reducing op cost and increasing % liquids NIG CREEK (100% WI) H2S 0.1% 16 net sections, 11 hzs drilled Q3/20 7,845 boe/d (22% liquids) 46 bbls/mmcf (42% cond) 60 mmcf/d gas plant start-up Feb/20, YTD op…
growth 2021+, increases condensate prodn (CGR 2 5 X vs Umbach) FIREWEED (50% WI) 2021 hz drills 2021: drill 4 hz, compl 2 hz 24 net sections, 3 hzs drilled, 50/50 JV Storm mgmt type curve 8.0 Bcf/hz Initially 2,000 Boe/d net (40%…
large land position, liquids recovery varies by area RECOVERIES BY AREA Estimated lifetime Raw Gas Sales Liquids Condensate average Bcf/hz(1) Gas Plant Mboe Mbbls Mbbls CGR(2) Umbach upr 8.0 McMahon(4) 1,420 250 [17%] 140 [10%] 10…
NEAR TERM OPPORTUNITIES Nig Creek maximize gas plant throughput, netback +3/boe vs corp avg, current 60 mmcf/d vs design 50 mmcf/d (summer 2020 42 mmcf/d) add inlet compression at gas plant Q2/21 (7 MM), +800 Boe/d from existing…
improving with adding length, targeting better quality areas COMPARING HZ RESULTS 14
DAILY GAS RATES 15
FIELD CONDENSATE RATES 16
est type curve based on adjacent producing hzs FIREWEED TYPE CURVES Storm mgmt avg type curve based on 2400 m hz and is expected average across Storm's lands (will vary), based on performance of offsetting hzs 17
2020 cost declined 17% vs 2019 UMBACH & NIG CREEK HZ COST includes all costs (roads, lease construction, & water handling) cost reduction in 2020 from lower service costs, drilling from existing pads, and modifying wellbore…
Storm has higher quality land position in Montney fairway COMPARING RESULTS Chart revised to show hzs starting prodn after Jan/18 (was Jan/17) 19
low maintenance capex CAPITAL INVESTMENT free cash flow in 2018 20 reinvested in Nig Crk GP and developing Fireweed 2018 20 capex for Nig Crk GP & Fireweed 98 MM 2020 free cash flow 24 MM when Nig Crk GP & Fireweed capex excluded…
growth contingent on achieving attractive ROR FORECAST PRODUCTION preliminary 2021 forecast 26 - 28,000 boe/d, capex 85 - 90 MM (incl 35 MM at Fireweed) 22
low Chicago price in 2020 reducing avg nat gas price & funds flow NATURAL GAS SALES estimated sales split: objective is diversifying 2020 2021 sales to mitigate Chicago 56% 46% regional price volatility AECO 18% 11% Stn 2 12% 36%…
US NAT GAS SUPPLY/DEMAND/PRICE US supply/demand has rebalanced quickly: 1) prodn -7 Bcf/d since peak Nov/19 2) demand Jan-Aug/20 +0.8 Bcf/d YOY US storage injn summer 2020 -657 Bcf vs 2019 -94 Bcf vs 5 yr avg US demand +25% from…
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 for Nig…
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 28
increase in debt since 2018 partially funded Nig Crk GP (total investment 84 MM during 2018 20) GUIDANCE & RESULTS 2021 2020 Guidance Preliminary Nov 10/20 2019 2018 2017 2016 Average Boe/d 26,000 28,000 23,000 23,500 20,182 20,538…
growth is not hedged HEDGING (to Nov 10/20) Q4/20 2021 Natural Gas Hedges % Current Nat Gas Prodn 50% 45% Collars 33,000 Mcf/d (1) 9,000 Mcf/d (1) floor Cdn2.99/Mcf (2) floor Cdn3.48/Mcf (2) ceiling Cdn3.68/Mcf (2) ceiling…
avoid overcommitting, reduces capex flexibility when prices decline PROCESSING & TRANSPORTATION Processing totals 140 mmcf/d raw (firm contracts + Nig Crk GP) McMahon GP 65 mmcf/d Storm Nig Crk GP 60 mmcf/d Stoddart GP 15 mmcf/d…
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…
declining flows to BC Stn 2, bullish pricing WESTERN CANADA STN 2 35
MARCELLUS/UTICA NAT GAS PRODUCERS from AR, ASCENT, CNX, COG, EQT, GPOR, MR, RRC, SWN (60% Appalachia prodn in 2019) financially challenged by high debt vs funds flow rising cash costs funds flow netback comparison for…
growth of renewables 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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