OVERVIEW TSX symbol SRX, started Sep 2010 fourth Storm since Nov 1998, disciplined with capital investment officer + director ownership 13% (16% FD) Market cap 365 MM (3.00/share) 121 MM shares + 10 MM options Q1/21 highlights prodn…
compound annual growth per share 30% since 2011 PRODUCTION Nig Crk GP (100% WI) diversifies gas processing, reduces risk 3
longer term focus on increasing % liquids LIQUIDS PRODUCTION NGL is 50% propane, 50% butane 4
2020 funds flow reduced by low prices & McMahon GP turnaround FUNDS FLOW & DEBT 5
improving the business over time NETBACK 2019 & 2020 impacted by very low prices 6
expect further decline in cost per Boe in 2021 COSTS Nig Crk GP op cost 1.30/boe, filling plant reduces corporate op cost 7
PDP recycle is simplest way to measure profitability (PDP FD&A not distorted by non-cash adjustments) PROFIT 3 yr PDP FD&A 6.19/Boe represents full-cycle costs (incl Nig Creek GP), expect decline with less infrastructure capex 8
with PDP on 11% of lands, material future upside remains LARGE LAND POSITION 206 gross sections 170 net sections 120,000 net acres initial hzs in upper Montney, recent hzs testing mid & lower learning from offsetting hz…
attractive half-cycle ROR to fill unutilized facility capacity UMBACH & NIG CREEK majority prodn is 100% working interest Nig Crk GP est capacity 70 mmcf/d (Q1/21 54 mmcf/d raw) Umbach field compression capacity 150 mmcf/d (Q1/21…
NIG CREEK GP (100% WI) Nig Creek Gas Plant (100% WI) start-up Feb 2020 3-4 hz per year to keep full 11
realizing attractive ROR from gas plant (long life asset) NIG CREEK GP (100% WI) gas plant cost 85 MM has 4 yr payout & ROR 25% at current fwd strip pricing (op cost savings 17 MM/yr plus incremental gas & liquids) gas plant reduced…
attractive full-cycle ROR from higher % condensate (CGR 2 5 X vs Umbach) FIREWEED 50% working interest JV with privateco facility 50 mmcf/d, expandable to 100 mmcf/d 1st prodn Q4/21 shows raw gas rate + field condensate 2021…
type curve based on adjacent producing hzs FIREWEED GAS TYPE CURVE Storm mgmt avg type curve 7.5 Bcf is forecast average across Storm's lands for a 2400 m hz based on adjacent producing hzs [low case 6.5 Bcf, high case 9…
results show Storm has higher quality Montney asset COMPARING RESULTS 17
large land position, liquids recovery varies by area RECOVERIES BY AREA Est Field + Plant 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…
2020 cost declined 18% vs 2019 UMBACH & NIG CREEK HZ COST 2020 D&C 4.4 MM 2400 m & 38 fracs cost reduction in 2020 from both modified wellbore design and lower service costs includes all costs (roads, lease construction, & water…
existing facility capacity supports growth to 40,000 Boe/d net GUIDANCE & RESULTS 2021 Guidance 2020 2019 2018 2017 2016 May 12/21 Average Boe/d 26,000 28,000 23,219 20,182 20,538 16,017 13,219 per MM shares 222 191 167 169 132 109…
growth contingent on achieving attractive ROR FORECAST PRODUCTION 2021 forecast 26 - 28,000 boe/d 2022 prelim plan 32 35,000 boe/d (21% liquids), capex 85 - 90 MM (22% liquids), capex 80 - 100 MM 21
prodn decline has left US undersupplied US NAT GAS SUPPLY/DEMAND US storage May 7/21 YTD vs last year, US undersupplied 4.4 Bcf/d (to May 12) -378 Bcf vs last year supply -1.8 Bcf/d [prod -2.7, Cdn imports +1.0] -72 Bcf vs 5 yr avg…
SUMMARY Declining cost structure Low maintenance capex as hzs improve & decline flattens Free cash flow to Nig Crk Gas Plant & developing Fireweed attractive RORs from reducing op cost & increasing % liquids Continue growing…
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
McMahon GP accesses 3 sales pipelines 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 ( condensate) Drilled 90 hzs (83…
daily rates provide perspective on new wells with less history DAILY GAS RATES 28
free cash flow 2018 20 invested in Nig Crk GP & Fireweed CAPITAL INVESTMENT low maintenance capex 2018 20 capex to Nig Crk GP & Fireweed 98 MM 30
growth is not hedged HEDGING (to May 12/21) 31
avoid overcommitting, reduces capex flexibility when prices decline PROCESSING & TRANSPORTATION Processing (firm commitments + Nig Crk GP capacity) McMahon GP 65 mmcf/d raw 10 mmcf/d to Dec/22, 55 mmcf/d to Dec/31 Nig Crk GP 70…
transportation cost decreases in 2021 with lower % to Chicago NATURAL GAS SALES sales split est actual 2021 2020 tariff + fuel Chicago 46% 54% 1.50/mcf AECO 11% 14% 0.60/mcf Stn 2 36% 19% 0.26/mcf Sumas 8% higher heat content…
Storms ESG performance summary is on the website BC GHG EMISSIONS BC 2018 emissions oil & gas 17% heat/comb 21% transport 42% transportation is biggest contributor to BC emissions Storm has low fugitive emissions, all…
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