ATHABASCA OIL CORPORATION FOCUSED EXECUTING DELIVERING APRIL 2022
WHY OWN ATHABASCA PREDICTABLE, LOW DECLINE THERMAL OIL BUSINESS Low sustaining capital requirements (5/bbl) 1 billion boe 2P reserves at top quartile assets Athabasca is committed to DERISKED LIGHT OIL BUSINESS WITH FLEXIBLE…
PORTFOLIO 35,000 BOE/D 90% LIQUIDS THERMAL OIL ASSETS (28,000 BBL/D) LIGHT OIL ASSETS (7,000 BOE/D) LEISMER Top tier project that PLACID MONTNEY HANGINGSTONE has been in operation for 11 years with 70% WI Placid with current…
CAPITAL STRUCTURE AND GUIDANCE CAPITAL STRUCTURE CAPITAL STRUCTURE OVERVIEW o US350MM Second Lien Notes 9.75% coupon & 5year term to Q4 2026 Semiannual free cash flow redemption feature at 105 1,100MM o 160MM Credit Facilities…
MANAGING FOR STRONG FREE CASH FLOW EBITDA & FCF AT US85 WTI (CMM) STRONG FREE CASH FLOW 900MM 3year cum FCF o Maintain production base of 34,000 boe/d o Low annual sustaining capital of 125MM o 10+ year tax free horizon (3.2B of tax…
CREATING SIGNIFICANT SHAREHOLDER VALUE DEBT OUTLOOK US85 WTI (CMM) US350MM UNIQUE LOW LEVERAGE COMPANY Term Debt Net cash position o Direct 100% of free cash flow to term debt repayment Net cash position achieved by year end 2022…
Athabasca Stated ESG Goal (May 2021) INTEGRATED SUSTAINABILITY Prepare a technology roadmap for a lower carbon future evaluating carbon capture use and storage, cogeneration, solvent injection, and renewable energy CARBON CAPTURE…
ASSET OVERVIEW
THE THERMAL BUSINESS HIGHLIGHTS THERMAL PROPERTIES 100% Working Interest Fort McMurray 28,084 bbl/d Q4/21 Production AOC Hangingstone 390MM 2022E Operating Income 2022E Enbridge 115MM Capital Expenditures Hangingstone…
THERMAL OIL LEISMER STRATEGIC POSITIONING DEVELOPMENT MAP o Maximize FCF and deliver strong netbacks (33/bbl Q4/21) o Focus on projects that improve the SOR Illustrative 2022 ACTIVITY OVERVIEW Pad 8 Sustaining o Pad L8 5 wells on…
THERMAL OIL HANGINGSTONE DEVELOPMENT MAP STRONG RESERVOIR RESPONSE o Excellent facility utilization o Improved SOR due to the field wide NCG coinjection o Startup of standing well pair in December 2021 COST OPTIMIZATION o Low…
THERMAL OIL CROWN ROYALTY ADVANTAGE CROWN ROYALTY OVERVIEW OIL SANDS ROYALTY RATES o Royalties vary depending on whether a project is in Gross revenue less opex & capex prepayout or postpayout phase Prepayout royalty rates are…
THE LIGHT OIL BUSINESS HIGHLIGHTS LIGHT OIL PROPERTIES 7,063 boe/d Q4/21 Production Kaybob 2022E Net Capital 13MM Expenditures 95MM 2022E Operating Income 850 Gross Locations 280,000 Gross Acres Placid 27 MMboe & Gross…
LIGHT OIL 2022 ACTIVITY STRATEGIC OBJECTIVES PLACID MONTNEY o Maintain future optionality o Maximize netback & cash flow generation (43/boe in Q4) 36/boe Placid; 51/boe Kaybob 2022 ACTIVITY o Kaybob Duvernay: 3 Two Creeks wells…
ESG OVERVIEW
ESG INAUGURAL 2021 REPORT We believe that the responsible energy we produce here in Alberta makes peoples lives better. Our inaugural ESG report is an opportunity for us to showcase the positive impacts we have made and explain…
ESG 2020 HIGHLIGHTS NET GHG EMISSIONS INTENSITY WATER RECYCLE RATIO 95% 0.08 20% Reduction 90% 0.07 tonnes Co2e/boe 85% 0.06 80% 0.05 75% 0.04 70% 2015 2016 2017 2018 2019 2020 Oil Sands Mining In Situ Enhanced…
Athabasca Stated ESG Goal (May 2021) INTEGRATED SUSTAINABILITY Prepare a technology roadmap for a lower carbon future evaluating carbon capture use and storage, cogeneration, solvent injection, and renewable energy CARBON CAPTURE…
ESG GOVERNANCE & SOCIAL GOVERNANCE SOCIAL o Technicallyfocused, experienced management team o Contributed 66% of the Provincial Park Lands Four most senior executives have managed current Expanded the ecologically and culturally…
ESG COMMITMENT TO RESPONSIBILITY GOALS o Reduce emission intensity by 30% (2015 2025) o Strong safety results (0.6 TRIF in 2021); aspiration of no harm to people and no hydrocarbon spills o ESG to be a formal consideration in all…
APPENDIX
MANAGEMENT TEAM o Joined Athabasca in 2012 as Senior Vice President Light Oil. Promoted to Chief Operating Officer in 2013 and President and Chief Executive Officer in 2015 o 30 years of exploration and production experience…
THERMAL OIL OPERATIONS IMPROVEMENTS HISTORY OF HIGH FACILITY UTILIZATION RATES LEISMER LOWER WELL PAIR COSTS (MM) Hangingstone partial shutin in 2020 LEISMER TECHNOLOGY DRIVING RATES (BBL/D) NONENERGY OPEX (MM) 1,200 Leismer…
LIGHT OIL NETBACKS & OPERATIONS IMPROVEMENTS INDUSTRY LEADING NETBACK (Q4/21) High Liquids % High Quality Product 43/boe (Q4) Low Lifting Costs DUVERNAY OIL WELL RESULTS (BOE/D) HISTORICAL WELL COSTS (MM) 1,500 2016 Wells…
MARKET EGRESS AND RISK MANAGEMENT CANADIAN MARKET ACCESS IMPROVING CANADIAN EGRESS OUTLOOK (MMBBL/D) o Excess pipeline capacity for foreseeable future Enbridge L3R: +270,000 bbl/d inservice TMX: +590,000 bbl/d in 2023 o Lower…
HISTORICAL TRANSFORMATION OF ATH 486MM 470MM 265MM US350MM New Notes Light Oil JV Contingent Infrastructure & 150MM Credit with Bitumen Sale Facilities; Redeemed Murphy Oil Royalties US450MM Notes Managing for Resource Resumption…
READER ADVISORY Forward Looking Statements This Presentation contains forwardlooking information that involves various risks, uncertainties and other factors. All information other than statements of historical fact is forwardlooking…
READER ADVISORY CONTD Additional Oil and Gas Information: Other Oil and Gas terms: This presentation contains certain other oil and gas metrics, including D&C (drilling and completion costs), F&D, steam oil ratio (or SOR), reserves…
READER ADVISORY CONTD NonGAAP Financial Measures and ratios, and Production Disclosure Contd The Consolidated Capital Expenditures Net of CapitalCarry and Light Oil Capital Expenditures Net of CapitalCarry are nonGAAP measures in this…
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