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February 2022 Corporate Presentation – Birchcliff Energy Ltd.

Birchcliff Energy Ltd. · Feb 9, 2022 · 52 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. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 1
    CORPORATE PRESENTATION February 9, 2022
  2. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 2
    CORPORATE OVERVIEW PEOPLE, FOCUS & EXECUTION February 9, 2022 2
  3. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 3
    CORPORATE OVERVIEW Q4 2021 and Full-Year 2021 Results Q4 2021 average production 78,716 boe/d Light oil (% of production) 2,604 bbls/d (3%) Condensate (% of production) 5,330 bbls/d (7%) NGLs (% of production) 7,570 bbls/d…
  4. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 4
    CORPORATE OVERVIEW Corporate Snapshot Long-term debt as at December 31, 2021 500.9 million Total debt as at December 31, 2021(1) 499.4 million Credit facilities borrowing base limit as at December 31, 2021 850.0 million Common…
  5. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 5
    CORPORATE OVERVIEW Select 2022 Guidance(1) Estimated 2022 annual average production 78,000 - 80,000 boe/d Estimated 2022 adjusted funds flow(2)(3) 590 million Estimated 2022 F&D capital expenditures(4) 240 260 million 330 350…
  6. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 6
    CORPORATE OVERVIEW 2022E NATURAL GAS MARKETING AECO 3.50 0.06 0.45 2.99 19% 42% 1% Dawn Alliance 4.66 4.21 0.20 0.08 1.31 0.43 3.15 38% 3.70 Henry Hub Note: Birchcliff natural gas realizes Dif. a 10% heat…
  7. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 7
    CORPORATE OVERVIEW KEYS TO SUCCESS Executives with a proven track record, continuity since inception and significant ownership. Management Highly experienced Management Team with excellent technical knowledge and a long history with…
  8. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 8
    LOOKING FORWARD 2022 CAPITAL PROGRAM 2022 Capital Program - F&D Capital Expenditures by Classification Classification Capital (millions) DCCET (1) Pouce Coupe 103 - 112 (1) Gordondale 35 - 38 (2) Additional Well Completions…
  9. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 9
    LOOKING FORWARD 2022 CAPITAL PROGRAM 01-08 Large-scale pads 06-35 5 Montney D1 designed to 4 Montney D1 1 Montney C maximize capital 5 Montney D2 4 Basal Doig/Upper Montney efficiency Gordondale light oil Continued delineation…
  10. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 10
    LOOKING FORWARD STRESS TESTING ADJUSTED FUNDS FLOW(1) Birchcliffs 2022 capital program would remain fully funded from adjusted funds flow with a 50% decrease from Birchcliffs budgeted blended corporate natural gas price and a 15%…
  11. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 11
    LOOKING FORWARD FIVE YEAR PLAN THEMES INCREASING SHAREHOLDER VALUE Maximizing Free Funds Flow and Reducing Indebtedness Increasing Shareholder Returns Fully Utilizing the Available Processing Capacity of Birchcliffs…
  12. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 12
    LOOKING FORWARD FIVE YEAR PLAN PRODUCTION REDUCING PER UNIT COSTS AND MAXIMIZING EFFICIENCIES Filling existing infrastructure drives down per unit costs and maximizes efficiencies. Per unit combined royalty, operating and…
  13. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 13
    LOOKING FORWARD FIVE YEAR PLAN FINANCIAL(1) SIGNIFICANTLY REDUCING DEBT & INCREASING SHAREHOLDER RETURNS 700 1.80 1.60 600 1.40 500 1.20 /share millions 400 1.00 300 0.80 0.60 200 0.40 100 0.20 0 0.00 2022…
  14. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 14
    TRACK RECORD OF EXECUTION PRODUCTION HISTORY 90,000 78,000 - Compound per-share production growth 77,977 76,401 78,520 80,000 80,000 of 10% per year since inception. 77,096 70,000 67,963 Average Production (boe/d)…
  15. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 15
    TRACK RECORD OF EXECUTION CORPORATE RESERVES(1) 1,200,000 7,000 PDP - Reserves 1,100,000 TP - Reserves 2P - Reserves On a per share basis PDP, TP 6,000 1,000,000 and 2P reserves have PDP - NPV10 increased at a compound 900,000…
  16. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 16
    TRACK RECORD OF EXECUTION PROVEN TRACK RECORD AS A LOW-COST PRODUCER 5 Year Profitability Breakdown: 2017 2018 2019 2020 2021 Average Average AECO (CDN/GJ) 2.04 1.42 1.67 2.11 3.44 2.14 Average WTI (US/bbl) 50.95 64.77 57.03…
  17. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 17
    TRACK RECORD OF EXECUTION PROVEN TRACK RECORD AS A LOW-COST FINDER(1) 16 PDP F&D 1P F&D 2P F&D 14 Adjusted funds flow recycle 1.4x 12 ratios F&D Cost (/boe) 10 0.6x 1.8x 8 1.3x 1.4x 1.6x 1.5x 1.5x 6 1.8x 0.9x 1.8x…
  18. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 18
    ENVIRONMENTAL, SOCIAL AND GOVERNANCE PEER EMISSIONS METRICS(1)(2)(3)(4) February 9, 2022 18
  19. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 19
    ENVIRONMENTAL, SOCIAL AND GOVERNANCE COMMITMENT TO ENVIRONMENTAL STEWARDSHIP Waste heat recovery units at the Pouce Coupe Gas Plant take the equivalent of 5,000 cars off the road annually. Peer-leading water storage and…
  20. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 20
    ENVIRONMENTAL, SOCIAL AND GOVERNANCE INVESTING IN OUR PEOPLE AND THE COMMUNITY 4.25 million donated to more than 100 local community groups and organizations in the last 5 years. Continued partnerships with local communities…
  21. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 21
    MONTNEY/DOIG RESOURCE PLAY MONTNEY/DOIG - A WORLD CLASS RESOURCE PLAY 473 gross (470.7 net) Montney/Doig horizontal wells producing as of Dec 31, 2021. Resource density. Stacked resource up to 300 metres thick. Large areal…
  22. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 22
    MONTNEY/DOIG RESOURCE PLAY MONTNEY/DOIG MINERALOGY LEADS TO EXCELLENT FRACABILITY The Montney/Doig Resource Play rock type is composed of a Some other resource plays have a high percentage of clays high percentage of hard…
  23. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 23
    MONTNEY/DOIG RESOURCE PLAY BIRCHCLIFFS MONTNEY/DOIG RESOURCE PLAY Large contiguous land base with 425.7 (404.8 net) sections prospective for the Montney/Doig as at December 31, 2021. Birchcliff has a contiguous land block at…
  24. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 24
    MONTNEY/DOIG RESOURCE PLAY MONTNEY/DOIG MULTI-LAYER OPPORTUNITY February 9, 2022 24
  25. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 25
    MONTNEY/DOIG RESOURCE PLAY SCIENCE & TECHNOLOGY PAD February 9, 2022 25
  26. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 26
    MONTNEY/DOIG RESOURCE PLAY BIRCHCLIFF MONTNEY/DOIG INVENTORY 2021YE February 9, 2022 26
  27. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 27
    MONTNEY/DOIG RESOURCE PLAY 2020 LIQUIDS SUMMARY 2020 Well Rates (IP60) MULTI-INTERVAL CUBE-STYLE DEVELOPMENT Discovery of Extension to the Gordondale Light Oil Pool In Q3 2020, Birchcliff brought the production on from its…
  28. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 28
    MONTNEY/DOIG RESOURCE PLAY 2021 CAPITAL PROGRAM 2021 Locations & Well Rates (IP60) MULTI-INTERVAL CUBE-STYLE DEVELOPMENT 2021 Capital Program Major Themes 2021 Capital Program focused on low-risk drilling opportunities to…
  29. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 29
    POUCE COUPE POUCE COUPE OVERVIEW Proven asset in development phase. Wells show high initial deliverability, low terminal decline and stable long-term production. Predictable results with improving gas rates and liquids yields.…
  30. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 30
    POUCE COUPE POUCE COUPE 2022 TYPE CURVE *Assumptions: FX 1.25 CAD/USD *All economics are before tax; reference date is January 1, 2022 February 9, 2022 30
  31. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 31
    POUCE COUPE MULTI-INTERVAL CUBE-STYLE DEVELOPMENT February 9, 2022 31
  32. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 32
    GORDONDALE GORDONDALE OVERVIEW High oil & NGLs weighting. Strategic infrastructure. Low base production decline. Exploration success in the Montney C in 2021 added another commercial development interval to the Montney D1 and…
  33. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 33
    GORDONDALE GORDONDALE BASE PRODUCTION HISTORY(1) Last well drilled by previous owner in Birchcliff Scheduled AltaGas Facility Added Field 2014 (on-stream 2015) with peak Acquisition Turnaround Compression production of 35,000…
  34. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 34
    GORDONDALE GORDONDALE 2022 HALO OIL TYPE CURVE *Assumptions: FX 1.25 CAD/USD *All economics are before tax; reference date is January 1, 2022 February 9, 2022 34
  35. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 35
    D&C CONTINUOUS PERFORMANCE IMPROVEMENT POUCE COUPE DRILLING PERFORMANCE 202 2 February 9, 2022 35
  36. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 36
    D&C CONTINUOUS PERFORMANCE IMPROVEMENT POUCE COUPE COMPLETION EVOLUTION Completion Parameter 2017 2018 2019 2020 2021 2022 Design of Wells 37 15 17 24 25 26 Completion System Open Hole Ball Drop Plug & Perf Plug & Perf Plug &…
  37. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 37
    D&C CONTINUOUS PERFORMANCE IMPROVEMENT GORDONDALE DRILLING PERFORMANCE First 2022 Spud planned for May February 9, 2022 37
  38. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 38
    D&C CONTINUOUS PERFORMANCE IMPROVEMENT GORDONDALE COMPLETION EVOLUTION Completion Parameter 2017 2018 2019 2020 2021 2022 Design of Wells 22 13 16 8 8 9 OH Ball Drop/Cemented Single Open Hole Ball Drop Completion System Point…
  39. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 39
    D&C CONTINUOUS PERFORMANCE IMPROVEMENT ENGINEERED COMPLETIONS FOR MONTNEY/DOIG DEVELOPMENT Completion Parameter Industry Range Birchcliff Best Practices Oil Birchcliff Best Practices Gas Completion System Open Hole Ball Drop, Plug…
  40. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 40
    POUCE COUPE GAS PLANT OWNERSHIP AND CONTROL = LOWER COSTS Birchcliffs 100% owned and operated natural gas plant located in the Pouce Coupe area of Alberta February 9, 2022 40
  41. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 41
    BUILDING ON OUR PAST Forecasted annual average production of Birchcliffs average daily production was 78,520 boe/d in 78,000-80,000 boe/d in 2021 compared to 2,793 boe/d in 2005, a compounded 2022 annual growth rate of 23% per year…
  42. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 42
    BUILDING ON OUR PAST Birchcliff has increased production at a compound annual growth rate of 23% since 2005. Operating Costs(1) & Total Cash Costs(2) 20 18 Operating and Total Cash Costs 16 have decreased by 69% and 26%…
  43. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 43
    BUILDING ON OUR PAST Reserves Growth Birchcliff has added significant 1,200 4,800 1,000 4,000 low-cost reserves since 800 3,200 commencing operations in boe/1,000 shares MMboe 600 2,400 2005. On a per common share…
  44. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 44
    APPENDIX CANADAS LNG ADVANTAGE Cleaning Our Worlds Environment, a 2.0 Bcf/d LNG Facility Could: Displace 50 million tonnes of carbon emissions from coal-fired power generation. Replace approximately 10 large-scale coal fired power…
  45. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 45
    APPENDIX MONTNEY/DOIG WELL LOCATIONS Existing and Potential Future Drilling Locations by Interval at December 31, 2021 Average Proved Plus Probable Reserves plus Cumulative Gross Number of 2P Net Number of 2P Production…
  46. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 46
    APPENDIX SERIES A PERPETUAL PREFERRED SHARES Preferred Share Details Series A Number of Shares 2,000,000 Issue Date August 8, 2012 TSX Trading Symbol BIR.PR.A Issue / Par Price 25.00 per share Quarterly Dividend 0.523375 per…
  47. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 47
    APPENDIX SERIES C PREFERRED SHARES Preferred Share Details Series C Number of Shares 1,530,709 Issue Date June 14, 2013 TSX Trading Symbol BIR.PR.C Issue / Par Price 25.00 per share Quarterly Dividend 0.4375 per share Yield at…
  48. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 48
    CORPORATE INFORMATION EXECUTIVE AUDITORS A. Jeffery Tonken KPMG LLP, CEO and Chairman of the Board Chartered Professional Accountants Calgary, Alberta Christopher A. Carlsen President and Chief Operating Officer RESERVES…
  49. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 49
    ADVISORIES DEFINITIONS AltaGas Facility AltaGas deep-cut sour gas processing facility in Gordondale Deloitte Deloitte LLP, independent qualified reserves evaluator Pouce Coupe Gas Plant Birchcliffs 100% owned and operated natural gas…
  50. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 50
    ADVISORIES NON-GAAP AND OTHER FINANCIAL MEASURES This presentation uses various non-GAAP financial measures, non-GAAP ratios, supplementary financial measures and capital management measures (as such terms are defined in NI 52-112).…
  51. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 51
    ADVISORIES Non-GAAP Ratios The Non-GAAP ratios used in this presentation are not standardized measures under GAAP and might not be comparable to similar measures presented by other companies where similar terminology is used. Set forth…
  52. February 2022 Corporate Presentation – Birchcliff Energy Ltd. – slide 52
    THANK YOU TEAM BIRCHCLIFF Jeffrey Akeroyd, Bradley Alexander, Karen Allen, Tracy Anderson, Camille Ashton, Gaetano Aurigemma, Angela Belbeck, Tyrus Bender, Riley Berge, Lindsey Berlinger, Daniel Blattler, Calvin Bohdan, Angela…

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