ATHABASCA OIL CORPORATION FOCUSED EXECUTING DELIVERING JULY 2022
WHY OWN ATHABASCA PREDICTABLE, LOW DECLINE THERMAL OIL BUSINESS Strong netbacks; 47/bbl in Q1/22 Low sustaining capital requirements (5/bbl) 1 billion boe 2P reserves underpins long reserve life Athabasca is committed to returning…
PORTFOLIO 35,000 BOE/D 90% LIQUIDS THERMAL OIL ASSETS (29,000 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…
Q1 2022 HIGHLIGHTS Q2 2022 results to be released July 27th aftermarket 34,679 boe/d (92% liquids) 75MM Adj FFO (0.14/sh) 44MM FCF; 31MM Capex 2022e 3334,000 boe/d 2022e 300MM 2022e 180MM FCF 270MM Liquidity Operating…
CAPITAL STRUCTURE & GUIDANCE CAPITAL STRUCTURE CAPITAL STRUCTURE OVERVIEW o US240MM Second Lien Notes Equity Indexation Added to S&P/TSX Composite 9.75% coupon & 5year term to Q4 2026 Index on June 20, 2022 Semiannual free cash…
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 (3.1B of…
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 debt repayment nearterm Net cash position achieved by year end…
INTEGRATED SUSTAINABILITY TECHNOLOGY OVERVIEW CARBON CAPTURE AOCS LOWCARBON BARREL o Entropy Inc. (Entropy) modular carbon capture technology (CCS) Finalized a Letter of Intent in March 2022 Detailed engineering underway; commercial…
ASSET OVERVIEW
THE THERMAL BUSINESS HIGHLIGHTS THERMAL PROPERTIES 100% Working Interest Fort McMurray 27,909 bbl/d Q1/22 Production AOC Hangingstone 400MM 2022E Operating Income 2022E Enbridge 115MM Capital Expenditures Hangingstone…
THERMAL OIL LEISMER STRATEGIC POSITIONING DEVELOPMENT MAP o Maximize FCF and deliver strong netbacks (49/bbl Q1/22) 2022 ACTIVITY OVERVIEW o Turnaround completed on schedule & on budget in May o Pad L8 5 wells onstream; ramping up…
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…
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 6,769 boe/d Q1/22 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 (49/boe in Q1) 2022 ACTIVITY o Kaybob Duvernay: 3 Two Creeks wells currently on stream FUTURE…
ESG OVERVIEW
ESG 2021 REPORT We believe that the responsible energy we produce here in Alberta makes peoples lives better. Our ESG report is an opportunity for us to showcase the positive impacts we have made and explain how sustainability…
ESG INTEGRATED SUSTAINABILITY TECHNOLOGY OVERVIEW CARBON CAPTURE AOCS LOWCARBON BARREL o Entropy Inc. (Entropy) modular carbon capture technology (CCS) Finalized a Letter of Intent in March 2022 Detailed engineering underway;…
ESG TECHNOLOGY ROADMAP TO DECARBONIZATION Decarbonization Roadmap HIGHLIGHTS o Track record of utilizing new technologies to improve environmental performance o Evaluate and implement new technologies focused on reducing both…
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 As we progress, Athabasca will focus on transparency and continuous advancement as we deliver on our commitments to our stakeholders, communities, and employees. We invite you to join us on our ESG…
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…
HISTORICAL TRANSFORMATION OF ATH 486MM 470MM Significant Deleveraging; Light Oil JV Contingent 265MM Infrastructure US110MM Redeemed with Bitumen YTD (June 2022) Murphy Oil Royalties Sale Resource Resumption of PreCOVID Managing…
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 WCSB…
THERMAL OIL UNPARALLELED CASH FLOW OPPORTUNITY TECHNICAL HIGHLIGHTS FINANCIAL HIGHLIGHTS o Low decline o High torque to oil with operating leverage o Longlife reserves Q1/22 Thermal Oil netback of 47/bbl 1.2 billion 2P reserves; 100…
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 49/boe (Q1) Low Lifting Costs 1,500 DUVERNAY OIL WELL RESULTS (BOE/D) HISTORICAL WELL COSTS (MM) 2016 Wells…
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 Reserves Information The McDaniel Report was prepared using the assumptions and methodology guidelines outlined in the COGE Handbook and in accordance with National Instrument 51101 Standards of Disclosure for Oil…
READER ADVISORY CONTD Production Athabascas 2022 forecasted total average daily production is between 33,000 34,000 boe/d. Athabasca expects that approximately 82% of that production will be comprised of bitumen, 8% shale gas, 5% tight…
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