www.peyto.com Corporate Presentation November 2023
WHO IS PEYTO HIGHLIGHTS 25-year publicly traded company focused Focused Assets primarily on the Alberta Deep Basin ALBERTA 5th Largest 123,000 boe/d (14% liquids) (2) Canadian Gas Long reserve life assets (9yr PDP, 24yr 2P…
REPSOL ACQUISITION SUMMARY Consideration of US468 million (before closing adjustments) 455,000 net acres of land (average 65% WI) in the Edson area with no expiries 23,000 boe/d(1)(2) (75% Natural Gas, 25% NGLs) at a 12% annual base…
ACQUISITION DEEP DRILLING INVENTORY PEYTO AND REPSOL - 2013 PEYTO AND REPSOL PRESENT DAY Drilling density on acquired lands represents where Peyto was 10 years ago Repsol drilled 52 Hz wells While Peyto drilled 850 as compared to…
ACQUISITION ACCRETIVE LOCATIONS 137% 137% 132% 128% Peyto Repsol 99% Before Tax IRR (%) 93% 92% 88% 80% 72% 70% 68% 54% 38% GBA GBA GSA GSA GSA GBA GSA GSA Notikewin* Dunvegan* Falher* Bluesky* Wilrich* Cardium*…
ACQUISITION FACILITIES AND PIPELINES Overlapping Pipelines and Proximal Plants 17 Operated Gas Plants with 1.5 Bcf/d Gross Capacity (52% utilized) NGTL Mainline Vast interconnected gas gathering system allows for future flexibility…
WHY WE DO IT NATURAL GAS Fossil fuels represent 80% of the Demand for Natural Gas Continues worlds energy consumption. Natural gas can play a significant role to displace coal in the World Energy Consumption by Source (1965-2021)…
WHY WE DO IT GLOBAL GAS MARKETS LNG cargoes have shifted towards Europe to replace supply from Russia. The expectation is that cargoes will continue to move in all directions going forward to meet world demand. Source:…
WHY WE DO IT GROWING LNG CAPACITY The growth of LNG from the US continues to make up the supply for Asia and Europe. 20 BCF/d by 2025 9
HOW WE DO IT OWN AND CONTROL Gross Gross Raw Net Capacity Gas Plants Capacity Throughput (MMcf/d) (MMcf/d) (MMcf/d) 1 Edson 275 167.8 101 2 Swanson 130 130 75 3 Nosehill 125 125 75 4 Oldman (Deep Cut) 125 125 84 5 Brazeau 120…
HOW WE DO IT PEYTOS MOAT Peytos strategy to own and control Total Cash Costs (excluding Royalties and Taxes) production helps keep our cash costs 3.00 down which gives us a considerable advantage over our peers. The Peyto Advantage…
HOW WE DO IT COST CONTROL Historically, Peyto has been successful by focusing on keeping controllable supply costs low to preserve margin /mcfe 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023H1 (3) PDP FD&A(1) 2.25 1.64 1.44 1.36…
HOW WE DO IT HIGH MARGINS Peytos industry leading cash costs, combined with low finding and developing costs, translates to an overall cost advantage that leads to superior margins even as compared to higher liquid producers.…
HOW WE DO IT CONTINUOUS IMPROVEMENT Average Well Production by Spud Year 7,000 Unit Drill and Complete Costs 1,000 6,000 The 2023 drilling program YTD is 900 shaping up for another successful 800 5,000 year. Inflation pressures…
PEYTOS RETURNS ROBUST RESULTS Wells On Stream to end-Oct: 2023 Drilling Program Individual Well Results 56 gross / 52.9 net (Sorted by Formation) 500% Price Deck: 2023 Realized Unhedged + 2024+ Realized Hedged (Oct-24-2023 strip)…
PEYTOS RETURNS RETURN ON EQUITY Investors rarely get to participate in the wells themselves, making type well economics somewhat 60% meaningless. ROE and ROCE are 12 the returns investors get, after deducting corporate costs. 50%…
PEYTOS RETURNS DIVIDENDS 3,500 Earnings are profits and Peyto returns those profits to shareholders through dividends. Peyto applies hedge accounting, so earnings 3,000 are not skewed by large unrealized gains or losses during a…
PEYTOS FUTURE UNDRILLED INVENTORY(1) Peyto Repsol 503 3400 297 Increases total Deep Basin inventory by over 30% Undrilled Total (1) See Advisory Drilling Locations 18
PEYTOS FUTURE 2024 FOCUS Drill 75 80 Net Hz Wells Focused on newly acquired lands while maintaining heritage Peyto properties Adds of 40,000 45,000 boe/d (11,000/boed) Optimize Infrastructure Realize synergies and debottlenecking…
PEYTOS PAST PEYTOS PLAN 180,000 8.00 Timing production growth to meet future 160,000 7.00 LNG capacity expansion, generates free cash flow to pay dividends and reduce debt 140,000 6.00 120,000 5.00 Price (/GJ) WI…
PEYTOS FUTURE CASH COSTS Still a Leader in the Industry Total Cash Costs(1) (excluding Royalties and Taxes) 2.50 Repsols current operating costs are high, but Peyto expects to lower unit operating costs with higher facility 2.00…
PEYTOS FUTURE HEDGING Successful Hedging Strategy Moderates Volatility Peyto has beat the AECO monthly price in 12 Gas Price (/mcf) of the last 17 years using a methodical 10.00 hedging and diversification strategy Since 2003, through…
MARKET DIVERSIFICATION Peyto has diversified gas exposure to many premium markets through Peytos Gas Markets physical and financial basis deals. AECO / NIT Empress Emerson 2 Malin Ventura Dawn Chicago Henry Hub…
GAS MARKETING Future Market Diversification and Gas Price Protection Peyto has used financial basis deals between 459 MMcf/d fixed at AECO and other hubs to gain market 3.91/Mcf in 2024 and 402 MMcf/d fixed at diversification and…
GAS MARKETING Peyto uses a dollar cost averaging approach to Fixed Price Gas Contracts smooth out the volatility in future prices by forward selling smaller blocks of production. Fixed price swaps give price certainty. Prices do…
GAS MARKETING Peyto has exposure to natural gas price upside with its diversification to premium markets in Floating Price Gas Contracts California, Ontario and the US mid-west and its Cascade Power contract. Emerson 2 volumes…
NGL MARKETING Peyto uses swaps and costless collars to secure Fixed Price Gas Contracts liquids revenue as well. 27
DIVERSIFICATION POWER Cascade Gas Supply Agreement Peyto gas market diversification includes exposure to Alberta power pool prices 15-year Gas Supply Agreement for 52 MMcf/d to Kineticors Cascade Power Project, a 900MW combined cycle…
GAS DIVERSIFICATION LNG OPPORTUNITY Peyto is proud to participate in the Rockies LNG Consortium whose goal is to support the construction another LNG project Our Partners Rockies LNG is a partnership of Canadian natural gas producers…
PEYTOS DEBT Debt on Close of Repsol Acquisition and Oct 2023 Note renewal Date Issued Rate Maturity Date Debt of 1.32 billion on closing the Senior Secured Notes Repsol acquisition and note renewal: 65 million (CAD) 100 million…
Development Plan The Company has presented herein a three-year illustrative development plan that provides for developing both the acquired assets and Peyto's current assets. The development plan is based on a number of assumptions…
Oil and Gas Metrics Peyto has used a number of oil and gas metrics herein which do not have standardized meanings and therefore may be calculated differently from the metrics presented by other oil and gas companies. Such metrics include…
Netback is a non-GAAP measure that represents the profit margin associated with the production and sale of petroleum and natural gas. Peyto computes field netback per Mcfe as commodity sales from production, plus third party sales net of…
PEYTOS HISTORY The Ensign 401 rig has been drilling for Peyto since November 2009. 36
PEYTOS HISTORY PER SHARE GROWTH Over time, the Peyto model is designed to deliver a superior total return with per share growth in value, income and assets. 1 2 3 YoY +10% +0.3% +70% +32% (1) Total Proved + Probable reserves…
PEYTOS HISTORY RESERVE GROWTH Over the past 24 years, Peyto has discovered 8.0 TCFe of natural gas reserves. 6,000 5,000 2,033 4,000 26% (BCFe) CAGR 3,000 8,035 1,570 2,000 TCFe of Discovered Reserves (1) 1,000 1,971 0…
PEYTOS HISTORY LAND GROWTH Peyto continues to expand its Deep Basin footprint with additional drilling inventory. To date weve only developed 10% of our land base. 1,200 Peyto Lands Net Peyto Sections 1,000 800 Net…
PEYTOS HISTORY ACQUISITIONS Cecilia Tuck-in 2021 Although acquisitions are rare at Peyto, they are generally defined by the synergies with our existing core areas. Cecilia is a great example of how we buy and exploit tuck-in…
PEYTOS HISTORY ACQUISITIONS Brazeau Private Co and Area Growth Peyto continued to bolt on properties in 2022, adding 2 complimentary assets and has since grown production back up to 30,000 boe/d in the GBA and climbing. Brazeau…
PEYTOS HISTORY EMISSIONS LEADER Emission Intensity by Source Type for Canadian Oil and Gas (1990, 2005, 2021) 140 140 Emmission Intensity per Barrel (kg CO2eq/bbl) 124.6 120 Peyto provides energy for the world for far less 120…
PEYTOS HISTORY SUSTAINABILITY Responsible Land and Water Use Water Injected per BOE1 by Operator, 2022 2.50 Land Use Reduction Water per 6-Month BOE (bbl/BOE) 2.50 2.00 1.97 2.00 1.77 1.74 1.71 1.64 1.59 1.57 1.54 1.50 1.50…
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