Agenda Adam Waterous 1 Introduction Executive Chairman Dale Babiak 2 Organization Update Chief Operating Officer Kim Chiu 3 Cold Lake President, SCR Cold Lake Ryan Tracy 4 Lloydminster Thermal President, SCR…
Introduction Adam Waterous Executive Chairman
Three Takeaways for Today 1 We have built a high-quality, unique business over the past 8 years High margin, low breakeven production Long-life, low capital intensity reserves base Unique employee culture and management…
Our First 8 Years Since our founding in 2017, we have invested 11 billion of capital (7 billion in acquisitions, 4bn in organic capex) to create Canadas 5th largest oil producer Production and Capital Summary(1) Progress To Date…
Strathcona Today is a Combination of High Margin Production Strathcona has amongst the highest full-cycle margins in the sector, driven by a combination of low opex, low capital intensity and low G&A 1H 2024 Operating Earnings Margin…
Long Life Reserves Strathcona has the third longest 2P reserve life index in Canada, positioning the company for significant future growth YE 2023 Reserve Life Index (Years)(1)(2)(3) 39 22 Peer 11 Peer 6 Peer 10…
and a Unique Employee Culture / Management Structure Strathcona is organized as a collection of semi-autonomous businesses, each with their own leadership team accountable for day-to-day operational performance Executive Chair & SCR…
Another Way to Think About SCR vs. Public Peers SCR can be seen as either a mini-CNQ or a combination of MEG + NVA + HWX; SCR is currently trading at a large discount to these public peers (2) Thermal Montney Conventional 7 2P…
Our Next 6 Years Strathcona has the opportunity to add 105 Mboe / d organically over the next 6 years, while continuing to generate top-tier returns and significant excess FCF Key Goals Production and Capital Summary(1) 300,000…
We Have Done this Before Over the past 8 years Strathcona has executed on meaningful organic capital spending (at strong returns), giving us confidence we can execute on future growth 2017-2024 Production and Capex (Organic vs.…
The Buy vs. Build Test Strathconas 2025-2030 organic growth capital adds production and cash flow approximately equivalent to MEG today at 1/3 the cost, providing a large margin of safety 2025-2030 Organic Growth (Today)(2)…
2025-2030 Total Return Proposition Strathconas plan through 2030 reflects a unique combination of FCF and production growth with minimal reserves depletion, leading to a differentiated return proposition vs. peers Excess FCF Yield(4)…
Clearing a Very High Bar for Growth We are conscious that organic growth strategies have a mixed track record in our industry; we believe Strathcona has the right set of assets and experience to execute on our plan Is Capital Better…
Our Team Has Grown Significantly in the Past 8 Years Like our production base, Strathconas employee base has been built from the ground up through a combination of organic hiring and acquisitions Employee Growth Since Founding 800…
Four Businesses, Unified by One Culture and Set of Values We aim to combine the meritocracy of a sports team with the leanness and focus of a start-up; we seek employees who crave autonomy and are willing to be accountable for their…
Fully Aligned With Our Owners Strathcona has a unique compensation system vs. peers, focused on rewarding our employees for items they can control, and minimizing dilution to our shareholders Compensation Principles 1H 2024 All-In…
Safety: The 1 Thing We Are Accountable For Safety performance is of paramount importance at Strathcona, forming a significant part of every employees incentive compensation Lost Time Injuries Frequency (LTIF) ( / 200k Hrs) Total…
What You Will Hear From Our Presidents A massive oil sands resource, primed for further optimization and growth SCR Cold Lake Small optimizations have led to 20% production growth since YE 2022 Kim Chiu 2025-2030 will continue…
Cold Lake Kim Chiu President, SCR Cold Lake
Business Overview Strathconas Cold Lake business is a concentrated set of assets at the southern tip of the Alberta oil sands fairway with decades of low-risk undeveloped resource Asset Map Production, Capex and NOI(2) US70 WTI / C3…
The Cold Lake Advantage While SCRs Cold Lake assets have higher steam-oil-ratios than many of the larger Athabasca projects, its higher quality oil and closer proximity to market drives higher average margins 2023 SCR Cold Lake Net…
Lindbergh: Massive Resource, Just Getting Started Lindbergh is Strathconas largest asset by reserves, with decades of future running room; over the past 5 years, Strathcona has steadily improved performance on the asset Net Pay (8m…
Orion: Multi-Zone Oil Sands Orion has seen the most production growth under Strathconas operatorship, benefitting from development opportunities in both the Clearwater and Upper Grand Rapids Net Pay (8m Cutoff) Production and…
Tucker: Low Hanging Fruit Aplenty Since Strathcona acquired Tucker in 2022 it has focused on low-cost production optimizations, which previously hadnt been prioritized by prior operators who viewed it as a non-core asset Net Pay (8m…
Using Old Steam to Extract New Oil Orion and Tuckers Clearwater formation is well suited for the use of Lower Drainage Wells to target unexploited pay below existing SAGD producers, adding oil without new steam Lower Drainage Wells…
Lindbergh Phase 2: The Rare Shovel-Ready Oil Sands Expansion Strathcona has the opportunity to more than double Lindberghs production by 2030, bringing forward the value of the projects ultra long-life reserves 50,000 6.0x 600…
Adding More Oil Than Steam The combined SCR Cold Lake development plan is expected to meaningfully reduce steam-oil ratios, leading to lower energy opex and breakevens for the business SCR Cold Lake Steam-Oil-Ratio (iSOR) 4.0x…
Lloydminster Thermal Ryan Tracy President, SCR Lloydminster Thermal
Business Overview Strathconas Lloydminster Thermal business is a portfolio of small-scale oil sands assets in Saskatchewan which present a unique combination of large resource and high margins Asset Map Production, Capex and NOI(2)…
Oil Sands, Downsized and Modularized While SCRs Lloydminster Thermal projects target smaller pools than the Alberta oil sands, they benefit from cost-effective, modular central processing facilities and a favorable royalty regime…
Following A Tried and Tested Playbook for Success Cenovus / Huskys successful development of its Lloydminster thermal projects provides a blueprint for Strathconas future growth; Strathconas projects stack up well vs. Cenovus…
Hamlin: The Only Thing Better Than a New Pipeline Strathconas owned and operated Hamlin rail terminal is the only crude-by-rail terminal in Canada which delivers better netbacks than pipelines, while insulating SCR from differential…
Two Years of Delineation Bearing Fruit Since acquiring the Meota and Edam properties in 2022, Strathcona has focused on further delineating the assets, yielding significant increases to OOIP Meota 8m Pay Contour Original Oil in Place…
Meota: A World Class Oil Growth Asset Following several years of focusing on delineation, Meota is now poised for growth to more than 50 Mbbls / d by 2030, targeting a new GP pool in Meota West 2 and the Waseca in Meota Central Meota…
Plover: Our Highest Quality Reservoir, Now Ready for Prime Time Plover is a high-quality reservoir which has been under-exploited by prior teams; Strathcona plans to develop it in two phases over the next 4 years, targeting a…
Adding More Oil Than Steam, Part 2 The combined SCR Lloydminster Thermal development plan is expected to meaningfully reduce steam-oil ratios, leading to lower energy opex and breakevens for the business SCR Lloydminster Thermal…
Business Overview Strathconas Lloydminster Conventional business is a collection of fields under polymer flood and waterflood, providing low-risk, high-margin free cash flow generation Asset Map Production, Capex and NOI(2) US70 WTI…
Not Your Average Conventional Heavy Oil Strathconas Lloydminster Conventional business is unique amongst peers, offering a combination of high margin current production and long-life reserves 1H 2024 Netback, Production and RLI vs.…
Big Fields Get Bigger Strathconas Lloydminster Conventional assets benefit from a massive resource in place, allowing small incremental improvements in technology to equate to large increases in reserves Estimated Ultimate Recovery…
Cactus Lake and Bodo-Cosine: The Gifts That Keep on Giving Strathconas polymer floods are expected to be among the rare 100-year fields thanks to a combination of a large resource in place and a relatively high long-term recovery…
Why We Love Polymer Floods While new polymer flood wells may appear to have unimpressive initial rates, their low capital cost and ultra-low base decline lead to decades and decades of payouts Cactus Lake Per Well Production / Payout…
Big News at Druid: Our First Multi-Lateral and First 50m Infill Strathcona recently drilled its first multi-lateral well targeting the Mannville Stack in Druid; early results are encouraging, with the potential to apply learnings…
Montney Al Grabas President, SCR Montney
Business Overview Strathconas Montney business is spread across two assets in the condensate-rich sweet spot of the AB Montney and a long-life dry-gas asset in NE BC directly adjacent to LNG Canada Asset Map Production, Capex and…
Vertically Integrating Our Oil Businesses The Montney serves as a natural hedge to Strathconas oil businesses, producing natural gas which is burned to make SAGD steam and condensate which is blended with heavy oil Sensitivity to +/-…
Decades of Resource Across Multiple Horizons Strathconas Montney business benefits from multiple producing horizons across all three properties, most of which have been significantly de-risked through drilling to date Reserves and…
Kakwa: An SCR Organic Growth Success Story Kakwa has historically been Strathconas largest source of organic growth, driven strong drilling economics due to high condensate yields and substantial owned infrastructure capacity…
We Continue to Drill Faster and Longer in Kakwa Strathcona has built a strong capital execution capability in the Montney since 2017, leading to best-in-class performance even versus much larger peers Kakwa Drilling Speed Progression…
Owned Infrastructure Facilitating Continued Growth at Kakwa Kakwa benefits from significant owned gas processing and condensate handling infrastructure, setting the asset up for continued growth through 2030 Asset Map Well…
Groundbirch: In the Right Neighborhood Groundbirch is a prolific dry gas asset located in between several of Canadas largest natural gas operators and LNG projects; Strathcona is planning a major plant expansion for 2028 Asset Map…
Grand Prairie: Resetting for a Value Approach Since acquiring the Grand Prairie asset, Strathcona has taken a value over volumes approach to development, targeting fewer benches with wider spacing vs. the prior operator Asset Map…
Carbon Connie De Ciancio Chief Commercial Officer
Why Is Our Emissions Intensity Important Carbon taxes are a growing part of SCRs cost structure, and our reserves currently reflect a worst case scenario; to the extent we can reduce our CO2 we can increase cash flow and NAV…
Slow and Steady Progress To Date Strathconas focus to date has been executing small-scale projects which reduce our SAGD assets power needs, decreasing our scope 2 emissions while improving our cost structure 1 Lindbergh Cogen…
Strathconas CCS Advantage Carbon capture and storage presents the best opportunity to make large-scale improvements to our carbon intensity; Strathconas thermal assets are uniquely suited for CCS vs peers CO2 Storage Reservoirs vs.…
Managing Risk Through Government Support Strathcona has been successful in securing government support for carbon projects, helping manage capital costs and technology risk Government Grants Awarded To Date (Cmm) Canada Growth Fund…
Marching Towards Our First CCS Project Strathcona is progressing towards the sanction of its first CCS project at Meota East in mid-2025, which is expected to be 100% funded by the CGF partnership and Federal ITCs First Project…
Capital Allocation Connor Waterous Chief Financial Officer
2025 2030 In Detail All four of Strathconas businesses are expected to compete for capital over the next six years, with the majority of production growth coming from our oil sands properties Production (Mboe / d) 2030 Plateau (Mboe…
Improving our ROE, Despite More Capital The incremental capital employed to undertake Strathconas growth plan is expected to earn attractive incremental returns, with a large margin of safety Capital to replace Capital to replace…
Improving the Durability of Our Business Over the course of the next six years Strathconas sustaining WTI breakeven falls by US4 / bbl, primarily due to the allocation of fixed costs over a larger production base 2025 2030 Sources…
Multiple Attractive Capital Allocation Options Strathcona is expected to generate significant excess FCF over the next 6 years, the vast majority of which is expected to be returned to shareholders in some form 2025 2030 Cumulative…
Sending More Barrels to Premium Markets The majority of Strathconas incremental production is expected to be sold in the USGC via rail or consumed internally, significantly insulating Strathcona from local egress issues 2025 2030…
Maximizing Access to Capital, Minimizing Cost Strathconas goal for the liabilities side of its balance sheet is to maximize access to capital while minimizing cost; Strathconas next goal is to achieve an investment grade credit…
Starting the Process of Growing Our Float WEF plans to complete the first of a series of share pass-throughs to its limited partners in Q1, which will more than double Strathconas public float Before Q1 2025 Pass-Through After Q1…
Q&A
Appendix
2025 Capital Program Strathconas 2025 capital budget reflects a disciplined approach to value-added growth, focused on a combination of drilling to fill existing facilities and major expansion projects Capital Budget (Cmm) 2025E…
Simplified Modeling Assumptions 2025 2030 Total Oil(1): 72% Total Oil(1): 75% Product Splits Other NGLs: 6% Straight Line Change Other NGLs: 5% Natural Gas: 22% Natural Gas: 20% Total Oil(1): 100% WCS (AB) Realized Prices Other…
2017-2023 Reserves Highlights Since 2017 Strathcona has grown 1P and 2P Reserves at a 19% CAGR, averaged a 2.4x PDP recycle ratio while organically growing PDP at a 5% CAGR, and grown intrinsic value at a 21% CAGR Reserves Growth(1)…
Forward Looking Information Certain statements contained in this presentation constitute forward-looking All forward-looking information reflects Strathconas beliefs and services; failure to realize the anticipated benefits of…
Operating Earnings Margin is calculated as operating earnings divided by net revenue. consisting of production, reserves and contingent resources. There is no certainty that it will Specified Financial Measures Profit-Investment-Ratio…
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