Rebuilding Confidence and Value August 2014 TSX:AET.un
Argent Energy Trust Snapshot Income: 9% cash-on-cash yield1 Argents 2014E production is expected to average 6,200-6,300 BOE/d 70% oil and NGLs Our assets are focused in Texas, Oklahoma, Kansas and Wyoming and consist of: Oil resource…
Corporate Overview (AET.un) Market Capitalization: 170 MM1 Enterprise Value: 450 MM1 Units Outstanding (basic): 63.4 MM Unit Price Range: 2.53 10.68 per unit Annual Distribution: 0.24 per unit (35-40% cash payout ratio) Current Yield:…
Strategic Direction Actions and Initiatives Capital expenditure program of US55 MM H1 2014 capital expenditures represent 94% of annual total budget Capital expenditures in the remainder of 2014 are expected to be minimal Production…
Argent Assets Diversified portfolio of opportunities in Asset Location Texas, Oklahoma, Kansas and Wyoming Eagle Ford oil Texas, Oklahoma, Kansas and Wyoming oil Legacy fields Established long lived production SE Texas natural gas Oil…
2013 Year-End Reserve Information US GLJ Dec 31, 2013 Reserves PDP PDNP PUD TP PROB TPP Company Interest 14,277 1,064 11,113 26,455 16,458 42,913 Oil Eq. (Mboe) % Liquids 81% 82% 47% 66% 66% 66% Working Interest 14,122 1,064 10,703…
Marketing Differentials1 WTI less 10-20 WTI less 5 WTI less 1 WTI less 1 WTI less 4 WTI plus 3 NYMEX less 0.30 (1) Based on prices received in June 2014. Indexes vary monthly. 8 TSX:AET.un
Production Highlights Q2 2014 production averaged 6,373 boe/d (69% oil and NGLs) Exceeded previously announced guidance of 6,100-6,200 boe/d Represents an increase of 30% from 4,920 boe/d (64% oil and NGLs) in Q2 2013, reflecting new…
Sales and Funds Flow Highlights Q2 2014 sales of 47.5 MM1 3% above previous high of 46.2 MM in Q1 2014 Q2 2014 funds flow from operations of 15.8 MM (0.25/unit) 6% above 14.9 MM (0.24/unit) recorded in Q1 2014 (1) Excluding risk…
Drilling Highlights IPO Through July 2014 Drilled and completed 13 successful Eagle Ford (EF) oil wells from IPO through Q3 2014 Drilled and completed 3 successful South Escobas natural gas wells Drilled 10 Austin Chalk / Buda wells…
Examples of Future Capital Opportunities Eagle Ford 14 additional locations in Gonzales County 12 of these locations booked by GLJ at year end AA Wells (Wapiti Acquisition) 5 infill drilling opportunities identified 3 of these booked…
Highlights: Acquisition Summary Acquistion Name Close Date Acquired Production1 Avg Netback Avg Oil Weighting Purchase Price Operating CF2 Capital Spent3 GLJ Reserve Value 4 (BOE/d) (/boe) (%) (MM) (MM) (MM) ( YE2013 MM) EQ Energy Oct…
Wyoming Acquisition Acquisition Metrics Purchase price of US102 MM, 13.60/boe 2P reserves Operating netback 40/boe Base decline of 13% Accretive on cash flow per unit, payout ratio and sustainability ratio measures Provides further…
Kansas Acquisition Acquisition Metrics Purchase price of US45 MM, < 5x CF, 18/boe 2P reserves Operating netback 42/boe Base decline of 15% Accretive on cash flow per unit, payout ratio and sustainability ratio measures Provides…
Wapiti Acquisition Acquisition Metrics Purchase price of 114 MM, 3.9x CF, 13/boe 2P…
EQ Acquisition Acquisition Metrics Purchase price of 132 MM, 23/boe 2P reserves Operating netback 50/boe Base decline of 10% Texas Manvel Field Oklahoma NE Davis, Payne, SW Maysville Fields Located in Brazoria County, Texas on Gulf…
South Texas Natural Gas South Escobas Geology South Texas Natural Gas Wilcox formation adjacent to fields that have produced 600 Bcf to date Downdip Wilcox trend has produced over 3.5 Tcf to date Low break-even gas price 1.00/Mcfe…
Summary Annual distribution paid in cash monthly 9% cash-on-cash yield Long life assets P+P Reserve Life Index (RLI) = 18 years1 Proved RLI = 11 years1 Control over operations (Argent office and field staff) and capital spending…
Contact: John Elzner, President and CEO Sean Bovingdon, CFO Lindsay Rimell, Manager of IR 500, 321 6th Ave SW Calgary, AB T2P 3H3 403.770.4809 infoargentenergytrust.com www.argentenergytrust.com TSX:AET.un
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Argent Advantage for U.S. Investors Current cash dividend C0.24/unit/year 65% Return of Capital (ROC) and 35% Qualified Dividend (2014 est) C-Corp. for tax purposes Form 1099 (versus MLP Schedule K-1 Form) No withholding tax for U.S.…
Structure Tax efficient mutual fund trust structure Interest and operating deductions result in no Unitholders Administrator Shareholder material U.S. taxes for several years No SIFT tax in Canada Investment Income and Capital…
Argent Energy Trust Executive Team Executive Background John Elzner Over 30 years of executive and management experience President and CEO Previous senior positions with El Paso Corporation and Coastal Corporation Senior Vice President…
Argent Energy Trust Board of Directors Director Background John Elzner See management bios President & CEO John Brussa Senior Partner & Head of the Tax Department of the law firm Burnet, Duckworth & Palmer LLP Director, Acting Chairman…
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