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Annual General Meeting – Avenex Energy Corp.

Avenex Energy Corp. · Jun 27, 2012 · 29 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. Annual General Meeting – Avenex Energy Corp. – slide 1
    Annual General Meeting June 27, 2012 1
  2. Annual General Meeting – Avenex Energy Corp. – slide 2
    AvenEx - Outline AvenEx Energy Corp. Overview & Structure 2011 Financial Highlights Oil and Gas Division Elbow River Marketing Division AvenEx Dividend AvenEx Go Forward 2012 4
  3. Annual General Meeting – Avenex Energy Corp. – slide 3
    AvenEx Quick Facts TSX Exchange AVF Current Shares Outstanding* 54.3 mm Current Target Payout Ratio 60% Current Trading Price per Share* 2.96 Market Capitalization* 158 mm Current Annual Dividend 0.42 Current Yield* 14.2%…
  4. Annual General Meeting – Avenex Energy Corp. – slide 4
    AvenEx Structure AvenEx Energy Corp. AVF Elbow River Corporate Oil and Gas 58% Marketing 42% & Other 0% 2012 Forecast Cash flow 6
  5. Annual General Meeting – Avenex Energy Corp. – slide 5
    AvenEx 2011 Financial Highlights TOTAL CONSOLIDATED SUMMARY 2011 2010 % Change FINANCIAL in 000s except unit values Total Revenue 1,009,548 628,147 61% Funds from Operations (FFO) 52,999 44,478 19% FFO per Share - Basic 1.00…
  6. Annual General Meeting – Avenex Energy Corp. – slide 6
    Oil and Gas Division 2011 Overview 2011 2010 % Change Average Production (BOE/d) 5,045 3,964 27% Oil & NGL Production (bbl/day) 2,256 1,646 37% Oil Weighting 45% 42% 7% Capex Spending (mm) 33.7 28.5 18% Acquisition Spending…
  7. Annual General Meeting – Avenex Energy Corp. – slide 7
    Oil and Gas Division 2011 Activity Successfully closed an asset acquisition of 110 bbl/d of producing oil assets in the Companys core area of Grand Forks in SE Alberta. Acquired 18,500 acres of mineral rights through crown land…
  8. Annual General Meeting – Avenex Energy Corp. – slide 8
    Oil and Gas Division 2011 YE Reserves Capital spending for 2011 focused on oil development adding 1.4 million bbl of oil reserves with an oil production replacement of 173%. Oil weighting for the year end reserves increased to 47%,…
  9. Annual General Meeting – Avenex Energy Corp. – slide 9
    Oil and Gas Division 2012 Outlook Key Focus for 2012: Maintenance of oil production volumes and associated cash flows. Prudent management of capital spending as commodity prices dictate. Micro-manage both fixed and field costs…
  10. Annual General Meeting – Avenex Energy Corp. – slide 10
    Oil and Gas Division Diversified Oil Portfolio Oil projects for 2012 will focus on development in the following plays: East Pembina Cardium Randell Slave Point and Gilwood New Core Slave Point Peace River Montney Horizontal…
  11. Annual General Meeting – Avenex Energy Corp. – slide 11
    Oil and Gas Division East Pembina Cardium 13
  12. Annual General Meeting – Avenex Energy Corp. – slide 12
    Oil and Gas Division Randell Slave Point & Gilwood 14
  13. Annual General Meeting – Avenex Energy Corp. – slide 13
    Oil and Gas Division New Core Slave Point 15
  14. Annual General Meeting – Avenex Energy Corp. – slide 14
    Oil and Gas Division Oil Opportunity Portfolio Project Area Gross Net CAPEX IP 30 Locations Locations (mm) (BOED) Pembina Cardium 19 9.5 26.1 1,425 Randell Slave Point 25 25 80.0 4,625 Gilwood 15 15 26.3 2,100 New Core Slave 6 6…
  15. Annual General Meeting – Avenex Energy Corp. – slide 15
    Oil and Gas Division Gas Hedging Summary 2012 - 2013 AECO GAS Hedge Summary 7,000 70% At 2.00 AECO, 2012 Gas Hedges = 3.3 MM 6,000 60% GJ Hedge / Day % Sales Volumes 5,000 50% PUT 4,000 2.94 40% 3,000 30% 2,000 20%…
  16. Annual General Meeting – Avenex Energy Corp. – slide 16
    Oil and Gas Division Oil Hedging Summary 2012 - 2013 WTI Oil Hedges 1,200 At 85 US WTI for Q3 and Q4 2012, Oil Hedges = 1.7 MM 1,000 95.40 bbl / Day 800 98.43 100.96 101.95 102.95 600 103.74 96.43 400 120.00 120.00…
  17. Annual General Meeting – Avenex Energy Corp. – slide 17
    Elbow River Marketing Value Proposition Founded in 1982 with a focus on rail. Diversified commodity markets: Butane, Natural Gasoline, Propane, Ethanol, Asphalt, Crude Oil, Gas Oil, Fuel Oil and other misc. products. High revenue,…
  18. Annual General Meeting – Avenex Energy Corp. – slide 18
    Elbow River Marketing 2011 Highlights Funds from operations of 16.3 million (2010 - 13.0 million) of which 14.5 million (2010 - 11.1 million) related to ongoing operations and 1.8 million (2010 - 1.9 million) related to biodiesel…
  19. Annual General Meeting – Avenex Energy Corp. – slide 19
    Elbow River Marketing Historical Financial Performance Continuing Operations Cash Flow from Operations (000) Biodiesel Total Year ended March 31, 2010 18,892 3,758 22,650 Year ended December 31, 2010 11,528 1,855 13,383 Year…
  20. Annual General Meeting – Avenex Energy Corp. – slide 20
    Elbow River Marketing 2012 Forecast Cash Flow 2012 Split by Product 32.2% 30% Butane 4% Natural Gasoline 7% Refined Products Propane 6% Fuel Oil Asphalt 5% 16% Crude Oil 22
  21. Annual General Meeting – Avenex Energy Corp. – slide 21
    Elbow River Marketing Growth LPGs LPGs are the traditional backbone of Elbow River and include Butane, Propane and Natural Gasoline. Stronger expected demand for Natural Gasoline due to oil sands growth, reduced Western Canadian…
  22. Annual General Meeting – Avenex Energy Corp. – slide 22
    Elbow River Marketing Growth Refined Products and Heavy Fuel Oils Successfully making inroads into diesel markets and are investigating potential gasoline sales. Seek out additional marketing agreements and joint ventures. Lever…
  23. Annual General Meeting – Avenex Energy Corp. – slide 23
    Elbow River Marketing North American Crude Oil Market Major supply coming on stream in the Bakken, other US shale plays, and Alberta Oil Sands regions. Oil sands plays have long planning horizons and large capital requirements. New…
  24. Annual General Meeting – Avenex Energy Corp. – slide 24
    Elbow River Marketing Crude Oil Growth Opportunities Elbow River was an early participant in Crude by Rail, shipping product beginning in September 2010. Elbow believes rail is competitive with pipeline pricing in certain areas and…
  25. Annual General Meeting – Avenex Energy Corp. – slide 25
    AvenEx Energy The Dividend Why was the Dividend Reduced To ensure the viability of the dividend model by maintaining a 60% cashflow payout ratio 27
  26. Annual General Meeting – Avenex Energy Corp. – slide 26
    AvenEx Gas Price Impact on the Dividend Gas Net Operating Income (NOI) 18.0 6.00 16.0 5.00 14.0 12.0 4.00 10.0 3.00 8.0 8.3 6.0 2.00 Previous 4.0 Annual Dividend 29.3mm 1.00 2.0 Current Annual Dividend 22.8mm 0.0…
  27. Annual General Meeting – Avenex Energy Corp. – slide 27
    AvenEx Dividend Funding 2012 2012 Significant Cash Flow Sources Oil 12% Oil and Gas hedging 18% Elbow River Marketing 70% Current Annual Dividend = 22.8mm (0.42 / share) 29
  28. Annual General Meeting – Avenex Energy Corp. – slide 28
    AvenEx Go Forward 2012 Continue to be an energy focused dividend paying corporation. Combines junior oil and gas company cash flow stream that requires reinvestment with energy marketing firm that does not. Cash flow split…
  29. Annual General Meeting – Avenex Energy Corp. – slide 29
    Team Corporate Oil and Gas William Gallacher, P. Eng., President & CEO Grant Leslie, P. Eng., COO, Energy Gary Dundas, CMA, MBA, VP Finance & CFO Bob Guy, P. Eng., VP Production Michelle OGrady, CA, Corporate Controller Jeffrey…

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