Rebuilding Confidence and Value July 2014 TSX:AET.un
Argent Energy Trust Snapshot Income: 8% cash-on-cash yield Argents 2014E production is expected to average 6,000 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: 200 MM Enterprise Value: 470 MM Units Outstanding (basic): 63.3 MM Unit Price Range: 2.53 10.70 per unit Annual Distribution: 0.24 per unit (35-40% cash payout ratio) Current…
Revised Strategic Direction Actions and Initiatives Premium DRIP suspension Determined to be overly dilutive to unitholders at sub NAV unit price levels Distribution level reset Reduction in the monthly distribution level from…
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…
Key Reserves Information Net Asset Value (CMM) 1P 2P Reserve Value, GLJ 1 460.4 699.4 Land Value 2 45.8 45.8 3 Less: Deferred Land Purchase Payment (7.7) (7.7) 4 Credit Facility (110.6) (110.6) 5 Convertible Debentures (149.3)…
Marketing Differentials1 WTI less 10-20 WTI less 6-6.50 WTI less 1 WTI plus 2 WTI less 1 WTI plus 6 NYMEX less 0.30 (1) Based on prices received in March 2014. Indexes vary monthly. 8 TSX:AET.un
Production Highlights Q1 2014 production averaged 6,390 boe/d (69% oil and NGLs) In line with previously announced guidance of 6,300-6,500 boe/d Represents an increase of 21% from 5,278 boe/d (67% oil and NGLs) in Q1 2013, reflecting…
Sales and Funds Flow Highlights Q1 2014 sales of 46.2 MM highest quarter on record Q1 2014 funds flow from operations of 14.9 MM (0.24/unit) Reflects a charge for ad valorem taxes of 3.6 MM in Q1 2014 (versus budgeted 1.3 MM) due to…
Drilling Highlights Drilled and completed 13 successful Eagle Ford (EF) oil wells 11 EF wells from IPO through Q2 2014 2 Haydens wells in Gonzalez County Successfully drilled and completed and are in the early stages of flowback…
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…
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…
Drilling Extensions AA Wells Field Extensive analog study of offset operators just east of Argent AA Wells Field show economic production from second generation, infill type wells. Section is just as thick and on trend;…
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…
Trading Comparables Selected Trading Comparables 5 Fully Diluted Total Debt / Daily Production Cash on Payout 7 EV / EV / 1 2,3 6 1,3 5 Share/Unit Market Entity EBITDA 2014E RLI Cash Yield Ratio EBITDA Production Reserves Price Cap…
Summary Annual distribution paid in cash monthly 8% cash-on-cash yield Long life assets P+P Reserve Life Index (RLI) = 19 years1 Proved RLI = 12 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
Appendix TSX:AET.un 23
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…
Loading...
