Headwater Exploration Inc. · TSX:HWX
Headwater Exploration — Investor Presentation (August 2020)
12 slides from Headwater Exploration's investor presentation, Aug 5, 2020
Slide 1: Corporate Presentation
Headwater Exploration Inc. CORPORATE PRESENTATION TSX:HWX Aug 5, 2020
Slide 2: Introduction: The Headwater Advantage
INTRODUCTION The Headwater Advantage • Current working capital balance of ~$114 million • Run rate free cashflow of approximately $6 million per year • Experienced team and board that has a history of creating shareholder value in multiple commodity and economic environments • Investor alignment – W
Slide 3: Headwater Snapshot
HEADWATER SNAPSHOT Headwater Exploration Inc. Headwater Exploration Inc. TSX HWX Share Price (Aug 4 , 2020) $/sh. $1.24 Shares Outstanding (Basic)(1) mm 145.0 Dilutives August 2020 (Aug avg strike $0.95/share) mm 28.1 Shares Outstanding (Fully Diluted)(1) mm 173.1 Working Capital Balance (June 30, 2
Slide 4: Headwater Vision
HEADWATER VISION Headwater Exploration Inc. Key Attributes of Future Success • Early but not first entrant into economic plays followed by value creation with the drill bit • Begin with the end in mind – “Build an owners company” • Size and commodity agnostic. Shareholder value creation is the only
Slide 5: Strong Balance Sheet and Foundation of Free Cash Flow
STRONG BALANCE SHEET AND FOUNDATION OF FREE CASH FLOW The free cash flow profile generated from premium pricing and a strong balance sheet provide a foundation to establish a leading Canadian energy producer Internal Estimates (1) HWX Realized Pricing and Winter 2021 Strip (US$/MMBTU) 2021e 2022e 20
Slide 6: Why Now? Opportunities Abound
WHY NOW? OPPORTUNITIES ABOUND Intermediate Producers | Premium/(Discount) to NAV Regional Setting for Opportunities • Lack of differentiation of assets in the marketplace will allow us to strategically consolidate assets that are more suited for sustainability / free cash flow • Market price for ass
Slide 7: Business Plan
BUSINESS PLAN Strategically • Target full cycle earnings (FCF yield) under strip prices with real returns better than our public peers Consolidate • Consolidation is available due to excess costs in the system, illiquid public and private companies and a lack Companies of credible consolidators • Eq
Slide 8: Appendix
Headwater Exploration Inc. Appendix TSX:HWX
Slide 9: Team Track Record: History of Success
TEAM TRACK RECORD: HISTORY OF SUCCESS Headwater Exploration Inc. Shareholder Wild Wild Raging Wild River $180 $6.00 Return(1) River(3) Stream(4) River(5) Cumulative Amount Raised / Sale Value ($mm) Sale Value Cumulative Amount Raised $170 $4.85 Solid $150 Issue Price $5.19 $5.00 Founders Foundationa
Slide 10: Experienced Team
EXPERIENCED TEAM Headwater Exploration Inc. Management Team Neil Roszell, P. Eng. ▪ Former President, CEO and/or Executive Chairman and founder of Raging River Exploration Inc., Wild Stream Exploration Inc. CEO & Chairman and Wild River Resources Ltd. Jason Jaskela, P. Eng. ▪ Former COO and founder
Slide 11: Forward Looking Statements Advisory
ADVISORIES Forward Looking Statements Advisory This investor presentation contains forward-looking statements and forward-looking information (collectively, "forward-looking statements"). More particularly, this investor presentation contains forward-looking statements concerning: the anticipated us
Slide 12: Non-IFRS Measures and Certain Oil and Gas Advisories
ADVISORIES Non-IFRS Measures and Certain Oil and Gas Advisories NON-IFRS MEASURES This investor presentation contains the terms "cash value per share", "value of excess tax pools per share", "NAV per share", “operating cash flow“, “funds flow from operations (“FFO”)”, “adjusted funds flow from opera
Headwater Exploration — Investor Presentation (August 2020) on 6ix