Athabasca Oil Corporation · TSX:ATH
Athabasca Oil — Investor Presentation (July 2020)
21 slides from Athabasca Oil's investor presentation, Jul 29, 2020
Slide 1: Athabasca Oil Corporation
ATHABASCA OIL CORPORATION FOCUSED | EXECUTING | DELIVERING JULY 2020
Slide 2: Athabasca - Premier Resource Exposure
ATHABASCA - PREMIER RESOURCE EXPOSURE LIGHT OIL ~40,000 boe/d* THERMAL OIL MONTNEY ~90% liquids ~$500MM EV $170MM Liquidity HANGINGSTONE 95 year 2P RLI 1,300 MMboe 2P 455 MMboe Proved LIGHT OIL CORNER DUVERNAY LEISMER * Productive capacity: ~20,000 bbl/d Leismer, ~10,000 bbl/d Hangingstone, ~10,000
Slide 3: Q2 2020 Highlights
Q2 2020 HIGHLIGHTS 27,067 boe/d $6.2MM Operating Income 87% liquids (impacted by COVID19 related price declines) (voluntarily curtailments in response to low prices) June Netbacks $6MM Capex $170MM Liquidity $17/boe Light Oil $167MM unrestricted cash 90% Thermal / 10% Light Oil $22/bbl Leismer ATHAB
Slide 4: The Transformation
THE TRANSFORMATION $486MM $400MM $265MM Light Oil JV Contingent Infrastructure FCF Generation with Bitumen Sale COVID19 Murphy Oil Royalty Resource Disciplined Manage Appraisal Operations Business 2016 2017 2018 2019 Strong Balance 2020 Momentum Funding Sheet Maintain not Secured Strong $560MM Futur
Slide 5: Business Environment & COVID-19 Impact
BUSINESS ENVIRONMENT & COVID-19 IMPACT SUPPLY/DEMAND BALANCE (MBBL/D) COVID‐19 IMPACT o WHO declared COVID‐19 a pandemic in March o Resulted in a material disruption to global economy OIL PRICE IMPACT AND RECOVERY* o Estimated peak oil demand impact of 20 mmbbl/d in April* o Supply/demand deficit of
Slide 6: Response to COVID-19
RESPONSE TO COVID-19 ACTIONS TAKEN Ensured the Safety of Staff Maximized Maintained Strong and Contractors Funds Flow Corporate Liquidity • Hangingstone shut‐in/restart • Halted capital program • Enacted Business Continuity Plan ($40MM reduction) • Developed site specific plans with • Voluntary curt
Slide 7: Outlook, Capital Structure & Risk Management
OUTLOOK, CAPITAL STRUCTURE & RISK MANAGEMENT CAPITALIZATION OVERVIEW (ATH‐TSX) 2020 OUTLOOK Basic Shares Outstanding 531 MM o $85MM capital program ($25MM H2 2020) Market Capitalization ($0.18/sh) $96 MM Q2/20 Net Debt $420 MM o Q4 production forecast 32,000 – 34,000 boe/d Total Enterprise Value $51
Slide 8: Thermal Oil – Leismer
THERMAL OIL – LEISMER LEISMER DEVELOPMENT LEISMER – TOP TIER OIL SANDS PROJECT o Current production ~18,500 bbl/d (3.4x SOR) PAD 8N PAD 8S o 695 mmbbl 2P reserves; 95 year 2P RLI PAD 6 CPF o US$23 WCS operating break‐even (US$12.50 WCS diff) PAD 6 4PAD 3 PAD 4PAD PAD 1 PAD 2 2020 ACTIVITY PAD 7 o Wa
Slide 9: Thermal Oil – Hangingstone
THERMAL OIL – HANGINGSTONE HANGINGSTONE DEVELOPMENT HANGINGSTONE PROJECT o ~9,500 bbl/d productive capacity (~4.5x SOR) o 177 mmbbl 2P reserves; 55 year 2P RLI o US$31 WCS operating break‐even (US$12.50 WCS diff) RESUMING OPERATIONS o Suspended operations in April due to pricing o Planned turnaround
Slide 10: Placid Montney
PLACID MONTNEY PLACID ACTIVITY HIGHLIGHTS – OPERATED 70%WI 16‐30 Pad 6 wells o 80,000 gross prospective acres 2‐5 Pad 4 wells o 200 well development inventory o 200 – 300 bbl/mmcf initial free liquids o Owned and operated infrastructure o $22/boe 2019 operating netback Wells ATH Montney Spud in Past
Slide 11: Kaybob Duvernay
KAYBOB DUVERNAY DUVERNAY HIGHLIGHTS KAYBOB DUVERNAY KAYBOB NORTH KAYBOB EAST o Significant resource exposure (~220,000 acres) o ~700 remaining locations across the play SIMONETTE KAYBOB WEST o Strong condensate yields (200 – 1,000 bbl/mmcf) o Owned and operated infrastructure SAXON TWO CREEKS o $30/
Slide 12: Responsibly Developing Canada's Energy
RESPONSIBLY DEVELOPING CANADA’S ENERGY ENVIRONMENT SOCIAL CORPORATE EMISSIONS INTENSITY o Community and stakeholder engagement 0.07 Air Quality activities continue throughout the life of Athabasca projects o 34% reduction in corporate emissions Intensity (tonnes CO2e/boe) 0.06 o AOC supports many lo
Slide 13: Athabasca Value Proposition
ATHABASCA VALUE PROPOSITION Financial Capacity to Certainty on Long Term Top Tier Assets with Long Unparalleled Torque to Navigate Volatile Markets Egress to High Value Term Growth Profiles Oil Prices longer term* Through the Cycle Markets $170MM of liquidity Liquids weighted portfolio 7,200 b
Slide 14: Supplemental Information
mea SUPPLEMENTAL INFORMATION
Slide 15: Market Egress
MARKET EGRESS THERMAL OIL EGRESS LONG TERM EGRESS SECURED Current Egress LT Egress o 7,200 bbl/d on Keystone AOC Thermal o 10,000 bbl/d on Keystone XL Leases o 20,000 bbl/d on TMX Expansion CANADIAN PIPELINES UNDER CONSTRUCTION Enbridge South o Trans Mountain Expansion – Government of Canada owned C
Slide 16: Contingent Bitumen Royalty
CONTINGENT BITUMEN ROYALTY $70MM UPSIZED ROYALTY SLIDING SCALE ROYALTY o Upsized Royalty only applies to the Hangingstone, Leismer, Corner & Leismer and Corner US$ WCS Hangingstone <$60 0.0% o Total cash proceeds of $467MM $60 2.5% $80 8.8% ROYALTY OVERVIEW >$100 15.0% o US$ Western Canadian Select
Slide 17: Management Team and Board
MANAGEMENT TEAM AND BOARD MANAGEMENT TEAM BOARD OF DIRECTORS Robert Broen, P.Eng. Ronald Eckhardt President & Chief Executive Officer Chair of the Board, member of the Reserves Committee Matt Taylor, CFA Robert Broen, P.Eng. Chief Financial Officer President & Chief Executive Officer Karla Ingoldsby
Slide 18: Canadian Energy Makes a Global Difference
CANADIAN ENERGY MAKES A GLOBAL DIFFERENCE THE WORLD NEEDS CANADA’S ENERGY WORLD ENERGY MIX (2016 – 2040) o Energy Demand to grow by 27% by 2040 o ALL forms of energy are needed CANADA IS A GLOBAL LEADER IN INNOVATION & ENVIRONMENTAL STEWARDSHIP o If Canadian Energy standards were applied across the
Slide 19: Endnotes
ENDNOTES Slide Endnotes 1 (1) Liquidity = cash & equivalents + available credit facilities as of June 30, 2020 (2) Consolidated reserves as at December 31, 2019 evaluated by McDaniel & Associates Consultants Ltd. (3) Reserve life index calculated on corporate 2P reserves of 1,300 mmboe and ~37,500 b
Slide 20: Reader Advisory
READER ADVISORY Forward Looking Statements This Presentation contains forward‐looking information that involves various risks, uncertainties and other factors. All information other than statements of historical fact is forward‐looking information. The use of any of the words “anticipate”, “plan”, “
Slide 21: Athabasca Oil Corporation
ATHABASCA OIL CORPORATION