Logan Energy Corp · TSXV:LGN
Logan Energy — Investor Presentation (November 2024)
31 slides from Logan Energy's investor presentation, Nov 26, 2024
Slide 1: A Differentiated Growth Company
A Differentiated Growth Company I N V E S T O R P R E S E N TAT I O N NOVMEBER 2024
Slide 2: Strategic Acquisition Further Enhances Logan's High Return Growth Plan
THE LOGAN OPPORTUNITY Strategic Acquisition Further Enhances Logans High Return Growth Plan ABOUT LOGAN Logan Energy Corp. (“Logan”) is a growth-oriented exploration, development and production company formed through the spin-out of the early stage Montney assets of Spartan Delta Corp. Logan was fou
Slide 3: Logan Pro Forma Investment Rationale
THE LOGAN OPPORTUNITY Logan Pro Forma Investment Rational Differentiated Growth Plan to Substantial Additional Option Track Record of Excess Returns Deliver Compelling Equity Value and Execution with an Aligned Returns Team ▪ Development plan delivers growth from ~10,000 ▪ Flatrock Montney asset and
Slide 4: Strategic Acquisition with Strong Synergies and Long-term Accretion
S T R AT E G I C R AT I O N A L E Strategic Acquisition with Strong Synergies and Long-term Accretion SIMONETTE ACQUISITON ASSET SNAPSHOT Attractive valuation with compelling pro forma accretion ▪ $52MM cash purchase price(1), 2.9x 2025 Operating Income(2) & $1.0MM per WI Montney Location ▪ 2025 acc
Slide 5: Acquired Simonette Montney Overview
SIMONETTE Acquired Simonette Montney Overview A A’ SOUTH SIMONETTE LOWER MONTNEY LGN/GTE SIMONETTE GTE SIMONETTE LGN SIMONETTE ▪ Acquisition of 50% WI in Lower Montney in 25 gross (12.5 net) SOUTH NORTH NORTH Nordegg sections, Logan already owns 100% interest in Middle Montney throughout South Simon
Slide 6: Identified Near-Term Synergies of Over $20MM Driven by Infrastructure
S I M O N E T T E A S S E T D E TA I L S Identified Near-Term Synergies of Over $20MM Driven by Infrastructure ASSET DETAILS PRODUCTION & NETBACKS 2025E MAP LEGEND Simonette North Montney Production (net) boe/d 1,440 (1) • 27.5 gross (12 net) Montney sections GTE Montney • 22.5 net locations Liquids
Slide 7: Organic Growth Augmented by Strategic Acquisitions to Build a Quality Asset Base
S T R AT E G Y Organic Growth Augmented by Strategic Acquisitions to Build a Quality Asset Base 1 2 3 4 Grow our Assets Identify, Acquire and Execute with Cost Effective Capital Delineate High Quality Discipline Allocation with Inventory Conservative Leverage • Organic growth plan delivers 24,000- •
Slide 8: Building in the Premier Resource Play
THE MONTNEY Building in the Premier Resource Play BC AB T87 LGN (Pro Forma) KEL ▪ High quality inventory depth is becoming scarce FLATROCK Kelt Exploration LGN T85 Arc Resources ▪ The Montney offers: Tourmaline Oil - Highly competitive play economics FSJ Coelacanth CEI T83 - Scalable production grow
Slide 9: Three Unique Montney Assets, Each Opportunity Rich
LOGAN’S MONTNEY ASSETS Three Unique Montney Assets, Each Opportunity Rich FLATROCK FLATROCK POUCE COUPE GOLD CREEK SIMONETTE ▪ Emerging undeveloped Montney property prospective for both gas Doig WEST (DIVESTED) condensate and oil development ▪ High quality subsurface properties underpin asset potent
Slide 10: New Platform for Growth and Value Creation
T H E D U V E R N AY New Platform for Growth and Value Creation Logan has assembled a 188 net section position within the Logan Energy greater Kaybob Duvernay oil play. Logan’s Duvernay position is ANTE CREEK Logan 06-09-069-26W5 (2024 DUC) comprised of blocks located in North Simonette, Ante Creek
Slide 11: Three Duvernay Development Areas
L O G A N ’ S D U V E R N AY A S S E T S Three Duvernay Development Areas Sturgeon Area ANTE CREEK Logan Duvernay Assets ▪ Northern play extension situated in ideal fluid maturity window and good shale quality Logan Montney Assets ▪ Situated in the oil window with thickness of ~16m and high pressure
Slide 12: Pouce Coupe: Proven Development Inventory Requiring Additional Infrastructure and Egress
POUCE COUPE Proven Development Inventory Requiring Additional Infrastructure and Egress ASSET CHARACTERISTICS POUCE NORTH GAS NRM Fourth Creek ▪ Low risk, high return development in Pouce South oil play segment ▪ Northern play segment defined by high porosity T82 provides repeatable production growt
Slide 13: Simonette: Core Growth Asset with Owned Infrastructure
SIMONETTE Core Growth Asset with Owned Infrastructure ASSET CHARACTERISTICS NORTH SIMONETTE OIL ▪ Opportunity rich asset with owned infrastructure that together present a ▪ Results on Logan 5-11 well demonstrating play Duvernay T65 compelling growth opportunity potential with a modern well design La
Slide 14: Flatrock: High Quality Subsurface Properties on Large Undeveloped Land Base
F L AT RO C K High Quality Subsurface Properties on Large Contiguous Undeveloped Land Base ASSET CHARACTERISTICS ▪ Large contiguous land base - Over 55,000 acres all 100% WI with no encumbrances - Good year-round access primarily from freehold surfaces, outside Blueberry River First Nations high val
Slide 15: Logan's Land Base is Equivalent in Size to Many Producers
L A N D E X PA N S I O N Logans Land Base is Equivalent in Size to Many Producers 10x Logans Production MONTNEY D U V E R N AY Net Sections Net Sections 354 342 +12 net PRO FORMA GTE ACQUISITION 300 15th Largest Overall Montney Land Holder 11th Largest Overall Duvernay Land Holder Logan is constantl
Slide 16: Egress, Marketing & Hedging: Well Positioned For Growth
EGRESS, MARKETING & HEDGING Well Positioned For Growth GAS MARKETING & EGRESS Flatrock Fort St John ▪ All gas currently connected to NGTL and sold into AECO market Pouce ▪ Logan currently has ~50 mmcf/d of firm transport service on NGTL, providing a significant Coupe growth runway Grande Prairie ▪ I
Slide 17: 2025 Budget Highlights
PRO FORMA BUDGET OVERVIEW 2025 Budget Highlights 2025 2025 Change ▪ $195MM budget for 2025 to deliver material liquids growth and drive class leading Pro Forma Preliminary cashflow growth while investing heavily in infrastructure and inventory expansion Budget Budget Amount % Production ▪ $160MM dir
Slide 18: Logan Offers Significant Rate of Change and Operational Leverage
PRO FORMA BUDGET OVERVIEW Logan Offers Significant Rate of Change and Operational Leverage PRODUCTION OIL & CONDENSATE OPEX & TRANSPORT ADJUSTED FUNDS AFF PER SHARE GROWTH GROWTH UNIT COST REDUCTION FLOW (AFF) GROWTH R E D UC T IO N $20 $140 15,000 63% 6,000 $0.25 131% 91% $120 91% 5,000 $0.20 $15 $
Slide 19: Record Q3 Production and Cash Flow
S U M M A R Y O F Q U A R T E R LY R E S U LT S Record Q3 Production and Cash Flow Q1 2024 Q2 2024 Q3 2024 Actuals Actuals Actuals Q3 2024 HIGHLIGHTS Production ▪ Achieved record quarterly average production of 9,942 BOE per day (35% liquids) during Q3; Crude Oil and Condensate boe/d 2,047 2,371 2,9
Slide 20: Our Competitive Advantage
LOGAN ETHOS Our Competitive Advantage Technical Leaders Focused Execution and Entrepreneurially Driven Cost Discipline Highly technical team with a proven track An ownership mindset towards cost reductions Team is aligned through significant equity record of identifying high quality, yet and consist
Slide 21: www.loganenergycorp.com
www.loganenergycorp.com 21
Slide 22: Management Team and Independent Board of Directors
LOGAN TEAM Management Team and Independent Board of Directors MANAGEMENT TEAM Richard McHardy ▪ Chairman of Spartan Delta, former President, CEO and Director of Spartan Energy, Spartan Oil, and Spartan Exploration and President and Director of Titan Exploration CEO Brendan Paton, P.Eng. ▪ Former VP,
Slide 23: Early-Stage Reserve Bookings with Significant Room for Growth
RESERVES Early-Stage Reserve Bookings with Significant Room for Growth (YE23) VOLUMES VALUE MONTNEY INVENTORY Proven Location Probable Location Unbooked Location Inventory life at end of 5-year plan (>20,000 boe/d corporate prod) 28 years 89% 100% unbooked unbooked 13 years 61% unbooked CONSERVATIVE
Slide 24: We are Builders: Substantial Value can be Created Section by Section
S PA R TA N M O N T N E Y L O O K B A C K We are Builders: Substantial Value can be Created Section by Section LAND POSITION ASSEMBLY OPERATIONAL EXECUTION ▪ Aggressively built out the Spartan Gold Creek/Karr position through 12 opportunistic and creative deals ▪ Spartan grew production both through
Slide 25: Every Spartan Delta Equity Financing Significantly Outperformed the Index
TRACK RECORD Every Spartan Delta Equity Financing Significantly Outperformed the Index DECEMBER 2019 MAY 2020 MARCH 2021 AUGUST 2021 $25 million at $64 million at $124 million at $150 million at $1.00 per Share $2.00 per Share $4.35 per Share $5.05 per Share Founding Financing Bellatrix Asset Acquis
Slide 26: Leadership has Generated Excess Returns Through Multiple Entities and Cycles
TRACK RECORD Leadership has Generated Excess Returns Through Multiple Entities and Cycles S PA R TA N S PA R TA N S PA R TA N S PA R TA N E X P L O R AT I O N OIL ENERGY D E LT A Period January 2010 to May 2011 June 2011 to January 2013 December 2013 to May 2018 December 2019 to June 2023 Equity Ret
Slide 27: Corporate Information and Analyst Coverage
C O R P O R AT E I N F O R M AT I O N A N A LY S T C O V E R A G E EXECUTIVE OFFICE STOCK EXCHANGE LISTING INSTITUTION ANALYST Logan Energy Corp. The TSX Venture Exchange 1800, 736 6 Avenue SW National Bank Financial Dan Payne Trading Symbol: LGN Calgary, Alberta T2P 3T7 Scotia Capital Cameron Bean
Slide 28: Disclaimer
DISCLAIMER Forward-Looking Statements Forward-Looking Statements (Continued) ▪ Certain information included in this presentation constitutes forward-looking information under applicable securities ▪ (continued from previous column) requirements and other decarbonization or social policies and includ
Slide 29: Disclaimer
DISCLAIMER Oil and Gas Advisories ▪ BOE Disclosure. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A BOE ▪ Unbooked locations are internal estimates prepared effective as of November 26, 2024 by a member of management conversion ratio of six thousand
Slide 30: Disclaimer
DISCLAIMER Non-GAAP Measures and Ratios ▪ This presentation contains certain financial measures and ratios, as described below, which do not have standardized ▪ "Net Debt (Surplus)" includes bank debt (if any) outstanding under Logan’s credit facility, net of Adjusted Working meanings prescribed by
Slide 31: Abbreviations & Definitions
A B B R E V I AT I O N S & D E F I N I T I O N S A&D Acquisitions and Dispositions mmboe Million barrels of oil equivalent AECO Alberta Energy Company "C" Meter Stations of the NOVA Pipeline System mmboe/sec Million barrels of oil equivalent per section AFF Adjusted Funds Flow mmbtu; mmbtu/d Metric