Alvopetro Energy Ltd. · TSXV:ALV
Alvopetro Energy — Investor Presentation (March 2024)
29 slides from Alvopetro Energy's investor presentation, Mar 19, 2024
Slide 1: Corporate Presentation March 2024
Corporate Presentation March 2024 TSXV: ALV OTCQX: ALVOF | TSXV: ALV, OTCQX: ALVOF
Slide 2: Alvopetro - A Leading Brazilian Independent Natural Gas Company
Alvopetro - A Leading Brazilian Independent Natural Gas Company First Brazilian integrated onshore natural gas producer Strong operating and financial results well ahead of expectations Balanced reinvestment and stakeholder return model Demonstrated ESG commitment Proven team with successful LatAm t
Slide 3: At a Glance – Value, Yield, Growth
At a Glance – Value, Yield, Growth Market Summary Reserves & Resources, NPV10 before tax (4)(8)(9) Shares outstanding(1) 36.6 million 1,000 800 Average daily trading volume(1) 59,018 US$ millions 600 Insider ownership(1) 10.6% 400 Market cap/Enterprise value(2) $149 million/$136 million Current Ente
Slide 4: Focused on Delivering Shareholder Returns
Focused on Delivering Shareholder Returns 197(1) well on production 183-A3 10.00 +17% quarterly well results dividend ($0.14/share) 9.00 +50% quarterly dividend ($0.12/share) +17% 2P reserves value (NPV10BT) 8.00 Credit Facility repaid 7.00 +33% quarterly CAD$ Share price (TSXV) dividend ($0.08/shar
Slide 5: Brazil a Growing Market with Attractive Fundamentals
Brazil a Growing Market with Attractive Fundamentals Largest oil producer in S. America and 9th globally New natural gas market. 48% of supply is currently imported World’s 12th largest economy Brazil Attractive fiscal regime with 5.5-11% royalties & 15%-34% income tax Stable regulatory framework at
Slide 6: State of Bahia – Reconcavo Basin
State of Bahia – Reconcavo Basin • Oldest producing basin in Brazil: 23.9 Mbopd + 2.2 e6m3/d (77 MMcf/d) • Brazil's 4th largest city Salvador (pop 2.9 million) • Well developed industrialized region • Majority of natural gas consumed in Camacari industrial complex • Highly strategic infrastructure B
Slide 7: Caburé – Asset Overview - 49.1% ALV
Caburé – Asset Overview - 49.1% ALV(13) • The Caburé field is a joint development of a conventional natural gas discovery - ALV 49.1%(13) Murucututu Project • Unitized area development - 8 wells and all production facilities (100%) • Gross Unit production capacity up 33% to 21.2 MMcfpd (600 e3m3) AL
Slide 8: Midstream - Infrastructure & Marketing (100% ALV)
Midstream - Infrastructure & Marketing (100% ALV) • 11-km transfer pipeline & Gas Plant (UPGN) with 18+ MMcfpd capacity Murucututu Project (100%) • Bahiagás 15-km Distribution pipeline & 70 MMcfpd citygate at our plant site • Price set semi-annually based on Brent, Henry Hub and UK NBP benchmark pri
Slide 9: Gas Sales Agreement (GLJ Forward Pricing 12/31/23)
Gas Sales Agreement (GLJ Forward Pricing 12/31/23) As of February 1, 2024 Alvopetro’s contracted natural gas price is at the ceiling. Forecast above reflects GLJ price forecast January 1, 2024. Floor & ceiling prices incorporate US inflation of 2%. BRL:USD 5.2:1 | TSXV: ALV, OTCQX: ALVOF 9
Slide 10: Strong Production Results
Strong Production Results Alvopetro - Daily sales volumes (boepd) 2,642 2,724 2,767 5 2,501 5 2 2,361 2,459 2 2,432 2 12 2,359 117 128 130 2,500 5 107 99 5 2,143 2,175 - 105 103 97 1,950 1,975 10 1,764 - 98 5 92 2,000 92 1,696 1,699 - 89 79 3 9 1,477 81 75 19 1,500 72 2,350 2,328 2,390 2,258 2,523 2
Slide 11: Operating Netback
Operating Netback Operating Netback(10)- $/boe Q4 operating netback margin of 90% Operating netback as a % of realized sales price 91% 90% 89% 90% 87% 82% 82% Q4 realized price of $77.60/boe Operating Netback Margin(10) (% of Sales Price) 80.00 77.41 78.90 77.60 72.92 2.04 80% Including natural gas
Slide 12: Industry-Leading Operating Netback Margins
Industry-Leading Operating Netback Margins Operating Netback Margin %(10) 100% 90% Average netback margin 90% 64% 80% 70% 60% 50% 40% 30% 20% 10% 0% ALV Alvopetro Q4 2023 operating netback margin compared to other selected publicly listed oil and natural gas producers operating in Latin America, Can
Slide 13: Disciplined Capital Allocation – Balancing Organic Growth & Returns
Disciplined Capital Allocation – Balancing Organic Growth & Returns Allocation of Funds Flow from Operations Funds Flow From Operations(10) & Capital Allocation July 2020 to December 31, 2023 9,618 Building cash 16,000 14,972 Share 13,348 and working 13,193 11,047 repurchases capital 12,434 12,393 1
Slide 14: Organic Growth Plan
Organic Growth Plan Near-term goal of 18 MMcfepd Longer-term vision of 35 MMcfepd Caburé Unit and midstream expansion Bom Lugar Field • Gas plant expansion to 18+ MMcfpd completed in July 2022 • Expanded Unit capacity with additional development wells and facility expansion Murucututu (100%) • 183(1
Slide 15: Murucututu Gas – Gomo + Caruaçu Development (100% ALV)
Murucututu Gas – Gomo + Caruaçu Development (100% ALV) A 1 km A’ Jan2 197-1 183-A3 183-1 Murucututu Project (100%) GR GR GR GR A’ Dev well: ALV 183-B1 183-A2 183-A2 ALV 182-C1 ALV 183-1 Dev well: ALV 197-A2 Sequence 7 183-A3 197-A2 ALV 197-1 ALV 197-A3 A Alvopetro TWT Dev well: Pipeline Sequence 6 1
Slide 16: 183-A3 Regional Caruaçu Stacked Sands Downdip of Caburé
183-A3 Regional Caruaçu Stacked Sands Downdip of Caburé (100% ALV) 7-ALV-183-A3-ST1-BA COMPANY: ALVOPETRO VERTICAL SCALE: 1:1000 ELEVATION MEAS. REF.: 75.76 DATE LOGGED: 10/09/2023 DRILLED DEPTH: 3552.50 Top Maracangalha Seq 7 Time Structure 20ms CI Shale Porosity Saturation PAY MDT • Structure-Stra
Slide 17: Regional Seismic Section from Miranga-Murucututu-Caburé-Jaquipe
Regional Seismic Section from Miranga-Murucututu-Caburé-Jaquipe Miranga Caburé Jaquipe N Murucututu S Angular Unconformity Miranga Pojuca Pojuca Miranga Profundo SynRift Caruacu/Gomo/Candeias Candeias Basement Candeias Caburé Jaquipe | TSXV: ALV, OTCQX: ALVOF 17
Slide 18: Murucututu 2021 (100% ALV)
Murucututu 2021 (100% ALV) | TSXV: ALV, OTCQX: ALVOF 18
Slide 19: Murucututu 2022
Murucututu 2022 | TSXV: ALV, OTCQX: ALVOF 19
Slide 20: Murucututu Project Development 183-1 Location
Murucututu Project Development 183-1 Location | TSXV: ALV, OTCQX: ALVOF 20
Slide 21: Murucututu Today
Murucututu Today | TSXV: ALV, OTCQX: ALVOF 21
Slide 22: Murucututu Multi-Year Development Plan
Murucututu Multi-Year Development Plan • 2P Reserves: 3 existing wells + 3 undeveloped locations (183-A2, 197-A2 and 197-A3) • Contingent Resource: 3 development wells • Prospective Resource: 10 additional wells | TSXV: ALV, OTCQX: ALVOF 22
Slide 23: ESG – 2022 Highlights
ESG – 2022 Highlights We are focused on responsibly supplying energy, minimizing our environmental impact, and generating lasting benefits for all our stakeholders ENVIRONMENTAL SOCIAL GOVERNANCE Responsibly Supply Energy Strengthening Our Communities Diversity & Talent NATURAL GAS focused Strategic
Slide 24: 2023 Voluntary Social Investment Plan
2023 Voluntary Social Investment Plan | TSXV: ALV, OTCQX: ALVOF 24
Slide 25: Why Invest?
Why Invest? Results Growth Value Yield | TSXV: ALV, OTCQX: ALVOF 25
Slide 26: TSXV: ALV OTCQX: ALVOF
TSXV: ALV OTCQX: ALVOF Calgary, Canada: Alvopetro Energy Ltd. Suite 1920, 215 – 9th Avenue SW Calgary, Alberta, Canada T2P 1K3 Tel: (587) 794-4224 Email: [email protected] Salvador, Brazil: Alvopetro S/A Extração de Petróleo e Gás Natural Rua Ewerton Visco, 290, Boulevard Side Empresarial, Sala 200
Slide 27: Cautionary Statements
Cautionary Statements • Forward Looking Statements. This presentation contains forward-looking statements including forecasted future earnings and sales volumes, forecasted natural gas prices under the Company’s long-term gas sales agreement, the anticipated timing of projects, future exploration an
Slide 28: Cautionary Statements
Cautionary Statements • Net Present Value and Reserves Disclosed. The net present value of future net revenue attributable to Alvopetro’s reserves is stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production costs, devel
Slide 29: Endnotes
Endnotes 1. As of March 19, 2024. Average daily trading volume is based on average volumes traded on all Canadian exchanges (TSXV and other Canadian) and on the OTCQX in the six months commencing on September 20, 2023 and ending on March 19, 2024. 2. Enterprise value of $136.3 million is computed as
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