Logan Energy Corp · TSXV:LGN
Logan Energy — Investor Presentation (August 2024)
26 slides from Logan Energy's investor presentation, August 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 AUGUST 2024
Slide 2: The Logan Opportunity: A Differentiated Growth Company
THE LOGAN OPPORTUNITY A Differentiated Growth Company ABOUT LOGAN INVESTMENT RATIONALE Logan Energy Corp. (“Logan”) is a growth-oriented exploration, development and production company formed through the spin-out of Spartan Delta Corp.’s early stage Montney assets. Track Record of Excess Returns and
Slide 3: 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 • Build a
Slide 4: The Montney: Building in the Premier Resource Play
THE MONTNEY Building in the Premier Resource Play BC AB T87 KEL Logan Energy ▪ High quality inventory depth is becoming scarce FLATROCK Kelt Exploration LGN ▪ The Montney offers: T85 Arc Resources Tourmaline Oil - Highly competitive play economics FSJ CEI T83 Crew Energy - Scalable production growth
Slide 5: 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 6: Organic Growth Trajectory and Capital Allocation
LONGER TERM CONSIDERAIONS Organic Growth Trajectory and Capital Allocation NEAR TERM I N D I C AT I V E O R G A N I C G R O W T H P L A N ▪ Applying modern well design to historically underinvested asset base to deliver significant near-term production growth on a low decline base ▪ Targeting liquid
Slide 7: 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 8: Simonette: Core Growth Asset with Owned Infrastructure
SIMONETTE Core Growth Asset with Owned Infrastructure ASSET CHARACTERISTICS SIMONETTE NORTH OIL ▪ Opportunity rich asset with owned infrastructure that together present ▪ Existing wells in the oil window have legacy a compelling growth opportunity low-intensity frac designs T64 ▪ Major infrastructur
Slide 9: Land Expansion: Building Section by Section
L A N D E X PA N S I O N Building Section by Section CORPORATE LAND POSITION EXPANSION SIMONETTE MONTNEY LAND EXPANSION + 32.75 + 29.50 Montney Sections Sections Added in Other Added Plays (not shown) (1) New position in Lator June 24’ onstream > 331 15th Montney Net Largest Overall Montney Sections
Slide 10: Flatrock: High Quality Subsurface Properties on Large Contiguous Land Base
F L AT RO C K High Quality Subsurface Properties on Large Contiguous Undeveloped Land Base ASSET CHARACTERISTS ▪ 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 value
Slide 11: Egress, Marketing & Hedging: Well Positioned For Growth
EGRESS, MARKETING & HEDGING Well Positioned For Growth GAS MARKETING & EGRESS ▪ All gas currently connected to NGTL and sold into AECO market Flatrock Fort St John ▪ Logan currently has ~50 mmcf/d of firm transport service on NGTL, providing a significant Pouce Coupe growth runway ▪ In the fourth qu
Slide 12: 2024 Budget Summary
BUDGET OVERVIEW 2024 Budget Summary GUIDANCE 2024 CAPITAL ALLOCATION Production ▪ 2024 capital budget of $120MM designed to deliver growth at Simonette and Pouce Coupe and advance long-term growth projects like Flatrock Crude Oil and Condensate boe/d 2,560 Natural Gas Liquids boe/d 323 Natural Gas m
Slide 13: Logan Offers Significant Rate of Change and Operational Leverage
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 93% 50% 87% (14%) 87% $1.76/GJ $1.76/GJ $75.49WTI $75.49WTI $2.52/GJ $2.52/GJ $78.32WTI $78.3
Slide 14: H1 results in-line, setting up for a strong rate of change in H2
S U M M A R Y O F Q U A R T E R LY R E S U LT S H1 results in-line, setting up for a strong rate of change in H2 Q1 2024 Q2 2024 H1 2024 Actuals Actuals Actuals Q2 2024 HIGHLIGHTS Production ▪ Spent $46.1MM in Q2 to advance development in core operating areas: Crude Oil and Condensate boe/d 2,047 2,
Slide 15: Early-Stage Reserve Bookings with Significant Room for Growth
RESERVES Early-Stage Reserve Bookings with Significant Room for Growth VOLUMES VALUE 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 CONSERVATIVELY BOOKED RELAT
Slide 16: 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 17: www.loganenergycorp.com
www.loganenergycorp.com 17
Slide 18: 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 CEO Titan Exploration Brendan Paton, P.Eng. ▪ Former VP,
Slide 19: 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 20: 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 21: 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 22: 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 23: 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) Actual results may vary materially from forecasts due to changes in
Slide 24: Disclaimer: Oil and Gas Advisories
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 have been identified by management as an estimation of our multi-year drilling activities based on conversion ratio of six t
Slide 25: Disclaimer: Non-GAAP Measures and Ratios
DISCLAIMER Non-GAAP Measures and Ratios ▪ This presentation contains certain financial measures and ratios, as described below, which do not have standardized ▪ References to “Cash Financing Expense (Income)” includes interest and fees on Logan’s credit facility, net of interest meanings prescribed
Slide 26: 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 MM or mm Million AECO Alberta Energy Company "C" Meter Stations of the NOVA Pipeline System mmboe Million barrels of oil equivalent AFF Adjusted Funds Flow mmboe/sec Million barrels of oil equivalent per section API A