agm presentation
AGM PRESENTATION June 2015
TSX:AET.un
Disclaimer - Forward Looking Information Forward Looking Statements – This presentation includes forward-looking information within the meaning of applicable Canadian and United States securities legislation. All statements, other than statements of historical facts, that address activities, circumstances, events, outcomes and other matters that Argent budgets, forecasts, plans, projects, estimates, expects, believes, assumes or anticipates (and other similar expressions) will, should or may occur in the future are considered forward-looking information. The forward-looking information provided in this presentation is based on management's current beliefs, expectations and assumptions, based on currently available information as to the outcome and timing of future events. Argent cautions that its future oil, natural gas and natural gas liquids production, revenues, cash flows, liquidity, plans for future operations, expenses, outlook for oil and natural gas prices, timing and amount of future capital expenditures, and other forwardlooking information is subject to all of the risks and uncertainties normally incident to the exploration for and development and production and sale of oil and gas. These risks include, but are not limited to, oil and natural gas price volatility, Argent's access to cash flows and other sources of liquidity to fund its capital expenditures, its level of indebtedness, its ability to replace production, the impact of the current financial climate on Argent's anticipated business and financial condition, a lack of availability of or increases in costs in goods and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating future oil and gas production or reserves, economic conditions and other risks as described in documents and reports that Argent files with the securities commissions or similar authorities in applicable Canadian jurisdictions on the System for Electronic Document Analysis and Retrieval (SEDAR). Any of these factors could cause Argent's actual results and plans to differ materially from those contained in the forward-looking information. Forward-looking information is subject to a number of risks and uncertainties, including those mentioned above, that could cause actual results to differ materially from the expectations set forth in the forward-looking information. Forward-looking information is not a guarantee of future performance or an assurance that our current assumptions and projections are valid. All forward-looking information speaks only as of the date of this presentation, and Argent assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking information, except as required by law. You should not place undue reliance on forward-looking information. You are encouraged to closely consider the additional disclosures and risk factors contained in Argent’s periodic filings on SEDAR that discuss in further detail the factors that could cause future results to be different than contemplated in this presentation. Unlike fixed income securities, Argent has no obligation to distribute any fixed amount and reductions in, or suspension of, cash distributions may occur that would reduce future yield. See "Risk Factors – Risks Relating to the Trust’s Structure and Ownership of Units" and "Notice to Reader – Non-IFRS Measures" in Argent's Annual Information Form. Reserves – The estimates of our reserves disclosed in this presentation have been prepared in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (NI 51-101) of the Canadian Securities Administrators and are based on report from GLJ Petroleum Consultants Ltd., an independent petroleum engineering firm, evaluating our reserves as of December 31, 2014.
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Argent Energy Trust Snapshot • Argent’s 2015E production is expected to average approximately 4,500 BOE/d post-sale –
~67% oil and NGLs
• Argent’s assets are located in Texas and Wyoming and consist of: – Established oil fields in Texas and Wyoming Gulf Coast Wilcox oil fields in Texas Powder River Basin Minnelusa oil fields in Wyoming Natural gas fields in South Texas – Oil resource asset drilling the Parkman and Turner formations in the Powder River Basin – Agreement entered into to sell Oklahoma and Kansas, to close June 30, 2015 – Sale of Manvel field closed in May.
• Argent operates ~95% of its oil and gas production. • 2015 Capital program of US$12mm, focused on Parkman formation. • 25 additional drilling opportunities in Wyoming and Texas
• Analyst coverage: Scotia, RBC, BMO
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Corporate Overview (AET.un) Market Capitalization: Enterprise Value: Units Outstanding (basic): Unit Price Annual Range:
~$16 MM(1) ~$274 MM (~ $254 MM, post-sale) 64.3 MM $0.22 – 3.17 per unit
Credit Facility: Amount Drawn on Credit Facility: Convertible Debentures: 2015 Capital Budget:
US$110 MM (US$80 MM post-sale) ~US$87 MM (~US$69 MM post-sale) $149 MM US$12 MM
2015 Average Production Guidance:
~4,500 BOE/d
Reserve Life Index: 2P WI Reserves:
~18.0 years(2) ~32.6 MMBOE
(1) Based on June 18, 2015 unit price of $0.24/unit at close. (2) Based on Q1 2015 production.
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Strategic Plan 1) Preserve cash and maintain compliance and liquidity in the low commodity price environment. 2) Reduce overhead and operating costs. 3) Maintain average approx. 4,500 boe/d production in 2015 after asset sales, with up to 70% hedged in 2015, up to 60% hedged in 2016. 4) Maximize production from existing wells and fields via application of best practices. 5) Continued participation in Wyoming Parkman/Turner development. 6) Technical team to continue evaluation of existing fields via acquisition and interpretation of seismic. 7) Manage through challenging market conditions and maintain financial flexibility and options, to position Argent for longer term recovery.
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Actions to date 1) Completed sale of Manvel sale on May 14th, expected close of Oklahoma and Kansas assets on June 30th, with total proceeds of $40.5mm going to pay down credit facility. 2) Reduction of staff in Calgary and Houston of 30% of personnel, with annualized salaries saving of approximately US$2 million, to be reflected from Q3 2015. 3) Renewed operating facility for June 30th, with US$80mm borrowing base, against US$69mm drawn. 4) Beginning in Q3, operating cost savings of US$2.5MM per quarter from asset sales, that had average of US$27.15/boe operating cost (compared to company average of US$14.11/boe in 2014). 5) Identified additional potential operating cost reductions of 15% to 20% on remaining fields via rationalization and negotiations with vendors.
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Argent Assets • Diversified portfolio of opportunities in Texas and Wyoming
Asset Location
– Texas and Wyoming oil Legacy fields Established long lived production – Power River Basin Parkman and Turner – South Texas natural gas
• Oil weighted asset base – ~66% liquids (2014)
• Long life reserve base – 2P RLI of ~18.0 years(1) – 1P RLI of ~10.0 years(1) 2015 Proforma Production
2015 Proforma Revenue
(1) Based on Q1 2015 production for remaining assets.
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Areas of Operation – post sale Argent Energy Trust – Total without Oklahoma, Kansas & Manvel - Q1 2015 proforma production of 3,804 net of royalty boe/d (4,891 WI) 67% Oil & NGL production - 13.9 NET MMBOE (17.4 WI) proved reserves, 66% Oil & NGL - R/P = 10.0 yrs on net boe/d basis(1)
-
-
Powder River Basin Wyoming & Colorado Q1 2015 production of 933 net boe/d (1,095 WI) 4.9 NET MMBOE (5.8 WI) proved reserves, 99% Oil & NGL R/P = 14.4 yrs(1)
-
Eagle Ford / Austin Chalk Q1 2015 production of 801 net boe/d (1,019 WI) 1.2 NET MMBOE (1.2 WI) proved reserves, 95% Oil & NGL R/P = 4.1 yrs(1)
Gulf Coast Q1 2015 production of 2,070 net boe/d (2,777 WI) 7.8 NET MMBOE (10.4 WI ) proved reserves, 41% oil R/P = 10.3 yrs(1)
(1) Based on Q1 2015 actual production.
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Gulf Coast Fields • Q1 2015 – Proforma production of 2,070 net boe/d (2,777 WI) 40% Oil & NGL
• Operations in 2015 • Sold Manvel Field • Staff is focused on maximizing production and cost management.
Gulf Coast Fields
• Upside Potential • Infill drill wells in AA wells • Expect to continue evaluation of 3D seismic owned or available on key fields.
Gulf Coast Production WI
Net
4,000
Production (boe/d)
3,500 3,000 2,500 2,000 1,500 1,000 500 0 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15
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Eagle Ford / Austin Chalk Fields • Q1 2015 – Production of 801 net boe/d (1,019 WI) 96% Oil & NGL
Eagle Ford / Austin Chalk Fields
• Operations in 2015 • No drilling planned for 2015 • Upside Opportunities • Continued operational improvements in costs and lifting wells
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Powder River Basin Fields • Q1 2015 – Production of 861 net boe/d (1,011 WI) 99% Oil & NGL
• Operations in 2015 • 2 Turner wells completed (3% WI) • 4 Parkman wells drilled and stimulated, pending final completion assembly and hookup (6.2% WI) • 4 Parkman wells drilled, stimulations in progress (24.9% WI) • Total of 1.24 net Parkman wells. • Budget capital of $10.6MM. • Evaluate seismic on key fields. • Upside opportunities • Approximately 11,800 net acres of Parkman and 15,900 net acres of Turner potential – see next slide • PUD and PRB drill wells within existing fields, and • Waterflood and tertiary flood upside
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Powder River Basin Fields
11
Powder River Basin Wyoming – Parkman Upside • Operators including Devon, EOG, Petro-Hunt, Yates and others have been actively developing the Parkman and Turner in the immediate area of Argent acreage.
• Argent has identified approximately 11,800 net acres with significant Parkman potential. Additional acreage may become prospective as this play further develops. • Map shows recent horizontal Parkman activity(in blue) near Argent’s acreage position in yellow. As shown on the map these wells have excellent IP’s and production. • Argent is participating in eight (8) wells (1.25 net wells) being drilled by Devon representing capital exposure of approximately $10MM (US). • Additional drilling opportunities are under review.
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Powder River Basin Wyoming – Turner Upside •
Operators including Devon, EOG, Petro-Hunt, Yates and others have been actively developing the Parkman and Turner in the immediate area of Argent acreage.
•
Argent has identified approximately 15,900 net acres in the Turner trend.
•
Map shows horizontal Turner activity (in pink) near Argent acreage denoted in yellow.
•
Argent is in the process of evaluating this developing play.
•
Argent has participated with a small interest in two long Turner wells. Production has commenced from both of these wells. Capital exposure for these wells is $0.6MM (US).
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Other Capital Opportunities • Additional approx. 46 capital projects (including 25 drilling locations) across Wyoming and Texas, with ave IRR% of ~ 54%. • Technical team evaluating opportunities to expand Powder River Basin plays. • Continuing to optimize facilities and focus on remedial work to enhance production at nominal costs.
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Summary • Long life assets – P+P Reserve Life Index (RLI) = ~18.0 years(1) – Proved RLI = ~10.0 years(1)
• Oil weighted production – ~67% of production volumes including ~5% NGL in 2015 – accounts for ~91% of revenue – Hedging summary 2015: 2,000 B/d oil hedged at US$90/B+ | 6,000 mmbtu gas hedged at avg of US$4.12/mmbtu 2016: 1,000 B/d oil hedged at US$65/B+ | 4,000 mmbtu gas hedged at avg of US$4.06/mmbtu
• Focus on reducing costs and providing financial flexibility in current environment • Positioning for stability and platform for future recovery
(1) Based on Q1 2015 production.
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Contact: Sean Bovingdon, President and CFO
Steve Hicks, COO
500, 321 – 6th Ave SW Calgary, AB T2P 3H3 403.770.4809
2 Houston Center 909 Fannin Street, 10th Floor, Houston, TX 77010 281.847.1888
[email protected]
www.argentenergytrust.com
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Appendix
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Structure • Tax efficient “mutual fund trust” structure
Administrator Shareholder
Unitholders
– Interest and operating deductions result in no material U.S. taxes for several years – No SIFT tax in Canada – Only Canadian tax is at unitholder level, deferred if in registered accounts – No withholding tax for U.S. residents
Investment
Income and Capital
in Units(100%)
Distributions
Argent Energy Trust
Administrator (1)
Argent Energy Ltd. (Alberta Corporation)
(Alberta Trust)
Dividends and Return of Capital
Investment in Can Holdco Shares
Investment in US Opco Notes(2)
Interest and Return of Principal on US Opco Notes(2)
Can Holdco (Alberta Corporation)
Investment in
Dividends and Return of Capital
US Opco Shares
CANADA UNITED STATES
US Opco (Delaware Corportion)
US Assets
(1)
Pursuant to the terms of the Administrative Services Agreement, the Administrator will perform all administrative, operational and investment services that may be required. The Administrator and the Trust have also entered into the Services Agreement with Aston Hill, pursuant to which Aston Hill will perform certain technical and administrative services
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Argent Energy Trust Executive Team Executive
Background
Rick Louden
• • • •
Over 35 years of executive and management experience in oil and gas industry Former Co-CEO & President of Argent Energy Ltd. Former President & CEO of Denali B.S. Mechanical Engineering , Louisiana Tech University
• • •
Over 20 years of financial executive experience, 14 in oil and gas industry Former CFO of Great Plains Exploration Inc., Controller of Western Oil Sands B.A. (Honours) in Accounting and Economics, University of Kent and a member of the Institute of Chartered Accountants in England and Wales
• • • •
35 years of industry experience of which over 25 have been in leadership roles Leadership roles in Acquisitions at Hilcorp Energy, El Paso Corporation and Coastal Corporation B.S. Petroleum Engineering, University of Oklahoma Registered Professional Engineer in the State of Texas
Executive Chairman
Sean Bovingdon, ACA President and CFO
R. Steven Hicks, P.E. Chief Operating Officer
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Argent Energy Trust Board of Directors Director
Background
Rick Louden
•
See management bios
• •
Senior Partner & Head of the Tax Department of the law firm Burnet, Duckworth & Palmer LLP Director of a number of energy and energy-related corporations, including Crew Energy, Baytex and TORC Oil and Gas Played key role in establishing original royalty trust structures in Canada
Executive Chairman
John Brussa Vice Chairman
•
William Robertson Director
Glen Schmidt Director
• •
Fellow Chartered Accountant and was formerly the lead oil & gas specialist at Price Waterhouse LLP and PricewaterhouseCoopers LLP Director of Inter Pipeline Fund
• • •
Over 30 years of experience in the oil & gas industry President & CEO of Laricina Energy Ltd. Former President & CEO of Deer Creek Energy Limited
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TSX:AET.un
Disclaimer - Forward Looking Information Forward Looking Statements – This presentation includes forward-looking information within the meaning of applicable Canadian and United States securities legislation. All statements, other than statements of historical facts, that address activities, circumstances, events, outcomes and other matters that Argent budgets, forecasts, plans, projects, estimates, expects, believes, assumes or anticipates (and other similar expressions) will, should or may occur in the future are considered forward-looking information. The forward-looking information provided in this presentation is based on management's current beliefs, expectations and assumptions, based on currently available information as to the outcome and timing of future events. Argent cautions that its future oil, natural gas and natural gas liquids production, revenues, cash flows, liquidity, plans for future operations, expenses, outlook for oil and natural gas prices, timing and amount of future capital expenditures, and other forwardlooking information is subject to all of the risks and uncertainties normally incident to the exploration for and development and production and sale of oil and gas. These risks include, but are not limited to, oil and natural gas price volatility, Argent's access to cash flows and other sources of liquidity to fund its capital expenditures, its level of indebtedness, its ability to replace production, the impact of the current financial climate on Argent's anticipated business and financial condition, a lack of availability of or increases in costs in goods and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating future oil and gas production or reserves, economic conditions and other risks as described in documents and reports that Argent files with the securities commissions or similar authorities in applicable Canadian jurisdictions on the System for Electronic Document Analysis and Retrieval (SEDAR). Any of these factors could cause Argent's actual results and plans to differ materially from those contained in the forward-looking information. Forward-looking information is subject to a number of risks and uncertainties, including those mentioned above, that could cause actual results to differ materially from the expectations set forth in the forward-looking information. Forward-looking information is not a guarantee of future performance or an assurance that our current assumptions and projections are valid. All forward-looking information speaks only as of the date of this presentation, and Argent assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking information, except as required by law. You should not place undue reliance on forward-looking information. You are encouraged to closely consider the additional disclosures and risk factors contained in Argent’s periodic filings on SEDAR that discuss in further detail the factors that could cause future results to be different than contemplated in this presentation. Unlike fixed income securities, Argent has no obligation to distribute any fixed amount and reductions in, or suspension of, cash distributions may occur that would reduce future yield. See "Risk Factors – Risks Relating to the Trust’s Structure and Ownership of Units" and "Notice to Reader – Non-IFRS Measures" in Argent's Annual Information Form. Reserves – The estimates of our reserves disclosed in this presentation have been prepared in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (NI 51-101) of the Canadian Securities Administrators and are based on report from GLJ Petroleum Consultants Ltd., an independent petroleum engineering firm, evaluating our reserves as of December 31, 2014.
TSX:AET.un
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Argent Energy Trust Snapshot • Argent’s 2015E production is expected to average approximately 4,500 BOE/d post-sale –
~67% oil and NGLs
• Argent’s assets are located in Texas and Wyoming and consist of: – Established oil fields in Texas and Wyoming Gulf Coast Wilcox oil fields in Texas Powder River Basin Minnelusa oil fields in Wyoming Natural gas fields in South Texas – Oil resource asset drilling the Parkman and Turner formations in the Powder River Basin – Agreement entered into to sell Oklahoma and Kansas, to close June 30, 2015 – Sale of Manvel field closed in May.
• Argent operates ~95% of its oil and gas production. • 2015 Capital program of US$12mm, focused on Parkman formation. • 25 additional drilling opportunities in Wyoming and Texas
• Analyst coverage: Scotia, RBC, BMO
TSX:AET.un
3
Corporate Overview (AET.un) Market Capitalization: Enterprise Value: Units Outstanding (basic): Unit Price Annual Range:
~$16 MM(1) ~$274 MM (~ $254 MM, post-sale) 64.3 MM $0.22 – 3.17 per unit
Credit Facility: Amount Drawn on Credit Facility: Convertible Debentures: 2015 Capital Budget:
US$110 MM (US$80 MM post-sale) ~US$87 MM (~US$69 MM post-sale) $149 MM US$12 MM
2015 Average Production Guidance:
~4,500 BOE/d
Reserve Life Index: 2P WI Reserves:
~18.0 years(2) ~32.6 MMBOE
(1) Based on June 18, 2015 unit price of $0.24/unit at close. (2) Based on Q1 2015 production.
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Strategic Plan 1) Preserve cash and maintain compliance and liquidity in the low commodity price environment. 2) Reduce overhead and operating costs. 3) Maintain average approx. 4,500 boe/d production in 2015 after asset sales, with up to 70% hedged in 2015, up to 60% hedged in 2016. 4) Maximize production from existing wells and fields via application of best practices. 5) Continued participation in Wyoming Parkman/Turner development. 6) Technical team to continue evaluation of existing fields via acquisition and interpretation of seismic. 7) Manage through challenging market conditions and maintain financial flexibility and options, to position Argent for longer term recovery.
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Actions to date 1) Completed sale of Manvel sale on May 14th, expected close of Oklahoma and Kansas assets on June 30th, with total proceeds of $40.5mm going to pay down credit facility. 2) Reduction of staff in Calgary and Houston of 30% of personnel, with annualized salaries saving of approximately US$2 million, to be reflected from Q3 2015. 3) Renewed operating facility for June 30th, with US$80mm borrowing base, against US$69mm drawn. 4) Beginning in Q3, operating cost savings of US$2.5MM per quarter from asset sales, that had average of US$27.15/boe operating cost (compared to company average of US$14.11/boe in 2014). 5) Identified additional potential operating cost reductions of 15% to 20% on remaining fields via rationalization and negotiations with vendors.
TSX:AET.un
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Argent Assets • Diversified portfolio of opportunities in Texas and Wyoming
Asset Location
– Texas and Wyoming oil Legacy fields Established long lived production – Power River Basin Parkman and Turner – South Texas natural gas
• Oil weighted asset base – ~66% liquids (2014)
• Long life reserve base – 2P RLI of ~18.0 years(1) – 1P RLI of ~10.0 years(1) 2015 Proforma Production
2015 Proforma Revenue
(1) Based on Q1 2015 production for remaining assets.
TSX:AET.un
7
Areas of Operation – post sale Argent Energy Trust – Total without Oklahoma, Kansas & Manvel - Q1 2015 proforma production of 3,804 net of royalty boe/d (4,891 WI) 67% Oil & NGL production - 13.9 NET MMBOE (17.4 WI) proved reserves, 66% Oil & NGL - R/P = 10.0 yrs on net boe/d basis(1)
-
-
Powder River Basin Wyoming & Colorado Q1 2015 production of 933 net boe/d (1,095 WI) 4.9 NET MMBOE (5.8 WI) proved reserves, 99% Oil & NGL R/P = 14.4 yrs(1)
-
Eagle Ford / Austin Chalk Q1 2015 production of 801 net boe/d (1,019 WI) 1.2 NET MMBOE (1.2 WI) proved reserves, 95% Oil & NGL R/P = 4.1 yrs(1)
Gulf Coast Q1 2015 production of 2,070 net boe/d (2,777 WI) 7.8 NET MMBOE (10.4 WI ) proved reserves, 41% oil R/P = 10.3 yrs(1)
(1) Based on Q1 2015 actual production.
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Gulf Coast Fields • Q1 2015 – Proforma production of 2,070 net boe/d (2,777 WI) 40% Oil & NGL
• Operations in 2015 • Sold Manvel Field • Staff is focused on maximizing production and cost management.
Gulf Coast Fields
• Upside Potential • Infill drill wells in AA wells • Expect to continue evaluation of 3D seismic owned or available on key fields.
Gulf Coast Production WI
Net
4,000
Production (boe/d)
3,500 3,000 2,500 2,000 1,500 1,000 500 0 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15
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Eagle Ford / Austin Chalk Fields • Q1 2015 – Production of 801 net boe/d (1,019 WI) 96% Oil & NGL
Eagle Ford / Austin Chalk Fields
• Operations in 2015 • No drilling planned for 2015 • Upside Opportunities • Continued operational improvements in costs and lifting wells
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Powder River Basin Fields • Q1 2015 – Production of 861 net boe/d (1,011 WI) 99% Oil & NGL
• Operations in 2015 • 2 Turner wells completed (3% WI) • 4 Parkman wells drilled and stimulated, pending final completion assembly and hookup (6.2% WI) • 4 Parkman wells drilled, stimulations in progress (24.9% WI) • Total of 1.24 net Parkman wells. • Budget capital of $10.6MM. • Evaluate seismic on key fields. • Upside opportunities • Approximately 11,800 net acres of Parkman and 15,900 net acres of Turner potential – see next slide • PUD and PRB drill wells within existing fields, and • Waterflood and tertiary flood upside
TSX:AET.un
Powder River Basin Fields
11
Powder River Basin Wyoming – Parkman Upside • Operators including Devon, EOG, Petro-Hunt, Yates and others have been actively developing the Parkman and Turner in the immediate area of Argent acreage.
• Argent has identified approximately 11,800 net acres with significant Parkman potential. Additional acreage may become prospective as this play further develops. • Map shows recent horizontal Parkman activity(in blue) near Argent’s acreage position in yellow. As shown on the map these wells have excellent IP’s and production. • Argent is participating in eight (8) wells (1.25 net wells) being drilled by Devon representing capital exposure of approximately $10MM (US). • Additional drilling opportunities are under review.
TSX:AET.un
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Powder River Basin Wyoming – Turner Upside •
Operators including Devon, EOG, Petro-Hunt, Yates and others have been actively developing the Parkman and Turner in the immediate area of Argent acreage.
•
Argent has identified approximately 15,900 net acres in the Turner trend.
•
Map shows horizontal Turner activity (in pink) near Argent acreage denoted in yellow.
•
Argent is in the process of evaluating this developing play.
•
Argent has participated with a small interest in two long Turner wells. Production has commenced from both of these wells. Capital exposure for these wells is $0.6MM (US).
TSX:AET.un
13
Other Capital Opportunities • Additional approx. 46 capital projects (including 25 drilling locations) across Wyoming and Texas, with ave IRR% of ~ 54%. • Technical team evaluating opportunities to expand Powder River Basin plays. • Continuing to optimize facilities and focus on remedial work to enhance production at nominal costs.
TSX:AET.un
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Summary • Long life assets – P+P Reserve Life Index (RLI) = ~18.0 years(1) – Proved RLI = ~10.0 years(1)
• Oil weighted production – ~67% of production volumes including ~5% NGL in 2015 – accounts for ~91% of revenue – Hedging summary 2015: 2,000 B/d oil hedged at US$90/B+ | 6,000 mmbtu gas hedged at avg of US$4.12/mmbtu 2016: 1,000 B/d oil hedged at US$65/B+ | 4,000 mmbtu gas hedged at avg of US$4.06/mmbtu
• Focus on reducing costs and providing financial flexibility in current environment • Positioning for stability and platform for future recovery
(1) Based on Q1 2015 production.
TSX:AET.un
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Contact: Sean Bovingdon, President and CFO
Steve Hicks, COO
500, 321 – 6th Ave SW Calgary, AB T2P 3H3 403.770.4809
2 Houston Center 909 Fannin Street, 10th Floor, Houston, TX 77010 281.847.1888
[email protected]
www.argentenergytrust.com
TSX:AET.un
Appendix
TSX:AET.un
17
Structure • Tax efficient “mutual fund trust” structure
Administrator Shareholder
Unitholders
– Interest and operating deductions result in no material U.S. taxes for several years – No SIFT tax in Canada – Only Canadian tax is at unitholder level, deferred if in registered accounts – No withholding tax for U.S. residents
Investment
Income and Capital
in Units(100%)
Distributions
Argent Energy Trust
Administrator (1)
Argent Energy Ltd. (Alberta Corporation)
(Alberta Trust)
Dividends and Return of Capital
Investment in Can Holdco Shares
Investment in US Opco Notes(2)
Interest and Return of Principal on US Opco Notes(2)
Can Holdco (Alberta Corporation)
Investment in
Dividends and Return of Capital
US Opco Shares
CANADA UNITED STATES
US Opco (Delaware Corportion)
US Assets
(1)
Pursuant to the terms of the Administrative Services Agreement, the Administrator will perform all administrative, operational and investment services that may be required. The Administrator and the Trust have also entered into the Services Agreement with Aston Hill, pursuant to which Aston Hill will perform certain technical and administrative services
TSX:AET.un
18
Argent Energy Trust Executive Team Executive
Background
Rick Louden
• • • •
Over 35 years of executive and management experience in oil and gas industry Former Co-CEO & President of Argent Energy Ltd. Former President & CEO of Denali B.S. Mechanical Engineering , Louisiana Tech University
• • •
Over 20 years of financial executive experience, 14 in oil and gas industry Former CFO of Great Plains Exploration Inc., Controller of Western Oil Sands B.A. (Honours) in Accounting and Economics, University of Kent and a member of the Institute of Chartered Accountants in England and Wales
• • • •
35 years of industry experience of which over 25 have been in leadership roles Leadership roles in Acquisitions at Hilcorp Energy, El Paso Corporation and Coastal Corporation B.S. Petroleum Engineering, University of Oklahoma Registered Professional Engineer in the State of Texas
Executive Chairman
Sean Bovingdon, ACA President and CFO
R. Steven Hicks, P.E. Chief Operating Officer
TSX:AET.un
19
Argent Energy Trust Board of Directors Director
Background
Rick Louden
•
See management bios
• •
Senior Partner & Head of the Tax Department of the law firm Burnet, Duckworth & Palmer LLP Director of a number of energy and energy-related corporations, including Crew Energy, Baytex and TORC Oil and Gas Played key role in establishing original royalty trust structures in Canada
Executive Chairman
John Brussa Vice Chairman
•
William Robertson Director
Glen Schmidt Director
• •
Fellow Chartered Accountant and was formerly the lead oil & gas specialist at Price Waterhouse LLP and PricewaterhouseCoopers LLP Director of Inter Pipeline Fund
• • •
Over 30 years of experience in the oil & gas industry President & CEO of Laricina Energy Ltd. Former President & CEO of Deer Creek Energy Limited
TSX:AET.un
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