Saturn Oil & Gas (SOIL) investor relations material

Market and industry context

• Canadian energy sector currently enjoys a highly favorable environment, with strong demand and supportive government policies in Saskatchewan and Alberta.

• Asset base spans 1.5 million net acres, weighted over 80% to high-value crude oil and liquids.

• Institutional investors, including GMT Capital and Libra Funds, hold over 40% of shares.

• Market value remains below asset value, with shares trading at CAD 6 versus a proved asset value of CAD 11 per share.

• Peer-leading free cash flow yield and discounted valuation compared to industry averages.

Growth strategy and acquisitions

• Growth driven by acquiring mid-life cycle, oil-weighted assets at under 2x cash flow, integrating and optimizing them for efficiency.

• Five major transactions since 2021 totaling CAD 1.6 billion, nearly doubling company size with each of the first four deals.

• Recent acquisitions of Burgess Creek and Triland Energy added 3,700 bpd and 400 drilling locations at 1.8x cash flow.

• Debt refinanced in July 2024, lowering interest rates, extending maturity to 2031, and relaxing covenants.

Operational performance and asset optimization

• Production expected to reach 48,000–50,000 BOE per day by year-end 2026, with 82% oil and liquids weighting.

• 3,000 identified drilling locations provide a 20-year runway; 70% of production from Saskatchewan.

• Operational synergies and optimization have reduced OpEx by 25% and royalties by 17% since 2021.

• Open hole multilateral wells deliver top-tier returns, with 450 locations and CAD 1 billion in inventory value.

• Waterflooding and infrastructure investments enhance recovery, sustainability, and asset longevity.