Kelt Exploration (KEL) EnerCom Denver – The Energy Investment Conference summary

Strategic positioning and asset overview

• Holds 359,000 acres in the oily Montney fairway and 93,000 acres of Charlie Lake rights, acquired at low cost during downturns, supporting a 1.7x recycle ratio.

• Three core assets: Wembley/Pipestone, Pouce Coupe, and Oak/Flatrock, with significant infrastructure and processing capacity planned through 2030.

• Management and insiders own over 18% of shares, with active participation in equity financings and open market purchases.

• Flexible corporate structure allows for potential divisional sales, supported by CAD 1 billion in Paid-Up Capital.

Growth, capital allocation, and operational performance

• 2024 CapEx of CAD 375 million, with 75% allocated to drilling and completions, targeting 40.7 wells this year.

• Production growth: 9% in 2024, 22% in 2025, and projected 26% this year, with plans to reach 80,000–85,000 BOE/day by 2030.

• Most new production comes online in the second half of the year, with Wembley/Pipestone as the key growth engine.

• Drilling and completion costs in the Montney are 40% lower than comparable Permian wells, with recent wells coming in under CAD 7 million.

• Large drilling inventory of 854 wells, with only 16% booked, and multi-zone development enhances efficiency.

Financial performance and market outlook

• 2023 Proved plus Probable reserves valued at CAD 3.3 billion, with Net Asset Value per share at CAD 15.62 (based on last year's oil prices).

• 2024 sales projected at CAD 804 million, generating CAD 410 million in cash flow and nearly CAD 2 per share.

• Debt reduction ongoing, with debt-to-cash flow at 0.4x despite aggressive growth.

• Realized strong sulfur pricing due to global events, contributing CAD 1,200–1,300 per ton netback.

• Maintains low royalties (10–12%), low G&A (<CAD 1/BOE), and low interest expense (CAD 0.64/BOE).