Saturn Oil & Gas (SOIL) EnerCom Denver – The Energy Investment Conference summary

Strategic acquisitions and asset optimization

• Focused on acquiring high netback, liquids-weighted conventional assets at low multiples, growing to 50,000 BOE/day with 83% liquids by year-end 2024.

• Built large, contiguous land blocks in Central Alberta and Saskatchewan, enabling significant cost reductions and operational efficiencies.

• Recent acquisitions in Southeast Saskatchewan added 3,700 bbl/day at 1.8x cash flow, with cost savings of up to CAD 5/bbl targeted.

• Integrated assets into existing infrastructure, shutting down redundant facilities and leveraging in-house services to further reduce costs.

• Maintained a low corporate royalty rate (~12%) and achieved over CAD 60/bbl in field netbacks last quarter.

Operational performance and technological innovation

• Maintains a low decline rate (~23%) and targets 5% organic growth, generating strong free cash flow for debt reduction and further acquisitions.

• Developed proprietary drilling and completion techniques, including open-hole multilateral wells and extended-reach horizontals, leading to top-tier well productivity.

• Achieved production results 22-23% above type curve in 2023-2024, consistently beating analyst expectations for eight consecutive quarters.

• Holds a high-quality inventory of 3,000 wells, with leading positions in top North American plays and over 1,000 sq mi of seismic data covering 90% of undeveloped locations.

• Waterflood and repressurization projects in Saskatchewan are expanding, supporting incremental production and extending asset life.

Financial discipline and capital allocation

• Free cash flow yield exceeded 50% last year, with major acquisitions completed at less than 2x cash flow and below PDP values.

• Over CAD 123 million in adjusted funds flow in the latest quarter, with a 66% year-over-year per-share growth and 1.3x debt-to-EBITDA exit ratio.

• Executed two years of share buybacks, repurchasing 12% of outstanding shares, and recently refinanced bonds, reducing average cost by 200 basis points.

• Maintains CAD 500 million in liquidity through undrawn RBLs, providing flexibility for acquisitions or operational needs.

• Adaptive capital planning allows rapid scaling of drilling activity in response to oil price changes, with no land expiries or drilling commitments.