Saturn Oil & Gas (SOIL) The 15th Annual East Coast IDEAS Conference summary

Investment thesis and asset strategy

• Focus on light oil production in Western Canada, yielding strong free cash flow and netbacks over $42 per barrel, with 85% of production as light oil and liquids.

• Production has grown from 400 barrels/day in 2020 to over 40,000 barrels/day, driven by four major acquisitions.

• Acquisitions target mid-life cycle assets with existing infrastructure, enabling low capital outlay and high operational efficiency.

• Leverage is used for acquisitions, with a disciplined approach to reduce net debt below 1x EBITDA within 12-18 months post-acquisition.

• Opportunistic acquisition strategy, only pursuing deals that fit operational and financial criteria, with no set growth target.

Operational efficiency and cost management

• Operating costs have been reduced by 30% over four years through technology, asset synergies, and scalability.

• Royalties have decreased by 21% due to increased drilling on crown land, resulting in lower royalty rates and higher netbacks.

• Net operating expenses are consistently below CAD 20 per barrel, with further reductions expected.

• G&A expenses are among the lowest in the peer group, reflecting a culture of efficiency.

• Preference for maintaining debt on the balance sheet over selling royalties, keeping royalty rates at 12% versus peers at 20-25%.

Development, drilling, and reserves

• Annual drilling program requires 100-120 wells to maintain production near 40,000 barrels/day.

• Inventory of 2,300 wells provides an 18-year stay-flat case, with half of locations already booked.

• Recent drilling outperformed type curves, especially in the Frobisher formation, delivering 40% above expectations.

• Capital program success has enabled share buybacks and additional returns to shareholders.

• 2025 guidance targets 38,000-40,000 barrels/day, with confidence in meeting or exceeding these numbers.