All right. We'll keep it on schedule here. Morning, everybody. I'm with ATB Cormark Capital Markets. We are a proud sponsor of EnerCom Denver again this year, and I'm happy to introduce what's a real success story in the Canadian oil patch, Saturn Oil and Gas. While others were busy shedding assets to focus on the Montney and Duvernay, Saturn was very active acquiring high netback conventional assets, liquids weighted at very low multiples. By the end of this year, through acquisition and organic growth, they'll be a 50,000 BOE a day producer with 83% liquids weighting. They'll also set to post double-digit production organic growth this year. Presenting for Saturn, John Jeffrey, CEO, and Justin Kaufmann, Chief Development Officer, also known as JK. Over to you boys. Excellent. Good morning, everyone. I always get asked, "What's the best way to describe Saturn?" I didn't really have a good answer until just the other day. I think the best way to put this is we are doing very exciting things with very boring assets, and that's really the best way to describe. That's been the niche that we've carved out over the last six years. Saturn today, like we said, it's going to exit the year at about 50,000 bbl a day. We're about 83%, 84% liquids, but just primarily light oil. That has really been our sweet spot, and that's been the niche that we've been going after. We have very compelling upside. If you look at our 1P reserves, it's right around that CAD 11-CAD 12 a share range, so again, a lot of upside in the name. Despite being one of the best performing energy names in Canada this year, we still have a lot of upside left to go. As you can see here, the last six years, we have been incredibly busy. Again, when everyone was looking to shed assets and move into Northern Alberta, that's excellent. We have been very busy buying all of the unloved assets throughout Central Alberta and throughout Saskatchewan, growing from a few hundred barrels a day going into 2021, again, exiting this year at over 50,000 bbl. That has been primarily done through a series of acquisitions, and in that timeframe, we have focused on ensuring that we can maintain our low decline. Saturn's decline today is around that 23%, keeping our focus on light oil and really looking to optimize every dollar that goes out the door for us. In that time period, we've created what we call the Saturn Blueprint. How do we acquire? What are we going after? We look to go after mid-life cycle assets. Mid-life cycle assets that are contiguous to our base business, that have at least 10-20 years of additional upside, but we don't want to own any assets. We only want to go after those assets we think we can add true value to. Can we optimize them? Can we reduce costs in a meaningful way? Once we've got those assets integrated into the way that Saturn runs their business and we've stripped costs out of them, that's where Justin and his team step in, and they look to develop them. The other thing that sets us apart is year- over- year, we really try and maintain minimal growth, 5% organic growth. What that does for us is that generates a huge amount of free cash flow, and we use that to pay down debt, strengthen our balance sheets, that if there are more acquisitions available, we can go after them. Last year, for example, our free cash flow yield was over 50%. When you look at the last five major acquisitions we've done in the last six years, you'll notice a trend here. We bought all these assets at an average of less than 2x cash flow, well below PDP values, and that's the assets we look for. When we joke about having boring assets, when everybody else is paying 5x, 6x, 7x cash flow in the popular place, we are quietly squirreling away all of these assets, and we'll get into what we can do, and we'll get into how we're able to develop them and really add a lot of excitement into these assets. That brings us to what we have today. We have three core areas. We have Central Alberta, and primarily in the Cardium, we have Western Saskatchewan, and we have Southeast Saskatchewan. Looking at this map here, you can see the dates of which we bought these, and again, the thesis here is to build large, contiguous blocks of land. With that, we're able to significantly drive down costs. When you look at Southeast Saskatchewan, this is our crown jewel asset. You can see all the M&A activity we've done in this space. At least with our asset base and with most oil and gas companies, most of the costs are fixed in nature. When you look at Southeast Saskatchewan, we have over 4,000 mi of pipeline. We have 200 key facilities. We have our own gas plants. These things, as you would assume, if you run them at higher utilization and larger infrastructure, you can reduce your per unit cost. So that's the point of building these large contiguous blocks, is we are able to buy these assets, spin them together, and significantly reduce costs. You can see in the bottom right, Flat Lake was an asset we picked up in 2024. The prior producer operated this asset at CAD 24.5 a barrel. Today, that asset operates at CAD 19.25 for us. These are the types of things where we can buy these assets at a really low price, significantly reduce the cost and optimize them, and I'm really excited for you guys to hear what Justin's been able to do with developing them. This was the most recent set of acquisitions we did just a month ago. Again, focusing on Southeast Saskatchewan. You can see how well these fit in to our existing infrastructure base. We bought 3,700 bbl a day, 97% light oil. Again, we are a light oil-focused company. We paid 1.8x cash flow. We paid 80% of PDP. What's impressive here is there's over 400 locations. That price represents less than 25% of the 2P value. Again, that's the benefit of buying assets in some of these plays where people are shifting their focus into Northern Alberta and U.S.-style assets. We have identified already CAD 2.5 a barrel we can shave off this. Between us, it is likely we are going to see that number get to CAD 4, even CAD 5 a barrel of cost savings once we really incorporate that into the Saturn way of operating. Again, what can we control with these assets? Why we are so confident in our ability to continue to strip costs out of these assets is the fact you have seen us do this now for almost six years in a row. We have reduced the cost by over 25%, all the while we are keeping our royalties as low as possible. Saturn has one of the lowest corporate royalty rates of any of our peers, hovering right around that 12% mark. If you look at our field netbacks, this is where it all comes through. Last quarter, we did over CAD 60 a barrel in field netbacks. That is the benefit of managing your cost and producing a light sweet barrel. That is really what our focus has been and what our focus will continue to be into the future. Again, how are we able to reduce our costs? Big thing is facilities. What we are able to do is when we buy a new asset, we can shut down their facilities, spin it into ours. The 3,700 bbl that we just bought last month, we are able to eliminate all of the labor costs. We are shutting down three of their facilities. We are spinning them into ours. We are the biggest consumer of services in all of our fields, so we get better pricing on everything from service rigs to chemical. We also operate a little differently. Because of our size and scale, we are able to bring a lot of services in-house. In-house electrical, in-house pipe fittings, in-house mechanical. All of these things across this big of a scale makes a really material impact to everything from netbacks to PDP. When you are able to shave a dollar or two off your operating costs, that extends the longevity of these wells, increasing your reserves, increasing your cash flow. With that, I will pass it over to JK to touch on all the upside and what he sees in the development case here. Thanks, John. As John mentioned, we have about 3,000 wells in our corporate inventory. To keep production in our guidance range, about 48,000 bbl- 50,000 bbl to exit, we need to drill about 135 wells per year. That is how you get to about that 20-year range. At Saturn, it is not only about quantity of undeveloped inventory, it is about the quality of that inventory. Peters & Co. actually does a great job on the right side of this slide comparing plays in North America against each other as far as half-cycle payouts and 2x half-cycle payouts. They have everything on here from the Montney to the Duvernay to the DJ. If you look at some of the top-performing plays, Saturn has essentially the most inventory in three of those top plays out of any producer. What have we been able to do with that inventory? In 2024, we are 22% above type curve. That type curve is not only set by your historical results, but your peers' results around you. Last year, we were 23% above type curve. We have beat analyst expectations for eight straight quarters now as far as production goes. I would like to stand here and say that is to the strength of our technical team, but the truth is there is a lot of strong technical teams across a lot of different companies. What they do not have is over 1,000 sq mi of seismic that overlies 90% of their undeveloped locations. This seismic was acquired through a series of major acquisitions where we paid sub-PDP values for and essentially gives us an edge over top of our competitors. Getting into development. Saturn's largest organic success to date is the open-hole multilateral technique in Saskatchewan, which is the most exciting advancement to oil and gas development since fracking was introduced. In 2023, we are looking at an area in the Bakken. Essentially, it was primarily fracked, but we looked at the production results, and the wells were primarily producing water. We looked at the core, high oil sats, strong resistivity readings. DSTs showed there should have been hydrocarbons in the zone, but yet they were wet. Upon further analysis, it was determined that they were fracked out of zone and through the Upper Bakken Shale into the Lodgepole. Essentially, we looked at, well, what type of technique could we bring in? We looked at the open-hole multilateral that was essentially popularized in the Clearwater. Essentially, instead of drilling a 1 mi fracked well, where you are producing from about 40 sleeves, you drill your horizontal legs barefoot, and you stack them about 50 m apart, essentially exposing more wellbore to the reservoir. In 2023, we drilled our first open-hole multilateral well, had some really strong success with the 1 mi eight-legger. We want to make that a little bit more capital- efficient in 2024, and so we extended that to a 2 mi well. Our first 2 mi well was one of the highest producing wells in Saskatchewan in 2024. Its sister well had similar results. We have now drilled about 20 to date to further delineate that play. With that success, we looked at the other horizons Saturn had in its inventory, where else we can implement this, and we came across the Spearfish. Essentially, the Spearfish was just produced with either vertical or a single-leg half-mile wells. Essentially, we just extended the leg of our first well, added five additional legs, and the well came on about 50% above type curve. We have drilled five successful wells to date, about 50% above type curve. Again, we took that technology down to the Midale, which is a relatively thin carbonate formation. We drilled our first two multi- legs in that play in Q4 of last year. We actually re-entered two old legs, just extended them, and added five additional legs, had success there. In Q1, we drilled four additional open-hole multilateral Midale wells. We looked at the Torquay. The Torquay is a member that underlies the Bakken. We just drilled our first two pilot open-hole multilateral wells there actually a few months ago, and the last one is actually our strongest multilateral to date. Saturn is essentially the leading light oil producer and developer of open-hole multilateral wells in North America. We have about 450 wells, and our corporate inventory represents about CAD 1 billion of NPV10 value, which is essentially the market cap of the company. Getting into the conventional Mississippian and Spearfish wells. If you remember before, essentially these were the number one and number three rate of return half-cycle plays in North America. Not surprising, they are also Saturn's number one play. They are our number one most capital-efficient wells that we drill corporately. The Mississippian is not a thick, homogenous play, resource play where you are developing eight wells per section. Essentially, you are chasing these oolitic shoals, and you want to be right on these anticlinal noses. Essentially, this is impossible to do without seismic. Like I mentioned before, we have it over 90% of our acreage. With that, we are actually 48% over type curve last year. Saturn is also focused on sustainability and expanding the life of our asset base. If you look at the map sheet to the right, essentially you will see our land highlighted in green, and all the blue lines were actually previous producers that were turned into injectors. There has been about 700 conversions inside that field that set up direct analogs for us to further advance our waterflood scheme. Last year in the Creelman area, we converted our first seven producers to injectors. We are already seeing some pressure support there. This year, we are going to convert about 14 more producers to injectors. Also what this does is not only set up pressure support for incremental production on the offsetting wells, it sets up future repressurized new development locations. Based on the spacing alone, if we were to go infill in the Bakken there, the wells would only produce about 30,000 barrel EUR, but with that repressurization, we should be getting up to 110,000 barrels EUR, which allows those wells to compete for capital against our other plays that we have in Saskatchewan and Alberta. Upon full development with those repressurization, we see about CAD 260 million of NPV10 value just in the Creelman area alone, and we see three different expansion areas. Essentially, we have about 20% of our current light oil under waterflood, which is why we have one of the lowest decline rates of any light oil producer in Canada. John mentioned the Saturn Blueprint where we are trying to optimize and develop the acquired assets. When we acquired the Cardium wells asset package, it was primarily drilled as 1 mi horizontal wells. A 1 mi Cardium horizontal well is not very sexy. Essentially, at a CAD 70 price tag, you are getting about 20%-30% rate of return, which does not compete corporately. Primarily, these wells were drilled using either ball drop or coil tubing technique. The issue with the ball drop, it is difficult to complete past about 1.5 mi because the diameter of the sleeves gets smaller and smaller and smaller, so you can only put so many sleeve intervals in. Now, as far as coil tubing goes, you can only reach about 1.5 mi- 2 mi because the friction of the coil itself reduces what rate you can actually pump that fluid underground, and you don't properly frack the reservoir with the intensity needed. What we did is we came up with a proprietary technique to use ball drop at the toe and coil at the heel. With that, we actually drilled the longest Cardium well ever drilled in Canada at over 3 mi in horizontal length or 7,570 m in depth. This is out of a sample set of about 6,000 Cardium wells in Canada. It costs about 1.3x the capital to drill a 2 mi Cardium horizontal, but you're getting twice the reservoir exposure. At 3 mi, it's costing you about 1.6x the capital, but you're getting 3x the exposure. These wells are the most productive wells Saturn drills on a BOE basis. Again, all of these things put together, that's what we're doing differently. Again, Cardium play. Everyone in Canada at least is aware of the Cardium. There's been 6,000 wells. How do you make it exciting? You make them longer. Everyone can drill a longer well. No one could complete it, except now we can. Same with the Mississippian. By bringing in a new technology, that gives a lot of excitement into some of these plays. All of that results in our second quarter that we just put out. This is the eighth consecutive quarter that we beat analysts' expectations, and it all starts with the drill bit. Beating through type curve estimates quarter-over-quarter, that causes a beat in production. When you have a beat in production and you can manage costs and your costs come in under where you originally hoped they would, that gives you a beat in revenue, it gives you a beat in EBITDA, and that falls through the whole company. Over CAD 123 million of adjusted funds flow in the quarter. If you take derivatives out, that would be north of CAD 200 million. 66% increase in per-share growth year-over-year as well, exiting the quarter at 1.3x debt- to- EBITDA. Looking at our free cash flow, what do we do with this? In the last four quarters, we've produced about CAD 450 million of adjusted funds flow. A lot of that we put back. Since Saturn is always in the market for buying the cheapest, highest -quality barrels, one of the best places to look for is in your own stock. We've had two consecutive years of an NCIB in place, a share buyback, which we've maxed it out fully in the prior two years, buying back 12% of our stock in that time period. It's actually up for renewal next week, so we're very excited to get that renewed and get back in the market, continue to buy up what we believe is a greatly undervalued stock. The other thing that we do with a lot of our free cash flow is look to reduce our debt. Last month, we actually refinanced our bonds. Again, this is publicly traded paper. The exciting thing here is that with Saturn's size, scale, and performance, we were actually able to refinance those bonds and save over 200 basis points in the process. Today we have bonds that go out five years at an average cost of just over 8%. We also have CAD 500 million of liquidity through undrawn RBLs. That gives us a lot of flexibility to either look at the next acquisition or just ensure that we have cash on hand for whatever comes up. That really guides us to our updated guidance. One of the things that Saturn does really, I would say better than anyone, is our ability to adapt to what we're seeing in the market. Last year, for example, we entered the year with about a CAD 350 million capital plan. We were guiding towards CAD 70, CAD 75 oil. What we've seen in the market was all of a sudden, about mid-year, we've seen oil prices continue to collapse into the CAD 60s and low CAD 50s. For us, we cut that capital plan basically in half, and we're able to do that because of the asset base we have. Almost all of our land is held by production, so we don't have expiries. We don't have drilling commitments. We can ramp production up and down as we like. The other thing we did this year was we entered the year with a CAD 200 million program. We've seen the oil price start to rally, so a couple of months ago, we decided to double it. When you look at some of our fields compared to some of our peers, not only do you see the Peters & Co. list that shows that we have some of the best return plays, but they're the most flexible. For example, if you look at our Viking field, if you guys point to any well on that map, within 12 days, we can have it producing oil. That's licensed to drill, to completion, to bringing on. You compare that to the Duvernay, where between licensing and permitting and sourcing water, you're well over a year for a pad. This allows us to bring production up and down very quickly. Again, we don't have drilling commitments. We don't have expiries that we have to be concerned about. We can be very flexible to what the oil markets are telling us. That gives us our guidance this year. Again, we've increased that capital by almost double. That will give us an average this year of about that 44,000 bbl a day. Again, because we doubled it, our capital program, about halfway through the year, what this does is this sets us up for the exit and next year. Exiting this year at 50,000 bbl a day, again, we are still going to see a 1.3x-1.5x debt ratio, but this really does become a 2027 story. When we start looking out to 2027 and maintaining that 50,000 bbl a day, I think that is where you are going to see a lot more excitement. Hopefully, we continue to have success with the drill bit. I think we are still valued at half of where our peers are today. This is going to be a very exciting year for us as we continue to pay down debt, continue to drill good wells, and really continue to optimize these assets. Hopefully, you guys get excited. I know we are. These assets, again, we call them boring assets, but we are doing very exciting things with them. The numbers speak for themselves. Thank you very much.
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