SLIDE 1
EAGLE ENERGY™ TRUST
Investor Presentation | June 2015 TSX: EGL.UN
EXPERTISE • QUALITY • INCOME
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Advisory Regarding Forward Looking Statements:
This presentation includes statements that contain forward looking information (“forward-looking statements”) in respect of Eagle Energy Trust’s expectations regarding its future operations, including Eagle’s investment and business strategy, and forecast estimates for Eagle’s capital budget, production, drilling plans operating costs, funds flow from operations, commodity split, debt to trailing cashflow, basic and corporate payout ratios, annual distribution, tax pools, estimated field netback, free cashflow, hedging and reserves, resources and capital efficiency in 2015. These forward looking statements involve estimates and assumptions including those relating to timing to drill and bring wells on production, production rates, operating and capital costs, marketability
- f crude oil, natural gas and natural gas liquids, future commodity prices, future currency exchange rates, anticipated cash flow based on estimated production, size of reserves and reservoir
performance, among other things. These estimates and assumptions necessarily involve known and unknown risks, delays, challenges and other uncertainties inherent in the oil and gas industry including those relating to geology, production, drilling, technology, operations, human error, mechanical failures, transportation, processing problems and poor reservoir performance, among
- thers things, as well as the business risks discussed in the Trust’s annual information form dated March 19, 2015 under the headings “Risk Factors” and “Advisory-Forward-Looking Statements
and Risk Factors”. The forward-looking statements included in this presentation should not be unduly relied upon. Actual results may differ from the forward-looking information in this presentation, and the difference may be material and adverse to the Trust and its unitholders. No assurance is given that the Trust’s expectations or assumptions will prove to be correct. Accordingly, all such statements are qualified in their entirety by reference to, and are accompanied by, the information and factors discussed throughout this presentation. These statements speak only as of the date
- f this presentation and may not be appropriate for other purposes. Eagle’s annual information form dated March 19, 2015 contains important detailed information about Eagle and its
trust units. Copies of the annual information form may be viewed at www.sedar.com and on Eagle’s website at www.eagleenergytrust.com.
Advisory Regarding Non-IFRS financial measures:
Statements throughout this presentation make reference to the terms “funds flow from operations,” “field netbacks,” “free cash flow,” “basic payout ratio” and “corporate payout ratio,” which are non-IFRS financial measures that do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Investors should be cautioned that these measures should not be construed as an alternative to earnings (loss) calculated in accordance with IFRS. Management believes that these measures provide useful information to investors and management since they reflect the quality of production, the level of profitability, the ability to drive growth through the funding of future capital expenditures and the sustainability of distributions to unitholders. “Funds flow from operations” is calculated before changes in non-cash working capital and abandonment expenditures. Management considers funds flow from operations to be a key measure as it demonstrates Eagle’s ability to generate the cash necessary to pay distributions, repay debt, fund decommissioning liabilities and make capital investments. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds flow from operations provides a useful measure of Eagle’s ability to generate cash that is not subject to short-term movements in non-cash working capital. “Field netback” is calculated by subtracting royalties and operating expenses from revenue. “Free cash flow” is calculated by subtracting capital expenditures from field netbacks for the property. “Basic payout ratio” is calculated by dividing unitholder distributions by funds flow from operations. “Corporate payout ratio” is calculated by dividing capital expenditures plus unitholder distributions by funds flow from operations. See the "Non-IFRS financial measures" section of the Trust's Management Discussion and Analysis for the three months ended March 31, 2015 for a reconciliation of funds flow from operations and field netback to earnings (loss) for the period, the most directly comparable measure in the Trust's audited annual consolidated financial statements.