Eagle Energy : Corporate Presentation - January 2016

PowerPoint Presentation

EXPERTISE • QUALITY • INCOME

TSX: EGL.UN

EAGLE ENERGY™ TRUST

Investor Presentation | January 2016

Advisories

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, corporate payout ratios, annual distribution, tax pools, estimated field netback, hedging and reserves and resources. 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 of 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 others 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 of this presentation and may not be appropriate for other purposes. The Trust does not undertake any obligation, except as required by applicable securities legislation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. 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," 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.

"Corporate payout ratio" is calculated by dividing capital expenditures plus unitholder distributions by funds flow from operations.

Advisory Regarding Oil and Gas Measures and Estimates

This presentation contains disclosure expressed as barrel of oil equivalency ("boe") or boe per day ("boe/d"). All oil and natural gas equivalency volumes have been derived using the conversion ratio of 6Mcf of natural gas: 1 bbl of oil. Equivalency measures may be misleading, particularly if used in isolation. A conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalent of six to one, utilizing a boe conversion ratio of 6 Mcf: 1 bbl would be misleading as an indication of value.

The estimated values of the future net revenues of the reserves disclosed in this presentation do not represent the market value of such reserves. There is no assurance that such price and cost assumptions will be attained and variances could be material. The recovery and estimates of reserves provided in this presentation are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided.

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Strategy

"Eagle is created to provide investors with a sustainable business while delivering stable production and overall growth through accretive investments and acquisitions."

Expertise

Quality

Eagle's trusted management team brings

an average of 25 years of experience to the oil and gas sector.

Eagle owns stable petroleum producing assets in Canada and the U.S.

Income

Eagle strives to deliver sustainable monthly distributions to unitholders.

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Acquisition of Maple Leaf(1)

On November 19, 2015, Eagle entered into an agreement to acquire the shares of Maple Leaf Royalties Corp. ("Maple") and convert into a corporation by way of a plan of arrangement (the "Arrangement"). A special meeting of Eagle's unitholders will be held on January 25, 2016 to approve the Arrangement, with closing expected to occur shortly thereafter.

Acquisition Highlights:

• Adds approximately 235 boe/d of royalty interest production (30% oil and liquids) and 161 boe/d of working interest production (30% oil and liquids) to Eagle's 2016 average production.

• Adds estimated total net proved reserves of 0.94 million boe.

  
  

• Total net proved plus probable reserves of 1.09 million boe.

  
  

• No additional debt, capital expenditures or overhead needed to manage the incremental production and cash flow.

Note:

1) For more information, see Eagle's news release issued on November 20, 2015, "Eagle Energy Trust Announces the Acquisition of Maple Leaf Royalties Corp. and Conversion to a Dividend-Paying Corporation."

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