Horizon Oil Limited · ASX:HZN
Horizon Oil — RIU Good Oil Conference 2019
20 slides from Horizon Oil's conference presentation, Sep 12, 2019
Slide 1: RIU Good Oil Conference 2019
RIU Good Oil Horizon Oil Limited Conference 2019 ABN 51 009 799 455 12 September 2019 Michael Sheridan
Slide 2: Compliance Statements
Compliance Statements Disclaimer Reserves disclosure Statements contained in this material, particularly those regarding the possible or Unless otherwise stated, all petroleum reserves and resource estimates refer to assumed future performance, costs, dividends, returns, production levels or rates,
Slide 3: Corporate Overview
Corporate Overview Good Oil Conference 2019 3
Slide 4: Overview of portfolio
Overview of portfolio China Asia Pacific focus Block 22/12 (Beibu Gulf) 26.95%/55% Material joint venture interests High margin, long life oil production assets in China and New Zealand generating strong Papua New Guinea cashflow PDL 10 (Stanley) 30% Significant holding in material PRL 21 (Elevala/K
Slide 5: FY19 Full Year Highlights
FY19 Full Year Highlights RECORD SALES VOLUME RECORD SALES REVENUE RECORD EBITDAX 1.87 mmbbls US$122 million US$93 million 13 % 22 % 36 % NET DEBT REDUCED UNDERLYING PROFIT 2P RESERVES INCREASE BEFORE TAX ~95% reserves replacement US$28 million US$37 million 68 % 97 % 1.8 mmbl Good Oil Conference 20
Slide 6: Corporate snapshot
Corporate snapshot Key data 1,302M SHARES 2P Reserves1 8.8 mmbl Private shareholders IMC, 31% 126.7 mmboe <5m shares, 2C Resources1 (26.9 mmbo and 599 bcf) 39% Market Capitalisation A$175 million FY 2019 Sales 1.87 mmbl Management and board, FY 2019 Revenue US$122 million 1% Private shareholders Ins
Slide 7: Portfolio summary
Portfolio summary Good Oil Conference 2019 7
Slide 8: Block 22/12 China
Block 22/12 China DURING FY19 10% increase in oil sales to 1.3 mmbl with underlying production increasing 16% Two infill wells drilled in WZ 12-8W and WZ 12-8M fields brought onto production in August 2018 with initial flow rates of 3,500 bopd (gross) Beibu Gulf operating costs remained below US$10/
Slide 9: Maari/Manaia Fields - New Zealand
Maari/Manaia Fields - New Zealand DURING FY19 33% production increase during the year to 0.6 mmbl driven by full year benefit of 2018 acquisition of additional 16% of project, production optimisation activities and increasing benefit of water injection program Well intervention activities and conver
Slide 10: Papua New Guinea portfolio
Papua New Guinea portfolio DURING FY19 Material (~30%) interests held in four licences in Western Province which hold gas/condensate fields with gross aggregate audited resources of 64 mmbbls of condensate and ~2,200 PJ of sales gas Majority of resources are adjacent to ExxonMobil's planned PNG LNG
Slide 11: Reserves & Contingent Resources
Reserves & Contingent Resources AT 30 JUNE 2019 2P RESERVES RECONCILIATION Record sales of 1.87 mmbo and strong year of underlying production of 1.6 mmbl 8.9 8.8 1..6 Net 2P reserves additions of 1.8 mmbl (after economic 2.1 interest adjustment for accelerated cost recovery oil) NZ NZ 4.5 0.3 0.3 4.
Slide 12: Financial summary
Financial summary Good Oil Conference 2019 12
Slide 13: Financial Highlights
Financial Highlights OIL SALES (mmbbls) REVENUE1 (US$m) 1.87 140.0 80.0 1.65 0.29 120.0 70.0 1.42 0.31 1.38 60.0 1.21 0.30 100.0 50.0 1.00 80.0 80.1 US$/bbl US$m 0.90 0.86 70.5 40.0 68.9 0.93 60.0 35.5 0.80 30.0 Cost recovery 52.2 40.0 Beibu entitlement 20.0 Beibu 0.48 0.58 20.0 40.5 42.3 Maari 0.47
Slide 14: Financial Highlights
Financial Highlights EBITDAX AND COST PER BBL UNDERLYING PROFIT BEFORE TAX (US$m) 100.0 30.0 90.0 25.0 80.0 70.0 37.3 20.0 60.0 93.0 US$/bbl 18.9 US$m 50.0 15.0 89.1 2.2 40.0 68.5 8.7 54.0 45.2 10.0 30.0 (8.7) 20.0 5.0 10.0 0.0 0.0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDAX Opex/sales
Slide 15: Financial Highlights
Financial Highlights FREE CASH FLOW (US$m) NET DEBT(US$m) 72.8 58.8 57.6 44.2 35.6 138.8 (7.7) (10.2) 131.9 (30.1) (37.7) 108.5 (95.3) 88.6 Investing CF Operating CF FCF* 28.0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Sustained growth in free cash flow Accelerated debt reduction following Ac
Slide 16: Outlook – Strong production growth and cashflow providing pathway to further growth
Outlook – Strong production growth and cashflow providing pathway to further growth Pursue and promote production Continued strong cashflow Optimise enhancement opportunities at Strengthening generation enabling progressive Maari/Manaia and Beibu fields debt reduction Production Balance Sheet Assets
Slide 17: For more information please contact
For more information please contact: Michael Sheridan Chief Executive Officer Horizon Oil Limited T: +61 2 9332 5000 F: +61 2 9332 5050 Level 6, 134 William St Woolloomooloo NSW 2011 E: info@horizonoil.com.au horizonoil.com.au
Slide 18: FY19 Financial Results
FY19 Financial Results (US$ million) FY19 FY18 Change (%) Production volume, mmbbl 1.60 1.32 22% Material increase in sales and production volumes Sales volume, mmbbl 1.87 1.65 13% Revenue 122.4 100.0 22% EBITDAX 93.0 68.5 36% Robust and material increases in revenue, EBITDAX, profit and Underlying
Slide 19: Key Cashflow Drivers
Key Cashflow Drivers US$ million 126.7 (4.3) (28.1) (15.0) (6.5) (68.7) 72.8 (7.5) (2.7) 27.6 21.5 Opening cash Crude oil sales Hedge settlements Opex Corporate & tax Interest Net cash inflows Debt repayment Investment in oil Exploration Closing cash balance 30 June from operating and transaction an
Slide 20: Underlying Profit Drivers
Underlying Profit Drivers 50.0 US$/bbl FY2018:64 45.0 FY2019:68 1.2 40.0 1.8 (1.5) 3.7 (9.9) 35.0 6.6 2.6 30.0 25.0 14 20.0 37.3 15.0 10.0 18.9 5.0 - Underlying profit Sales volume Sales price Hedge Operating costs Other Exploration and Depreciation and Financing costs Underlying profit before tax f