Deutsche Rohstoff Ag · XETR:DR0
Deutsche Rohstoff — Investor Day (November 2024)
49 slides from Deutsche Rohstoff's investor day presentation, Nov 20, 2024
Slide 1: 4th Capital Markets Day
AA Deutsche Rohstoff 20. November 2024. 4th Capital Markets Day
Slide 2: Disclaimer
Disclaimer This document is an abridged presentation of important facts of Deutsche Rohstoff AG, Mannheim (DRAG; Company). The document has been prepared and published in its entirety by DRAG. This presentation is not to be construed as investment advice by the Company. This presentation does not co
Slide 3: We produce oil & gas in the US - profitable with strong growth
We produce oil & gas in the US - profitable with strong growth Diversified production base from two US states Deutsche Rohstoff AG A We produce oil & gas in the US : ~ 15,000 BOEPD & 100% of sales of EUR 210-230 million come from the USA Powder River Basin ® 2022-2024e average EBITDA of ~ EUR 150m W
Slide 4: Deutsche Rohstoff Highlights 9M24
Deutsche Rohstoff Highlights 9M24 14,702 s0Ep eur 171.6m Production 9M24 Record revenue Previous year: 11,904 BOEPD (+24%) Previous year: EUR 132.6m (+29%) eur 151.0m eur 122.2m Investments EBITDA Previous year: EUR 132.9m (+14%) Previous year: EUR 101.6m (+20%) EuR 209.7 EUR 30.2m Equity Group resu
Slide 5: 70,000 Acres in Wyoming and Colorado
70,000 Acres in Wyoming and Colorado Our business in the USA explained in a few steps Drilling —3 weeks Production — 10-25 years Oil fields in the US - Active in the US since 2011 with 100+ wells drilled - Significant acreage with up to 200 possible locations The group production consists of a large
Slide 6: Successful development and strong growth
Successful development and strong growth Strong business and revenue growth Production mBOEPD EUR Revenue million Guidance parameters Gas Ml Oil 14.7-15.7 Gas Ml oil 210-230 ee 180-200 Oil price USD 7 12.8 165 9.6 Gas price USD 2 m 73 Exchange rate USD/EUR 1.2 aHEEE oo cyenses as 2021 2022 ©2023 :«-
Slide 7: 1970 1980 1990 2000 2010 0 2030 2040 2050 2060
7 120 110 100 90 80 70 60 50 40 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060
Slide 8: Oil prices have increased 45% since early 2019
Oil prices have increased 45% since early 2019 Share price performance incl. dividend since Jan. 2019 in % 50% Covid-19 200% 150% < 144% Deutsche Rohstoff 100% 50% 45% WTI Oil 0% -50% 100% ” * sv x ev x A Deutsche Rohstoft |
Slide 9: Strong share price performance compared to various peer groups
Strong share price performance compared to various peer groups Share price performance incl. dividend since Jan. 2019 in % 250% 200% 150% < 144%Deutsche Rohstoff 4 127% D.J Oil E8Pinx 100% 4.87% DAX 87% Big Cap Peers* 454% Small Cap Peers** 50% W 45% WTI-Oil 0% Sen -50% Source: Deutsche Rohstoff AG
Slide 10: Share price vs. various peer groups
Share price vs. various peer groups — 12 and 24 months Share price performance incl. dividend in % Last 12 months (11/2023 - present) last 24 months (11.2022 - present) 50% 75% 50% 25% 25% 0% 25% 25% Ag Ss a us iN Re x xy Deutsche Rohstoff 0.J. Oil E&P inx Big Cap Peers* DAX WTI-Oil Source: Deutsche
Slide 11: Operations
Operations
Slide 12: Footprint in two major basins in Colorado and Wyoming
Footprint in two major basins in Colorado and Wyoming Powder River Basin (PRB) - Wyoming — Basin production ~200,000 BOEPD — Area ~52,000 km? — 9rigsactive DJ Basin - Colorado — Basin production ~440,000 BOEPD — Area ~68,000 km? — 9rigsactive 4 subsidiaries in the USA © 1876 @ ons @ WYOMING | es) CO
Slide 13: − − −
13 − − − 6 300 5 250 4 200 3 150 2 100 1 50 0 0
Slide 14: Surrounded by high quality E&P companies
Surrounded by high quality E&P companies — Hundreds of other companies are active in the PRB Our acreage in the Powder River Basin — The biggest players in 2024 are EOG and Anschutz — The high competitive pressure ensures efficient development and falling drilling costs — DRAGis among the top 10 in
Slide 15: Single well economics are a key driver of the business
Single well economics are a key driver of the business a @ Base Target CAPEX/Drilling USD Tim usD10m W EUR - Oil reserves of a well 500,000 bbl 550,000 bbl A 600,000 bbl Return -IRR 31% 51% 85% Payback (years) 2.8 19 1.4 Assumptions: WTI 75 USD/bbl, Henry Hub 2 USD/MMBTU, OPEX/bbI ~10.65 USD/BOE, Ro
Slide 16: Efficiency gains drive single well economics
Efficiency gains drive single well economics 2024 Investment target achieved (CAPEX/drilling) Y G Base Target x 107-s-s--t-sso4o+ <q uUsD10m Wu a < Uv CAPEX/well USD TIm USD 10m EUR - Oil reserves ofawell 220:000 bbl got el®.----d@500kbbI4 550,000 bbl 600,000 bbl [-4 = rt) ra} % - 9 IRR Payback 31%
Slide 17: CAPEX Year 1 Year 2
17 25 20 15 10 5 0 -5 -10 -15 CAPEX Year 1 Year 2 Year 3 Year 4 Year 5 after Year 5
Slide 18: Niobrara Performance 2023 & 2024 with good results
Niobrara Performance 2023 & 2024 with good results Production from 32 Niobrara B wells brought online in 2023 & 2024 Good results from the drilling program 200 — 32 Niobrara B wells with more than 5 180 = Production data === Production Forecast months of production since 2023 160 — Drilled by US-sub
Slide 19: DRAG operated wells 2024
DRAG operated wells 2024 200 seo 8 wells 140 4#73%.@ S.MONEAS fe 120 een feb co eae e goeee cut 100 nnn nnn wet ‘Bol WP 6 = 5 Nio B, INioc a = 1Mowry 40 #7 Teapot 20 ° 2 4 6 8 10 12 5 Nio B wells drilled by DRAG — 6 online since 11/2024 2.5.wells. ve Drilling program 2024 in Wyoming delivers positiv
Slide 20: Zoom in - Deutsche Rohstoff AG Wyoming assets
Zoom in - Deutsche Rohstoff AG Wyoming assets Our leases in the Powder River Basin Awide range of wells reduces geological risk and provides data \ Western PRB cf With van Eastern PRB ‘ sy aen ets | @saut chanel . 1876 OIL+GAS RESOURCES Development potential on 65,000 acres — Twostrategic areas in t
Slide 21: Formations and opportunities in the west and east of the PRB
Formations and opportunities in the west and east of the PRB DSU depth im it Multi-target horizon Possible gross wells* _ 8,000 — Increase in extractable reserves Teapot > Upto1o 25 , — Different economic parameters for each Niobrara B > Over 100 Teapot = formation Turner > Upto20 9,000 — Reduced ge
Slide 22: Attractive opportunities in the Niobrara, Teapot and Mowry formations
Attractive opportunities in the Niobrara, Teapot and Mowry formations DSU depth Teapot formation has lower drilling costs km ft — 4wells brought online in 2024 CAPEX: costs are significantly lower than Niobrara at 8,000 USD 7m well cost for most recent wells — production recently started Possible re
Slide 23: Our development potential in Wyoming: 65,000 acres
Our development potential in Wyoming: 65,000 acres* "===" More than 100 additional potential locations mmm 38 producing well j=" 43 permitted wells 15mi (24km) > 15mi (24km) € S Western PRB i Eastern PRB v v “Exemplary representation of the possible ‘spacing’ of wells and target horizons. Optimal/ec
Slide 24: Gas gathering system and compressor station
Gas gathering system and compressor station Over 36 miles of pipeline infrastructure with capacity expansion Our gas infrastructure in the eastern part of the PRB RESOURCES View of the compressor station in Wyoming A Deutsche Rohstoft |
Slide 25: Gas gathering system and compressor station
Gas gathering system and compressor station Compressor station started operation in October 2024 Systemdetails: — Compressor station starting September 2024 with 25 Mmocf/d capacity — Points of sale to Tallgrass and Energy Transfer for flexible Processing — “Pale Horse” connection accommodates unbou
Slide 26: Excellent development of daily production and reserves
Excellent development of daily production and reserves Discounted Cash Flow (PV10) of oil and gas reserves & BOEPD Production & reserves continue to rise mmm PDP mE PUD Probable — +> BOEPD a we . A 750 15,000 — Oil price sensitivity: an increase in 2762 2-7 -7 the WTI price to USD 80 boosts the oor
Slide 27: Metals
Metals Metals: around €33 million book value — Attractive opportunities in the battery sector A aumonty ~12% Share since 2014 due to sale of a mine EUR ~30.0m book value of loan and share Four projects worldwide: Developer of the largest mine outside of China in South Korea — Sangdong Mining in Pana
Slide 28: Stock-Facts & Highlights
Stock-Facts & Highlights Market capitalization” Dividend 2024 EUR 159.7 m 1,75 cur Previous year: EUR 164.1m (-3%) Previous year: 1.30 EUR (+35%) Price-to-book ratio** Price-earnings ratio ** 0,8x 2,7x previous year: 0.9x (-5%) Previous year: 2.5x (+8%) Trading volume” Further actions — Share buybac
Slide 29: Part II
Part Il — Financial perform@mce———CS & efficiency gains
Slide 30: Agenda
Agenda ia) Part1 Nine-month figures o ‘ Part 2 Part 3 Efficiency gains Outlook in Wyoming 2024 & 2025 A Deutsche Rohstoft |
Slide 31: Highlights Group figures 9M2024
Highlights Group figures 9M2024 Record EBITDA in EURm Record equity in EURm Record revenue in EURm 9M2023 9M2024 9M2023 9M2024 9M2023 9M2024 — Production increases by 24% — Operating Cash Flow: EUR 119.1m — Net profit of EUR 36.2 m to 14,702 BOEPD strengthens the balance sheet — Financing of record
Slide 32: Produced volume and realized prices
Produced volume and realized prices ( Volume by product in thousands ¢ Realized price ( after hedges in USD Exchange rate +24% +0,4% | ry ry -0,4% 4,028 +41%) — Mill om2023 749 74.0 Hi om2023 1.083. 1.087 3,250 | 92024 92024 0.923 0.920 2,367 1,684 31% — BOE BO ol Gas USD pro1 EUR EUR pro1 USD — Pro
Slide 33: Revenue share by product and volume by region
Revenue share by product and volume by region ‘G Revenue by product in EURm @ Revenue share per state in % G Volume by product in % (BOE) “army +36%P +7%P | t [7H 166.8 WB 912023 84% WB o12023 yy 09% | 52% 48% 174 9M2024 -19%P 9M2024 4% -16% 48% | P| 35% _— L| “ él Gas & NGL Wyoming Colorado él Gas
Slide 34: Group key financials 9M24
Group key financials 9M24 Income statement items Balance sheet & Cash Flow items EURm 9M24 9M23 1in% EURm 9M24. 9M23 1in% Revenue 171.6 132.6 29.4% Balance sheet total 506.9 472.6 7.3% Other operating income 2.6 73 -64.3% Property, plant and equipment 389.2 288.8 34.8% Cost of materials 33.2 24.7 34
Slide 35: Net income of oil & Gas segment above prior year
Net income of oil & Gas segment above prior year EURk 2022 2023 9M24 9M23 Net income after minorities 60,766 65,175 36,216 42,596 in % of revenue 37% 33% 21% 32% Number of shares 5,003 5,005 4,945 5,003 Earnings per share in EUR 12.14 13.02 7.32 8.51 of which: Results of oil & gas production 52,219
Slide 36: Quarterly development 2024
Quarterly development 2024 EURk 1Q24 2Q24 3Q24 9M24 9M23 Revenue 55,594 56,586 59,422 171,602 132,637 Other operating income 1,254 1,278 77 2,610 7,302 Cost of materials (10,549) (9,083) (13,609) (33,241) (24,708) Personnel expenses (1,925) (2,904) (2,753) (7,582) (4,448) Other expenses (2,711) (3,7
Slide 37: Capital efficiency as a strong lever to further improve profitability
Capital efficiency as a strong lever to further improve profitability & ~ Base Fx lu a < VU CAPEX/well USD Tim E 9 12 i) £ on os 10 EUR - Oilreserves 500,000 bbI go) 6 [=3 —] rt) ra} ao Amortization persor USD~18 Assumptions: 500k bbl, 240k BOE Gas and NGL, Royalties 18%, Working Interest 100% * Ind
Slide 38: Agenda
Agenda Part 2 Efficiency gains in Wyoming vy = 2 Part 3 Outlook 2024 & 2025 A Deutsche Rohstoft |
Slide 39: Increased efficiency in the drilling process
Increased efficiency in the drilling process Days per well significantly reduced again (~25% in Niobrara formation) CAPEX - Breakdown g 3 Drilling o 40% ¢ ® completion = == Facilities Niobrara formation 2024 = 24 = o T = 17 7 18 2 a -12-gg-12-12-12-B-y-dgis 8 me $s s 9 10 11 12 13:14:15 16 17 w Ss N
Slide 40: Gains in efficiency during completion
Gains in efficiency during completion The completion was accelerated and the design revised 2023 Ml 2024 Days per completion Design (volume) p3% per) 8 7 Niobrara formation Amounts of water & sand Costs per completion reduced by USD ~900k — Higher discounts due to higher number of drillings and good
Slide 41: Profitability and sustainability - investments with a dual impact
Profitability and sustainability - investments with a “dual impact” Avoiding flaring Gas for operating the rig = Own gas infrastructure helps significantly to avoid gas flaring — 2024: first use of the pipeline infrastructure for partial operation of the rig by CNG (“dual fuel approach”) — Diesel sa
Slide 42: Agenda
Agenda vy = 2 Part 3 Outlook 2024 & 2025 A Deutsche Rohstoft |
Slide 43: Forecast 2024 & 2025
Forecast 2024 & 2025 Forecast figures onfirmed @ Base scenario 2024e Volume - 14,700-15,700 BOEPD 2024e 2025e — Ofwhich 8,800-9,400 BOPD Revenue EURm 210-230 180-200 EBITDA EURM 160-180 125-145 ASE SIE GiEvEMU Underlying assumptions: — Oil 80-85% Oil price USD 7S 7S — Gas and NGL 15-20% Gas price US
Slide 44: Strong hedge book
Strong hedge book — 1.4 mi Hedged volume in barrels ion bbl hedged at USD 71.2 per bbl Value of the hedges at: 391,300 314,000 USD 50 WTI-> USD 30m USD 40 WTI-> USD 44m 229,200 179,100 111,100 |] 69,100 63,200 58,500 58,500 Q4 Ql Q2 @ 4 Qa Q2 Q@3 4 2024 2025 2025 2025 2025 2026 2026 2026 2026 Total
Slide 45: Outlook Q4 2024
Outlook Q4 2024 Revenue in EURm Sensitivity 4Q24 Revenue 556 56.6 59.4 ny a ; _ WY Oil price +0.4/-0.4 USD +/-1 EURm Gas price +0.3/-0.3 USD +/- 0,5 EURm Exchange rate -0.5/+0.5 Ql Q2 Q3 Q4e USD/EUR +/-0,01 EURm Revenue in 4Q24* as a function of WTI and exchange rate in EURm Production volume 75 0)
Slide 46: Outlook 2025
Outlook 2025 Revenue in EURm Sensitivity 2025e 196 210-230 Revenue 165 180-200 Oil price 4+2.3/-2.4 USD +/-1 EURm 73 Gas price +1.6/-1.6 USD +/- 0,5 EURm 2021 2022 2023 2024e 2025e USD/EUR+/- 0,01 EURMm Sensitivity analysis for 2025 based on current trends 2025e CAPEX — EUR 100-110m — Volume from 3.
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Slide 48: Glossary
Glossary BO or BBL Barrel of oil or barrel BOE Barrels of oil equivalent (oil, gas, NGLs) BOEPD/BOPD Barrels of oil equivalent per day/barrels of oil per day Brent Brent is a European crude oil grade CAPEX Capital Expenditure (defined as Investing Cash Flow for reasons of simplification) CF Cash Flo
Slide 49: Glossary
Glossary Market capitalization: Refers to the total market value of a company's outstanding shares Millions of barrels of oil per day Thousand cubic feet Million Miles Million British Thermal Units Metric tons Liquid gas: ethane, propane, butane Organization of the petroleum exporting countries Oper