Tullow Oil plc · LSE:TLW
Tullow Oil — Investor Presentation (January 2020)
18 slides from Tullow Oil's investor presentation, January 2020
Slide 1: Tullow Oil plc – Overview Presentation
Tullow Oil plc – Overview Presentation
Slide 2: Disclaimer
Tullow Oil plc – Overview Presentation DISCLAIMER This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Tullow believes the expectations reflected herein t
Slide 3: Our Portfolio of Assets
Tullow Oil plc – Overview Presentation OUR PORTFOLIO OF ASSETS NEW VENTURES - exploration • Extensive acreage in Africa and South America, in EAST AFRICA - development well-known plays Kenya • 2020 drilling in Peru and Suriname • Significant discoveries in South Lokichar basin • Recent new licences
Slide 4: Prudent Financial Management
Tullow Oil plc – Overview Presentation PRUDENT FINANCIAL MANAGEMENT $/bbl $m Unit Opex Net G&A 20 250 200 15 150 10 100 5 50 0 0 2015 2016 2017 2018 2019f 2015 2016 2017 2018 2019f $m Financing costs 2020 Hedging Programme 400 Maximise exposure to upside 300 $88 35% Oil price 200 sales 25% sales ($/
Slide 5: Maintaining a Diversified Capital Structure
Tullow Oil plc – Overview Presentation MAINTAINING A DIVERSIFIED CAPITAL STRUCTURE Capital structure Year-end 2019 debt position • A balance of funding sources • Net debt ~$2.8bn • Revolving RBL provides long-term flexibility • Gearing ~2.0x (net debt:EBITDAX) • No material near-term maturities • Li
Slide 6: Disciplined Capital Investment in Our Business
Tullow Oil plc – Overview Presentation DISCIPLINED CAPITAL INVESTMENT IN OUR BUSINESS MAXIMISING GROWTH FROM FINDING PRODUCTION DISCOVERED RESOURCES NEW OIL FY $200m $60m $65m $30m $135m $490m 2019 Ghana Non-op Kenya Uganda Exploration FY $140m $80m $40m $15m $75m 2020 Ghana Non-op Kenya Uganda Expl
Slide 7: Sustainable Free Cash Flow Generation
Tullow Oil plc – Overview Presentation SUSTAINABLE FREE CASH FLOW GENERATION Underlying free cash flow1 $m 90k ~87k ~75k 500 boepd boepd bopd $423m ~$490m ~$350m capex capex capex $68/bbl 400 Factors impacting 2020 free $411m $64/bbl $70/bbl cash flow guidance: ~$350m 300 Oil price ($5/bbl +/- $10
Slide 8: Solid Production Base from African Assets
Tullow Oil plc – Overview Presentation SOLID PRODUCTION BASE FROM AFRICAN ASSETS West Africa oil production Confidence in underlying production business 2020 guidance: 70,000 - 80,000 bopd • Assets continue to deliver free cash flow • Non-operated portfolio providing stable platform for growth • Lon
Slide 9: Ghana Production Operations
Tullow Oil plc – Overview Presentation GHANA PRODUCTION OPERATIONS 2019 performance • Jubilee: Performance impacted by topside issues and gas export constraints • TEN: Production impacted by well completion challenges and well decline • Jubilee reserves increase offset by reduction in reserves at En
Slide 10: Uganda Development – Project at an Advanced Stage
Tullow Oil plc – Overview Presentation UGANDA DEVELOPMENT – PROJECT AT AN ADVANCED STAGE 1.7bbo 230,000 Gross 2C bopd gross resource production PROJECT UPDATE Major technical aspects completed: • FEED studies • Tilenga ESIA approval • Geophysical and Geotechnical studies along entire East Africa Pip
Slide 11: Project Oil Kenya – Steps to FID
Tullow Oil plc – Overview Presentation PROJECT OIL KENYA – STEPS TO FID PROJECT UPDATE Foundation Phase Significant progress made in 2019: 210 mmbo 60-80,000 Gross 2C bopd gross • EOPS - Trucking operation 2,000 bopd, first export in Q3, resource production well performance as expected (currently su
Slide 12: Finding New Oil – Executing Our Exploration Programme
Tullow Oil plc – Overview Presentation FINDING NEW OIL – EXECUTING OUR EXPLORATION PROGRAMME 2019 2020 2021 GUYANA Analysing data PERU 2020 drilling SURINAME CÔTE D’IVOIRE Focus on seismic COMOROS ARGENTINA New entries Drilling in 2019 NAMIBIA adjacent block Firm Drilling Firm Seismic Airborne Surve
Slide 13: 2019 Guyana Well Results
Tullow Oil plc – Overview Presentation 2019 GUYANA WELL RESULTS JETHRO & JOE RESULTS 55m & 14m net pay oil discoveries ~11-12°API (heavy oil) ~4-5% sulphur CARAPA RESULT 4m* net pay oil discovery ~27°API (good quality oil) Integrate data and reprocessed NEXT STEPS seismic datasets into geological <1
Slide 14: Exploration Drilling Confirmed for 2020 Programme
Tullow Oil plc – Overview Presentation EXPLORATION DRILLING CONFIRMED FOR 2020 PROGRAMME Suriname: Trigger well with significant follow-on potential MARINA 350m 1H 2020 • Goliathberg-Voltzberg North prospect water depth drilling prospect • Located on flank of Demerara High • Testing dual targets in
Slide 15: Building New Acreage Across Exploration Portfolio
Tullow Oil plc – Overview Presentation BUILDING NEW ACREAGE ACROSS EXPLORATION PORTFOLIO Argentina: Successful bid-round • Entry to three offshore blocks in Malvinas West Basin • Shallow water Tertiary and Cretaceous turbidite plays • Geological studies & 2D seismic reprocessing in 2019; 3D seismic
Slide 16: Spotlight on Côte d'Ivoire
Tullow Oil plc – Overview Presentation SPOTLIGHT ON CÔTE D’IVOIRE >1.5 BBO Low-cost Using both Carried work High-value Light footprint Gross mean un-risked exploration in proven & programme; barrels & low execution across resources core West Africa innovative 60% operated breakeven 8,000 sq km oil p
Slide 17: Spotlight on Comoros
Tullow Oil plc – Overview Presentation SPOTLIGHT ON COMOROS ~7 BBO 17 Leads 16,063 sq km 35% equity Large, operated, offshore oil play in East Africa Simple drilling and attractive fiscal terms Managed cost exposure in frontier acreage Flexible options to leverage seismic market Rapid deal-making wi
Slide 18: Tullow Oil plc
Tullow Oil plc – Overview Presentation Tullow Oil plc 9 Chiswick Park 566 Chiswick High Road London, W4 5XT Follow Tullow on: United Kingdom Tel: +44 (0)20 3249 9000 Fax: +44 (0)20 3249 8801 Email: ir@tullowoil.com Web: www.tullowoil.com Slide 18