Bw Energy Ltd. · OSL:BWE
Bw Energy — Q1 2024 Earnings Presentation
26 slides from Bw Energy's earnings presentation, May 24, 2024
Slide 1: First quarter 2024 Presentation
First quarter 2024 Presentation Carl K. Arnet, CEO Knut Sæthre, CFO Lin Espey, COO 24 May 2024
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by BW Energy Limited exclusively for information purposes. This presentation may not be r edistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the business, financial performance a
Slide 3: Q1 Highlights
Q1 Highlights • Net production from Gabon and Brazil of • Q1 2024 EBITDA of USD 109.7 million with a net profit of USD ~27,300 barrels per day 47.4 million • First oil from Hibiscus South in early March, • 3 liftings totalling ~1.9 million five months after initial discovery barrels to BW Energy in
Slide 4: Production stabilised at higher level pending new wells and ESP delivery
Production stabilised at higher level pending new wells and ESP delivery bbls/day 60,000 Tortue Hibiscus Golfinho 50,000 Golfinho Closing 40,000 MaBoMo ESP 30,000 failures Hibiscus 1st Oil 20,000 10,000 - Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-
Slide 5: Zero-harm objective for people and environment
Zero-harm objective for people and environment Minimising impact Working for local society Sound governance to environment • No LTIs recorded to date in 2024 • No environmental incidents to date in 2024 • Supports local communities by investing in operated areas in to foster growth and development 5
Slide 6: Dussafu
ye BW ENERGY
Slide 7: Production update
Production update • Q1 net production ~1.66 million barrels, equal to Dussafu net production ~18,260 bbls/day kbbls/day • OPEX at USD ~23 per barrel, down from Q4 2023 on 18.3 17.1 operational efficiency and production growth 16.5 • Progressing ESP solution ‒ Three conventional ESP systems ordered a
Slide 8: Expanding successful Hibiscus development
Expanding successful Hibiscus development DHIBM-7P • First oil from DHBSM-1H well in early March, less than five months after discovery in November 2023 DHBSM-2P ‒ Producing ~7,800 barrels per day on ESP • DHBSM-2P pilot confirming extension into the northern part of the field with good reservoir qu
Slide 9: Completing Hibiscus / Ruche drilling program
Completing Hibiscus / Ruche drilling program • Discussing a significant extension of the drilling rig contract • Complete two production wells (DHBSM-2H and DHIBM-7H) • Execute planned workovers to replace existing equipment with conventional ESPs, increasing Dussafu production to the BW Adolo namep
Slide 10: Golfinho
Ww BW ENERGY Golfinho 7 ea aS 10
Slide 11: Stable production with step-up in 2027
Stable production with step-up in 2027 • Q1 production ~0.82 million barrels, equal to ~9,030 bbls/day ‒ Production cost (excluding royalties) averaged USD 48 per barrel • Progressing Golfinho infill development plan towards 2024 FID ‒ Low risk oil and gas targets in mature area • GLF-50 gas well an
Slide 12: Maromba
Maromba 12 SN BW ENERGY
Slide 13: Maromba development progressing towards FID and execution
Maromba development progressing towards FID and execution • Development concept based on dry tree wellhead platform and FPSO ‒ Revised plan expected completed end H1 2024 • MoU signed with Cosco Shipping Heavy Industry for FPSO upgrade ‒ FPSO BW Maromba (ex. Polvo) is at yard in China, preparing for
Slide 14: Kudu
Kudu 14 a\Y BW ENERGY
Slide 15: Kudu exploration program supported by recent major oil discovery
Kudu exploration program supported by recent major oil discovery • Major high quality oil discovery (10 billion barrels in place) announced 60 km downdip from Kudu by Galp • 3D seismic processing ongoing with good data quality ‒ Additional data secured over adjacent area ‒ Completion expected in Q3
Slide 16: Q1 2024 financials
Q1 2024 financials 16
Slide 17: Adding financial flexibility
Adding financial flexibility • Golfinho prepayment facility extended and increased to USD 120 million ‒ From originally USD 80 million ‒ Fully drawn at the end of the period • MaBoMo lease financing frees up net USD 110 million of liquidity to BW Energy ‒ Funding of growth strategy including continu
Slide 18: Income statement – Q1
Income statement – Q1 In Millions of USD Income Statement Q1 2024 Q4 2023 Change Operating revenue 185.0 240.2 (55.2) • 3 liftings of 1.9 million barrels vs. 4 liftings of 2.7 million Gain/(Loss) from oil derivatives (3.3) 9.4 (12.6) barrels in the previous quarter Operating expenses (72.0) (116.1)
Slide 19: Balance sheet
Balance sheet In Millions of USD Assets Q1 2024 Q4 2023 Change Property and other equipment 3.6 3.5 0.1 Right-of-use assets 101.2 108.9 (7.7) E&P tangible assets 1,078.4 1,050.9 27.5 • Hibiscus/Ruche development, Maromba project Intangible assets 263.1 255.3 7.7 Other non-current assets 46.4 41.9 4.
Slide 20: Cash flow overview Q1 2024
Cash flow overview Q1 2024 USD million 250.0 21.8 194.2 200.0 14.9 150.1 150.0 (80.8) 100.0 50.0 0.0 Cash 31 December Operating cash flow Net investments Net financing activities Cash 31 March 2024 2023 20
Slide 21: Lifting schedule and hedging
Lifting schedule and hedging • Dussafu Quarterly liftings schedule to BW Energy ‒ Two Q1 liftings in March • Totaling ~1.4 million barrels net to BW Energy • Average realised price USD 83 per barrel ‒ One lifting in Q2 of ~730,000 in May net to BW Energy 2 • Golfinho ‒ One lifting in Q1 1 1 • 490,00
Slide 22: Summary
ye BW ENERGY Summary 22
Slide 23: 2024 production guidance maintained
2024 production guidance maintained Net Total 10 – 12 million production1 barrels Production USD 30 – 35 per cost barrel • Increase reflecting additional USD 280 – 330 Hibiscus wells optimising rig Net Capex2 utilisation while awaiting million ESPs G&A USD 22 – 24 million 23 1) Reflects net producti
Slide 24: Increased diversification and step-change in production
Increased diversification and step-change in production • Complete ESP change-out and maximise Dussafu output Production • First oil from Hibiscus South in March, completing second well later 2024 • Drill Bourdon appraisal well Exploration • Complete 3D seismic evaluation to assess Kudu potential an
Slide 25: Q&A
ye BW ENERGY Q&A
Slide 26: ir@bwenergy.no www.bwenergy.no
ir@bwenergy.no www.bwenergy.no 26