Tullow Oil Plc · LSE:TLW
Tullow Oil — Shareholder Meeting (April 2018)
12 slides from Tullow Oil's shareholder meeting presentation, Apr 25, 2018
Slide 1: 2018 Annual General Meeting
Tullow oil ple ANNUAL GENERAL MEETING 25 April 2018 TULLOW } | a
Slide 2: Disclaimer
2018 Annual General Meeting 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 to be reason
Slide 3: A New Executive Team
2018 Annual General Meeting A NEW EXECUTIVE TEAM Management change Listening & responding Planning & actions New CEO & CFO Focusing on our Objectives set & messages to investors delivery tracked Extended Executive team Acting on feedback Driving business from our staff performance Reorganisation of
Slide 4: The Past Year – Delivering on Our Objectives
2018 Annual General Meeting THE PAST YEAR – DELIVERING ON OUR OBJECTIVES Continued strengthening of Balance Sheet Free cash flow Funding & Balance sheet Portfolio management Record year for production Significant debt reduction Uganda farm-down Cost discipline embedded $543m free cash flow in 2017
Slide 5: A Step Change in Net Debt and Gearing
2018 Annual General Meeting A STEP CHANGE IN NET DEBT AND GEARING Gearing reduced to 2.6x – approaching policy target Significant progress towards policy Net debt $4.8bn • Net debt reduced by $1.3bn 5.1x - Equity proceeds of $721 million - Free cash flow of $543 million • Reduced gearing by 50% Net
Slide 6: An Overview of Our Operations
2018 Annual General Meeting AN OVERVIEW OF OUR OPERATIONS NEW VENTURES - exploration • Africa and South America EAST AFRICA – development • 3 year campaign from 2H 18 Kenya & Uganda Mauritania • Development of significant Côte discovered resources d’Ivoire Ghana • Production growth from early 2020s
Slide 7: Maximising Production in Ghana
2018 Annual General Meeting MAXIMISING PRODUCTION IN GHANA A return to drilling at TEN and Jubilee • Multi-year programme of infill wells • First well at TEN under way • Drill/complete ~5 wells in a full year • Significant focus on investing capital efficiently • Considering business case for 2nd ri
Slide 8: Developing Kenya's Discovered Resources
2018 Annual General Meeting DEVELOPING KENYA'S DISCOVERED RESOURCES 120 GROSS ANNUAL AVERAGE OIL RATE 100 South Lokichar development plan 80 (KBOPD) 60 • Phased development approach planned Incremental developments 40 • 240 – 560 – 1,230 mmbo (1C-2C-3C) resources 20 Foundation Stage • Export via pip
Slide 9: Uganda Development
2018 Annual General Meeting UGANDA DEVELOPMENT Net upstream & midstream development capex & production 250 25 Farm-down expected to complete in 2018 200 20 • $900m farm down to Total & CNOOC 150 $m 15 kbd • Deal covers Tullow’s capex to 1st oil and beyond 100 10 50 5 0 0 Development progressing towa
Slide 10: Multiple High-Impact Campaigns Over Next Three Years
2018 Annual General Meeting MULTIPLE HIGH-IMPACT CAMPAIGNS OVER NEXT THREE YEARS 2018 2019 2020 ACTIVE VENTURES Guyana / Suriname Mauritania / Namibia NEW VENTURES Côte d’Ivoire Peru INFRASTRUCTURE LED EXPLORATION West & East Africa Drilling Airborne Seismic Firm activity Optional activity Survey Co
Slide 11: Well Positioned for the Future
2018 Annual General Meeting WELL POSITIONED FOR THE FUTURE • Smooth transition to new Executive team Business • Asset base significantly de-risked foundations • Significantly improved financial foundation • Rigorous focus on costs and strict capital allocation Disciplined • Maximising production rev
Slide 12: Tullow Oil plc
2018 Annual General Meeting 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 12