Meren Energy Inc. · TSX:MER
Meren Energy — Africa Oil — Q4 2023 Earnings Presentation
21 slides from Meren Energy's earnings presentation, Feb 27, 2024
Slide 1: The Next Phase of Value Creation: 2023 Results & 2024 Outlook
Africa Oil Corp. THE NEXT PHASE OF VALUE CREATION 2023 RESULTS & 2024 OUTLOOK 27th February 2024 WWW.AFRICAOILCORP.COM
Slide 2: Speakers Agenda
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. SPEAKERS AGENDA Dr Roger Tucker • Introduction President & CEO • Highlights • Strategic Principles • 2023 Results • Business Overview & Outlook Pascal Nicodeme • Strategic Priorities CFO • Q&A Shahin Amini Investor Relations SLIDE 2
Slide 3: Forward-Looking Statements
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. FORWARD-LOOKING STATEMENTS This document has been prepared and issued by and is the sole responsibility of Africa Oil Corp. (the Actual results may differ materially from those expressed or implied by such forward-looking “Company”) and its
Slide 4: Our Strategic Principles
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. OUR STRATEGIC PRINCIPLES Value Creation & Growth Growth through focused exposure to world- class assets Target near-term rewards for Partner with tier-1 operators, shareholders whose budgets and timetable are not disrupted by cyclical facto
Slide 5: 2023 Highlights
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. 2023 HIGHLIGHTS Renewal of OML 130 for an additional 20 years and the refinancing of Prime’s debt Received $175 million in dividends from Prime Strong Balance Sheet & Liquidity Successfully met mid-point of 2023 Dividends & Share Buybacks g
Slide 6: Strong Start to 2024
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. STRONG START TO 2024 Strategic Impact Farm Down Agrement • Carry of all costs through to first production • Retain exploration and appraisal upside • Mitigating project execution risk • Frees up AOC balance sheet Akpo West Production Start-
Slide 7: Successfully Met 2023 Guidance
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. SUCCESSFULLY MET 2023 GUIDANCE FY’23 production in-line with mid-point of the range CFFO $298.8m vs. Guidance Mid-Point of $290.0m CAPEX $62.2m vs. Guidance Mid-Point of $90.0m Predictable production from world-class fields Agbami, Akpo & E
Slide 8: Africa Oil Financial Highlights
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. AFRICA OIL FINANCIAL HIGHLIGHTS Net Income ($ million) FY’23 Net Income 150 $87.1m (FY’22: $(60.3)m 100 106.9 FY’23 Share of Profit 50 70.6 87.1 From Investment in JV 0 45.6 5.7 21.9 47.1 $228.0m Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4
Slide 9: Disciplined Cash Management
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. DISCIPLINED CASH MANAGEMENT Cash Balances & Movements ($ million) YE’23 AOC Cash Balance $232.0m (YE’22: $199.7m) Shareholder Returns $29.1m 17% of 2023 Prime Dividends YTD Investments in Core Assets & High Impact Catalysts $59.8m 36% of Pr
Slide 10: Oil Sales
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. OIL SALES The Oil Marketing Strategy Implemented in 2H’22 Continues To Achieve Superior Realised Sales Prices to Dated Brent FY’23 Average Sales Price Sales Price Dated Brent 120 $84.6/bbl FY’23 Dated Brent: $84.5/bbl 100 FY’23 Average Bloo
Slide 11: Prime Financial Highlights
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. PRIME FINANCIAL HIGHLIGHTS (NET TO AOC’S 50% SHAREHOLDING) FY’23 CFFO2 Strong and Steady EBITDAX1 and CFFO2 ($ million) $298.8m (FY’23: $279.4m) 700 FY’23 EBITDAX1 600 $458.7m (FY’22: $617.4m) 500 Q4’23 CFFO2 400 $62.5m (Q4’22: $65.5m) 300
Slide 12: Shareholder Returns
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. SHAREHOLDER RETURNS ~$100m 01 02 Returned Since 2022 Base Dividend Policy Share Buybacks • Distributed $26.9m since 2022 • Launched new NCIB in Dec’23 Dividend Declared • Sustainable in range of stressed business scenarios • Next semi-annua
Slide 13: Portfolio of Material Assets to Deliver Transformational Growth
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. PORTFOLIO OF MATERIAL ASSETS TO DELIVER TRANSFORMATIONAL GROWTH 2P Reserves 2 52.2MMBOE NIGERIA1 FY’23 Production3 22.4 KBOE/d Agbami, Akpo and Egina Oil Fields EQUATORIAL GUINEA Blocks EG-31 and EG-18 Near-Term Catalysts Namibia E&A NAMIBI
Slide 14: High Return and Short Cycle Growth
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. HIGH RETURN AND SHORT CYCLE GROWTH 3 of the Top 5 Fields in Nigeria ~310k boepd Aggregate gross field production Operators Highly experienced World-class Production facility hubs ~60% of 2P reserves1 base is Proven category (P90) Low risk &
Slide 15: Year-End 2023 Statement of Reserves & 2024 Management Guidance
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. YEAR-END 2023 STATEMENT OF RESERVES & 2024 MANAGEMENT GUIDANCE Robust 2024 CFFO Guidance $230m-$320m 2023 Guidance: $250m-$330m 2P WI 2P EE 2P WI 2P 52.2 59.6 RRR NPV10 mmboe mmboe 50% $1.2bn 2024 Production Guidance Planned Maintenance Dow
Slide 16: Orange Basin: A New Petroleum Province
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. ORANGE BASIN: A NEW PETROLEUM PROVINCE Major Discoveries Venus, Feb’22 Mopane, Jan’24 2 3 4 5 Graff, Feb’22 Jonker, Mar’23 Mangetti, Feb’24 Block 2913B/2912, Namibia Block 3B/4B, South Africa • AOC operated with a 26.25% interest • On trend
Slide 17: Blocks 2912/2913B: World-Class Acreage With Significant Potential
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. BLOCKS 2912/2913B: WORLD-CLASS ACREAGE WITH SIGNIFICANT POTENTIAL “At least 1-2 bn barrels1” • Venus: major discovery, operator TotaleEnergies’ CEO on the scale of Venus confirmed future development • Strategic farmout to TotalEnergies “We
Slide 18: Infrastructure-Led Exploration in EG
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. INFRASTRUCTURE-LED EXPLORATION IN EG Block EG-31 • AOC operated with an 80% interest • Significant gas prospectivity identified in a proven basin and benign shallow water environment • Located adjacent to high-performing EG LNG plant with i
Slide 19: 2024 Strategic Priorities
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. 2024 STRATEGIC PRIORITIES Consolidate, streamline and Farmout and full carry financially de-risk portfolio achieved for Namibia Acquired additional interest in our core operated Block 3B/4B Maintain financial flexibility to accelerate growt
Slide 20: Reader Advisory
Q4'23 Results Presentation | February 2024 AFRICA OIL CORP. READER ADVISORY Accounting for Africa Oil’s (Africa Oil, AOC or the Company) Oil and Gas Information Interest in Prime The reserves estimates presented have been evaluated by RISC in accordance with NI 51-101 and The 50% shareholding in Pri
Slide 21: Thank You
AFRICA OIL CORP. THANK YOU For further information, please contact: SHAHIN AMINI Investor Relations shahin.amini@africaoilcorp.com +44 (0) 20 8017 1511 WWW.AFRICAOILCORP.COM