Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Shareholder Meeting (July 2018)
13 slides from Gulf Keystone Petroleum's shareholder meeting presentation, Jul 13, 2018
Slide 1: Gulf Keystone Petroleum – Annual General Meeting, Amsterdam
Gulf Keystone Petroleum 13 July 2018 Annual General Meeting – Amsterdam
Slide 2: Disclaimer
Disclaimer This proprietary presentation (the “Presentation”) has been prepared by Gulf Keystone Petroleum Limited (the “Company”). Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation to buy or a solicitation of an offer to buy securities of any kind in any
Slide 3: Gulf Keystone today
Gulf Keystone today 1 • Gross 2P + 2C resource base of 854 MMstb1) with year-to-date average gross production of 32,138 bopd2) – on track to meet 2018 guidance (27,000 to 32,000 bopd) Operator of Shaikan – a giant • Predictable reservoir performance: steady production (underpinned by safe and reliab
Slide 4: Financial and commercial highlights
Financial and commercial highlights • Strong financial performance – Steady pattern of payments since September 2015 – Continuous cost optimisation – Profit in 2017 for the first time since entry to Kurdistan – Caught up with peers on corporate valuation • Commercial milestones – Crude Oil Sales Agr
Slide 5: A performing asset with strong HSSE track record
A performing asset with strong HSSE track record Shaikan gross production (‘000 bopd) • One of the largest fields in Kurdistan by reserves and 40 34.8 35.3 production 32.1 – Gross 2P reserves: 615 MMstb1) 30.5 30 2018 – Cumulative production to date of Guidance 50 MMstb 20 17.8 • YTD production on t
Slide 6: Shaikan Field: Infrastructure overview
Shaikan Field: Infrastructure overview Giant field primed for significant production ramp-up • Two production facilities, each PF-2 with a nameplate capacity of 20,000 bopd SH-2 SH-5 SH-10 SH-11 – 2018 YTD average gross production of 32,138 bopd1) • Each PF with terminals to load road tankers - crud
Slide 7: Material near term production growth
Material near term production growth Realizing the potential of the giant Shaikan oil field with a phased and risk-managed approach Gulf Keystone has initiated investments to increase gross production capacity to 55,000 bopd during H2 2019 • Significant work in the last 12 months to optimise the 110
Slide 8: Financial summary
Financial summary Substantial cash generation from stable production - underpinned by a strong balance sheet Strong cash flow and robust cash position New era of profitability Unit 2014 2015 2016 2017 • Posted profit after-tax in Production (gross) bopd 17,765 30,500 34,794 35,298 2017 for the first
Slide 9: Track record of continued cost optimisation
Track record of continued cost optimisation • Focus on prudent resource management and cost saving initiatives has resulted in significant and sustainable cost reductions Operating Expenses1) General & Administrative Expenses Operating Expenses 37 48 35 29 (US$m) Bopd Bopd 8 40,000 50 40,000 7 35,00
Slide 10: GKP has outperformed E&P peers since 2017 AGM
GKP has outperformed E&P peers since 2017 AGM 3.0 (GBP/share)) GKP(GBP/share)) + 148% 2.5 + 103% toGKP 2.0 (Rebased to + 61% Price (Rebased 1.5 + 38% SharePrice 1.0 Share 0.5 Jun-17 Jul-17 Sep-17 Oct-17 Dec-17 Jan-18 Mar-18 Apr-18 May-18 Jul-18 GKP Kurdistan E&Ps Brent UK Listed E&Ps Source: FactSet
Slide 11: Converging P/NAV valuation with peers
Converging P/NAV valuation with peers 120% 100% 92% 90% Price to NAV 80% 77% 72% 60% 40% 20% Jun-17 Jul-17 Aug-17 Sep-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 Jun-18 Jul-18 GKP Genel DNO ShaMaran Source: Equity research, FactSet as at 12 July 2018 11
Slide 12: 2018 Focus – Shareholder Value
2018 Focus – Shareholder Value • Operational Excellence – Safe operations and meet guidance (27,000-32,000 bopd gross) – Deliver on project milestones – Continuous cost optimisation • Production Growth – Jurassic drilling campaign and debottlenecking to 55,000 bopd – Finalise investment plans and su
Slide 13: Thank you
Thank you More resources are available at: www.gulfkeystone.com
Gulf Keystone Petroleum — Shareholder Meeting (July 2018) on 6ix