Dana Gas Pjsc · ADX:DANA
Dana Gas Pjsc — Non-Deal Roadshow (June 2014)
33 slides from Dana Gas Pjsc's roadshow presentation, June 2014
Slide 1: Clean Energy For the MENA Region's Tomorrow
Clean Energy For the MENA Region’s Tomorrow Dana Gas Equity Investors Presentation June 2014 www.danagas.com 1
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking Forward-looking statements are based on certain statements which may be identified by their use of assumptions and expectations of future events. The words like “plans,” “expects,” “will,” “anticipates,” Company, its subsidiaries a
Slide 3: Presentation Outline
Presentation Outline MENA Opportunities Dana Gas – Introduction and Profile Recent Performance Country Operations Valuations Summary www.danagas.com 3
Slide 4: MENA holds ca. 50% of global oil & gas reserves with limited access
MENA region holds ca. 50% of global oil & gas reserves but with limited access. Dana Gas has presence in the large markets with open access Oil & Gas Proved Reserves (Source: BP Statistical Review 2013) 1669 6614 MENA Reserve Ranking bln bbl Tcf MENA RoW 100% 90% developments may lead to improved ac
Slide 5: MENA oil & gas production has grown steadily since mid-80s
MENA oil & gas production has grown steadily since mid-80s. From 1990, gas production has grown 4x while oil production has grown 1.5x MENA Oil & Gas Production (Source: EIA) www.danagas.com 5
Slide 6: Natural gas dominant energy source for MENA primary energy demand
Natural gas has become the dominant energy source for primary energy demand in the MENA region MENA GDP vs Population Primary Energy Demand Growth (Source: IMF) (Source: EIA) MENA Gas Consumption Pattern (Source: BP Statistics) Nearly 70% of region’s gas production is consumed within the region Dome
Slide 7: Dana Gas uniquely positioned to grow across the region
Given strong gas demand fundamentals and resource potential, Dana Gas is uniquely positioned to grow across the region Reserve & Resources Dana Gas is operating at the heart of the world’s largest hydrocarbon bearing region Production Profile Business Model across the gas value chain Mid Stream and
Slide 8: Dana Gas: Independent E&P company listed on the ADX
Dana Gas: Independent E&P company listed on the ADX Dana Gas is operating at the heart of the Dana Gas is a MENASA focused gas World’s Largest Hydrocarbon region independent headquartered in the UAE Dana Gas is quoted in the UAE stock exchange (Abu Dhabi Securities Exchange). Bloomberg: DANA:UH
Slide 9: Board of Directors from the MENA region
Board of Directors consisting of luminaries from the MENA region providing unparalleled access to key markets Dr. Adel Al Sabeeh Sheikh Sultan Bin Ahmed Dr. Tawfeeq Al Moayed Ahmed Al Arbeed Chairman Al Qasimi Deputy Chairman Hamid Jafar KUWAIT KUWAIT UAE BAHRAIN UAE Former Chairman of Board Former
Slide 10: Board of Directors from the MENA region
Board of Directors consisting of luminaries from the MENA region providing unparalleled access to key markets Ahmed Al Midfaa Abdullah Al Majdouie UAE Varouj Nerguizian Nasser Al Nowais Salah Al Qahtani SAUDI ARABIA Chairman of Sharjah UAE UAE SAUDI ARABIA Group President and Vice Chamber of Commerc
Slide 11: International and Experienced Management Team
International and Experienced Management Team Patrick Allman-Ward Mark Fenton Robinder Singh CEO Duncan Maclean GM - Egypt IR Director Commercial and Bus. Dev. Over 30 years in the Oil & Gas Director Over 28 years of experience in business. Held senior roles at Over 27 years of international operati
Slide 12: Consistent growth and delivery since 2007
Consistent growth and delivery since 2007 Revenue EBITDAX Profit After Tax www.danagas.com 12
Slide 13: Dana Gas: Recent Performance Highlights
Dana Gas: Recent Performance Highlights www.danagas.com 13
Slide 14: Strong performance trend Q1 2014 vs Q1 2013
Strong performance trend (Q1 2014 vs Q1 2013) driven by sustainable volume growth and improving realisation Revenue: Up 18% Y-o-Y Gross Profit: +16% YoY Significant growth in revenue due to higher production Sharp increase in gross profit of $ 87 million, achieved and increase in sale of LPG (1Q 201
Slide 15: Robust operational performance Q1 2014 vs Q1 2013
Robust operational performance (Q1 2014 vs Q1 2013) resulting from high quality assets and key investments 45 Egypt Production: Up 19% Y-o-Y KRI Production: Up 5.8% Y-o-Y 35 40 39.4 39.5 39.5 30 35 Production (kbopd) Production (kbopd) 34.7 29.3 29.3 30 33.2 33.7 33.2 25 27.7 27 27.1 27.7 27.7 25 20
Slide 16: Dana Gas: Country Business Highlights
Dana Gas: Country Business Highlights www.danagas.com 16
Slide 17: Egypt gas fundamentals are robust
Despite a challenging business environment; Egypt gas fundamentals are robust Egypt GDP (USD bln) Egypt Primary Energy Demand (mln toe pa) Gas consumption in Egypt to exceed Onshore Nile Delta steady and production for first time since 1995 critical gas supply source www.danagas.com Source: BP Stati
Slide 18: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations Development Leases: Balsam (Awarded) El Wastani Begonia (Under Discussion) El Basant (Amended) Sama (Amended) Production: 39.1 kboepd ( Q1 2014 Avg) Balsam DL Projects: El Basant DL EW Capacity De-bottlenecking (200mmscf/d of raw rich gas) completed in March
Slide 19: Consistent Increase in Nile Delta Production
Consistent Increase in Nile Delta Production Plant shutdown for capacity Q4 increases enhancement and Q2/Q3 increases Salma start-up replacement of PSVs SAEN rich gas start-up and ramp production optimization up production optimization in in SAEN Q1 increases SAEN Faraskur dry gas start-up EW field
Slide 20: Block 6 – North El Arish Offshore Opportunity
Block 6 – North El Arish Offshore Opportunity Awarded :April 2013 Area : 2980 sq km Governmental ratification received in 2014 Seismic acquisition in 2014/15 1 well commitment in Phase 1 Prospective acreage adjacent to prolific offshore gas producing fields New DL www.danagas.com 20
Slide 21: Dana Gas Kurdistan Assets – Substantial Resources Upside
Dana Gas Kurdistan Assets – Substantial Resources Upside* Pearl Petroleum appointed Gaffney, Cline & Associates Limited (GCA), to provide an estimate of hydrocarbons in-place as at 31st December, 2012 for both the Khor Mor and Chemchemal fields GCA have estimated the gas initially in-place volum
Slide 22: Khor Mor and Chemchemal potentially largest gas fields in the KRI
Khor Mor and Chemchemal are potentially largest gas fields in the KRI and comparable to large scale gas developments in the region Large Gas Developments in MENA (Source: Company disclosure) Kurdistan Gas Fields Key MENA gas fields under development www.danagas.com * Excludes associated liquid and o
Slide 23: Operations in Kurdistan Region of Iraq
Operations in Kurdistan Region of Iraq Invested over $ 1.8 billion since inception Region’s leading producer and largest domestic supplier of hydrocarbons JV operations with Dana Gas at 40% (average production of 29,300 BOEPD in 1Q 2014 – DG share) 130 MMSCFD of natural gas 6,000 bbl/d and
Slide 24: Rich gas and condensate producer with strong growth track record
Rich gas and condensate producer with strong growth track record Kor Mor Field Production, Dana Gas net share 35 Gas 30 Production (kboed) Liquids(Condensate + LPG) 25 20 15 10 5 0 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q14 2011 2012 2013 Current Condensate Gas Ratio (CGR) on Khor Mor is ca.
Slide 25: UAE: Zora Project Update
UAE: Zora Project Update Project Management team on board Overall Project Actual progress is in line with plans for first gas in 1H 2015 with a capacity of 40 mmscfd (6,650 BOEPD) Platform fabrication contract awarded and the actual progress is 29.55 % against planned 24.32 % LOA issued to E
Slide 26: Dana Gas: Relative Valuations
Dana Gas: Relative Valuations www.danagas.com 26
Slide 27: EV and Production valuation relative to peers
EV and Production valuation relative to peers Enterprise Value vs. Production EV ($bn) 2013 Production (kboepd) 2013 YE Production (kboepd) 15 7.7 5 90 Enterprise Value ($ bn) 80 4 70 60 3 50 2.2 2 40 30 1 20 10 0 0 www.danagas.com Source: Company Data, Bloomberg 27
Slide 28: Significantly undervalued relative to peers
Significantly undervalued relative to peers EV/EBITDA P/E 12 60 10 50 EV/EBITDA 2014e (x) Median* ~8.2 P/EPS 2014e (x) 8 40 6 30 56.7 10.66 10.54 9.07 Median* ~17 4 7.27 20 5.26 29.5 2 4.31 4.3 10 19.9 14.2 13.2 10.9 9.4 0 0 P/B 5 4 P/B 2014e (x) 3 4.66 2 Median* ~1.9 3.57 2.5 1 1.36 1.33 1.14 0.55
Slide 29: Increased liquidity following Sukuk conversions impacting recent performance
Increased liquidity following Sukuk conversions impacting recent performance Dana Gas: Share price performance (AED/share) 1.25 Share price performance (AED/share) 4 3 5 6 1.00 7 0.75 1 2 Issuance of new Dana Gas equity following requests for conversion from Sukuk-holders 0.50 Oct 13 Nov 13 Dec 13 J
Slide 30: Relative share price performance of Dana Gas
Relative share price performance of Dana Gas Relative Performance (Source: Bloomberg) 75% Signed an agreement for the Upgrading the El S&P GCC 40 Index +45% Wastani plant in North El Arish Egypt to increase Concession in the production by 25% Relative market performance (%) 50% Announced 2013 Nile D
Slide 31: Summary
Summary www.danagas.com 31
Slide 32: Summary
Summary Achieved excellent results due to an increase in overall production and sales, and tighter control of operational and capital expenditure Macro-economic challenges faced by Egypt remain an area of concern Seeking a solution to the problem of outstanding receivables in Egypt that benefi
Slide 33: Reach Us: Dana Gas PJSC
Reach Us: Dana Gas PJSC P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : rsingh@danagas.com Direct : +971 6 519 4401 Fax : +971 6 556 6522 www.danagas.com 33