Ithaca Energy Plc · LSE:ITH
Ithaca Energy — Q3 2014 Earnings Presentation
11 slides from Ithaca Energy's earnings presentation, Nov 13, 2014
Slide 1: Q3-2014 Financial Results
Q3-2014 Financial Results 13 November 2014
Slide 2: Disclaimer
Disclaimer This proprietary presentation (including any accompanying oral presentation, question and answer session and any other document or materials distributed at or in connection with this presentation) (collectively, the “Presentation”) has been prepared by Ithaca Energy Inc. (“Ithaca” or the
Slide 3: Key messages
Key messages Cash generation – $145M year to date underlying1 cashflow from operations Business sustainability – increasing cash netback trajectory even in lower oil price environment Balance sheet strength – liquidity and hedging underpin strong platform for executing business plan Major ne
Slide 4: Q3-2014 Financial Results
Q3-2014 Financial Results Production Q3 H1 YTD 2014 + 2014 = 2014 Financial Summary Reduced volumes in Q3-2014 – main period of planned maintenance shutdowns Production kboe/d 10.9 10.5 10.6 Full benefit of increased production from Summit deal still Av. Realised oil Price $/bbl 101 109 106 to b
Slide 5: Sustainable cash generative business
Sustainable cash generative business All-in Cash Cost Evolution1 ($/boe) All-in unit cash costs1 ($/boe) on $55/boe decreasing trend – cost and volume driven 4 $52/boe 3 8 Removal of high unit opex Beatrice 4 facilities - re-transfer to Talisman $32/boe 4 Interest Costs Stella start-up 3 Other
Slide 6: Diversified funding base – main capex programme nearing completion
Diversified funding base – main capex programme nearing completion $719M1 net drawn debt at end Q3-2014 ~$370M forecast full year capex including Q3-2014 Net Drawn Debt Evolution & Debt Facilities ($M)1 Summit – YTD-2014 expenditure $280M Main GSA start-up capital expenditure M$ programme near
Slide 7: Strong liquidity resulting from disciplined financial management
Strong liquidity resulting from disciplined financial management Funding & Peak Debt (M$)1 ~$815M forecast peak funding requirement prior to Stella start-up based on $90/bbl Brent2 Peak reflects lower Brent price scenario and M$ deferred H2-2014 production volumes $1,010M 1000 100 Limited cash
Slide 8: Greater Stella Area development… major near term value catalyst
54.67% Working Greater Stella Area development… major near term value catalyst Interest GSA… delivering a step change in free cashflow generation for the business Strategy… building an operated production hub Monetise existing reserves in portfolio – >30MMboe net 2P1 reserves Leverage value
Slide 9: Development status… major milestones completed
Development status… major milestones completed 4 Development Vessel Preparation for Dry Dock Marine Main Processing Wells Drilled New Plant Installation Works Completed Packages Installed Gas Export Pipeline A1/A2 Wells Tied-in Infield Structures, FPF-1 Mooring Spread Installed / Tied-in Flowlines &
Slide 10: FPF-1 modifications programme
FPF-1 modifications programme Completion of FPF-1 modifications is key work programme for path to Stella first hydrocarbons Modifications being undertaken by Petrofac in Remontowa shipyard, Poland ~800 people per day working on the vessel – 24-hour working over 3 shifts Current focus on clos
Slide 11: Delivering on a clear plan
Delivering on a clear plan Clear strategy – lower risk North Sea production and development-led growth Simple plan – deliver step change in free cashflow generation through Greater Stella Area start-up Financial discipline – significant downside oil price protection built into existing busines