Karoon Energy Ltd · ASX:KAR
Karoon Energy — FY2024 Earnings Presentation
31 slides from Karoon Energy's earnings presentation, Feb 27, 2025
Slide 1: Karoon Energy 2024 Full Year Results
rsonal use only Karoon Energy 2024 Full Year Results 27 February 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Karoon Energy Ltd (Karoon or the Company). The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. This presentation conta
Slide 3: 2024 Full Year Highlights
rsonal use only Julian Fowles CEO and Managing Director 2024 Full Year Highlights
Slide 4: 2024 full year highlights
2024 full year highlights Strong cashflow & capital discipline enabled shareholder returns and reinvestment rsonal use only Record production and Organic growth Improved liquidity with Capital discipline and sales revenue opportunities maturing strong cashflow & bond returns to shareholders Record p
Slide 5: Strategic Review
Strategic Review Comprehensive Strategic Review complete Core objective: To grow shareholder returns through strict application of capital allocation criteria….…as a safe and reliable, low unit cost offshore oil rsonal use only producer, focused on Santos Basin, Brazil and US Gulf of Mexico Aiming t
Slide 6: Health, Safety, Security and Environment
Health, Safety, Security and Environment Safety is our highest priority Safety Performance at Baúna Total Recordable Injury Rate 1 1.00 rsonal use only Disappointing 2024: 0.85 Number of injuries pe 200,000 0.77 Two Lost Time Injuries and two Medical Treatment 0.75 Cases reported Nine high potential
Slide 7: Financial Results
rsonal use only Ray Church EVP and CFO Financial Results
Slide 8: 2024 financial highlights
2024 financial highlights1 Strong free cashflow to support organic growth, returns and robust balance sheet 2 Underlying EBITDAX 3 (US$m) Production (MMboe) Sales revenue (US$m) 12 900 600 rsonal use only 10.4 776.5 492.4 10 9.1 750 680.0 500 434.5 0.1 2.9 3.8 170.4 2.9 124.6 8 600 400 498.0 5.5 294
Slide 9: Underlying EBITDAX of US$492.4m
Underlying EBITDAX of US$492.4m Stable cost base supports EBITDAX margins 2024 2023 2 US$ million Underlying EBITDAX and NPAT up 13% and 3% respectively on (12 months to (12 months to % Change 31 Dec 24) 31 Dec 23) 2023, with lower production from Baúna project, DD&A growth, rsonal use only interest
Slide 10: Unit Production Costs Reconciliation
Unit Production Costs Reconciliation Normalising opex/boe for AASB16 capitalised operating leases and royalties Production costs Back out Normalised 2024 Reported related to operating AASB 16 costs Unit production costs reported on Net rsonal use only leases Working Interest (NWI) basis to exclude O
Slide 11: Strong free cashflow from operations
Strong free cashflow from operations1 Capex, Petrobras payment and capital returns fully funded by cashflows US$m rsonal use only 450 Operating cash flow (incl. FPSO lease charges)2 400 395.2 350 CAPEX US$176.6m free cash 300 (86.0) flow from Contingent operations1 250 Payment to Inaugural bond Petr
Slide 12: Balance sheet positioned to support sustainable TSR
Balance sheet positioned to support sustainable TSR In line with capital allocation framework Net debt 1 Access to a new debt market: rsonal use only 450 Successfully issued US$350m high yield bond in May 2024 341.2 Issued in US 144A / Reg S, extending term of debt funding and opening up new long te
Slide 13: Delivering value to shareholders
Delivering value to shareholders Capital allocation framework balances capital returns and growth investments Priority remains safe and reliable operations while maintaining balance sheet strength and flexibility rsonal use only Base Value Capital returns dividend & buybacks Capital Returns Policy o
Slide 14: Operational Update - Brazil
rsonal use only Marco Brummelhuis EVP Brazil Operational Update - Brazil
Slide 15: Production: Baúna Project
Production: Baúna Project Focus on improving FPSO reliability 2024 production impacted by FPSO reliability issues, SPS-88 well offline all year, anchor chain failure, and reservoir natural decline as anticipated: rsonal use only >US$50m revenue forgone in 2024 due to 84.5% efficiency vs 92.5% (mid p
Slide 16: Neon Foundation Project
Neon Foundation Project Pathway to potential development Neon Foundation Project entered Concept Select (DG-1) in March 20241 Next milestone in April 2025 when Board will decide whether to enter ‘Define’ (FEED) phase (DG-2) rsonal use only Interpretation of reprocessed 3D seismic over Neon and Neon
Slide 17: Operational Update – US & sustainability
rsonal use only Julian Fowles CEO and Managing Director Operational Update – US & sustainability
Slide 18: Production: Who Dat
Production: Who Dat Production optimisation continuing 2024 production lower than original guidance, due to delays bringing new wells online, production facility bottlenecks, facility uptime below historical rsonal use only average and above average impact of hurricane season on Who Dat Production s
Slide 19: Developing Who Dat East and South discoveries
Developing Who Dat East and South discoveries Potential to unlock Who Dat Contingent Resources over next two years 2024 drilling results added material Contingent and Prospective Resources rsonal use only within tieback distance of existing infrastructure Minimal additional appraisal drilling requir
Slide 20: Who Dat East & South resource additions
Who Dat East & South resource additions1 Successful 2024 drilling campaign Who Dat East and South 2C Contingent + Unrisked 2U Contingent Resources (MMboe NRI) 1 rsonal use only Prospective Resources (MMboe NRI) 1 (excluding Who Dat As at 31 December 2024 West 2 and Who Dat East Deep) 1C 2C 3C 35 33.
Slide 21: Sustainability programs
Sustainability programs1 Building out community and social programs, aligning climate targets to peers Realigned climate strategy from previous target of Net Zero by 2035 to rsonal use only Net Zero by 2050 or sooner: Reflects current asset portfolio and opportunity outlook and aligns with majority
Slide 22: Baúna FPSO acquisition and summary
rsonal use only Julian Fowles CEO and Managing Director Baúna FPSO acquisition and summary
Slide 23: Acquisition of Cidade de Itajaí (Baúna FPSO)
Acquisition of Cidade de Itajaí (Baúna FPSO) 1 Targeting strategic operations reset Strategic acquisition of a key asset rsonal use only Objective is to re-establish reliable and predictable operations at Baúna Project and maximise value of Baúna asset Attractive metrics, with IRR comfortably above
Slide 24: FPSO acquisition assumptions
FPSO acquisition assumptions1 Robust IRR, payback period of ~4 years Acquisition price of US$115m, plus ~US$8m transaction costs Expected reduction in Baúna opex of ~US$4-6/bbl from 2026 (based on current rsonal use only production rates): No lease costs, partly offset by increased scope/cost of new
Slide 25: Transaction timeline
Transaction timeline KAR expected to become vessel owner end April, A&O operates during transition period 27 Feb 25 End Apr 25 Mid-25 4Q25/1Q26 rsonal use only SPA signed Transaction New O&M Complete close contractor transition to selected new contractor Tender preparation for new O&M operator under
Slide 26: Summary
Summary Improving market confidence Record production and underlying NPAT in 2024, but below expectations due to operational challenges rsonal use only Major focus to address issues and deliver Strategic Review objectives: First priority remains safe and reliable operations, with focus on re- establ
Slide 27: Appendix and Glossary
rsonal use only Appendix and Glossary
Slide 28: Appendix 1: Reconciliation of underlying results to statutory results
Appendix 1: Reconciliation of underlying results to statutory results 2024 2023 1 rsonal use only (12 months to 30 Jun 24) (12 months to 31 Dec 23) NPAT EBITDAX NPAT EBITDAX Statutory results 127.5 470.1 207.9 397.1 Change in fair value of contingent consideration 4.3 6.5 5.5 8.3 Realised losses/(ga
Slide 29: Appendix 2: 2025 guidance
Appendix 2: 2025 guidance 1 Basi s of g ui danc e 1. Guidance is subject to various risks (including “Key Risks” set out in 2024 Annual Report) 12 months to 31 Dec 25 Low High 2. Production assumes drilling results and expected future development projects, including well interventions, are delivered
Slide 30: Glossary
Glossary Term Definition AASB Australian Accounting Standards Board. ANP Agência Nacional do Petróleo, Gás Natural e Biocombustíveis. Baúna or Baúna Project Concession BM-S-40 containing the producing Baúna, Piracaba and Patola light oil fields in Brazil. bbl or barrel Barrel of oil = 42 United Stat
Slide 31: rsonal use only
rsonal use only