Seplat Energy Plc · LSE:SEPL
Seplat Energy — Seplat Petroleum Development Company — Investor Day (June 2019)
66 slides from Seplat Energy's investor day presentation, Jun 26, 2019
Slide 1: 2019 Gas Business - Capital Markets Day
Seplat Petroleum Development Company Plc 2019 GAS BUSINESS - CAPITAL MARKETS DAY Stability Performance Growth 2019 GAS BUSINESS - CAPITAL MARKETS DAY – 26th JUNE 2019 1 2019 CAPITAL MARKETS PRESENTATION
Slide 2: Important Notice
IMPORTANT NOTICE DISCLAIMER FORWARD-LOOKING STATEMENTS This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company's control and all o
Slide 3: Agenda
AGENDA CONTENT PAGE Stability INTRODUCTION 6 Performance EXISTING GAS BUSINESS 18 Performance MARKET OUTLOOK 24 Growth ANOH 28 Summary Q&A 65 3 2019 CAPITAL MARKETS PRESENTATION
Slide 4: Presentation Team
PRESENTATION TEAM AUSTIN AVURU ROGER THOMPSON BROWN EFFIONG (‘EFFY’) OKON Position at Seplat Chief Executive Officer Chief Finance Officer Operations Director Co-founder of Seplat Over 25 years experience in Over 26 years experience in Background the energy industry O&G Over 30 years O&G & e
Slide 5: Presentation Team
PRESENTATION TEAM YETUNDE TAIWO DOUG KINLOCH OKECHUKWU MBA Position at Seplat AGPC Managing Director AGPC Project Manager General Manager Gas • 28 years of diversified Over 35 years experience in • Over 17 years of Background upstream experience, international oil and gas experience in oil and gas
Slide 6: Introduction
Stability INTRODUCTION Austin Avuru - Chief Executive Officer 6 2019 CAPITAL MARKETS PRESENTATION Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 7: The Leading Independent Nigerian Oil and Gas E&P Company
THE LEADING INDEPENDENT NIGERIAN OIL AND GAS E&P COMPANY DUAL LISTED NIGERIAN PURE PLAY WITH A PORTFOLIO OF SIX OIL AND GAS BLOCKS IN THE NIGER DELTA OML 41 A OML 4 OML 53 OML 38 B OPL 283 C • Dual listed on NSE (ticker “SEPLAT”) and LSE main market D (ticker “SEPL”) • Shares in issue 588.4 OML 55 m
Slide 8: A Focused and Performing Business
A FOCUSED AND PERFORMING BUSINESS SEPLAT IN KEY NUMBERS OPERATIONAL FINANCIAL GAS BUSINESS 2018 WI production Strong profitability Gas revenues at record levels 49,864 boepd US$238 million US$156 million (Within guidance) (2018 profit before deferred tax) (gas prices de-linked from oil price) FY 201
Slide 9: Good Progress Made Against Strategic Priorities
GOOD PROGRESS MADE AGAINST STRATEGIC PRIORITIES PROACTIVE MANAGEMENT HAS POSITIONED SEPLAT FOR LONG TERM GROWTH AND VALUE CREATION FOR STAKEHOLDERS PAST CURRENT FUTURE STABILISED & PROTECTED …TRANSITIONED BACK …WITH FUTURE GROWTH THE CORE BUSINESS IN INTO “BUILD AND GROW” OPPORTUNITIES TO DIFFICULT
Slide 10: Evolution of Seplat's Gas Business
EVOLUTION OF SEPLAT’S GAS BUSINESS RAPID TRANSFROMATION AND GROWTH THROUGH BOLD INVESTMENT AND EARLY MOVER ADVANTAGE Strategic decision Landmark IPO Completed Gas business made to invest & dual listing of Seplat acquisition of 40% achieves another record in the gas business provides domestic and ope
Slide 11: Key Attractions of the Domestic Gas Opportunity
KEY ATTRACTIONS OF THE DOMESTIC GAS OPPORTUNITY EARLY MOVER ADVANTAGE CREATES OPPORTUNITY Tscf 200 189 160 AFRICA’S • Nigeria holds 37% of total proved 120 153 LARGEST gas reserves on the continent 80 GAS • The majority is concentrated in 75 the Niger Delta RESERVES 40 50 42 0 Nigeria Algeria Egypt
Slide 12: Key Attractions of the Domestic Gas Opportunity
KEY ATTRACTIONS OF THE DOMESTIC GAS OPPORTUNITY HIGHEST GROWTH PROSPECT IN AFRICA • One of the largest economies in Africa with a population today in excess of 201 million - 50% are urban dwellers while 62% is <25 years in age and 93% is <55 years in age STRONG AND • Projected to grow to a populatio
Slide 13: Key Attractions of the Domestic Gas Opportunity
KEY ATTRACTIONS OF THE DOMESTIC GAS OPPORTUNITY GAS A POSITIVE FOR NIGERIA’S BALANCE OF PAYMENTS • It is estimated that there is at US$/Mscf 5.0 least 20,000 MW of off-grid 4.5 15 DIESEL diesel generated power in 4.0 DISPLACEMENT Nigeria 3.5 3.0 2.5 2.5 (ATTRACTIVE • The estimated cost of fuelling 2
Slide 14: The Gas Business Today
THE GAS BUSINESS TODAY INCREASING FINANCIAL CONTRIBUTION REALISED FROM LARGE SCALE RESERVES AND PROCESSING CAPACITY SIGNIFICANT RESERVES AND RESOURCE BASE TO UNDERPIN LONG TERM CONTRACTS AN INCREASING AND VALUABLE PRODUCTION AND REVENUE CONTRIBUTION MMscfd US$ MM TOTAL WI 2P GAS RESERVES (Bscf) TOTA
Slide 15: Contribution of the Gas Business in 2018 Broken Down
CONTRIBUTION OF THE GAS BUSINESS IN 2018 BROKEN DOWN OBEN HAS DELIVERED EXCELLENT FINANCIAL OUTCOMES A PROMINENT GAS HUB FOR NIGERIA Gas Revenues Low operating costs US$156 million US$1.98/boe (Naira receipts) (Production opex) FY 2017: US$124 million *FY 2017: N/A Condensate Revenues** Capital Inve
Slide 16: The Long Term Vision for Seplat's Gas Business
THE LONG TERM VISION FOR SEPLAT’S GAS BUSINESS ESTABLISHING AND GROWING CORE GAS HUBS WITH INTERCONNECTIVITY TO NIGERIA’S LARGEST DEMAND CENTRES OBEN HUB • Commissioning phase of the 459MW Azura-Edo IPP completed in Q3 2018. Deliveries now at the contracted level OMLs 4, 38, 41 of 116 MMscfd under t
Slide 17: Growth Strategy for Seplat's Gas Business
GROWTH STRATEGY FOR SEPLAT’S GAS BUSINESS POSITIONING SEPLAT TO BECOME THE PRE-EMINENT GAS PRODUCER IN NIGERIA NEAR TERM 0-2 YEARS MEDIUM TERM 2-5 YEARS LONG TERM 10 YRS Utilise Asset Base to Increase Churn and Grow Underwrite Gas Sales Future Expansion Enhancing Optimise Mature Commercial Terms Com
Slide 18: Existing Gas Business
Performance EXISTING GAS BUSINESS Effy Okon - Operations Director 18 2019 CAPITAL MARKETS PRESENTATION Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 19: Overview
OVERVIEW ONE OF NIGERIAS’S LARGEST BROWNFIELD GAS AND CONDENSATE DEVELOPMENT PROJECTS BACKGROUND • The Oben field on OML 4 is the main NAG producing field with additional gas production also at the Orogho and Okporhuru fields • There is extensive oil and gas infrastructure on the blocks ACHIEVEMENTS
Slide 20: Successfully Delivered Oben Midstream Plant Expansion
SUCCESSFULLY DELIVERED OBEN MIDSTREAM PLANT EXPANSION A TEMPLATE THAT CAN BE QUICKLY AND EFFICIENTLY REPEATED BY AN EXPERIENCED TEAM PROJECT KEY HIGHLIGHTS TAKEAWAYS FOR ANOH PROJECT SUMMARY SUMMARY SUMMARY • Phase 1 – 150 MMscfd gas plant modules • Modularisation can and does work onshore • Dedicat
Slide 21: Oben Project Schedule & Budget
OBEN PROJECT SCHEDULE & BUDGET SEPLAT HAS A PROVEN TRACK RECORD OF DELIVERING MIDTREAM GAS PROCESSING EXPANSION PROJECTS AT OBEN HIGHLIGHTS • Oben Phase l expansion by 150 MMscfd completed in 18 months, within schedule and budget • Oben Phase ll expansion by a further 225 MMscfd completed in 15 mont
Slide 22: Existing Gas Capacity and Contracted Volumes
EXISTING GAS CAPACITY AND CONTRACTED VOLUMES CAPITALISING ON EARLY MOVER ADVANTAGE TO COMMERCIALISE AND DEVELOP A STRATEGIC RESOURCE EXPERIENCE OF THE NIGERIA GAS MARKET - OBEN AND SAPELE GAS PLANTS CAPACITY AND CONTRACTED VOLUMES • Demand for sales gas continues to out-strip available supply 600 •
Slide 23: Historical Performance
HISTORICAL PERFORMANCE ONE OF NIGERIAS’S LARGEST BROWNFIELD GAS AND CONDENSATE DEVELOPMENT PROJECTS AG & NAG SALES GAS (MMscfd) - HISTORICAL VOLUMES CONDENSATE (Bpd) - HISTORICAL VOLUMES 400 9000 AG Sales 8000 350 NAG Sales 7000 300 Oben Phase-II 6000 250 Oben Phase-I 5000 200 4000 150 3000 TFP Outa
Slide 24: Market Outlook
Growth MARKET OUTLOOK Okechukwu Mba - General Manager Gas 24 2019 CAPITAL MARKETS PRESENTATION Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 25: Gas Demand Could Grow ~20 bcm by 2035 from Existing Plants
GAS DEMAND COULD GROW ~20 BCM BY 2035 FROM EXISTING PLANTS THE KEY CHALLENGE IS TO DEVELOP GAS, BUILD PROCESSING CAPACITY, REFURBISH POWER PLANTS AND INVEST IN TRANSMISSION FORECAST DEMAND OUTLOOK INSTALLED GAS FIRED POWER GENERATION CAPACITY 45 12,000 Power Generation Other, 534 MW 40 Energy Indust
Slide 26: There Is a Large Pool of Diesel Demand Which Gas Can Displace
THERE IS A LARGE POOL OF DIESEL DEMAND WHICH GAS CAN DISPLACE THE ECONOMICS OF SWITCHING FROM DIESEL TO GAS FIRED POWER GENERATION ARE COMPELLING GAS / DIESEL EQUIVALENT PRICE FOR OFF GRID GENERATION Value Unit Diesel retail price 530 US$/t % • There is an estimated 20 GWɸ of off-grid Diesel engine
Slide 27: Processing Capacity Development
PROCESSING CAPACITY DEVELOPMENT NEW PROCESSING PLANTS ARE BEING BUILT TO SERVE MARKETS IN WEST NIGERIA IN LINE WITH MARKET GROWTH EXPECTATIONS NIGERIA’S GAS PROCESSING PLANTS Design Capacity Plant Operator (MMscfd)1 System Comment Targeting new gas demand ANOH Seplat 300 East in Western Nigeria Like
Slide 28: ANOH
Growth ANOH Yetunde Taiwo - AGPC Managing Director 28 2019 CAPITAL MARKETS PRESENTATION Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 29: What Is ANOH and AGPC?
WHAT IS ANOH AND AGPC? ONE OF NIGERIA’S LARGEST ONSHORE GAS RESERVES WITH DUAL GAS PROCESSING FACILITIES SITUATED ABOVE IT ANOH AND AGPC • The Assa North / Ohaji South (ANOH) gas and condensate field straddles OML 53 (Seplat 40% WI and operator) and OML 21 (Shell JV) • ANOH is unitised 50:50 across
Slide 30: Upstream Development - Source of Feedstock
UPSTREAM DEVELOPMENT - SOURCE OF FEEDSTOCK LARGE SCALE GAS RESERVES IN THE EASTERN NIGER DELTA TO UNDERPIN INCREASED LONG TERM SUPPLY TO THE DOMESTIC MARKET UNITISED INTERESTS – UPSTREAM OML 53 Partners OML 53 interest ANOH upstream unit interest Seplat 40.0% 20.0% NNPC 60.0% 30.0% Total 100.0% 50.0
Slide 31: Midstream
Growth Midstream Doug Kinloch - AGPC Project Manager 31 2019 CAPITAL MARKETS PRESENTATION Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 32: ANOH Gas Plant Development Overview
ANOH GAS PLANT DEVELOPMENT OVERVIEW LEVERAGING EXPERIENCE AND SUCCESS AT OBEN TO DELIVER A 300 MMSCFD GAS PROCESSING PLANT ANOH GAS PROCESSING PLANT AND ANCILLIARY FACILITIES SCOPE Gas processing plant location • 87 hectare plot, accommodating access roads, rights of ways, flowlines, gas plant, FLB,
Slide 33: Progress Made to Date
PROGRESS MADE TO DATE ONE OF NIGERIA’S LARGEST GREENFIELD GAS AND CONDENSATE DEVELOPMENT PROJECTS KEY EVENTS SO FAR • Full transfer of 40% interest and operatorship of OML 53 assumed by Seplat in January 2016 • Shareholder & commercial agreement signed in August 2018 • FEED & land acquisition comple
Slide 34: Contract Strategy - Leveraging Seplat's PMT Experience
CONTRACT STRATEGY - LEVERAGING SEPLAT’S PMT EXPERIENCE MODULAR DESIGN DELIVERED BY CORE SUPPLIERS MANAGED BY SEPLAT’S BEST IN CLASS PROJECT MANAGEMENT TEAM Inspection AGPC – Project Management Procurement & Commissioning & Maintenance & Team with Oben Gas Project WBS Activity Status Design Fabricati
Slide 35: Competitive Cost Structure
COMPETITIVE COST STRUCTURE LEAN TEAM AND OVERHEADS DELIVERING EXCEPTIONAL VALUE ACCRETIVE ASSETS IN A BURGEONING MARKET AGPC Costs US$ million Project % COST COMPARATOR AGPC Formation Costs 10 1% Operations Readiness 10 1% Average Project Management Team 40 6% Others ( Taxes , Financing , CSR etc) 7
Slide 36: Project Execution Schedule
PROJECT EXECUTION SCHEDULE SEPLAT HAS A PROVEN TRACK RECORD OF DELIVERING MIDTREAM GAS PROCESSING EXPANSION PROJECTS AT OBEN FIRST GAS TARGETED FOR Q1 2021 • Opportunity for Seplat to leverage repeatability gains from its experience of expanding gas processing capacity at the Oben hub • Oben Phase l
Slide 37: Local Content
LOCAL CONTENT LEADING INDEGENIOUS E&P COMMITTED TO DEVELOPING THE LOCAL O&G SERVICE INDUSTRY CURRENT STATUS OUT COUNTRY IN-COUNTRY • Packages structured to maximise local contractor scope/involvement in the project • Close engagement and collaboration with Proprietary AGPC Nigerian Content Developme
Slide 38: Regulatory Compliance
REGULATORY COMPLIANCE WORKING CLOSELY WITH ALL STAKEHOLDERS TO DELIVER FID IN UNDER 3 YEARS DEPARTMENT OF PETROLEUM RESOURCES • Permits and consent agreed with DPR and being implemented • Approved EIA terms of reference and participated in field data gathering • Approved scope of work for project de
Slide 39: OB3 Gas Export Pipeline
OB3 GAS EXPORT PIPELINE LARGEST GAS PIPELINE UNDER CONSTRUCTION IN NIGERIA REPRESENTING A SIGNIFICANT INVESTMENT FROM NGC • Government owned and funded pipeline under construction B • 130km 48” gas line linking eastern Niger Delta gas reserves to Nigeria’s A main demand centres via Oben • Constructi
Slide 40: Interface with Local Communities
INTERFACE WITH LOCAL COMMUNITIES KEY TO ENSURING MINIMUM DOWNTIME ON FACILITIES AND INSTALLATIONS IN THE NIGER DELTA ADOPTING THE “SEPLAT MODEL” COMMUNITY STRATEGY IN PRACTICE • Seplat is already operational in OML 53 and has a good • Worked with all stakeholders to ensure relationship with the loca
Slide 41: Commercial
Growth COMMERCIAL Yetunde Taiwo - AGPC Managing Director 41 2019 CAPITAL MARKETS PRESENTATION Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 42: Commercial Structure
COMMERCIAL STRUCTURE UPSTREAM UNIT MIDSTREAM DOWNSTREAM OML 21 JV OML 53 JV NNPC 27.5% NNPC 30.0% NGC Shell 15.0% Seplat 20.0% 50% 50% Domestic Gas Regional Gas Total/Eni 7.5% 50% of upstream Shareholders wet gas production Wet gas purchased from upstream unit Condensate Export LPG sold COMMERCIAL A
Slide 43: Status of Agreements
STATUS OF AGREEMENTS 1 2 3 4 5 6 STATUS UPSTREAM SHARE HOLDERS WET GAS SALES NGMC DRY GAS UNITISATION CONDENSATE AGREEMENT AGREEMENT MARKETING AGREEMENT OPERATING EXPORT (SHA) & SSA AGREEMENT Concluded Concluded and 90MMscfd for SHA concluded Concluded and Ongoing and executed NGMC executed negotiat
Slide 44: AGPC Commercial Highlights
AGPC COMMERCIAL HIGHLIGHTS BALANCING UPSTREAM AND DOWNSTREAM DYNAMICS TO MANAGE RISK AND CREATE VALUE FOR AGPC PROCESSED GAS SALES (DOWNSTREAM) DSO (50 MMscfd) US$2.5/Mscf 140 MMscfd already contracted US$3.0/Mscf NGC (90 MMscfd) (inflated at OECD CPI) WET GAS SALES (UPSTREAM) Anticipated US$3.0/Msc
Slide 45: AGPC Gas Strategy
AGPC GAS STRATEGY CAPTURING THE GROWTH OPPORTUNITY MARKET ENTRY CREDIT ENHANCEMENT • Secured wet gas supply contract of 1.5TcF for • Letters of credit (LC) and prepayment 15 years with substantial condensate and structure accommodated in the NGMC GSA LPG production • 50% of AGPC revenues are derived
Slide 46: Mapping Gas Offtakers for ANOH
MAPPING GAS OFFTAKERS FOR ANOH STRONG DEMAND UNDERPINNED BY PRIMARY AND SECONDARY OFFTAKES MAPPING ANCHOR OFFTAKERS Non- Power Power Key Prospective off-taker Location First Gas (Mscf) (Mscf) 1 DSO Various On-grid Power Ready to take 50 2 NGC Nigeria and West Africa Ready to take 90 3 NGMC Nigeria a
Slide 47: AGPC LPG Strategy
AGPC LPG STRATEGY SIGNIFICANT DEMAND FROM BRANDED LPG DISTRIBUTORS MARKET ENTRY REVENUE • 6 reputable LPG wholesalers have responded • LPG priced in USD paid in Naira ranging to the Invitation to tender (ITT) between $0.7-$1.0/litre • LPG facilities located adjacent to main road • 40kMTp.a. will hel
Slide 48: Nigeria LPG Market
NIGERIA LPG MARKET ANOH PRIME LOCATION POSITIONED TO CAPTURE GROWTH IN THE LPG MARKET Nigeria Population LPG Prices per South Regions Density Per Sq/m 12.5kg cylinder* Benue 70-100 ₦4500 Cross River 70-100 ₦4540 Kogi 70-100 ₦4250 Bayelsa 100-150 ₦4690 Edo 100-150 ₦3884 Oyo 100-150 ₦3875 Delta 200-25
Slide 49: Finance
Growth FINANCE Roger Brown - Chief Finance Officer 49 2019 CAPITAL MARKETS PRESENTATION Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 50: AGPC - Funding Structure
AGPC – FUNDING STRUCTURE SIMPLE STRUCTURE DRAWING ON SEPLAT BRAND AND PARTNERS TO COVER $700m RAISE FINDING STRUCTURE PROPOSED FINANCE STRUCTURE • AGPC a Special Purpose Company (SPC) formed to raise US$ 420million of Equity to de-risk the project Seplat Plc NGC • Equity investors Seplat and NGC gra
Slide 51: AGPC - Milestones and Funding
AGPC – MILESTONES AND FUNDING INTEGRATING PROJECT EXECUTION AND FUNDING PLAN THAT BALANCES UNDERLYING RISK WITH INVESTOR APPETITE FUNDING & CONTRACT EXECUTION • Contracts to contain milestones which if not achieved permit demobilisation of works with minimal cost exposure and nominal cancellation ch
Slide 52: ANOH - Base Case Sources & Uses
ANOH – BASE CASE SOURCES & USES NON-RECOURSE FUNDING SOURCES Senior Debt US$m 280 Equity US$m 420 • US$ 460 million of USD project costs and US$ 240 million Naira project costs TOTAL US$m 700 • US$ 420 million of equity and US$ 280 million debt is USD denominated USES mitigating devaluation risk dur
Slide 53: AGPC - Equity
AGPC - EQUITY AGPC WELL CAPITALISED TO ATTRACT FURTHER INVESTMENT AND POSITIONED FOR GROWTH Q1 Q2 Q3 TOTAL 2019 2019 2019 TOTAL PENDING NGC US$ 100 m US$ 50 m US$ 60 m US$ 150 m US$ 60 m SEPLAT US$ 47.5 m US$ 50 m US$ 60 m US$ 97.5 m US$ 60 m SEPLAT HISTORICAL US$ 52.5 m - - US$ 52.5 m - CUMULATIVE
Slide 54: Debt Market Liquidity
DEBT MARKET LIQUIDITY ACHIEVABLE FUNDING TIMELINE WITH FLEXIBILITY FUNDING TIMELINE MARKET LIQUIDITY & INDICATIVE PRICING 700 Type of Funding USD Price Amount Available US$m FIRST Local Banks 6.00-9.00% 500+ 600 GAS Debt US $ 280 million International Banks 4.50-6.00% 200+ 500 Vendor/Export Finance
Slide 55: Key Funding Considerations
KEY FUNDING CONSIDERATIONS ADDRESSING DEBT INVESTORS UPFRONT TO ENSURE SUCCESS • AGPC through seconded Seplat staff shall syndicate the loan and leverage Seplat’s reputation to attract Debt investors • Consideration given to contractors that can act as anchor investors further enhancing the attracti
Slide 56: Convertibility of Naira Gas Revenues
CONVERTIBILITY OF NAIRA GAS REVENUES INVESTORS AND EXPORTERS WINDOW (IEFX) - INTRODUCED IN 2017 - IS THE MOST LIQUID FX MARKET IN NIGERIA CBN RESERVES vs IEFX PRICE MOVEMENT (Apr 2017 - Jun 2109) CBN RESERVES vs FX MARKET TURNOVER (Apr 2017 - Jun 2109) Reserves ($’bn) IEFX Price (NGN/USD) Reserves (
Slide 57: Consultants Under Consideration
EXPERIENCED DUE DILIGENCE PROVIDERS LONG LEAD PROVIDERS ENGAGED TO COMPLETE EARLY STAGE REVIEW FINANCIAL MARKET TECHNICAL MODEL INSURANCE LEGAL ENVIRONMENTAL STUDY AUDIT CONSULTANTS UNDER CONSIDERATION 57 2019 CAPITAL MARKETS PRESENTATION
Slide 58: Syndication Timeline
SYNDICATION TIMELINE CONSERVATIVE STRUCTURE EXPECTED TO GENERATE A COMPETITIVE ENVIRONMENT May June July August 1 IJV Partners Fund complete Oct-19 2 AGPC FID Mar-19 3 Construction Packages 1 and 2 Awarded Jun-19 4 Independent Due Diligence Commences Jul-19 5 Lenders Pack Issued Jul-19 6 Lenders Let
Slide 59: ANOH Fiscal Terms
ANOH FISCAL TERMS UPSTREAM MIDSTREAM DOWNSTREAM First Gas FG + 5yrs FG + 10yrs 50% 50% Gas Gas Gas SPDC OML 53 JV Partners AGPC SALES (47%) (47%) (53%) Wet gas purchased from WELLHEAD upstream unit Crude Crude Crude (51%) (51%) (46%) Gas: 35% x 50% x R LPG LPG LPG Crude: 50% x 47% x R (2%) (2%) (1%)
Slide 60: Indicative Financial Metrics
INDICATIVE FINANCIAL METRICS ROBUST METRICS SENSITIVITY RESULTS Completion Delay Metric Base Case Production -15% Receivable – 25% Gas Industrial Offtake Only 6 months Equity IRR % 25.2% 18.8% 15.9% 18.0% 20.3% Equity Payback Years 3.25 5.00 6.00 5.25 4.75 Minimum DSCR* Ratio 2.41x 1.98x 1.76x 1.93x
Slide 61: AGPC Projected Results
AGPC PROJECTED RESULTS GUIDANCE FOR AGPC AT FIRST GAS MID TERM FIVE YEARS AND LATE TERM TEN YEARS FCF CFADS EBITDA First Gas: US$ 76 million First Gas: US$ 105 million p.a First Gas: US$ 207 million p.a. Mid: US$ 174 million Mid: US$ 225 million p.a. Mid: FY US$US$199 2017: 225 million p.a. million
Slide 62: Summary
SUMMARY Austin Avuru - Chief Executive Officer 62 2019 CAPITAL MARKETS PRESENTATION Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 63: Concluding Remarks
CONCLUDING REMARKS SEPLAT GAS BUSINESS SHALL CONTINUE TO BREAK GROUND ACHIEVING OPERATIONAL AND FINANCIAL SUCCESS MARKET ACCESS OPPORTUNITY Market prices Seplat’s access to Conventional diesel remain strong, gas infrastructure off-grid power long term outlook positions it to be generation is expecte
Slide 64: Cementing Seplat's Leading Domestic Market Position
CEMENTING SEPLAT’S LEADING DOMESTIC MARKET POSITION THE EXISTING GAS BUSINESS AND FUTURE GROWTH FROM ANOH CAN START TO TRANSFORM NIGERIA’S ENERGY MIX PROCESSING CAPACITY DEDICATED TO THE DOMESTIC MARKET 2018 DOMESTIC GAS SUPPLY 900 700 800 600 700 Pro forma impact of ANOH Phase I 500 600 Pro forma i
Slide 65: Question & Answers
QUESTION & ANSWERS 65 2019 CAPITAL MARKETS PRESENTATION Seplat Petroleum Development Company Plc | www. seplatpetroleum.com
Slide 66: Head Office and London Office
Head Office Seplat Petroleum Development Company Plc Address: 25A, Lugard Avenue, Ikoyi, Lagos, Nigeria. Phone: +234 (0)1 277 0400 Email: info@seplatpetroleum.com ir@seplatpetroleum.com Web: www.seplatpetroleum.com London Office Seplat Petroleum Development Company Plc Address: 4th Floor, 50 Pall Ma
Seplat Petroleum Development Company — Investor Day (June 2019) on 6ix