Karoon Energy Ltd · ASX:KAR
Karoon Energy — FY2024 Earnings Presentation
39 slides from Karoon Energy's earnings presentation, Feb 27, 2025
Slide 1: 2024 Full Year Financial Report – ASX Release and Investor Presentation
27 February 2025 Company Announcements Office ASX Limited Dear Sir / Madam 2024 Full Year Financial Report – ASX Release and Investor Presentation Enclosed are the following documents in relation to Karoon Energy Ltd 2024 full year financial report: • ASX Release; and • Investor Presentation. This a
Slide 2: 2024 Underlying Net Profit After Tax of US$214.0 million
ASX RELEASE 27 February 2025 | ASX: KAR 2024 Underlying Net Profit After Tax of US$214.0 million 12 months to 31 Dec 24 31 Dec 23 % change Production volume on NWI basis (MMboe) 11.0 9.2 +20 Production volume on NRI basis (MMboe) 10.4 9.1 +14 Sales volume on NRI basis (MMboe) 10.7 8.7 +23 Average re
Slide 3: CEO comments on the 2024 full year results
Commenting on the full year results for 2024, CEO and Managing Director, Dr Julian Fowles, said: “Despite many challenges in 2024, Karoon’s 2024 full year results demonstrate the strength of our more diversified production base and competitive cost structure. We generated US$395 million of operating
Slide 4: Financial Performance
FINANCIAL PERFORMANCE Sales revenue for the twelve months to 31 December 2024 was US$776.5 million, up from US$680.0 million in 2023. The increase in revenue was driven by a full year of production from the Who Dat assets, which were acquired in late 2023, and more than offset lower revenue from the
Slide 5: Reserves and Resources; 2025 Guidance
RESERVES AND RESOURCES An assessment of Reserves and Resources at 31 December 2024 was completed, based on production performance, technical studies and the drilling results from the 2024 drilling results. 2P Reserves were 67.9 MMboe, after adjusting for Baúna and Who Dat annual production of 10.4 M
Slide 6: Results conference call and contact details
This announcement has been authorised for release by the Board of Karoon Energy Ltd. 2024 RESULTS CONFERENCE CALL Karoon’s CEO and Managing Director, Dr Julian Fowles, CFO, Mr Ray Church, and EVP & Country Manager of Karoon Brazil, Mr Marco Brummelhuis, will hold a conference call for analysts and i
Slide 7: Notes on Calculation of Reserves and Resources
NOTES ON CALCULATION OF RESERVES AND RESOURCES Reserves and Resources estimates are prepared in accordance with the guidelines of the Petroleum Resources Management System (SPE-PRMS) 2018 jointly published by the Society of Petroleum Engineers (SPE), World Petroleum Council (WPC), American Associati
Slide 8: About Karoon Energy Ltd
ABOUT KAROON ENERGY LTD Karoon Energy Ltd. is an international oil and gas exploration and production company with assets in Brazil, the United States of America and Australia, and is an ASX listed company. Karoon’s vision is to be a leading, independent international energy company that adapts to a
Slide 9: Karoon Energy 2024 Full Year Results
Karoon Energy 2024 Full Year Results 27 February 2025
Slide 10: 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 11: 2024 Full Year Highlights
Julian Fowles CEO and Managing Director 2024 Full Year Highlights
Slide 12: 2024 full year highlights
2024 full year highlights Strong cashflow & capital discipline enabled shareholder returns and reinvestment Record production and Organic growth Improved liquidity with Capital discipline and sales revenue opportunities maturing strong cashflow & bond returns to shareholders Record production of 10.
Slide 13: 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 producer, focused on Santos Basin, Brazil and US Gulf of Mexico Aiming to: Improve perso
Slide 14: 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 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 incidents (six
Slide 15: Financial Results
Ray Church EVP and CFO Financial Results
Slide 16: 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 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 5.5 294.9 6 4.8 450 300
Slide 17: 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, interest costs more than
Slide 18: 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 leases costs Unit production costs reported on Net Working Interest (NWI) basis to exclude Operating costs (
Slide 19: Strong free cashflow from operations
Strong free cashflow from operations1 Capex, Petrobras payment and capital returns fully funded by cashflows US$m 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 Petrobras issuance c
Slide 20: 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: 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 term source of deb
Slide 21: 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 Base Value Capital returns dividend & buybacks Capital Returns Policy of 20-40% of unde
Slide 22: Operational Update - Brazil
Marco Brummelhuis EVP Brazil Operational Update - Brazil
Slide 23: 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: >US$50m revenue forgone in 2024 due to 84.5% efficiency vs 92.5% (mid point of target),
Slide 24: 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) Interpretation of reprocessed 3D seismic over Neon and Neon West close to co
Slide 25: Operational Update – US & sustainability
Julian Fowles CEO and Managing Director Operational Update – US & sustainability
Slide 26: 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 average and above average impact of hurricane season on Who Dat Production system optimisati
Slide 27: 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 within tieback distance of existing infrastructure Minimal additional appraisal drilling requirements and short
Slide 28: 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 Prospective Resources (MMboe NRI) 1 (excluding Who Dat As at 31 December 2024 West 2 and Who Dat East Deep) 1C 2C 3C 35 33.3 Who Dat East 9
Slide 29: 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 Net Zero by 2050 or sooner: Reflects current asset portfolio and opportunity outlook and aligns with majority of industry and
Slide 30: Baúna FPSO acquisition and summary
Julian Fowles CEO and Managing Director Baúna FPSO acquisition and summary
Slide 31: 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 Objective is to re-establish reliable and predictable operations at Baúna Project and maximise value of Baúna asset Attractive metrics, with IRR comfortably above mid-teens hurdle
Slide 32: 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 production rates): No lease costs, partly offset by increased scope/cost of new O&M contract an
Slide 33: 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 SPA signed Transaction New O&M Complete close contractor transition to selected new contractor Tender preparation for new O&M operator underway: Focus on co
Slide 34: Summary
Summary Improving market confidence Record production and underlying NPAT in 2024, but below expectations due to operational challenges Major focus to address issues and deliver Strategic Review objectives: First priority remains safe and reliable operations, with focus on re- establishing predictab
Slide 35: Appendix and Glossary
Appendix and Glossary
Slide 36: Appendix 1: Reconciliation of underlying results to statutory results
Appendix 1: Reconciliation of underlying results to statutory results 2024 2023 1 (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/(gains) on cash flo
Slide 37: 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 38: 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 39: Karoon Energy
KAROON ENERGY