Brava Energia Sa · BMFBOVESPA:BRAV3
Brava Energia Sa — Q2 2023 Earnings Presentation
21 slides from Brava Energia Sa's earnings presentation, Aug 15, 2023
Slide 1: Results Presentation 2Q23
Results Presentation 2Q23 ri.3rpetroleum.com.br
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements about future events that are not based on historical facts and are not guarantees of future results. These forward-looking statements only reflect the Company's current views and estimates of future economic circumstances, industry
Slide 3: 2Q23 Highlights | Integrated Portfolio with production above 43kboed in July
2Q23 Highlights | Integrated Portfolio with production above 43kboed in July Strategy, Execution and Results Operation Evolution Financial Performance Macau | Rio Ventura | Recôncavo | Areia Branca Macau | Rio Ventura | Recôncavo | Areia Branca Fazenda Belém | Peroá (85%) | Papa Terra (53.13%) Fazen
Slide 4: Operational Highlights
Operational Highlights
Slide 5: Potiguar Complex | 2Q23 Production & Operation
Potiguar Complex | 2Q23 Production & Operation Potiguar Complex: Macau | Fazenda Belém | Areia Branca | Pescada (35%) | Potiguar 10 workover Rigs 75 well (3R work interest | kboe/d) on site during 2Q23 activities 2Q23 25.2 1.5 Interventions 2Q23: Drilling in 2023: Potiguar Complex Oil (kbbl/d) respo
Slide 6: Recôncavo Complex | 2Q23 Production & Operation
Recôncavo Complex | 2Q23 Production & Operation 5 workover Rigs on site during 2Q23 1 more to arrive in 2023 7.4 7.4 Recôncavo Complex: 7.0 Rio Ventura & Recôncavo Interventions 2Q23: (3R work interest | kboe/d) 6.2 ✓ Workover 19 38 well 6.0 ✓ Pulling 14 interventions ✓ Reactivations 5 BA 4.4 4.4 3.
Slide 7: Papa Terra Cluster | 2Q23 Production & Operation
Papa Terra Cluster | 2Q23 Production & Operation Operation: 3R took over Papa Terra in Dec/22 with 3 Papa Terra Production¹ (Oil kbbl/d) producing wells. During July the fourth well (PPT37) 3R (53.13% WI) Production increased Other was reactivated after the release of more storage QoQ as 3R improves
Slide 8: Peroá Cluster | 2Q23 Production & Operation
Peroá Cluster | 2Q23 Production & Operation Peroá Production¹ (3R work interest) Oil (kbbl/d) Gas (kboe/d) 3.2 Operation: Peroá output was up 28% QoQ. The asset recorded an 2.5 2.5 average production of 568 thousand m³/day of nat gas in 2Q23, with the current production capacity being ~650 thousand
Slide 9: 2Q23 and Historical Production
2Q23 and Historical Production Total Oil & Gas Production (3R work interest) Total Oil & Gas Production Oil & Gas average production (3R work interest) 3R is already running in a production 43.9 in 2Q23 (% boe/d) rate of ~44Kboe/d in July 9.3 Oil (kbbl/d) 28.4 Gas (kboe/d) 20.7 8.5 70% 30% 14.9 15.4
Slide 10: Mid & Downstream operation
Mid & Downstream operation Complete infrastructure: Refined Products Breakdown % Processing, refining, storage, transport and outflow of oil and natural gas: ✓ Refinery: Installed capacity of ~40 kboepd 7% 8% ✓ NGPU: Installed capacity 5.7 Mm³/d - 1.8 Mm³/d in operation; 22% 108k m³ of ✓ Terminal: E
Slide 11: Commercial Aspects by Clusters | Evolution across all clusters in 2Q23
Commercial Aspects by Clusters | Evolution across all clusters in 2Q23 Potiguar Complex Recôncavo Complex ✓ The Company was able to improve commercial terms across all cluster during 2Q23; ✓ 3R secured better discounts over brent on the oil production in all regions together US$73.3 average price US
Slide 12: Financial Highlights
Financial Highlights
Slide 13: Consolidated Net Revenues 2Q23 (R$ MM)
Consolidated Net Revenues 2Q23¹ (R$ MM) 5.5X ✓ Consolidated revenues summed R$ 837 MM in 2Q23, 46% up QoQ. 3R 24 months delivered a robust growth pace in the last 2 years, increasing its revenues by 5.5 2.1X and 2.1 times when compared to 2Q21 and 2Q22, respectively. YoY +46% 837 ✓ The Potiguar Clus
Slide 14: Upstream Net Revenues 2Q23
Upstream Net Revenues 2Q23¹ 4 5.0X ✓ Upstream revenues in 2Q23 still reflect ~68% of 3R’s acquired 24 months portfolio: Potiguar Cluster contributed with only 23 days during 2Q23; ✓ Macro: oil prices and dollar were down ~4% and ~5% QoQ; +90% YoY ✓ Growth pace: even with oil prices down, upstream re
Slide 15: Consolidated Adjusted EBITDA 2Q23 (R$ MM)
Consolidated Adjusted EBITDA 2Q23 (R$ MM) ✓ Consolidated Adjusted EBITDA summed ~R$ 200 MM in 2Q23, up 28% QoQ. Ebitda Margin reached 23.9%. The mid & downstream early results don’t reflect 3R’s business plan for the segment going forward as it was supported by 23 days of operation; Potiguar account
Slide 16: Lifting Cost | 2023
Lifting Cost | 2023 Lifting Cost per Cluster ❖ Potiguar Complex (US$ / boe ) 31.1 Macau, Areia Branca, Pescada, Faz. Belém & Potiguar Clusters 30.1 ✓ Lifting cost of US$ 23.6/boe in 2Q23, justified by: (i) the take over of the Potiguar Cluster, (ii) higher costs in Pescada Cluster, and partially off
Slide 17: Capex 2Q23 (US$ MM)
Capex 2Q23 (US$ MM) Capex breakdown per Capex breakdown per 75.2 cluster in 2Q23 (%) activity in 2Q23 (%) 69.5 50% 25% 42.2 36% 33.0 26.4 36% 25% 12% 13% 2% 2.8 Potiguar Complex 3R Offshore Workover / Pull in & Reactivation Inventory & Others Recôncavo Complex Corporate Production Facilities Drillin
Slide 18: Capital Structure | 2Q23
Capital Structure | 2Q23 Cash Flow 2Q23 (US$ MM) 1,086 507 187 BB CC (66) 199 199 131 44 (44) (1,057) (71) (16) AA (507) Cash and cash Operational Capital Debt Potiguar Potiguar Capex Debt service Other Cash and cash 3R Lux marketable Term Santander Cash and cash equivalents 1Q23¹ activities increas
Slide 19: Hedge Position 2Q23
Hedge Position 2Q23 NDF | Average Brent Price / Barrels hedged Collar | Call x Put Brent Price / Barrels hedged Thousand of barrels | US$ Thousand of barrels | US$ 900 130.0 800 NDF Brent médio Collar Put Call 110.0 3000 120.0 700 83 85 82 98 99 99 99 99 80 78 90.0 96 96 93 95 76 2500 600 75 74 100.
Slide 20: Next Steps for 2023 | Focus on production, safety and integrity
Next Steps for 2023 | Focus on production, safety and integrity ✓3R is totally focused on the execution, increase in operational efficiency, dilution of fixed costs and recovery the integrity of its main assets ✓Integration of the Potiguar Basin Operations: synergies and efficiency and continuous an
Slide 21: Q&A 2Q23
Q&A 2Q23 ri.3rpetroleum.com.br