Horizon Oil Limited · ASX:HZN
Horizon Oil — HY2024 Earnings Presentation
23 slides from Horizon Oil's earnings presentation, Feb 27, 2024
Slide 1: Half-Year 2024 Results Presentation
HALF-YEAR 2024 RESULTS PRESENTATION
Slide 2: Compliance Statement & Important Information
COMPLIANCE STATEMENT & IMPORTANT INFORMATION ► Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Horizon Oil Limited, industry growth or other tr
Slide 3: HY24 Investment Highlights
HY24 INVESTMENT HIGHLIGHTS Statutory profit after tax Interim FY24 distribution Sales revenue to Shareholders US$18.3 million AUD 1.5 cps 1 US$66.1 million (~US$16 million) Net cash Sales volume EBITDAX US$45.1 million 757,784 bbls US$44.0 million HALF-YEAR 2024 RESULTS PRESENTATION 4 1 Interim divi
Slide 4: ESG Performance
ESG PERFORMANCE CONTINUED FOCUS ON ESG PERFORMANCE LOST TIME INJURIES Number of million hours worked ► Strong safety record better than industry benchmarks 2.5 ► Seed capital investment in carbon removal credit developer (Nobrac) to 2.0 aid decarbonisation, hedge against Maari emission costs and pro
Slide 5: Delivering on Strategy
DELIVERING ON STRATEGY MAXIMISE FREE CASHFLOW1 FURTHER DISTRIBUTIONS TO CONTINUE INVESTING IN SHAREHOLDERS PRODUCTION GROWTH ► Generated EBITDAX for the 2023 calendar year of ► Interim FY24 dividend announced of AUD 1.5 ► Block 22/12 workover program completed US$95.3 million, with net cash at perio
Slide 6: Financial Results
FINANCIAL RESULTS
Slide 7: FY24 Half-Year Financial & Commercial Highlights
FY24 HALF-YEAR FINANCIAL & COMMERCIAL HIGHLIGHTS HIGHLIGHTS HY 2024 HY 2023 CY 2023 Production Volumes (bbl) ► Production & sales volumes – 0.76 million bbls 763,145 931,902 1,747,129 (net working interest) produced and sold in HY24, with increased CONTINUE Maari productionINVESTING IN partially in
Slide 8: Strong Half Year Cashflow Replenishes Cash Reserves Following Shareholder Distributions
STRONG HALF YEAR CASHFLOW REPLENISHES CASH RESERVES FOLLOWING SHAREHOLDER DISTRIBUTIONS US$ MILLION ( 16.4 ) ( 19.3 ) 68.2 ( 8.1 ) ( 2.0 ) 32.5 ( 21.0 ) 43.6 45.1 Opening cash and Net revenue Cash operating costs Corporate, tax, Net cash inflows Debt repayments Investment in oil and Distributions to
Slide 9: Cost Control During Half Year Maintains Profitability
COST CONTROL DURING HALF YEAR MAINTAINS PROFITABILITY US$ MILLION (1.6) 3.9 ( 3.7 ) ( 5.8 ) 6.6 19.0 18.3 Profit after tax for HY 2023 Sales volume Net realised oil price, Operating costs Exploration expense Taxes, levies, royalties, & Profit after tax for HY 2024 inclusive of hedge written off othe
Slide 10: Increased Calendar Year Sales Volumes Offsets a Softer Realised Oil Price
INCREASED CALENDAR YEAR SALES VOLUMES OFFSETS A SOFTER REALISED OIL PRICE OIL SALES REVENUE1 2.0 160 120 140 44.8 100 1.5 0.50 120 37.6 Oil Sales (MMbbl) 0.63 0.35 80 0.04 100 3.9 US$/bbl US$m 1.0 0.47 0.35 80 60 0.06 48.2 60 4.2 24.2 106.9 40 1.12 1.19 21.4 93.8 0.5 0.92 40 0.82 0.82 59.1 52.4 20 2
Slide 11: Calendar Year Production Growth & Increased Profitability
CALENDAR YEAR PRODUCTION GROWTH & INCREASED PROFITABILITY EBITDAX1 AND CASH COST PER BBL PROFIT AFTER TAX1 120 30 50 45 100 25 3.9 3.9 40 80 20 35 4.2 30 US$m US$m US$/bbl 60 15 25 97.2 20 4.2 91.4 39.2 40 10 35.5 75.8 15 53.4 10 19.3 20 5 30.7 5 10.2 11.1 0 0 0 CY 2019 CY 2020 CY 2021 CY 2022 CY 20
Slide 12: Record Calendar Year Free Cashflow
RECORD CALENDAR YEAR FREE CASHFLOW FREE CASH FLOW1 NET CASH/(NET DEBT) 100 160 80 140 120 60 100 102.1 40 78.7 80 US$m US$m 62.7 57.6 20 38.1 60 64.8 22.5 40 0 (5.8) (4.9) 34.8 (10.1) (13.5) 20 45.1 (20.8) 10.0 14.7 24.8 -20 0 (7.4) -40 -20 CY 2019 CY 2020 CY 2021 CY 2022 CY 2023 CY 2019 CY 2020 CY
Slide 13: Asset Update & Outlook
ASSET UPDATE & OUTLOOK
Slide 14: Block 22/12: Solid Production Performance Continues, Reserves Replacement Plans Maturing
BLOCK 22/12: SOLID PRODUCTION PERFORMANCE CONTINUES, RESERVES REPLACEMENT PLANS MATURING Export to Weizhou ASSET OVERVIEW Terminal WZ6-12 North WZ6-12 Mid WZ6-12 Sliver ► Block 22/12, Beibu Gulf, China, 26.95% WZ6-12 South CNOOC ► JV: CNOOC (51% - Block 22/12 Operator), Roc Oil (19.6%), Oil Australi
Slide 15: Block 22/12: Indicative Future Opportunities
BLOCK 22/12: INDICATIVE FUTURE OPPORTUNITIES1 INDICATIVE FUTURE OPPORTUNITIES Infill/appraisal drilling Infill drilling Water injection ► The Block 22/12 joint venture continues to project mature a drilling CONTINUE programIN INVESTING with an anticipated first half of calendar PRODUCTION GROWTHyear
Slide 16: Block 22/12: History & Forecast (Gross)
BLOCK 22/12: HISTORY & FORECAST (GROSS) History Forecast 20,000 History Forecast Indicative future activities End of End of 15,000 WZ6-12 / Block 22/12 W12-8W PSC Production (Petroleum Gross oil rate (bopd) Period (SDA) Contract) 10,000 Indicative future WZ12-8E activities production continues until
Slide 17: Maari: Production Remains Reliably Stable; Licence Extension Application This Calendar Year
MAARI: PRODUCTION REMAINS RELIABLY STABLE; LICENCE EXTENSION APPLICATION THIS CALENDAR YEAR ASSET OVERVIEW ► Maari, New Zealand, 26% ► JV: OMV (69% - Operator), Cue Energy (5%) ► Maari/Manaia generates approximately 35% of Horizon operating cashflow ► Maari crude continues to attract strong premiums
Slide 18: Maari: History & Forecast (Gross)
MAARI: HISTORY & FORECAST (GROSS) History Forecast 10,000 History Forecast Life Extension Indicative Future Activities Current 8,000 permit Indicative expiry future Gross Oil Rate (bopd) Possible cessation activities1 of production - December 2030 6,000 (subject to permit extension) 4,000 2,000 Fore
Slide 19: Announced Mereenie Transaction Highlights
ANNOUNCED MEREENIE TRANSACTION HIGHLIGHTS MEREENIE IS A HIGH MARGIN AND LOW-COST CONVENTIONAL OIL & GAS PROJECT WHICH IS LINKED TO THE EAST COAST GAS MARKETS VIA THE NORTHEN GAS PIPELINE (NGP). THE PROJECT HAS A TRACK RECORD OF STABLE PRODUCTION AND CASH FLOWS CONVENTIONAL PRODUCING STRATEGIC ASSET
Slide 20: Mereenie Transaction: Stable Production & Material Impact on the Portfolio
MEREENIE TRANSACTION: STABLE PRODUCTION & MATERIAL IMPACT ON THE PORTFOLIO MEREENIE - MATERIAL INCREASE IN GROUP RESOURCES AND PRODUCTION, OFFSETING DECLINE IN OTHER ASSETS GROUP PRODUCTION FORECAST TO 2030, BOEPD GROUP 2P DEVELOPED BUILD, MMBOE +129% 12 8,000 11.2 11 7,000 10 9 6,000 6.3 6.3 8 Mere
Slide 21: Plan for the Next 12 Months
PLAN FOR THE NEXT 12 MONTHS 1, 2 2024 2025 Q1 Q2 Q3 Q4 Q1 Possible infill drilling (between two and four Planning in progress wells)1 China, Block Possible liquid-handling capacity upgrades1 Design in progress & ongoing 22/12 1 Preliminary planning in progress; WZ12-8E Phase 3 planning1 subject to J
Slide 22: FY24 Guidance
FY24 GUIDANCE* A STRONG END TO THE FINANCIAL YEAR ANTICIPATED - DRIVEN BY PRODUCTION AND OIL PRICE Production Sales Revenue EBITDAX 1.4 – 1.5 1.35– 1.45 US$110 - 120 US$62.5 – 72.5 million barrels million barrels million million ► Production additions in ► Sales volumes forecast to ► Revenue expecte
Slide 23: Contacts
CONTACTS RICHARD BEAMENT, CEO +61 2 9332 5000 info@horizonoil.com.au Horizon Oil Limited Level 4, 360 Kent Street Sydney NSW 2000 Australia horizonoil.com.au