Jadestone Energy Plc · LSE:JSE
Jadestone Energy — FY2019 Earnings Presentation
32 slides from Jadestone Energy's earnings presentation, Apr 23, 2020
Slide 1: Full Year 2019 Results Review
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level Full Year 2019 • Fifth level Results Review April 23, 2020 www.jadestone-energy.com 1
Slide 2: Disclaimer & advisories
Disclaimer & advisories Disclaimer You must read the following before continuing. The following applies to this document, the presentation of the information in this document any question‐and‐answer session that may follow, and any additional documents handed out at the presentation (collectively, t
Slide 3: Advisories
Advisories Certain of the information in this Presentation is “financial outlook” as approved by the Company’s Board of Directors as at February 20, 2020 within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding the Compan
Slide 4: Agenda
Agenda Overview 1 Paul Blakeley ⚫ Overview, sustainability, and COVID-19 response 2 Dan Young ⚫ 2019 results, cash resiliency, guidance outlook 3 Paul Blakeley ⚫ Work programme, reserves & concluding thoughts 4 Team ⚫ Q&A session 4
Slide 5: Jadestone Energy, corporate overview
Jadestone Energy, corporate overview Overview Highlights Financial Statement extract, US$ million ⚫ First sustainability report to be published As at Dec-19 Dec-18 ⚫ 2019 results demonstrate growth & value Cash1 99.4 81.6 — US$325 million revenue & US$177 million OCF Total assets 755.1 730.4 — Produ
Slide 6: ESG priorities
ESG priorities Our framework for sustainability Social and Governance Environment human capital and leadership Excellence in environmental Exceptional occupational health Demonstrating strong leadership management and safety culture and strengthened governance Reducing our energy and GHG P
Slide 7: ESG performance
ESG performance 2019 scorecard and 2020 targets/goals 0 0 10% reduction 0 No harm to environment and zero No uncontrolled hydrocarbon Reducing our energy and GHG A zero lost time injury ‘reportable’ incidents releases to the environment emissions frequency rate ENVIRONMENTAL MANAGEMENT EMISSIONS AND
Slide 8: COVID-19 risk assessment
COVID-19 risk assessment Maintaining business continuity Business risk scenario Assessment ⚫ Prioritise returns & Balance Sheet strength Production & capital ⚫ Defer infill wells, moving incremental production gains from 2020 to 2021 ⚫ Production guidance revised down by ~10% ⚫ Pandemic manager esta
Slide 9: COVID-19 risk assessment (cont'd)
COVID-19 risk assessment (cont’d) Offshore operational continuity assured Operations risk scenario Current significant actions ⚫ Frequent and close integration with Government/authorities Sustainable offshore ⚫ Reviewed all critical maintenance, to reduce offshore activity levels operations ⚫ Reduce
Slide 10: COVID-19 risk assessment (cont'd)
COVID-19 risk assessment (cont’d) Stress-testing Jadestone’s financial resilience Jadestone position entering COVID-19 lockdown period + Additional initiatives—Project Clover ⚫ Intensifying cost reductions March 31, 2020 — Every asset operating budget cash on hand: reviewed & revised ~US$120 million
Slide 11: Maintaining capital discipline
Maintaining capital discipline Nam Du / U Minh gas development Context Result ~US$90 million Stronger The largest and longest capex removed balance sheet dated element of the 2020 from 2020 capital programme Jadestone elected Significant Debt free within to defer FID reduction in 12 months G&A Delay
Slide 12: Maintaining capital discipline (cont'd)
Maintaining capital discipline (cont’d) Australia infill drilling programme, Montara H6, Stag 50H Context Result Stronger ~US$50 million Two discretionary wells, balance sheet capex deferred with expected flush production Jadestone elected Reduced to delay wells into Debt free within production 2021
Slide 13: Agenda
Agenda Overview 1 Paul Blakeley ⚫ Overview, sustainability, and COVID-19 response 2 Dan Young ⚫ 2019 results, cash resiliency, guidance outlook 3 Paul Blakeley ⚫ Work programme, reserves & concluding thoughts 4 Team ⚫ Q&A session 13
Slide 14: 2019 at a glance
2019 at a glance Montara bedded down, guidance met Guidance Select major 2019 milestones 13,500 Production, bbls/d ✓ 49H infill well at Stag, Q2 14,500 13,531 ✓ Group is net cash positive, Q2 12,000 15,000 ✓ RLWI + umbilical replacement at Montara, Q3 Major spend1, US$mm 66 81 ✓ Transfer of Montara
Slide 15: 2019 results—key headlines
2019 results—key headlines Substantial cash generation and growth Overview Average production and hydrocarbon prices ⚫ Full year production of 13,531 bbls/d, more than three Q4 Q3 Q2 Q1 times the 4,057 boe/d in 2018 2019 2019 2019 2019 ⚫ Increase in average uptime to 80% versus 68% in 2018 ⚫ Increas
Slide 16: Financial results—full year 2019 EBITDAX
Financial results—full year 2019 EBITDAX Full year 2019 adjusted EBITDAX reconciliation Income statement extract, US$ million EBITDAX, US$ million 12 months ended Dec 31, 188 200 177 Reported Adjusted Income statement extract 2019 2018 150 Revenue 325.4 113.4 100 Production costs (119.9) (90.9) Staf
Slide 17: Financial results—full year cash bridge
Financial results—full year cash bridge Montara and Stag demonstrating strong positive cash generation US$ million Cash balance 350 US$155 million of positive cash generation, before leases of US$16 million and net non-recurrings of US$10 million Ordinary cashflow Non-recurring cashflow 300 17 (24)
Slide 18: Montara performance
Montara performance Year-on-year improvement Increasing production and reducing opex1 Production optimisation US$/bbl Cost, US$/bbl Production, bbls/d bbls/d ⚫ Skua 11 and Swallow back on line 30 15,000 ⚫ Reduced facility operating pressure— increase production without gas lift RLWI, umbilical, rein
Slide 19: Stag operational enhancements
Stag operational enhancements Improved well uptime in H2 2019 Increasing production and reducing opex1 Production optimisation US$/bbl bbls/d Cost, US$/bbl 50 Production, bbls/d bbls/d 4,000 ⚫ 49H infill well ⚫ 12H pre-emptive workover, shortening downtime, increasing productivity Above-normal cyclo
Slide 20: Strong downside oil price protection
Strong downside oil price protection US$68.45 Dated Brent swaps through to September 2020 Existing capped swap summary Comments Vol, bbls Dated Brent ⚫ Swaps cover approximately 50% of US$/bbl Montara’s planned production for first 9 500,000 90 months of 2020 — Around a third of Group production ⚫ U
Slide 21: Resilient cash flow generation
Resilient cash flow generation Discretionary capex programme provides optionality Reduced capex programme more than offsets reduced benchmark prices US$ million 300 200 100 0 Cash 2020 2020 2020 Reduced Vietnam Infill Tax Debt Cash Project Adjusted Jan 2020 OCF tax paid capex oil capex capex rephasi
Slide 22: Revised 2020 guidance
Revised 2020 guidance Versus 2019 guidance, 2019 actual and 2018 actual 2018 actual1 2019 guidance 2019 actual 2020 guidance Status Capex2, US$160-190 million Reduced US$10 million US$66 – 81 million2 US$78 million2 US$ million US$30 – 35 million investment 13,500-15,500 Production Production, 4,057
Slide 23: Maari asset acquisition, 69% operated interest
Maari asset acquisition, 69% operated interest Strong acquisition metrics with significant upside Update Map ⚫ 2019 FCF in line with Jadestone expectation ⚫ Approval applications submitted — Evaluation process ongoing with relevant New Zealand regulators ⚫ OMV pursuing greater cost reductions and ef
Slide 24: Agenda
Agenda Overview 1 Paul Blakeley ⚫ Overview, sustainability, and COVID-19 response 2 Dan Young ⚫ 2019 results, cash resiliency, guidance outlook 3 Paul Blakeley ⚫ Work programme, reserves & concluding thoughts 4 Team ⚫ Q&A session 24
Slide 25: Group work programme
Group work programme Medium term outlook of activity across the Jadestone portfolio Asset Activity 2020 2021 2022 + Montara Production optimisation & opex reductions Operations Stag Production optimisation & opex reductions Complete transition of operatorship, embed Maari Jadestone operating culture
Slide 26: Jadestone reserves & resources summary
Jadestone reserves & resources summary A material opportunity set Jadestone 2P reserves, mm bbls Jadestone resources outlook, mm boe mm bbls mm boe 50 250 40 200 30 150 20 100 10 50 0 0 Stag 2P Montara 2P 2019 Reserve Group 2P Group 2P Maari 2P Nam Du U Minh Nam Du Tho Chu Other Total resource Dec 2
Slide 27: Commitments
Commitments Top of mind priorities. We will… Operations Liquidity Returns Growth Focus on the We will be around at “controllables” to year-end 2020 in a Pay our maiden Close the Maari protect our people and strong financial dividend acquisition 2H 2020 operations in light of position COVID-19 Report
Slide 28: Agenda
Agenda Overview 1 Paul Blakeley ⚫ Overview, sustainability, and COVID-19 response 2 Dan Young ⚫ 2019 results, cash resiliency, guidance outlook 3 Paul Blakeley ⚫ Work programme, reserves & concluding thoughts 4 Team ⚫ Q&A session 28
Slide 29: Appendix
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level Appendix • Fifth level www.jadestone-energy.com 29
Slide 30: Jadestone Energy—updated portfolio overview
Jadestone Energy—updated portfolio overview Building a balanced, low risk, full cycle portfolio Key assets location Reserves/resources by asset Gulf of 2P1 2C2 Thailand Asset Country W.I. (%) Production (net WI) / status (mm bbls) (mm boe) SC56 Maari 69% 13.9 -- 4,000—4,500 bbls/d 51 46/07 Montara 1
Slide 31: Financial results—Q4 2019 EBITDAX
Financial results—Q4 2019 EBITDAX Q4 2019 adjusted EBITDAX reconciliation Income statement extract, US$ million EBITDAX, US$ million 3 months ended Dec 31, 80 Reported Adjusted Income statement extract 2019 2018 60 57 60 Revenue 91.2 45.0 40 Production costs (25.9) (50.0) Staff costs (6.3) (3.9) 20
Slide 32: Financial results—Q4 2019 cash bridge
Financial results—Q4 2019 cash bridge Montara and Stag demonstrating strong positive cash generation US$ million Cash balance 150 4 Qtly ordinary cashflow (6) 18 Qtly non-recurring cashflow (9) (11) 125 (1) (27) 77 (1) (1) (1) 100 (12) (5) 75 50 89 Capex in the quarter included Total US$48 million O