Nostrum Oil & Gas Plc · LSE:NOG
Nostrum Oil & Gas — FY2016 Earnings Presentation
16 slides from Nostrum Oil & Gas's earnings presentation, 2017
Slide 1: FY 2016 Results Presentation
Simple Sustainable Successful FY 2016 Results Presentation
Slide 2: FY 2016 Financial Results
FY 2016 Financial Results Financial and operational resilience throughout a volatile and uncertain oil price environment 1 • Successful cost saving initiatives with reductions in opex of 14% and transportation costs by 19% 2 • Resulting in a strong EBITDA1 margin of 56% and a closing cash balance in
Slide 3: Snapshot of key figures from 2016
Snapshot of key figures from 2016 Production Opex / boe2 50.000 4,5 4,3 40.391 40.351 40.000 3,9 3,7 Opex / boe 30.000 boepd 3,3 20.000 2,6 10.000 - 2,0 FY 2015 FY 2016 FY 2015 FY 2016 Net Operating Cash flows1 Gross debt / net debt 206,0 210,0 10,0x Gross Debt / LTM EBITDA Net Debt / LTM EBITDA 153
Slide 4: Capital discipline
Capital discipline Balance sheet Hedging programme • US$101.1m cash and cash equivalents¹ on balance sheet • 15,000 boepd hedge entered into on 14 December 2015 • US$857.9m Net debt2 • Strike price of US$49.16 • US$400.0m 6.375% Notes maturing in 2019 with no • Settles quarterly for eight quarters (
Slide 5: Resilience under low oil prices (2017 guidance)
Resilience under low oil prices (2017 guidance) – Fully funded to complete GTU III and maintain existing production in 2017 and 2018 under any oil price US$22m US$120m US$192m • +US$130m available to invest in maintaining and increasing production US$65m US$130m US$101m 2016 Operating Cash received
Slide 6: 2016 Ryder Scott Reserve Audit
2016 Ryder Scott Reserve Audit – The asset continues to perform in line with expectations • 466mmboe 2P reserves as at 1 January 2017 ➢ Proven – 147mmboe Chinarevskoye - Proven Chinarevskoye - Probable Trident - Probable ➢ Probable – 320mmboe • Contingent resources – 221mmboe 87 87,1822 • Remaining
Slide 7: A clear path to over 100k boepd
A clear path to over 100k boepd – GTU III delivers material near term production growth Able to deliver Ryder Scott production profile with Fully funded at any oil price oil price of US$40 / bbl • Fully funded to complete the construction of GTU III during 2017 under any oil price scenario 80 - 100,
Slide 8: FY 2016 Financial Results
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Slide 9: Financial Overview – FY 2016
Financial Overview – FY 2016 US$m FY 2015 FY 2016 Revenue 448.9 348.0 EBITDA1 Non-cash P&L Item 229.4 194.3 • The change in fair value of the hedge is required under Change in fair value of the hedge accounting policy “IFRS 9” • It represents the change in the carrying value of the instrument 37.1 (
Slide 10: Progress – Snapshot
Progress – Snapshot Opex / boe1 Transport costs / boe 4,3 4,3 7,0 Transport cost ($) / boe 6,3 Opex ($) / boe 4,0 6,3 3,7 3,7 5,5 5,1 3,3 4,8 3,0 4,0 FY 2015 FY 2016 FY 2015 FY 2016 EBITDA margin Tax / boe2 56% 4,8 56% 51% 5,0 EBITDA margin 42% 3,8 Tax ($) / boe 28% 2,5 2,0 14% 1,3 0% - FY 2015 FY 2
Slide 11: Balance Sheet Summary
Balance Sheet Summary Highlights Gross debt / net debt • +56.0% EBITDA¹ margin 10,0x Gross Debt / LTM EBITDA Net Debt / LTM EBITDA • US$101.1m cash & equivalents² 8,3x Leverage ratio • Reduction in Opex from US$4.3/bbl to US$3.7/bbl 6,6x • 15,000 bopd production hedged at US$49.16/bbl for 24 months
Slide 12: Supporting materials
p enestrum Tok See De ee es Teme Supporting materials
Slide 13: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 13
Slide 14: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income 14
Slide 15: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows 15
Slide 16: Disclaimer
Disclaimer THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY ATTENDING THE PRESEN