Slide 1: MIE Holdings Corporation FY2015 Results Investor Presentation
MIE Holdings Corporation FY2015 Results Investor Presentation March 2016 Strictly Private and Confidential
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions co
Slide 3: Introduction to MIE
Introduction to MIE @® MIE Holdings Corporation |
Slide 4: MIE group assets overview
Introduction to MIE MIE group assets overview Independent upstream oil and gas company with operations in China, Kazakhstan and USA Significant growth prospects Major cash flow contributor Emir-Oil (ADEK contract area) (100%, operator) Oilfields in Jilin (90%, operator) Aksaz, Dolinnoe, Emir, Karima
Slide 5: Significant reserve base
Introduction to MIE Significant reserve base Total oil reserves breakdown (as of Dec 2015) Equally likely that the actual quantity recovered is above or below the stated 2P quantity 180 160 High degree of confidence 29 1.0 160 stated Proved quantities will be 140 10 Low commercially recovered 64 0.2
Slide 6: Large resource inventory provides significant upside to existing reserves
Introduction to MIE Large resource inventory provides significant upside to existing reserves Total oil resources breakdown (as of Dec 2015) 2C Contingent Resources BE Prospective Resources 14 13 2 300 256 275 12 11 10 250 mmbbl 8 200 mmbbl 6 150 4 100 2 50 20 0 0 2C - China oilfields 2C - US assets
Slide 7: Further production growth potential from existing asset base
Introduction to MIE Further production growth potential from existing asset base Strategic scale back of Production forecast by technical consultants(1) 25,000 overall capital expenditures Lowered production by Emir-Oil to reduce operating expense in 20,000 19,416 response to low 18,622 internat
Slide 8: Company strategy
Introduction to MIE Company strategy Optimize development of two new growth assets Optimize existing mature assets Emir-Oil SGE Leverage favorable PSC terms – reallocate free cash flow amongst Group’s assets Reduce operation cost and Undertake pilot production gas sales Extend production pla
Slide 9: 2016 operational guidance
Introduction to MIE 2016 operational guidance # Gross Wells Net Capex (US$M) Net Production 2015 2016 2015 2016 2015 2016 Commentary Actual Guidance Actual Guidance Actual Guidance Represents certain producer-injector China Oilfields - - 5 5 6,687 BOPD 5,600 – 6,300 BOPD conversions, reservoir re-
Slide 10: Efficient allocation of resources
Introduction to MIE Efficient allocation of resources FY2014 capex: US$205m FY2015 capex: US$83m FY2016 capex guidance: US$55m(1) 6% 9% 21% 27% 36% 53% 26% 55% 67% China oilfields Emir-Oil SGE China oilfields Emir-Oil SGE China oilfields Emir-Oil SGE China oilfields Emir-Oil SGE US asset Group 193 1
Slide 11: China Oilfields (Daan & Moliqing)
China Oilfields (Daan & Moliqing)
Slide 12: China Oilfields Overview
China Oilfields (Daan & Moliqing) Overview China Oilfields Located in Jilin Province and situated in the (Daan, Moliqing) Ownership 90% Songliao Basin, China’s most prolific oil- Total wells drilled in 2015 - producing basin Gross wells 2,609 Total area 90% participating interest in the foreign
Slide 13: Operation & Financial Update
China Oilfields (Daan & Moliqing) Operation & Financial Update Net oil production EBITDA Breakdown (US$/bbl) 10,000 8,863 2014 2015 8,000 6,687 6,300 6,000 97.31 97.89 46.65 bopd 4,000 5,600 9.05 10.02 2.98 3.06 2,000 4.74 4.78 - 14.84 15.16 2014 2015 2016 Guidance Lifting costs 12.00 7.59 10.62 2.7
Slide 14: China Gas Project (Sino Gas & Energy)
China Gas Project (Sino Gas & Energy)
Slide 15: China Gas Project Overview
China Gas Project (Sino Gas & Energy) Overview SGE Assets Acquired 51% stake in SGE in 2012 (Linxing, Sanjiaobei) Linxing: 64.75% Ownership (through SGE) Sanjiaobei: 49% Located in Shanxi Province and situated in Total wells drilled in 2015 20 the Ordos Basin, the second largest onshore Gross we
Slide 16: Well-established Infrastructure
China Gas Project (Sino Gas & Energy) Well-established Infrastructure Multiple gas pipelines with existing tie-in points will provide market access for SGE’s pipeline quality gas 3RD BEIJING PIPELINE Linxing CGS LINXIAN-LINFEN PIPELINE Key transcontinental gas transport hub Above ground infrastr
Slide 17: Operation Update
China Gas Project (Sino Gas & Energy) Operation Update Operation update Clear path to commercial production Total gas gathering capacity of 24mmcf/day Development timeline Status Linxing CGS: 17mmcf/day (completed in Oct 2015) Sanjiaobei CGS: 7mmcf/day (completed in Nov 2014) 1 CRR for Linxing
Slide 18: Kazakhstan Project (Emir-Oil)
Kazakhstan Project (Emir-Oil)
Slide 19: Emir-Oil Overview
Kazakhstan Project (Emir-Oil) Overview Emir-Oil Acquired 100% shares in Emir-Oil in 2011 (Aksaz, Dolinnoe, Emir, Kariman) Ownership 100% Total wells drilled in 2015 - First successful international acquisition Gross wells 48 Contract area 850km2 Located in the Mangistau Oblast in the Explorati
Slide 20: Operation Update: Exploration activities
Kazakhstan Project (Emir-Oil) Operation Update Exploration activities Exploration well Aidai-1 finished drilling in June 2015 at total depth of 5,080m. The well has oil shows in reservoir objective Triassic units and with testing to be completed in 2016 YE2015 Reserve Report estimated the follow
Slide 21: Operation & Financial Update
Kazakhstan Project (Emir-Oil) Operation & Financial Update Net oil production New Export Sales Contract 6,000 FY2014 FY2015 2016 Pro-forma 5,201 (1) Benchmark Oil Brent Urals (RCMB) Brent 4,200 Benchmark Price US$90.70 US$53.97 -- 4,000 3,412 Discount US$20.98 US$5.56 ~US$8 bopd 3,600 Net Realized P
Slide 22: EBITDA Breakdown (US$/bbl)
Kazakhstan Project (Emir-Oil) Operation & Financial Update EBITDA Breakdown (US$/bbl) 2014 2015 2016 Illustration(1) 70.63 63.34 1.73 8.42 48.41 1.73 3.16 43.95 8.42 40.00 Brent 4.30 2.03 3.16 39.68 4.74 4.30 US$8 Discount 2.03 7.17 3.85 7.17 Realized 1.73 32.00 19.96 Price 8.42 13.94 15.26 12.53 3.
Slide 23: U.S. Project (Condor)
U.S. Project (Condor) @® MIE Holdings Corporation |
Slide 24: Condor Overview
U.S. Project (Condor) Overview Condor Energy Ownership 100% Net acreage 6,285 acres Niobrara (Condor Gross wells (horizontal) 5 Energy) Operation update Condor Acreage Operates 5 horizontal wells in a Colorado Niobrara asset through Condor Energy Operational and technological expertise gained fr
Slide 25: Financial Update
Financial Update @® MIE Holdings Corporation |
Slide 26: Financial performance summary
Financial Update Financial performance summary 2014 2015 Corp & Corp & (In US$ million) China Emir-Oil USA Others Total China Emir-Oil USA Others Total Revenue 360.8 121.5 3.2 - 485.4 114.9 49.8 0.9 - 165.5 Profit before income tax 145.1 24.0 (24.3) (106.2) 38.5 (142.1) (38.0) 0.8 (93.8) (273.2) Net
Slide 27: Lifting costs analysis of China assets and Emir-Oil
Financial Update Lifting costs analysis of China assets and Emir-Oil Lifting cost per barrel (1) 14.00 11.83 12.00 11.08 10.95 10.39 10.00 9.41 9.46 9.49 9.49 8.00 7.52 US$/bbl 6.00 5.18 4.85 4.00 3.66 2.00 0.00 2013 2014 2015 China oilfields (including Kongnan) China oilfields (excluding Kongnan) E
Slide 28: Key sales related statistics
Financial Update Key sales related statistics Average realized oil price Revenue breakdown by region 150 600 526 5 485 500 3 104 126 (1) 97 97 121 100 88 86 400 (US$m) (US$m) (1) 71 300 (1) 47 48 46 50 200 395 166 361 1 50 100 115 0 0 2013 2014 2015 2013 2014 2015 Jilin assets Emir-Oil export price
Slide 29: Cash flow statement and key credit statistics
Financial Update Cash flow statement and key credit statistics (In US$ million) FY2015 FY2014 Adj. EBITDA / net interest expense(1) Cash Flow Statement Cash generated from operations 108 270 Interest paid (54) (53) 9x Income tax paid (2) (25) Net cash generated from operations 52 192 Purchase of PP&
Slide 30: Appendix
Appendix @® MIE Holdings Corporation |
Slide 31: Key milestones
Key milestones Dec 2010 May 2011 Feb 2013 Apr 2014 Nov 2014 Oct 2015 IPO on SEHK raised Issued US$400m Issued US$200m Issued US$500m Drawdown US$35m Equity placement net proceeds of Senior Notes due Senior Notes due Senior Notes due unsecured 1-year raised net proceeds HK$750m 2016 2018 2019 loan fr
Slide 32: Key corporate and shareholding structure (March 2016)
Key corporate and shareholding structure (March 2016) Far East Energy Limited Celestial Public (Hong Kong)(1) 48.1% 7.2% 44.7% MIE Holdings Corporation (Cayman Islands) HKSE Listed Company 92.2% 100% 100% 100% 100% 100% Asia Gas & MI Energy MIE New Ventures MIE Jurassic Gobi Energy Ltd Riyadh Energy
Slide 33: Strong cash flow supported by PSC structure
Strong cash flow supported by PSC structure Jilin assets oil allocation under PSCs 2014 2015 Production Net:Gross 47%(2) 42%(2) VAT 5% of the total gross production Calculated at progressive ad valorem rates, ranging from zero to 12.5% based on the annual Royalty production of individual project Ope
Slide 34: China Special Levy (Windfall Tax) Calculation
China Special Levy (Windfall Tax) Calculation |<-----New Regime effective from 2015/1/1----->||<------------------------Old Regime---------------------->| Saved Windfall Effective Windfall Effective Oil Price Threshold Tax Rate Threshold Tax Rate Windfall Tax Tax Rate Tax Tax Rate Tax 40 65 0% -- 0.
Slide 35: Jilin assets - sales and marketing
Jilin assets - sales and marketing ● PetroChina has been MIE’s sole customer. Selling to PetroChina is MIE’s choice, not obligation Sole customer ● MIE believes PetroChina is the best customer given they make timely payments ● MIE transports all crude oil produced from oilfields through their pipeli
Slide 36: Sino Gas & Energy Ownership Structure
Sino Gas & Energy Ownership Structure Annual Gross Production 85% 15% 92.2% Cost Recovery Gas VAT & Royalty Asia Gas Share of Operating Costs + Exploration Costs + Development 51% 49% Costs (plus 9% deemed interest) Non-Cost Recovery Gas SGE *Factor X=0.90-1.00 depending on CUCBM production volume 6
Slide 37: Emir-Oil O&G Infrastructure Overview
Emir-Oil O&G Infrastructure Overview Current oil and gas rental facility: Oil: 6,480 BOPD Gas: 8.83 mmcfgpd Emir New oil and gas processing facility Central Gas Pipeline Oil: 12,000 BOPD processing 8.5km Gas: 21mmcfgpd (600,000m3/d) station Expected to be completed in Aksaz Dolinnoe 4Q
Slide 38: Kazakhstan tax summary
Kazakhstan tax summary ● Calculated based on the export sales price and ranges from as low as 0% if the export sales price is less than Rent export tax US$40 per barrel to as high as 32% if the export sales price per barrel exceeds US$190 ● Depends on annual production output. The tax code currently
Slide 39: Kazakhstan tax summary (continued)
Kazakhstan tax summary (continued) 1. Export Duty US$5.33/bbl (US$40/ton effective Jan 2016) 2. Export Rent Tax Rate 7% 11% 14% 16% 17% 19% 21% 22% 23% 25% 26% 27% 29% 30% 32% Oil Price 40 50 60 70 80 90 100 110 120 130 140 150 160 170 190 Oil Price 50 60 70 80 90 100 110 120 130 140 150 160 170 180