Enquest Plc · LSE:ENQ
Enquest — Merger or Acquisition (June 2021)
21 slides from Enquest's merger presentation, Jun 30, 2021
Slide 1: Golden Eagle acquisition
©nQuest sehen, .* EnQuest . Golden Eagle acquisition .
Slide 2: Important notice
30 June 2021 Page 2 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA, SWEDEN ANY JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER OF SECURITIES I
Slide 3: Important notice (continued)
30 June 2021 Page 3 All information presented or contained in this presentation is subject to correction, completion and change (whether as a result of verification or otherwise) without notice. The information contained in this presentation is provided as of the date hereof and no person is under a
Slide 4: A proven asset, an attractive acquisition
30 June 2021 Page 4 eQ EnQuest PLC Golden Eagle Acquisition ©nQuest A proven asset An attractive acquisition
Slide 5: Acquisition overview and transaction benefits
30 June 2021 Page 5 Acquisition overview Transaction benefits - Acquiring 26.69% non-operated equity interest in the Golden - Acquisition and associated refinancing structured in c.$50/bbl oil Eagle area environment - Economic effective date 1 January 2021 - Immediate incremental production of c.10
Slide 6: Golden Eagle Area Development comprises three fields
30 June 2021 Page 6 Golden Eagle Area Development comprises three fields; Golden Eagle, Solitaire and Peregrine - Gas lifted production with reservoir pressure support through water injection via platform and subsea wells - Golden Eagle Area: 18 wells - 15 wells at Golden Eagle, 2 Peregrine producer
Slide 7: Production and cash flow forecast
30 June 2021 Page 7 Production (kboepd) (l.h.s) Cumulative production (r.h.s) Revenue Opex Capex Cumulative cash flow (r.h.s) kboepd MMboe $ million $ million 12.0 20.0 200 800 18.0 10.0 150 600 16.0 14.0 8.0 100 400 12.0 6.0 10.0 50 200 8.0 4.0 0 0 6.0 4.0 2.0 (50) (200) 2.0 0.0 0.0 (100) (400) 202
Slide 8: Production focused on the lowest cost assets
30 June 2021 Page 8 Production focused on the lowest cost assets Net production2 (Boepd) - Core assets of Magnus, Kraken, GKA and Scolty/Crathes and 70,000 PM8/Seligi 59,116 10,000 52,000 50,000 - Golden Eagle expected to add c.10kboed at completion 46,000 30,000 2020 2021 Guidance Golden Eagle pro
Slide 9: A simplified capital structure, acquisition financing
30 June 2021 Page 9 eQ EnQuest PLC Golden Eagle Acquisition ©nQuest A simplified capital structure Acquisition financing
Slide 10: Acquisition financing arrangements and key milestones
30 June 2021 Page 10 Acquisition financing arrangements Progress/Expected Key milestones timeline - Agreed a new RBL facility RBL facility Completed - Interim period post-tax cash flows from 1 January 2021 - $50 million equity raise through a Firm Placing and Open Offer Launch and prospectus publica
Slide 11: A simplified capital structure
30 June 2021 Page 11 $ million A simplified capital structure 1,800 - New RBL of $600 million agreed with initial coupon of 4.25%; 1,700 agreement incentivises refinance of high yield bonds 1,600 - RBL will be used to fully repay existing RCF, the Magnus vendor 1,500 loan and Sculptor Capital facili
Slide 12: Terms and conditions
30 June 2021 Page 12 Terms and conditions - Use of proceeds: To part finance the acquisition of the 26.69% non-operated equity interest in the Golden Eagle Area, in line with the 4 February announcement - Structure: - Firm Placing, Placing and Open Offer - Securities offered on the London Stock Exch
Slide 13: Summary
30 June 2021 Page 13 eQ EnQuest PLC Golden Eagle Acquisition ©nQuest Summary Summary
Slide 14: Summary
30 June 2021 Page 14 - - - - - c - De-lever - c.19 MMboe of 2P reserves; c.4 MMboe 2C resources1 Grow 1 Per GCA CPR estimates and oil price assumptions of::2021: $51/bbl, 2022: $54/bbl, 2023: $57/bbl, 2024:+: $60/bbl 2 Effective if the high yield bond has not been refinanced ahead of June 2023
Slide 15: Thank you
©nQuest Thank you
Slide 16: Appendix
30 June 2021 Page 16 eQ EnQuest PLC Golden Eagle Acquisition ©nQuest Appendix
Slide 17: Purpose, strategic vision, focused business model
30 June 2021 Page 17 Purpose - Providing creative solutions through the energy transition Strategic vision - To be the operator of choice for maturing and underdeveloped hydrocarbon assets Focused business model - A production and development led E&P business - Utilises EnQuest’s core strengths - Va
Slide 18: Highlights
30 June 2021 Page 18 Highlights - Discovered in 2007, first oil in 2014 - Strong joint venture partnership - CNOOC: 36.54% (operator) - NEO Energy: 31.56% - Suncor Energy: 26.69% - ONE DYAS: 5.21% - Standalone processing facility consisting of a wellhead platform and a production, utilities and quar
Slide 19: Overview
30 June 2021 Page 19 Overview - Two sub-sea drill centres connected via rigid production flowlines - 6 slot Northern Drill Centre (NDC) manifold: 6 km - 4 slot Southern Drill Centre (SDC) manifold: 5 km - Flowlines and risers comprise: - 2 x production risers (8” and 6”) - 2 x gas lift risers (4”) -
Slide 20: Production, utilities and quarters platform with bridge linked wellhead platform
30 June 2021 Page 20 Production, utilities and quarters (PUQ) platform with bridge linked wellhead platform (WP) - PUQ and WP are each supported by 4 steel leg substructures - PUQ topsides weight 16,400 t, WP topsides weight 6,300 t - 2x 32.75 MW dual-fuel power turbines - Sulphate Removal Package f
Slide 21: Forward-looking statements
30 June 2021 Page 21 eQ EnQuest PLC Golden Eagle Acquisition ‘@nQuest Forward-looking statements This presentation may contain certain forward-looking statements with respect to EnQuest’s expectation and plans, strategy, management's objectives, future performance, production, costs, revenues, reser