Newmed Energy Limited Partnership · TASE:NWMD
Newmed Energy Limited Partnership — Delek Drilling – Limited Partnership — Barclays Energy CEO conference 2018
25 slides from Newmed Energy Limited Partnership's conference presentation, September 2018
Slide 1: Energizing The Eastern Med
Energizing The Eastern Med September 2018 Delek Drilling – Energizing The Eastern Med
Slide 2: Disclaimer
Disclaimer This presentation was prepared by Delek Drilling – Limited Partnership (the “Partnership”), and is given to you only for the provision of concise information for the sake of convenience, and may not be copied or distributed to any other person. This presentation does not purport to be com
Slide 3: Delek Drilling – East Mediterranean E&P Operation
Delek Drilling – East Mediterranean E&P Operation Transforming the Levant Basin into a Natural Gas Export Hub Top Tel-Aviv- 35 index listed LP with a market cap of c. $3.2 billion World class E&P assets portfolio, from exploration through development and producing assets Senior partner in all major
Slide 4: Israeli and Cypriot EEZ – Over 42 TCF Discovered
Israeli and Cypriot EEZ – Over 42 TCF Discovered 2012 2013 2011 1.2 tcf 1.8 tcf 4.5 tcf 2009 11.2 tcf 2 2010 2009 21.4 tcf 2011 0.5 tcf 0.1 tcf 1999 0.1 tcf 1 2000 1 tcf 1 Resources: 2P + 2C + Prospective (2U), based on NSAI reports. ¹ Estimated ultimate recoverable; Now almost depleted and classifi
Slide 5: Tamar – World Class Deepwater Project
Tamar – World Class Deepwater Project Ownership Delek Drilling 22%, Isramco 28.7%, Dor Gas 4%, Everest 3.5%, Tamar Petroleum 16.75%, Noble Energy (operator) 25% 2P Reserves* 11.2 tcf (318 bcm); / 14.6 mmbbl condensate First gas End of Q1 2013 Development budget: $3.1 Billion (100%) Overall Tamar cos
Slide 6: Tamar – Contracts and Sales Breakdown
Tamar – Contracts and Sales Breakdown Tamar contractual structure – low exposure to commodity risk Israel Electric IPP & Electricity Industry & Other Corp. Related ❑ TCQ : 87 bcm (~3.07 tcf) ❑ TCQ : 72 bcm (~2.54 tcf) ❑ TCQ : 8.5 bcm (0.3 tcf) + Condensate ❑ 15-17 years ❑ 15-19 years ❑ 5-8 years Pri
Slide 7: Tamar Divestment Process
Tamar Divestment Process ❑ Delek Drilling examines various alternatives for the sell out of its working interest in Tamar decided to sell a 9.25% stake of its Working Interest in the project through the Capital Market ❑ The first step was accomplished in July 2017 via the IPO of “Tamar Petroleum” (A
Slide 8: Tamar Divestment – Recent Sell of 9.25% WI
Tamar Divestment – Recent Sell of 9.25% WI Pre IPO Structure Post IPO Structure Delek Drilling Delek Drilling 31.2% WI 22% WI 9.25%% WI Tamar Tamar Field Tamar Field Petroleum 100% Delek 100% Delek Tamar Bond Tamar Bond Bond Debt $650mm LTD. LTD. $1.6 B $1.28 B Senior Secured Note Senior Secured Not
Slide 9: Leviathan – A Regional Energy Game Changer
Leviathan – A Regional Energy Game Changer Ownership Delek Drilling 45.3%, Ratio 15%, Noble Energy (operator) 39.7% 2P+2C Resources* 21.4 tcf (613 bcm), 38.3 mmbbl condensate Estimated First Gas 4Q 2019 Production Capacity (to be built in 2 stages) Phase 1a - 1.2 bcf/d (~12 bcm/y) Phase 1b - 0.9 bcf
Slide 10: Leviathan – Modular Development
Leviathan – Modular Development Phase 1A of Leviathan development sanctioned, future cost efficient expansion Capacity of 1.2 bcf/d (approx. 438 bcf/y) Capacity of 2.1 bcf/d (approx. 766 bcf/y) ❑ Development plan for phase 1A includes construction of an offshore fixed platform with a 1.2 bcf/d (appr
Slide 11: Leviathan Development on Time on Budget
Leviathan Development on Time on Budget ❑ Phase 1a development progressing ~60% completed ❑ Fabrication progress on the platform topsides, jacket, and the subsea equipment ❑ All building permits received or submitted ❑ More than 300km of subsea pipe placed (out of 513km) ❑ Export pipeline to Jordan
Slide 12: Leviathan Drilling Campaign
Leviathan Drilling Campaign ❑ Leviathan Phase 1-A consist of 4 producing wells Ensco DS-7 ❑ The drilling & Completion works was split into two ❑ Drilling ▪ All 4 wells had been drilled to depth by the Atwood Advantage drilling rig Leviathan production wells ❑ Completion ▪ Leviathan partners ended th
Slide 13: Cyprus – Aphrodite Field
Cyprus – Aphrodite Field Ownership Delek Drilling 15%, Avner 15%, Shell 35%, Noble Energy (operator) 15% Discovered Contingent Resources (2C) * 3.5 tcf (100 bcm) Additional Prospective Resources (P50) 1.0 tcf (29 bcm) Location 168 km south of Limassol 1,700m water depth Target markets Cyprus - Domes
Slide 14: The Levant Basin Geology
The Levant Basin Geology Leviathan Deep Delek Drilling – Energizing The Eastern Med 14
Slide 15: Growing Regional Markets Demand
Growing Regional Markets Demand 15
Slide 16: Israel Long Term Demand Growth
Israel Long Term Demand Growth Israel Expected Natural Gas Demand (BCM) Electricity Generation Mix 34.0 32.8 Gas Coal Renewable 31.9 31.0 2% 29.9 5% 8% 29.0 28.0 27.0 8% 26.2 21% 25.3 24.4 23.7 45% 22.8 22.0 21.1 20.3 19.5 18.7 18.0 15.4 14.0 84% 10.9 11.2 74% 53% 2018 2019 2020 2021 2022 2023 2024
Slide 17: Jordan NEPCO – Ideal Export Offtaker
Jordan NEPCO – Ideal Export Offtaker An anchor contract for Leviathan phase-1 development NEPCO GSPA main parameters: ❑ Buyer : National Electric Power Company of Jordan (NEPCO) ❑ Seller : NBL Jordan Marketing Limited (SPV owned pro- rata by Leviathan partners, according to their working interests)
Slide 18: Egypt – Long Term Supply Demand Imbalance
Egypt – Long Term Supply Demand Imbalance ▪ Significant consumption of over 60 bcm/y, and increasing by Approx. 8% year on year +20 BCM of LNG facilities* ▪ Additional gas is required for two existing LNG facilities, consuming approx. 17 to 20 bcm/y ▪ Zohr contributes the most to the near-term produ
Slide 19: GSPA’s For the Sale of Gas to Egypt
GSPA’s For the Sale of Gas to Egypt Leviathan : ❑ Annual supply of 3.5 BCM/y (with TOP level agreed) ❑ Total contract quantities : 32 BCM ❑ Estimated revenue income: $7.5 Billion Tamar : Contract price based on a ❑ Annual supply begin on an Interruptible base with Delek and Noble Brent linked option
Slide 20: Fast Developing Region
Fast Developing Region Israel – Domestic market Jordan - NEPCO Palestinian Authority Egypt – Domestic market Egypt – LNG Facilities Turkey Delek Drilling – Energizing The Eastern Med 20
Slide 21: Project & Corporate Financing
Project & Corporate Financing ❑ $960 mm Tamar bond- 3 series of $320 mm bullet payment in years : 2020, 2023, 2025 ▪ Sell down of remining WI in Tamar, all proceeds will be used to redeem the bonds ❑ Up to $1.75 B Leviathan project finance facility - Cover most of LP’s capex requirement for phase 1a
Slide 22: Strong Financial Position
Strong Financial Position* ✓ High cash reserves – over $550mm liquidity in hand ✓ Long-term, limited recourse type debt - ~$1.5B net Debt ✓ Attractive dividend policy - 20% dividend yield in 2017 ✓ Strong balance sheet – 1.25X current ratio ✓ Well-established and stable cash flow - $330mm cash flow
Slide 23: Delek’s Value Proposition
Delek’s Value Proposition Tamar & Leviathan Discounted Cash Flow Value : Tamar PV10 = $5.2B Leviathan Phase 1a (12.6 Tcf 2p out of 21.4 Tcf 2p+2c) Source: Netherland Swell & Associates reserve report published in Delek Drilling financial reports for 2017 Delek Drilling & Avner Oil Exploration – Ener
Slide 24: Summary
Summary ❑ High quality Oil & Gas assets ❑ Strong financial position derived from Tamar robust cash-flow ❑ Leviathan development on time and on budget, funded through to first gas ❑ First step towards Tamar divestment successfully accomplished by Tamar Petroleum IPO ❑ Upside potential from projects e
Slide 25: Thank You
Thank You Delek Drilling – IR Tel. +972 9 971 2421 IR@delekng.co.il astern Med 25
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