Karoon Energy Ltd · ASX:KAR
Karoon Energy — Non-Deal Roadshow (September 2022)
24 slides from Karoon Energy's roadshow presentation, Sep 5, 2022
Slide 1: Presentation for Macquarie UK Non-deal Roadshow
For personal use only 5 September 2022 Company Announcements Office ASX Limited Dear Sir / Madam Presentation for Macquarie UK Non-deal Roadshow Enclosed is a presentation to be made by the CEO and Managing Director later today. This announcement was authorised by the CEO and Managing Director. Your
Slide 2: Karoon Energy Macquarie UK NDR September 2022
For personal use only Karoon Energy Macquarie UK NDR September 2022
Slide 3: Disclaimer
Disclaimer For personal use only Disclaimer This presentation has been prepared by Karoon Energy Ltd. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The informatio
Slide 4: Overview of Karoon Energy
Overview of Karoon Energy Focus on oil in Santos Basin, Brazil For personal use only Oil producer with exposure to Brazilian oil industry: 100% owner/operator of high-quality Baúna field in BM-S-40 offshore Brazil Building reputation as safe, reliable and responsible operator: Experienced Board and
Slide 5: Karoon interests in the Santos Basin, Brazil
Karoon interests in the Santos Basin, Brazil Production and For personal use only Development Blocks Neon Exploration Blocks SANTOS Goia BASIN Fields & Discoveries Baúna, Piracaba and Patola Prospects Clorita Itajai 50km
Slide 6: FY2022 Overview
FY2022 Overview Substantial progress made across all areas For personal use only STRONG OPERATIONAL GROWTH ACTIVITIES SUSTAINABLE OPERATIONS ROBUST FINANCIAL AND FINANCIAL RESULTS UNDERWAY POSITION Committed to climate targets: Four Lost Time Incidents, TRIR Four-well Baúna intervention At 30 June 2
Slide 7: HSSE Performance
HSSE Performance No serious incidents in FY2022 For personal use only Core focus is on maintaining safe and healthy work environment and protecting natural habitats where we work Four Lost Time Incidents (LTI) recorded in FY2022: Total recordable incident rate per 200,000 hours (TRIR) of 0.77 Fortun
Slide 8: Macro Environment
Macro Environment Current environment provides opportunities and risks for Karoon For personal use only FY2022 characterised by risks and uncertainties on many fronts Underlying demand outstripping supply, reducing inventories and putting pressure on refiners, pushing up prices High prices exacerbat
Slide 9: Strategic Objectives
Strategic Objectives Deliver base production and sanctioned projects to create foundation for further growth For personal use only Execute Baúna base business, focus on safety, reliability, strict capital controls Deliver sanctioned intervention and Patola development projects: Aim to double product
Slide 10: Baúna Operating Performance
Baúna Operating Performance High facilities uptime and active well management For personal use only FPSO FACILITIES UPTIME IN FY2022 1 FOCUS ON PROCESS SAFETY, FACILITY INTEGRITY AND 100% 95% PREVENTIVE MAINTENANCE 90% 85% 80% Operational uptime 99% in FY2022, excluding scheduled shutdowns 75% 70% 6
Slide 11: Baúna Interventions and Patola
Baúna Interventions and Patola Targeting increase in production to >30,000 bopd For personal use only BAÚNA INTERVENTION PROJECT BM-S-40 First well entered (install ESP in PRA-2) late May 2022. Completed late June 2022. Production stable at ~4,000 bopd vs 1,900 bopd previously PRA-1 Second intervent
Slide 12: Baúna/Patola Revised Cost and Schedule
Baúna/Patola Revised Cost and Schedule Upward pressure on diesel cost due to oil price strength For personal use only COST ESTIMATES/TIMETABLE 1 Calendar Year 2020 2021 2022 2023 Baúna intervention cost estimate increased to US$135 – 145 million, due to higher diesel costs, unseasonal weather Q3 Q4
Slide 13: FY2023 Indicative Production and Cost Profile
FY2023 Indicative Production and Cost Profile1 Based on development projects underway For personal use only INDICATIVE PRODUCTION PROFILE (MMBBL) TARGETING MATERIAL PRODUCTION INCREASE/UNIT 7–9 COST REDUCTIONS Production from BM-S-40 base business assumes 92 – 97% facilities uptime 4.64 (excluding s
Slide 14: Progressing Neon Development Concept
Progressing Neon Development Concept Control well drilling aimed at de-risking structure For personal use only NEON EVALUATION Neon, Goiá light oil discoveries 50-60km NE of Baúna, 300m water depth Revised preliminary development concepts confirmed sufficient commercial potential to justify control
Slide 15: Assessing Inorganic Growth Options
Assessing Inorganic Growth Options Disciplined process to identify and pursue value-accretive growth opportunities For personal use only Continuing to actively screen inorganic growth opportunities Rigorous screening process used, with key criteria including: Value accretive, with acceptable risk pr
Slide 16: Progress on Climate and Social Projects
Progress on Climate and Social Projects First standalone Sustainability Report released For personal use only CLIMATE Climate targets: Carbon neutral 1 on Baúna operations from FY2021 - achieved for FY2021 and planned to be achieved for FY2022 and Net Zero by 2035 2 Priority to reduce emissions wher
Slide 17: FY2022 Results
FY2022 Results Strong growth in underlying profit For personal use only FY2022 FY2021 Production of 4.64 MMbbl at an average rate of 12.7 kbopd Production (MMbbl) 4.64 3.14 Sales Volume (MMbbl) 4.54 2.90 Nine cargoes, sales volume of 4.54 MMbbl Realised Oil Price (US$/bbl) 84.74 59.00 Average realis
Slide 18: Cash and Available Liquidity
Cash and Available Liquidity FACILITY TENURE (US$ MILLION) For personal use only DEBT AND LIQUIDITY AT 30 JUNE 2022 In November 2021, reached financial close on new reserve-based, non- recourse, syndicated loan facility US$160m reserve-based, non-recourse loan facility, 425bps margin over SOFR. US$3
Slide 19: FY2023 guidance
FY2023 guidance1 Low High NOTES: For personal use only 1. Guidance as at 25 August 2022. Subject to various risks (including those Production (MMbbl) 7 9 “Key Risks” set out in Karoon’s 2022 Annual Report). Costs 2. Unit Production Costs: based on daily operating costs associated with Baúna producti
Slide 20: Summary: Well Positioned to Deliver Shareholder Value
Summary: Well Positioned to Deliver Shareholder Value Sanctioned projects, plus organic and inorganic growth potential For personal use only Since taking over operatorship, Baúna natural decline mitigated from ~15% to ~10% pa Baúna intervention program underway, targeting additional 5,000 – 10,000 b
Slide 21: Appendix 1: Contingent Consideration on Baúna Acquisition
Appendix 1: Contingent Consideration on Baúna Acquisition For personal use only Maximum Contingent Consideration payable to Petrobras for AVERAGE CY2022 CY2023 CY2024 CY2025 CY2026 TOTAL Baúna acquisition is US$285m (plus interest) BRENT PRICE (IN US$) Amount recognised at 30 June 2022 is US$298.3m,
Slide 22: Appendix 2: FY2022 Cash Flow
Appendix 2: FY2022 Cash Flow For personal use only FY2022 CASH FLOW (US$ MILLION) Stable Baúna production and strong oil price resulted in US$363m oil sales US$124m production cost incl FPSO lease and US$41m royalty payments US$114m cash from operations funded growth investments, deferred considerat
Slide 23: Appendix 3: Reconciliation of underlying result to statutory result
Appendix 3: Reconciliation of underlying result1 to statutory result For personal use only US$ MILLION 2022 2021 Material increase recognised in fair value of contingent consideration payable to EBITDA NPAT EBITDA NPAT Petrobras for Baúna asset Reported results (28.4) (64.5) 11.4 4.4 Hedges required
Slide 24: Appendix 4: Definitions
Appendix 4: Definitions For personal use only 1H Financial period from 1 July to 31 December 2H Financial period from 1 January to 30 June k Thousand ANP Agência Nacional do Petróleo, Gás Natural e Biocombustíveis Karoon Karoon Energy Ltd and its subsidiaries LTI Lost time incident API American Petr