Karoon Energy Ltd · ASX:KAR
Karoon Energy — Investor Presentation (February 2024)
34 slides from Karoon Energy's investor presentation, Feb 29, 2024
Slide 1: Transition Year Financial Report - TY23 – ASX Release & Investor Presentation
29 February 2024 Company Announcements Office ASX Limited Dear Sir / Madam Transition Year Financial Report - TY23 – ASX Release & Investor Presentation Enclosed are the following documents in relation to Karoon Energy Ltd’s transition year financial report for the financial year ended 31 December 2
Slide 2: Record underlying NPAT of US$144.7 million for the six months to 31 December 2023
ASX RELEASE 29 February 2024 | ASX: KAR Record underlying NPAT of US$144.7 million for the six months to 31 December 2023 (Transition Year 2023 - TY23) TY23 2HFY23 1HFY23 FY23 6 months to 6 months to 6 months to 12 months to 31-Dec-23 30-Jun-23 31-Dec-22 30-Jun-23 Production volume (MMboe) 5.47 3.67
Slide 3: CEO commentary on results for the six months to 31 December 2023
Commenting on the results for the six months to 31 December 2023, Chief Executive Officer and Managing Director, Dr Julian Fowles, said: “Karoon achieved underlying NPAT in TY23 of US$144.7 million 3, which was a record for the Company for a six month period. Baúna Project sales volumes and realised
Slide 4: Financial Performance
FINANCIAL PERFORMANCE Sales revenue for the six months to 31 December 2023 was US$412.9 million, up from US$267.1 million in the prior six months. The increase in revenue was driven by both higher production and higher realised oil prices. Total production for TY23 was 5.47 MMboe, reflecting a full
Slide 5: Reserves and Resources
RESERVES AND RESOURCES An assessment of Reserves and Resources as at 31 December 2023 has been completed, based on production performance, new data and field studies completed during the second half of CY23, and the Who Dat acquisition in the US GoM. 2P Reserves have increased by 50% to 77.5 MMboe c
Slide 6: Conference call and contact details
All guidance is subject to the statement on page 6 regarding “Forward-looking statements. This announcement has been authorised for release by the Board of Karoon Energy Ltd. CONFERENCE CALL Karoon’s Chief Executive Officer and Managing Director, Dr Julian Fowles, and Chief Financial Officer, Mr Ray
Slide 7: Notes on Calculation of Reserves and Resources
NOTES ON CALCULATION OF RESERVES AND RESOURCES Reserves and Resources estimates are prepared in accordance with the guidelines of the Petroleum Resources Management System (SPE-PRMS) 2018 jointly published by the Society of Petroleum Engineers (SPE), World Petroleum Council (WPC), American Associati
Slide 8: About Karoon Energy Ltd
ABOUT KAROON ENERGY LTD Karoon Energy Ltd. is an international oil and gas exploration and production company with assets in Brazil, the United States of America and Australia and is an ASX listed company. Karoon’s vision is to be a leading, independent international energy company that adapts to a
Slide 9: Karoon Energy TY2023 Results
Karoon Energy TY2023 Results 29 February 2024
Slide 10: Disclaimer
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 information contained in this presentation
Slide 11: TY2023 Highlights and Achievements
Julian Fowles CEO and Managing Director TY2023 Highlights and Achievements
Slide 12: TY23 Highlights
TY23 Highlights Building on success through a focused strategy Material growth in safe Delivering strategic Sustainability Robust balance sheet and reliable production objectives targets unchanged No LTIs or Recordable Incidents in Decision to be taken in late 1QCY24 for Executed binding agreement t
Slide 13: Acquisition of interest in Who Dat completed
Acquisition of interest in Who Dat completed Integration of Karoon’s second asset progressing well Second asset in stable and well understood regulatory and fiscal Second asset diversifies operational risk regime diversifies risk Gross production at Who Dat ramping up, with the connection of Success
Slide 14: Health, Safety, Security and Environment
Health, Safety, Security and Environment Safety performance improving Safety Performance Total Recordable Injury Rate 1 Safety continues to be our highest priority Numer of injuries pe 200,000 hours 0.85 0.75 No recordable safety incidents in 2023 0.5 TRIR of 0.0 in operated assets No injuries in 0.
Slide 15: Financial Results
Ray Church EVP and CFO Financial Results
Slide 16: TY23 Financial Highlights
TY23 Financial Highlights Strong financial outcomes in revenue, costs and robust balance sheet1 REVENUE UNIT PRODUCTION COSTS UNDERLYING EBITDA US$412.9m US$11.09/boe US$283.0m Up 55% from US$267.1m Down 23% from US$14.37/boe Up 94% from US$145.9m CASHFLOW GENERATED 2 INVESTING CASHFLOW (ex M&A) GEA
Slide 17: Underlying results
Underlying results Production growth driving earnings Sales volume and realised price (6 months TY23 2HFY23 1HFY23 FY23 (6 months (6 months (6 months (12 months ending) 87.86 US$ million to 31 Dec to 30 Jun to 31 Dec to 30 June 6.0 81.51 90 73.06 Realised price (US$/boe) 23) 23) 22) 23) 5.0 75 volum
Slide 18: TY23 Cash flow
TY23 Cash flow Cash used to fund value accretive acquisition US$m Receipts Acquisition of Who Dat Prod'n spend Royalties Corp. & Net finance (incl FPSO and other Income tax CAPEX and Equity Cash other costs lease) government Neon issuance (net) at 31 Dec 23 take including Cash hedge at 30 June 23 co
Slide 19: CAPEX
CAPEX Capital expenditure to de-risk opportunities US$m Modest sustaining capex (US$15-17m 300 total for Brazil and US GoM) Remaining firm capex for CY24 of 250 238.4 US$35-40m comprises development capex for Who Dat and planned 44.8 expenditure on Neon 200 177.0 Brazil capex in CY24 largely related
Slide 20: Overview of new debt package
Overview of new debt package Debt package provides capacity to fund growth opportunities New flexible US$340 million reserves based lending facility implemented on commercially attractive terms Facility available to fund growth and future acquisitions Intend to incorporate Who Dat into borrowing bas
Slide 21: Capital Allocation Framework
Capital Allocation Framework Building scale to achieve long term sustainable cashflow and shareholder returns Operating cash flow Priority is to support safe and reliable operations and to meet capital commitments, including debt repayments Non-discretional capital spend Capital allocation framework
Slide 22: Operational Update
Julian Fowles CEO and Managing Director Operational Update
Slide 23: BRAZIL: Baúna operating performance
BRAZIL: Baúna operating performance Focus on maintaining facilities uptime and active well management Baúna Project Quarterly Production (MMboe) 3.0 2.85 2.53 Increase in production following 2.5 Baúna intervention and Patola Baúna Project production impacted by above development Production impacted
Slide 24: BRAZIL: Potential Neon development
BRAZIL: Potential Neon development Decision on entering Concept Select phase targeted for late 1QCY24 Technical and commercial studies, including detailed subsurface modelling, integrating seismic reprocessing, core and fluid sample analyses, being finalised Review of whether any potential Neon deve
Slide 25: US: Who Dat operating performance
US: Who Dat operating performance Facilities uptime and active well management Who Dat development campaign recently completed Who Dat facility uptime (%) 1 99% 100% 97% 97% 98% 100% 95% 93% 95% 93% 92% 93% 90% E2 and E7 wells brought onstream in 3QCY23 81% 80% Subsea pump commenced production in 4Q
Slide 26: US: Who Dat - Development Activities
US: Who Dat - Development Activities Data from infill development campaign to help optimise future plans Reservoir cross section Well data from E4, E7, G2 and G4 wells is being incorporated into dynamic model to: Optimise production plan to drain reservoirs Identify further new opportunities Results
Slide 27: US: Additional growth potential at Who Dat
US: Additional growth potential at Who Dat Attractive near-field exploration/appraisal opportunities to be considered Oil discovery well MC 421 Consideration of up to three exploration/appraisal wells in CY24, 2024 potential exploration well subject to JV approval Drill Centre / Production manifold
Slide 28: Reserves and Resources at Dec 2023 (net to KAR)
Reserves and Resources at 31 Dec 20231 (net to KAR) Material growth in Reserves and Resources reflecting Who Dat acquisition 2P Reserves (MMboe) 15% 2P Reserves at 31 December 2023 increased Oil and condensate by 50% (compared to 30 June 2023), to 77.5 85% Gas & NGL MMboe 85% oil and condensate and
Slide 29: Sustainability
Sustainability Responsible operations Reducing emissions from operations remains a priority for Karoon’s Carbon Management Plan Reviewing potential investment in projects, preferably with social benefits, to offset residual emissions in addition to investigating equity and/or development opportuniti
Slide 30: Guidance
Guidance1 BASIS OF GUIDANCE 12 months to Period 31 Dec 24 1. Guidance is subject to various risks (including “Key Risks” set Low High out in TY23 Annual Report) Production 2 2. Production assumes drilling results and expected future development and appraisal projects being delivered in Brazil MMboe
Slide 31: Summary
Summary Focus on creating shareholder value Karoon now has interests in two high quality, low operating cost assets in prolific hydrocarbon basins, with organic growth opportunities Our first priority remains safe and reliable operations Near term catalysts include: Neon entry to Concept Select phas
Slide 32: Appendix 1: Fiscal regime comparison
Appendix 1: Fiscal regime comparison US Deepwater Gulf of Mexico Brazil Net working interest (NWI) oil and Net working interest (NWI) oil and PRMS compliant Reserves, Resources gas production gas production and production Less: ONRR(1) royalty Less: ANP(4) royalty share 12.50% (18.75% for post-2022
Slide 33: Appendix 2: Reconciliation of Underlying Result to Statutory Result
Appendix 2: Reconciliation of Underlying Result to Statutory Result TY23 2HFY23 1HFY23 FY23 (6 months to (6 months to (6 months to (12 months to 31 Dec 23) 30 Jun 23) 31 Dec 22) 30 Jun 23) NPAT EBITDA NPAT EBITDA NPAT EBITDA NPAT EBITDA Statutory results 122.5 249.9 85.4 141.7 77.6 166.8 163.0 308.5
Slide 34: Glossary
Glossary Term Definition 1QCY Quarter ended 31 March 4QCY Quarter ended 31 December AASB Australian Accounting Standards Board. ANP Agência Nacional do Petróleo, Gás Natural e Biocombustíveis. Baúna Concession BM-S-40 containing the producing Baúna, Piracaba and Patola light oil fields in Brazil. bb
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