Horizon Oil Limited · ASX:HZN
Horizon Oil — H1 FY2022 Earnings Presentation
25 slides from Horizon Oil's earnings presentation, February 2022
Slide 1: Outlook & Asset Updates
Arial view of 12-8E platform installation
Slide 2: Disclaimer
Disclaimer * Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Horizon Oil Limited, industry growth or other trend projections and any estimated
Slide 3: Financial and Commercial Highlights - CY 2021
HN iN Z FINANCIAL AND COMMERCIAL HIGHLIGHTS - CY 2021 The company benefitted from exceptional production performance in China (Beibu] - and by an oil price increase from ~$50/bbl in Jan to ~$80/bbl in Dec. Average realised sales price was $66/bbl. $77 million revenue Production 1.35 MMbbls {despite
Slide 4: Operational Highlights - CY 2021
HN iN Z OPERATIONAL HIGHLIGHTS - CY 2021 Priority has been to increase production, reduce costs and maximise returns from the producing assets - and to prepare for the future by delivering a continuous pipeline of projects China production maintained at No loss of containment, close to 10,000bopd (g
Slide 5: Sustainability (Our Four ESG Priority Areas)
SUSTAINABILITY (OUR FOUR ESG PRIORITY AREAS} Right sized for Horizon, credible, and meaningful to our stakeholders and the wider community . HSE Work closely with Operators - targeting zero fatalities, minimal injury frequency rates and zero spills to the environment Strong safety record below indus
Slide 6: Our Strategy
OUR STRATEGY Maximise Free Cashflow RESULTS PRESENTATION Capital Management Invest in New Business if exceptional
Slide 7: Financial Results
Zz c 20 7 FINANCIAL RESULTS NZ: View of the FPSO Raroa from the Maari wellhead platform
Slide 8: Low Cost, Cash Generative Oil Producer
LOW COST, CASH GENERATIVE OIL PRODUCER by higher oil price * Increased profitability - 154% increase in EBITDAX with continued disciplined expenditure * Strong cashflow - cashflow from operating activities increased 150% to $25 million replenishing cash following capital return * Balance sheet stren
Slide 9: Cash Movement (US$ million)
LINDI7ZN US$ MILLION pean nnn nnn 2-28-85 -- === -------- “. 1 SS, 1 ‘. 1 1 ! 3A) H ie) 1 45.3 TRV), y H YOM: 1 1 1 lene ee ee ee = = = = = = = oa Opening cash and Net revenue Cash operating Corporate &tax& Netcashinflows Debtrepayments Investmentinoil Return ofcapitalto Closing cash and cash equiva
Slide 10: Underlying Profit Bridge (US$ million)
US$ MILLION 0.4 -_——— Underlying profit Net realised oil Sales volume after tax for HY 2021 price, inclusive of hedge settlements REVENUE Increased revenue driven by 78% higher realized oil price over the period RESULTS PRESENTATION (0.6) 07 Operating costs Corporate &other Exploration and developme
Slide 11: Oil Sales and Revenue
LINDI7ZN OIL SALES (mmbbls]} REVENUE! 160.0 80.0 140.0 70.0 0.39 120.0 245 60.0 100.0 50.0 s 0.23 8 80.0 4008 60.0 12 30.0 > 40.0 20.0 20.0 10.0 0.0 0.0 Cy 2017 CY 2018 cy 2019 CY 2020 cy 2021 Cy 2017 CY 2018 cy 2019 cy 2020 cy 2021 pee Beibu mmm Moari Beibu cost recovery —e=Oil Production sem BeibU
Slide 12: EBITDAX, Cost per bbl and Underlying Profit
UCTION EBITDAX AND COST PER BBL UNDERLYING PROFIT BEFORE TAX (US$m] Ussm US$/bbl 100.0 25.0 90.0 80.0 20.0 7 bo 15.0 iy 50.0 40.0 --.. 182 10.0 15.2 16 30.0 —0.8— : | 10.0 0.0 0.0 cy 2017 CY 2018 CY 2019 cy 2020 cy 2021 CY 2017 CY 2018 CY 2019 cy 2020 cy 2021 mmm EBITDAX (excl. cost recovery) Cost r
Slide 13: Free Cash Flow and Net Cash Position
HPOSITION FREE CASH FLOW (US$m] 80.0 60.0 40.0 20.0 80 aga) 8 Poa -20.0 -40.0 -60.0 CY 2017 CY 2018 CY 2019 CY 2020 cy 2021 sms Operating CF mmm Investing CF -o—FCF —e-FCF (excl. cost recovery] * Free Cash Flow represents cash flows from operating activities less investing cash flows {net of acquisi
Slide 14: Slide 14
Slide 15: The Producing Assets
THE PRODUCING ASSETS China, Beibu Gulf, 26.95% production / 55% exploration * CNOOC [51% - Operator) * Roc Oil (19.6%) * Majuko Corp. [2.45%] New Zealand, Maari, 26% * OMV (69% - Operator]* * Cue Energy (5%) * Sale to Jadestone Energy pending NZ Regulatory approvals RESULTS PRESENTATION CHINA 500KM
Slide 16: China Block 22/12: Reliable, High Margin Production
CHINA BLOCK 22/12: RELIABLE, HIGH MARGIN PRODUCTION HORIZON Production is currently ~9,400 bopd [gross] from 19 wells across 5 discrete fields Production rates are maintained through a combination of near-field drilling, increased water handling and production optimisation via well workovers and con
Slide 17: Block 22/12 Drilling Opportunities
* The JV has a strong portfolio of infill, appraisal and near- field exploration opportunities, four of which are proposed for drilling in CY 2022* Success in these opportunities will help to extend plateau production into the longer term @ 22 proposed drilling* © [_ Possibte future ariting | * Well
Slide 18: Self-installing WZ12-8E Platform
LINDIZAN Self-installing WZ 12-8E platform during transportation to location i RESULTS PRESENTATION
Slide 19: China: WZ12-8E Development Project - Summary
CHINA: WZ12-8E DEVELOPMENT PROJECT - SUMMARY HARIZON + Platform is on-site and export pipeline laid and connected to WZ12-8W * Horizon’s share of total capital expenditure ~$19 million at current oil prices * Development drilling imminent - first oil anticipated early in Q2 CY2022 * Oil production f
Slide 20: New Zealand: Stable Reservoir Performance
NEW ZEALAND: STABLE RESERVOIR PERFORMANCE HORIZON * Production decline rate arrested through continued water injection and well optimisation * Workovers of three wells completed * Annual scheduled field maintenance shut-down in progress * Installation of MR6A de-sanding unit scheduled March 2022 * C
Slide 21: Maari: The Way Forward
MAARI Opportunities * “There are significant near-term production- adds beyond the 2P reserves case” (Jadestone acquisition doc, Nov 2019] Additional laterals and behind pipe opportunities RESULTS PRESENTATION THE WAY FORWARD Jadestone Sale announcement November 2019 Schedule is dependent on the NZ
Slide 22: Forecast Higher Production: Significant Operations 2022
Forecast higher production A Significant operations 2022 Estimated net cost range (US$M] ] CHINA WZ12-8 EAST DRILLING (x8) we rsTOR 12-15 | | | CHINA WZ12-8 SE NEAR-FIELD EXPLORATION [x1]* | = 45 CHINA WZ6-12 WORKOVERS [x3]* 7 2-3 CHINA WZ6-12 INFILL AND OTHER 56 NEAR-FIELD DRILLING (x2]* CHINA 2023
Slide 23: 2022 Summary Activity Outlook
2022 SUMMARY ACTIVITY OUTLOOK Capitalising on higher oil prices to maximise value China: Delivery of WZ12-8E project, safe and successful drilling operations * The first several months of CY2022 is operationally intensive * W2Z12-8E development drilling, workovers, infill and exploration drilling *
Slide 24: FY 2022 Guidance
FY 2022 GUIDANCE A strong end to the financial year anticipated - driven by continued strong production and oil price Production 1.35 -1.45 million barrels * Production additions from operations are expected to ramp up during the June quarter. Sales 1.20 - 1.30 million barrels * The sales lag agains
Slide 25: For More Information
Zz c 20 7 FOR MORE INFORMATION PLEASE CONTACT US CHRIS HODGE +612 9332 5000 info@horizonoil.com.au Horizon Oil Limited Level 6, 134 William Street Woolloomooloo NSW 2011 Australia horizonoil.com.au