Tullow Oil Plc · LSE:TLW
Tullow Oil — H1 2022 Earnings Presentation
21 slides from Tullow Oil's earnings presentation, Sep 14, 2022
Slide 1: Tullow Oil plc 2022 Half Year Results
Tullow Oil plc Tullow Oil plc | 2022 Half Year Results 14 September 2022
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Tullow believes the expectations reflected herein to be reasonable in light of the informa
Slide 3: 2022 Half Year Results Agenda and Presenters
2022 Half Year Results Agenda Presenters Rahul Dhir Overview Financial Chief Executive Officer Richard Miller Operations Strategic Interim Chief Financial Officer Tullow Oil plc | 2022 Half Year Results Slide 3
Slide 4: Overview
OVERVIEW Tullow Oil plc | 2022 Half Year Results
Slide 5: Accelerated delivery of Business Plan
Accelerated delivery of Business Plan Operational excellence Strong financials Levers for value creation ✓ Jubilee production growth ✓ Material cashflow generation → Ongoing business plan delivery ✓ TEN production stabilised ✓ Uganda FID payment received → Accelerated deleveraging ✓ Stable productio
Slide 6: Financial
FINANCIAL Tullow Oil plc | 2022 Half Year Results
Slide 7: Strong operational performance accelerates deleveraging
Strong operational performance accelerates deleveraging 2022 guidance at $95/bbl Financial performance 1H 2021 1H 2022 Production (kboepd) Realised price ($/bbl) 61.21 60.8 60.9 86.5 Production 60-64 kboepd Revenue ($m) 727 846 Gross Profit ($m) 321 620 Profit After Tax ($m) 93 264 Capex c.$ 380 mil
Slide 8: Increasing oil price upside participation as hedges roll off
Increasing oil price upside participation as hedges roll off Commodity hedging volume (mmbbls) 45 c. % of production entitlement for Collars (bought put & sold call) Straight puts remainder of 2022 fully participates in oil 7.9 price upside 1.7 6.9 6.2 c. 70% of production entitlement protected on t
Slide 9: High oil price unlocks material incremental value potential
High oil price unlocks material incremental value potential Sources and uses of cash 2022-25 ($75-100/bbl1 nominal) Additive contingent payments 6 $100/bbl $100/bbl Uganda2 5 c.$15-47 million per annum at plateau, at $70-100/bbl, with uncapped upside to oil price 4 and for the full duration of the l
Slide 10: Operations
OPERATIONS Tullow Oil plc | 2022 Half Year Results
Slide 11: Material reserves and resources base underpins growth potential
Material reserves and resources base underpins growth potential Reserves at 30 June 2022 (mmboe) Resources at 30 June 2022 (mmboe) Net Group production (kboepd) Guyana, Non-Op, Jubilee, 55 Guidance 37 127 60.9 60-64 Non-op, Non-op, Net 2P Reserves Kenya, Net 2C Resources 17 17.6 TEN, 52 242 231 668
Slide 12: Top quartile Ghana drilling performance
Top quartile Ghana drilling performance Average well cost reduction of >30%1 Drilling cost per well ($m gross) Reduced well cost maintained 75 despite inflationary pressures and 60 greater well complexity 52 51 In Ghana, drillex represents c.75% of capex 2022-25 2018-20 well costs Reduce rig Reduce
Slide 13: New wells deliver material production growth
New wells deliver material production growth Jubilee 2022 production waterfall (gross, kbopd) Addition of two new water injectors and c.90 one Jubilee producer more than offset Jubilee NE c.82 c.81 natural decline in 1H22 and increased June average production to c.90kbopd No further wells due to be
Slide 14: Non-op: Delivering consistent production and returns
Non-op: Delivering consistent production and returns Gabon Focus on near-field developments and Non-operated 2022 production waterfall (net, kboepd) infrastructure-led exploration (ILX) opportunities IRRs of >60% and rapid payback c.18 c.17 c.16 c.70% of 2022 capital spent on infrastructure c.15 Lon
Slide 15: Ongoing cost reductions despite inflationary pressures
Ongoing cost reductions despite inflationary pressures Gross asset operating costs ($m) Net G&A costs ($m) Jubilee 450 1 450 TEN 400 400 406 112 350 350 300 300 87 250 304 250 200 240 c. 240 200 64 150 150 c.50 177 100 100 148 150 c.140 50 50 - - 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 202
Slide 16: Operating platform delivering tangible results
Operating platform delivering tangible results O&M transformation to achieve the next level of performance Wells Eight new wells brought on stream in Sustained improvement through active Tullow oversight, investments in 2021-22: six at Jubilee and two at TEN addressing legacy equipment defects and c
Slide 17: Strategic
STRATEGIC Tullow Oil plc | 2022 Half Year Results
Slide 18: Leveraging our unique position to deliver a sustainable future
Leveraging our unique position to deliver a sustainable future Shared prosperity case study: Fisherman's Anchor Project, Ghana Carbon offset: Growing internal capability Provided training and business development support Carbon offsetting of hard to abate emissions – feasibility study completed, in
Slide 19: Highly accretive Business Plan with material additional opportunities
Highly accretive Business Plan with material additional opportunities Value Maximisation Plan delivery underway Additional opportunities are maturing Ghana drilling – 2021/22 Jubilee acceleration c.$220 million net invested Targeting >120 mmboe of additional net recoverable resource in Jubilee c.$25
Slide 20: Turnaround accelerated and business positioned for growth
Turnaround accelerated and business positioned for growth Delivery of the new strategy well underway Capricorn merger accelerates value creation Tullow looks to opportunity rich future with confidence New long term strategy Debt refinancing, Investment for growth Deleveraging accelerated creating li
Slide 21: Tullow Oil plc
Tullow Oil plc 9 Chiswick Park, 566 Chiswick High Road London W4 5XT United Kingdom Tel: +44 (0)20 3249 9000 Email: ir@tullowoil.com Web: www.tullowoil.com Follow Tullow on: