Dana Gas PJSC · ADX:DANA
Dana Gas PJSC — Investor Presentation (November 2022)
27 slides from Dana Gas PJSC's investor presentation, November 2022
Slide 1: Corporate Presentation: Clean Energy For the Future
Corporate Presentation Clean Energy For the Future November 2022 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections abo
Slide 3: Recent Highlights
Recent Highlights i ——
Slide 4: Latest Developments Snapshot – H1 2022
Snapshot – H1 2022 ▪ KRI: Successfully completed the drilling and testing of the first development well (KM 13) with WI 90-110 MMscf/d; drilling of the Developments second development well (KM 14) is being completed Latest ▪ Egypt: Several exploration and development opportunities identified in exis
Slide 5: Dana Gas Overview
Dana Gas Overview Dana Gas Summary Group Structure Dana Gas Historic Financials Overview Dana Gas PJSC 2019 2020 2021 Average Brent Price ($/bbl) 64 42 71 Gross Revenue ($mm) 459 349 452 UGTC UAE SAJGAS UAE Pearl Dana Gas EBITDA ($mm) 341 146 269 Petroleum Egypt (100%) (100%) Company Limited Gross P
Slide 6: Environmental, Social, and Corporate Governance (ESG)
Environmental, Social, and Corporate Governance (ESG) 2021 Highlights ▪ 20% reduction in flaring ▪ Zero significant hydrocarbon spills over past 7yrs ▪ 8.3 kg CO2 eq. per BOE produced ▪ 37% decrease in wastewater discharged ▪ Total recordable injury frequency (TRIF) of 0.05 ▪ Zero grievances or inci
Slide 7: Group Operations
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Slide 8: KRI: World Class Assets, low Cost Asset Base
KRI: World Class Assets, low Cost Asset Base Ambitious programme to increase daily production to 950 MMscf of gas and 30,000 bbl of NGL Pearl Petroleum Company Ltd ▪ Holding (%): Dana Gas 35%, Crescent 35%, OMW, MOL, RWE 10% ▪ 2 major fields – Chemchemal and Khor Mor: 75 Tcf GIIP, 7 bln bbls STOIIP
Slide 9: KRI: Energising the country
KRI: Energising the country Operations update ▪ 1% increase in H1 2022 v H1 2021 production averaging 34,500 boepd ▪ Produced 149 MMscf of gas; 5,190 bbl/d of condensate and 380 MTPD of LPG in H1 2022 (Dana Gas share) Expansion project update ▪ Once complete, KM 250 expansion project will add 250 MM
Slide 10: Khor Mor Existing Plant & Facilities
Khor Mor Existing Plant & Facilities Kor Mor Processing Plant and Pipeline Modern Infrastructure ▪ Low production costs given onshore operations. ▪ 175 km 24” gas transmission pipeline to connect Khor Mor gas field to Chemchemal and Erbil power stations (pipeline wholly owned by Pearl Petroleum) ▪ T
Slide 11: CREDAN operate two of the largest gas fields in MENA
CREDAN* operate two of the largest gas fields in MENA Large Gas Developments in MENA Kurdistan MENA 120 (Source: Company Disclosure) 100 80 GIIP (tcf) 60 40 20 0 Khor Mor Bina Bawi Khazzan** Zohr Leviathan Shah Tuna Tamar Calypso Glaucus + Chemchemal + Miran Notes: *Dana Gas and Crescent Petroleum *
Slide 12: Sept 2017: KRG & Pearl Reach Final Settlement
Sept 2017: KRG & Pearl Reach Final Settlement “The Parties have mutually agreed to fully and finally settle all their differences amicably by terminating the Arbitration and related court proceedings… implementing a mechanism for settlement of $2,239 million…” Settlement Highlights: ▪ Pearl Petroleu
Slide 13: KRI: Expansion plans
KRI: Expansion plans Gas Sales Agreements (GSA) between Pearl Petroleum and KRG ▪ Signed a GSA in January 2018 to sell 100 MMscf/d of additional gas from debottlenecking project that came online in October 2018 ▪ Signed a second 20-Year GSA in February 2019 to sell an additional 250 MMscf/day (KM 25
Slide 14: KM250 Expansion project
KM250 Expansion project Description, economics and long-term development scope Project Objective and Description Layout of KM250 Development ▪ The scope of KM-250 project is to satisfy the installed capacity of the existing power stations, namely Chemchemal, Erbil and Bazian, by expanding production
Slide 15: Egypt Operations
Egypt Operations ▪ Since first entered Egypt in 2007 Dana Gas has considerably grown the portfolio, which currently consists of 14 development leases in El- Manzala(2), West-Elmanzala(9), West el-Qantara(2) and North El- Salhiya(1) and 1 exploration concession ▪ 2021 Reserves stand at 44 mmboe (2P)
Slide 16: Reserves & Peer Comparison
Reserves & Peer Comparison Peer Comparison EV ($m) 2P Reserves (mmboe) 14,000 1,400 12,000 1,200 2P Reserves (mmboe) 10,000 1,000 EV ($m) 8,000 800 6,000 600 4,000 400 2,000 200 0 0 2P Reserves (MMboe) 80 70 EV / Prod ($ / kboed) 60 50 Egypt Total 1,131 MMboe 40 4 KRI 1,087 30 20 10 0 Total 1,131 Eg
Slide 17: Market leading dividend yields on the ADX
Dana Gas (and other E&Ps) supported by strong cashflows and higher commodity prices has delivered market leading yields(1) on the ADX Total Dividend Yield for ADX Listed Companies & International E&Ps in LTM 2022 Ordinary & Interim Dividends Yield (%) 40% Yield (%) 39.0% Total Dividend Yield (%) GKP
Slide 18: Production (boepd) & Realized Prices (USD/boe)
Production (boepd) & Realized Prices ( USD/boe) Average production H1 2021 vs H1 2022 Average production Q2 2021 vs Q2 2022 H1 2021 63,200 59,800 Q2 2021 64,000 61,100 H1 2022 Q2 2022 33,400 33,600 34,300 34,500 29,200 26,200 29,150 26,600 600 0 550* 0 Group Egypt KRI EBGDCO* Group Egypt KRI EBGDCO
Slide 19: Financial Performance
Financial Performance
Slide 20: Financial Highlights
Financial Highlights Gross Revenue ($mm) EBITDA EBITDA($mm) ($mm) 300 284 2021 2022 2021 2022 200 250 216 164 200 150 144 110 150 110 100 83 100 60 50 50 0 0 H1 Q2 H1 Q2 Gross Profit ($mm) Net Profit ($mm) 150 139 150 138 2021 2022 2021 2022 111 111 115 91 100 100 71 61 57 57 46 50 37 50 0 0 H1 H1*
Slide 21: CAPEX & OPEX
CAPEX & OPEX G&A / OPEX ($mm) CAPEX ($mm) G&A OPEX G&A/boe ($/boe) Opex/boe ($/bpe) 4.00 60 60 55 55 2.65 2.68 3.00 2.28 2.38 2.19 2.35 2.35 40 31 2.00 27 27 26 127 126 89 20 1.00 0.62 0.65 0.52 0.49 0.52 0.54 58 0.43 56 50 15 12 11 8 6 6 25 5 0 - 2019 2020 2021 H1 2019 H1 2020 H1 2021 H1 2022 2019
Slide 22: Cash Flow, Liquidity & Receivables
Cash Flow, Liquidity & Receivables ▪ Positive FCF - $105mm Vs $103mm in H1 Free Cash Flow ($mm) 2021 400 Net Cash In (Operating) Net Cash Out (Capital expenditure) FCF ▪ $207mm cash balance vs. $185mm FY2021; 302 reflecting robust cash management 300 253 196 • $119mm of cash held at Pearl Petroleum
Slide 23: Corporate Debt & Dividend to Shareholders
Corporate Debt & Dividend to Shareholders 1,000 916 904 920 871 887 856 815 800 748 5 fils 729 690 700 600 $m 5.5 fils 5.5 fils 404 397 400 8 fils 200 5.5 fils 153 95 105 104 90 105 76 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Dividend per share (fils) Corporate De
Slide 24: Arbitration Update
Arbitration Update UAE Gas Project ▪ The UAE Gas Project involves the purchase of 600 MMscf/d imported gas sourced from the National Iranian Oil Company (NIOC) for transportation, processing, and sale in the UAE. ▪ Dana Gas owns project infrastructure (Gas transmission and Processing) and 35% of the
Slide 25: Group Focus
Group Focus
Slide 26: Why invest in Dana Gas - Growth strategy through to 2025
Why invest in Dana Gas - Growth strategy through to 2025 Significant growth in the KRI with plans to increase production to 1 billion scf/d ▪ Settlement Agreement with KRG signed in August 2017 with favorable terms ▪ Clears the way for development of world-class fields: over 1 billion boe of 2P rese
Slide 27: Reach Us: Dana Gas PJSC
Reach Us: Dana Gas PJSC P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : mohammed.mubaideen@danagas.com Direct : +971 6 519 4401
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