Dana Gas Pjsc · ADX:DANA
Dana Gas Pjsc — Investor Presentation (May 2018)
24 slides from Dana Gas Pjsc's investor presentation, May 16, 2018
Slide 1: Corporate Presentation: Clean Energy For the Future
Corporate Presentation Clean Energy For the Future May 2018 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: Transformational Growth through to 2021
Transformational Growth through to 2021 Why invest in Dana Gas: 3-year plan to triple production to 900 MMscf/d in KRI; significant growth ahead • Settlement Agreement signed in August 2017 with favorable terms clears the way for development of world-class fields • 10 year Gas Sales Agreement signed
Slide 4: Where are we today
Where are we today Kurdistan Region of Iraq 26,300 boepd (Q1 2018) MENA’s largest independently listed, Two world class fields – largest gas reserves in KRI natural gas-focused E&P company 10 years of historical production Supplies two major power-stations $14m $3.7bn Q1 2018 net profit Tota
Slide 5: Sukuk – Deal: why this deal?
Sukuk – Deal: why this deal? Theme Considerations Provides Holders With • The Sukuks currently trade in the mid to high 80’s (without any credit for accrued interest) 1 Attractive Options • This depressed pricing is a direct result of the weak legal position and structural deficiencies of the instru
Slide 6: Sukuk – Deal: favourable deal terms
Sukuk – Deal: favourable deal terms Current Proposal – Simplified Term Sheet Capital Structure Enhancement OPTION A Purchase price 90.5% (if tender received before Early Participation Deadline) on face Consensual Deal value of existing Sukuk allocated to Option A Cap on election 25.0% Amount Leverag
Slide 7: KRI: World Class Asset
KRI: World Class Asset Pearl Petroleum Company Ltd DG holding 35% (Dec 2015) Crescent (35%), OMW, MOL, RWE (10%) 2 major fields: 75 Tcf GIIP, 7 bln bbls STOIIP Khor Mor and Chemchemal fields DG share of production ~26,300 boepd (Q1 18) Largest gas reserves in KRI $1.3bn investment to dat
Slide 8: Two of the largest gas fields in MENA
Two of the largest gas fields in MENA Large Gas Developments in MENA Kurdistan MENA 120 (Source: Company Disclosure) Gas Initially in place resources (TCF) 80 40 0 Khor Mor & Miran Bina Bawi Khazzan Leviathan & Zohr (Egypt) Al Hosn (UAE) Atoll (Egypt) Chemchemal ** (Oman) * Tamer (E. Med) Notes: Vol
Slide 9: 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: Settlement – in
Slide 10: KRI: Initiated expansion plans
KRI: Initiated expansion plans Targeted production increase by 20% in 2018 and 170% within two to three years 2018 Development Plans – Approval of a detailed Field Development Plan (FDP) for Khor Mor field by Pearl Petroleum Board; with MNR for approval – $70m capex contribution; all requirement
Slide 11: Egypt: Identifying Upside
Egypt: Identifying Upside First entered Egypt in 2007 Nile Delta acreage – 13 leases; 100% ownership; 2 processing plants Onshore and offshore blocks Production 40,000 boepd (Q1 18) Reserves stand at 117 mmboe (2P) Aug 2014 – Gas Production Enhancement Agreement with government to add prod
Slide 12: Egypt: Growth potential
Egypt: Growth potential North El Salhiya (Block 1 – 100% WI) ESAEN test results indicate commercial viability, potential production 5 MMscf/d; South Faraskur workover added 4 MMscf/d; SAEN-9 tested successfully and will add up to 5 MMscf/d. El Matarya (Block 3 - 50% WI / BP operated) Dana Ga
Slide 13: Egypt: Gas Market Fundamentals are Intact
Egypt: Gas Market Fundamentals are Intact 13
Slide 14: UAE: Zora Gas Field
UAE: Zora Gas Field Producing gas since February 2016 Production rate of 1,400 (Q1 18) Detailed modelling of future performance conclude not all reservoir is productive with today’s technology Re-classify a portion of 2P reserve to contingent resource – result in an impairment charge of $34
Slide 15: Reserves
Reserves 2P Reserves (MMboe) Reserves Comparison 14 1.2 1.14 Total 12 1,131 1.0 10 0.8 2P Reserves (mmboe) KRI EV ( Billion USD) 0.73 8 990 Egypt 0.6 117 6 UAE 24 0.4 4 0.37 0.29 0.30 0.2 2 0.16 0.16 0.05 12.2 8.5 3.4 1.7 1.5 1.3 0.8 0.5 0 0.0 Lundin Tullow Premier Oil Dana Gas DNO Maurel & Genel Op
Slide 16: Highlights – Q1 2018
Highlights – Q1 2018 Operations Financials Group production avg 65,000 boepd – down 7% $14m in net profit – up 27%; higher realized prices and Decrease primarily result of natural field declines in Egypt and reversal of accruals made by Pearl Petroleum drop in UAE production output $120m in
Slide 17: Financial Highlights
Financial Highlights Gross Revenue (million USD) EBITDA (million USD) 130 100 120 120 118 75 69 58 50 110 25 100 0 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Gross Profit (million USD) Net Profit (million USD) 60 20 45 14 15 38 40 11 10 20 5 0 0 Q1 2017 Q1 2018 Q1 2017 Q1 2018 17 17
Slide 18: Production (boepd) & Realized Prices (USD/boe)
Production (boepd) & Realized Prices ( USD/boe) Average production Q1 2018 Vs Q1 2017 Average production Q1 2018 Vs Q4 2017 67,350 65,000 69,900 Q1 2017 Q4 2017 65,000 Q1 2018 Q1 2018 39,050 36,800 40,950 36,800 26,100 26,300 26,500 26,300 1,500 1,400 700 500 1,800 1,400 650 500 Group Egypt KRI UAE
Slide 19: CAPEX & OPEX
CAPEX & OPEX G&A / OPEX (million USD) CAPEX (million USD) G&A OPEX 12 14 13 13 10 65 32 5 4 4 3 3 7 8 Q1 2015 Q1 2016 Q1 2017 Q4 2017 Q1 2018 Q1 2015 Q1 2016 Q1 2017 Q1 2018 CAPEX G&A / OPEX All non-critical capex deferred in Egypt Company continues to optimise costs Matching expenditure with
Slide 20: Cash Flow, Liquidity & Receivables
Cash Flow, Liquidity & Receivables Free Cash Flow (million USD) $636 million cash – highest in ten years 465 450 413 Positive FCF - $25m Financial position has significantly 203 improved over the last twelve months – 200 181 however Dana Gas remains prudent in 82 112 52 managing and spending m
Slide 21: Arbitration Update
Arbitration Update MOL (Pearl Petroleum shareholder) MOL expressing dissatisfaction with outcome – wanted to renegotiate terms with Pearl (namely certain contingent payments) Initiated proceedings in The London Court of International Arbitration Hearing set for November 2018 UAE Gas Project (N
Slide 22: Key Focus / Strategy: 2018
Key Focus / Strategy: 2018 1. 2. 1 2 Delivering full asset value through Development of world-class assets in continued operational efficiencies and Kurdistan to more than double focus on costs production of gas and condensate 3. 3 4. 4 Improving collections and reducing Cash conservation – balancin
Slide 23: 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 23
Slide 24: Group Production
Group Production Group Egypt KRG* UAE EBEDCO 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 Gas (MMSCF/D) 299 301 177 187 307 299 15 9 - - Condensate (BBLs/D) 10,899 11,326 5,306 6,018 13,269 12,885 199 98 750 700 LPG ( MT/D) 534 516 245 196 826 914 - - - - Net Production ( boed) 67,050 67,600 37