Genel Energy Plc · LSE:GENL
Genel Energy — H1 2020 Earnings Presentation
20 slides from Genel Energy's earnings presentation, Aug 6, 2020
Slide 1: Half-Year Results 2020
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Slide 2: Disclaimer
ma DISCLAIMER These materials are being supplied to you by Genel Energy pic (the “Company") solely for your information and for use at this presentation and does not constitute a prospectus or offering memorandum or an offer in respect of any securities. All numbers and charts included in this prese
Slide 3: A clear strategy - suitable for a low oil price
wae A CLEAR STRATEGY - SUITABLE FOR A LOW OIL PRICE * Genel aims to be a world-class creator of shareholder value by: - Growing cash-generative production through rapid development and a disciplined use of capital — Recycling capital into an expanding asset portfolio with the potential to deliver si
Slide 4: Business model resilient by design
mam A. BUSINESS MODEL RESILIENT BY DESIGN * Genel's business model is designed for challenging times, and positions us well in the current environment * Financial discipline — Balance sheet with appropriate levels of debt — Capex appropriate to external environment * Downside risk mitigation - Prior
Slide 5: Resilience demonstrated in H1 2020
me RESILIENCE DEMONSTRATED IN H1 2020 * Uncontrollable events severely tested business model - Impact of COVID-19 on operating environment and fall in oil price - $121 million of receivables not paid by KRG ¢ Work done previously on flexible model enables Company to control the controllables — Capit
Slide 6: The only multi licence producer in the KRI
me THE ONLY MULTI LICENCE PRODUCER IN THE KRI The only multi-licence producer in the KRI — Low-cost production from the Tawke, Peshkabir and Tag Taq fields — Sarta set to add to production in 2020 Production in H1 in line with expectations of updated work programme Bina Bawi — Material increase in T
Slide 7: Capital allocation and business planning
me CAPITAL ALLOCATION AND BUSINESS PLANNING * Tawke PSC — Flexible capital program enables rapid flex in activity - Low-cost fast payback means capital can be invested despite rant medium-term Brent outlook uncertainty, with immediate results * Taq Taq <t - Prioritising cash generation, successful c
Slide 8: H1 2020: Cash generation covers capital priorities
Despite the reduction caused principally by oil price, revenue is sufficient to: — Cover all producing asset spend, corporate costs and bond interest - Generate a surplus of $16m before investment in growth Pre-production capex is focused on expanding near term producing asset portfolio through Sart
Slide 9: Balance sheet strength mitigating uncertainty
mam BALANCE SHEET STRENGTH MITIGATING UNCERTAINTY * Business model and capital allocation * Cash flows fund growth, - Maintain low breakeven oil price relative to * Material headroom on financial covenants peers: high margin, low opex, low G&A * Strong balance sheet providing optionality - Cash posi
Slide 10: Financial priorities for 2020 and beyond
me FINANCIAL PRIORITIES FOR 2020 AND BEYOND * FY2020 priorities - maintaining financial strength and flexibility - Maintain and build on financial strength, agree terms for payment of monies owed - Prioritise highest value investment with ongoing or near-term cash and value generation — Deliver upda
Slide 11: Sarta - towards pilot production
SARTA - TOWARDS PILOT PRODUCTION Complete bridging engineering Complete priority civils work Execute LOM contract Flowline construction Facility construction Contract workover rig S-2 Well Workover Commission facility Facility start-up - first oil @ (Apoereteneray HY results 2020 - 6 August 2020 K/
Slide 12: Sarta - towards pilot production
SARTA - TOWARDS PILOT PRODUCTION Storage Tanks and Tanker Loading Pumps = Tanker Loading = Station } as Ne za) e Ss La y ——— — 4 — _— r - ‘Z f ae ad " “ f i < rae £a.e Phase Separator—_ S-2 well . ier 4 S-2 & $3 flowliné receivers site oo = = f fi & HY results 2020 - 6 August 2020 Flare Location Sar
Slide 13: Sarta - towards pilot production
ma SARTA - TOWARDS PILOT PRODUCTION Se ea , eR ep Rey ~ —~ a - = ee =F; la ‘ = ~ 2 Taker : | 3 Ts = : > / ye —- uN 4 ae —, & Ve : rf é Per Com ol ‘ 4) ; a G e. “ if q a \ orl Ey ae ass aS. & By NS eh f \ \ SN eh ks at J a * yea ae — Pre ; , VE ose s : A GS) Genel Energy HY results 2020 - 6 August 20
Slide 14: Sarta - towards pilot production
SARTA - TOWARDS PILOT PRODUCTION Storage Tanks and_ Tanker Loading on ae SS SS ee, ae Pumps reat Si WSs — Flare Location sont. 5 Tanker Load — i ee S Station” = 4 ae é, Ry.» ib (Apoereteneray HY results 2020 - 6 August 2020 A
Slide 15: Sarta - towards pilot production
hel Re Activity S2 Workover mm SARTA - TOWARDS PILOT PRODUCTION Description S2 exploration well drilled by Chevron in 2014. S2 workover - clean out well bore, perforate reservoir, run lower completion, acidize and flow back the well to re- establish deliverability Timing Q4 2020 S3 Slickline Minor o
Slide 16: Sarta appraisal wells
• • S-5 • Establish M-A deliverability & S-6 S-1D connectivity away from the ▪ Deepening the LKO in ▪ Re-entry & deepening Phase 1A Pilot development. the M-A reservoirs of existing S1 well • Explore & appraise Jurassic ▪ Appraising Jurassic & ▪ Deviated into the M- & younger objectives younger obje
Slide 17: Sarta - planning for production in appraisal success
SARTA - PLANNING FOR PRODUCTION IN APPRAISAL SUCCESS Option for 6.4 km flowline from S6 to existing EPF YE 2021/22 S6 Success Option to increase production capacity S-1D Success 2.4 km flowline tie in to existing EPF YE 2021/22 Pilot production through additional rental EPF, start $5 Success to deve
Slide 18: Retaining our focus on ESG
me RETAINING OUR FOCUS ON ESG A portfolio that fits a future of fewer and better natural resources projects ¢ The right assets, in the right area, with the right footprint — Onshore, low carbon, with CO2 per produced barrel now c.7kg/bbl following the elimination of flaring at Peshkabir * Positive i
Slide 19: Outlook
m= OUTLOOK ¢ Low-cost production, flexible capital investment programme, and robust balance sheet continues to position us well * Robust production from existing producing assets - Sarta set to enter production in Q4, materially increasing exit rate production * Genel expects to retain a net cash po
Slide 20: For further information please contact investor relations
For further information please contact investor relations Andrew Benbow, Head of Communications andrew.benbow@genelenergy.com