Horizon Oil Limited · ASX:HZN
Horizon Oil — FY2019 Earnings Presentation
21 slides from Horizon Oil's earnings presentation, Aug 28, 2019
Slide 1: Results Presentation Financial Year 2019
Results Horizon Oil Limited ABN 51 009 799 455 Presentation Financial Year 2019 28 August 2019
Slide 2: Compliance statements
Compliance statements Disclaimer Reserves Disclosure Statements contained in this material, particularly those regarding the possible or Unless otherwise stated, all petroleum reserves and resource estimates refer to those assumed future performance, costs, dividends, returns, production levels or r
Slide 3: Overview
Overview Michael Sheridan CHI EF EX EC UT I V E O FFI C ER Horizon Oil Results Presentation 3 Financial Year 2019
Slide 4: FY19 Full Year Highlights
FY19 Full Year Highlights RE C O RD SA L E S VO LU M E R E CO R D S A L E S R EVENU E R ECOR D EBITDA X 1.87 mmbbls US$122 million US$93 million 13 % 22 % 36 % N E T D E B T RED U CE D U ND E R LY I NG P R OFIT 2P R ES ERVES INCR EAS E B E FO R E T A X US$28 million ~95% reserves replacement US$37 m
Slide 5: FY19 Delivering on Objectives
FY19 Delivering on Objectives Improved Maintenance Progressive Organic growth Safety & production of strong debt reduction environmental performance operating performance cashflows Guidance exceeded Record free cashflow Net debt reduced to ~95% organic 2P Continued sound with record production and u
Slide 6: Financial Results
Financial Results Richard Beament CHIEF FI NA NC I A L O FFI C ER Horizon Oil Results Presentation 6 Financial Year 2019
Slide 7: FY19 Financial Results
FY19 Financial Results (US$ million) FY19 FY18 Change (%) Production volume, mmbbl 1.60 1.32 22% Material increase in sales and Sales volume, mmbbl 1.87 1.65 13% production Revenue 122.4 100.0 22% Robust and material increases EBITDAX 93.0 68.5 36% in revenue, EBITDAX, profit and cashflow generation
Slide 8: Financial Highlights
Financial Highlights OI L SALE S (mmbbls) R E V E N U E 1 (US$m) 1.87 140.0 80.0 1.65 70.0 0.29 120.0 1.42 1.38 0.31 60.0 100.0 1.21 US$/bbl 0.30 50.0 US$m 80.0 80.1 1.00 70.5 40.0 0.90 0.86 68.9 60.0 35.5 0.93 0.80 30.0 Maari 40.0 52.2 Maari 20.0 Beibu 42.3 Beibu 0.47 0.48 0.58 20.0 33.4 40.5 31.2
Slide 9: Financial Highlights
Financial Highlights EB IT D A X A N D C OST P E R B B L U NDER LY ING P R OFIT BEFOR E TAX (US$m) 100 30.0 90 80 25.0 70 US$/bbl 20.0 60 93.0 37.3 US$m 50 15.0 89.1 18.9 40 30 54.0 68.5 10.0 8.7 2.2 45.2 20 5.0 10 (8.7) 0 0.0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDAX Opex/sales bbl
Slide 10: Financial Highlights
Financial Highlights FR E E C A SH F LOW (US$m) NET D EBT (US$m) 72.8 58.8 44.2 57.6 35.6 (10.2) (30.1) (7.7) (37.7) 138.8 131.9 108.5 (95.3) 88.6 Operating Cash Flow Investing Cash Flow Free Cash Flow* 28.0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Sustained growth in free cash flow with Ac
Slide 11: Underlying Profit Drivers
Underlying Profit Drivers 50.0 (9.9) US$/bbl 3.7 1.2 45.0 FY2018: 64 1.8 (1.5) FY2019: 68 40.0 2.6 6.6 35.0 30.0 US$m 25.0 14 20.0 37.3 15.0 10.0 18.9 5.0 - Underlying Sales volume Sales price Hedge Operating Other Exploration and Depreciation Financing Underlying profit before tax settlements costs
Slide 12: Key Cashflow Drivers
Key Cashflow Drivers US$ million (4.3) (28.1) 126.7 (15.0) (6.5) 72.8 (68.7) (7.5) (2.7) 21.5 27.6 Opening cash Crude oil sales Hedge Opex Corporate Interest Net cash Debt repayment Investment in Exploration Closing cash balance settlements and tax inflows from and transaction oil and gas and expend
Slide 13: Financial Outlook
Financial Outlook Continued strong cashflow generation Maintenance of low operating costs Progressive allowing for progressive reduction in Maintenance of targeting < US$20/bbl produced debt debt cost discipline Disciplined and focused exploration in reduction Forecast net cash position by mid and a
Slide 14: Outlook and Project Updates
Outlook and Project Updates Michael Sheridan CHIEF EX EC UT I V E O FFI C ER Horizon Oil Results Presentation 14 Financial Year 2019
Slide 15: Overview of Portfolio
Overview of Portfolio China Asia Pacific focus Block 22/12 (Beibu Gulf) 26.95%/55% Material joint venture interests High margin, long life oil production Papua New Guinea assets in China and New Zealand PDL 10 (Stanley) 30% generating strong cashflow PRL 21 (Elevala/Tingu/Ketu) 30.15% Significant ho
Slide 16: Block 22/12 - China
Block 22/12 - China l na WZ 6-12N CHINA 5km u Ter m i (26.95%) DU R ING FY 19 eizho Block 22/12 to W 6-12 PRODUCTION AREA le ine s 10% increase in oil sales to 1.3 mmbo with Pip WZ 6-12S MAP AREA (26.95%) Beibu Block 22/12 underlying production increasing 16% Gulf 100km Two infill wells drilled in W
Slide 17: Maari/Manaia Fields - New Zealand
Feb 2019 Maari/Manaia Fields - New Zealand FINAL!! NEW D U R I N G FY 19 ZEALAND Auckland 33% production increase during the year to 0.6 mmbl driven by MAP AREA full year benefit of 2018 acquisition of additional 16% of project, Tasman Sea Wellington MAARI production optimisation activities and incr
Slide 18: Papua New Guinea Portfolio
2018 AnRpt- UPDATED Nov 2018 Papua New Guinea Portfolio 2018 AnRpt- UPDATED April 2019 PAPUA NEW GUINEA D U R ING FY 19 Wewak Kopiago MAP AREA Madang Material (~30%) interests held in four licences in P’NYANG Porgera Gas Pipeline Oil Pipeline Lae Western Province which hold gas/condensate Ningerum P
Slide 19: Reserves & Contingent Resources
Reserves & Contingent Resources A T 30 JUNE 2019 2 P R E SE RV E S RE C O N C I L I A T I O N Record sales of 1.87 mmbo and strong year of 8.9 8.8 underlying production of 1.6 mmbo 1.6 Net 2P reserves additions of 1.8 mmbo (after 2.1 NZ NZ economic interest adjustment for accelerated cost 0.3 0.3 re
Slide 20: Outlook – Strong production and cashflow providing pathway to growth
Outlook – Strong production and cashflow providing pathway to growth Pursue and promote production Continued strong cashflow Optimise enhancement opportunities at Maari/ Strengthening generation allowing for Production Manaia and Beibu fields Balance Sheet progressive reduction in debt Assets Mainte
Slide 21: For more information
FY19 For more information please contact: Michael Sheridan Chief Executive Officer Horizon Oil Limited T: +61 2 9332 5000 F: +61 2 9332 5050 Level 6, 134 William St Woolloomooloo NSW 2011 E: info@horizonoil.com.au horizonoil.com.au