Nostrum Oil & Gas Plc · LSE:NOG
Nostrum Oil & Gas — 9M 2016 Earnings Presentation
15 slides from Nostrum Oil & Gas's earnings presentation, 2016
Slide 1: 9m 2016 Results Presentation
Simple Sustainable Successful 9m 2016 Results Presentation
Slide 2: 9m 2016 Financial Results
9m 2016 Financial Results Financial and operational stability in a volatile and uncertain oil price environment 1 • Stable production volumes — 38,901 boepd over the period with FY 2016 guidance of 40,000 boepd 2 • Continued reduction in cost base1 — 24% reduction in combined Opex2, G&A and transpor
Slide 3: Snapshot of key figures from 9m 2016
Snapshot of key figures from 9m 2016 Production Opex / boe2 50,000 4.5 38,754 38,933 38,901 40,000 4.0 Opex / boe 3.5 3.5 30,000 3.5 3.3 boepd 20,000 3.0 10,000 2.5 - 2.0 Q1 2016 H1 2016 9M 2016 Q1 2016 H1 2016 9M 2016 Net Operating Cash flows1 Gross debt / net debt 60.0 53.6 10.0x Gross Debt / LTM
Slide 4: Capital discipline
Capital discipline Balance sheet Hedging programme • US$94.3m cash and cash equivalents¹ on balance sheet • 15,000 bopd hedge entered into on 14 December 2015 • US$866.8m Net debt2 • Strike price of US$49.16 • US$400.0m 6.375% Notes maturing in 2019 with no • Settles quarterly for eight quarters (fi
Slide 5: Resilience under low oil prices
Resilience under low oil prices – Fully funded to complete GTU III and maintain existing production in 2016 and 2017 under any oil price US$29m US$160m US$254m • +US$130m available to invest in maintaining and US$85m increasing production US$132m US$94m Q3 2016 Operating Gross cash received from GTU
Slide 6: A clear path to over 100k boepd
A clear path to over 100k boepd – GTU III delivers material near term production growth Able to deliver Ryder Scott production profile Fully funded at any oil price with oil price of US$44 / bbl • Fully funded to complete the construction of GTU III during 110,000 2017 under any oil price scenario 9
Slide 7: 9m 2016 Financial Results
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Slide 8: Financial Overview – 9m 2016
Financial Overview – 9m 2016 US$m 9m 2015 9m 2016 Revenue 374.8 245.1 EBITDA1 Non-cash P&L Item 202.9 142.6 • The change in fair value of the hedge is required under accounting policy “IFRS 9” Change in fair value of the hedge • It represents the change in the carrying value of the instrument 23.7 (
Slide 9: Progress – Snapshot
Progress – Snapshot Opex / boe1 Transport costs / boe 4.2 4.1 6.5 6.2 Transport cost ($) / boe 4.0 6.0 Opex ($) / boe 3.8 5.5 5.2 3.6 3.5 5.0 3.4 3.2 4.5 3.0 4.0 9m 2015 9m 2016 9m 2015 9m 2016 EBITDA margin Tax / boe2 80% 6.0 5.4 54% 58% EBITDA margin 60% 4.0 Tax ($) / boe 40% 2.1 2.0 20% 0% - 9m 2
Slide 10: Balance Sheet Summary
Balance Sheet Summary Highlights Gross debt / net debt • +58.2% EBITDA¹ margin 10.0x Gross Debt / LTM EBITDA 8.0x Net Debt / LTM EBITDA • US$94.3m cash & equivalents² Leverage ratio 5.4x 5.7x 6.0x 4.8x 5.1x • 15,000 bopd production hedged at US$49.16 / bbl for 24 4.1x 4.0x 3.5x months (remaining val
Slide 11: Supporting materials
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Slide 12: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 12
Slide 13: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income 13
Slide 14: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows 14
Slide 15: Disclaimer
Disclaimer THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY ATTENDING THE PRESEN