Ratio Energies Limited Partnership · TASE:RATI
Ratio Energies Limited Partnership — Ratio Oil Exploration (1992) Limited Partnership — Investor Presentation (November 2021)
22 slides from Ratio Energies Limited Partnership's investor presentation, November 2021
Slide 1: Ratio Oil Exploration (1992) Limited Partnership Investor Presentation
RATIO OIL EXPLORATION (1992) LIMITED PARTNERSHIP INVESTOR PRESENTATION NOVEMBER 2021
Slide 2: Disclaimer
DISCLAIMER This presentation was prepared by Ratio Oil Exploration (1992) – Limited Partnership (the “Partnership” or “Ratio”). It is not an offer to buy or sell securities of the Partnership, nor an invitation to receive such offers, and is designed, as aforesaid, for the provision of information o
Slide 3: Ratio at a Glance
RATIO AT A GLANCE An experienced E&P player focused on the gas-rich Levant Basin PROSPECT GENERATOR of the largest natural gas discovery in the Med-Sea 30 YEARS LEVIATHAN FIELD of experience Natural Gas Condensate Traded on $528M TASE’s main TA-90 TA-125 TA-Oil & Gas Market Cap2 indices BCM(GROSS) 1
Slide 4: Partnered with Global Industry Players
PARTNERD WITH GLOBAL INDUSTRY PLAYERS Our Assets Our Partners 15% Leviathan Leases 33.33% Zones A&C 4
Slide 5: Natural Gas Playing a Critical Role in the Global Economy
PLAYING A CRITICAL 35 Natural Gas Price ROLE IN THE GLOBAL 30 ECONOMY 25 $/mmbtu 20 15 Natural gas has a key role in the global fuel 10 mix in the coming decades, facilitating the 5 transition from polluting fuels such as coal 0 and oil into renewable energy Henry Hub NBP TTF JKM Growing in energy d
Slide 6: Key Milestones
KEY MILESTONES 2006 2010 2019 Ratio awarded 100% of Leviathan First Gas “Ratio-Yam” deep-water Discovery December 31st 2019 Preliminary Permit Formation of regulatory Frame-work 1992 2007-2008 2017 Ratio Noble Energy & Delek Leviathan Established Drilling farmed-in to FID “Ratio-Yam” 6
Slide 7: Turning Point for Ratio
Successful commissioning Long-term robust cash flow of natural gas supply to supports Ratio’ debt domestic & export markets optimization 2020-2021 TURNING POINT Tier-1 operational FOR RATIO Positioning Ratio as a leading performance and business energy player while resilience during Covid-19 develop
Slide 8: Leviathan Project
LEVIATHAN PROJECT A regional anchor with extensive strategic benefits First Gas Capex for Processing Markets Delivery Phase 1A Capacity Israel, Egypt, December $3.6Bn 1.2 bcf/d Jordan 31st 2019 (Gross) Gross Reserves & Resources1 Ownership Structure 639 BCM (22.5 TCF) Natural Gas 384 112 143 15.00%
Slide 9: Leviathan Highlights
LEVIATHAN HIGHLIGHTS World class asset Operational Environmental Regional Project was developed Lowest emissions First significant natural on time & under among industry thanks gas export to Jordan budget to the use of Best and Egypt Available Technologies Over 99.8% uptime Regional & strategic perf
Slide 10: Contribution to the Israeli Environment
CONTRIBUTION TO 7% 15% THE ISRAELI 2012 110 103 61% 17% ENVIRONMENT Thousands tonnes/ year Dramatic reduction in pollutants 6% 54 53 from electricity generation, despite a 26% 37 15% increase in electricity production 2020 since 2012 18 67% 2012 2016 2020 Coal Natural Gas Renewable Energy Diesel Oth
Slide 11: Growing Leviathan
GROWING Turkey Diverse Export Infrastructure LEVIATHAN Options Greece Phase 1A (DSM) Cyprus Capacity of EastMed Pipeline ~12 BCM/A Pipeline to LNG facility in Egypt Phase 1A Expansion (DSMX) Phase 1B FLNG (REM) Jordan DAMIETTA Capacity IDKU expansion to FLNG ~16 Capacity expansion to Egypt Israel BC
Slide 12: Leviathan's Marketing Strengths
LEVIATHAN’S MARKETING STRENGTHS Strategic asset providing vital energy security DIVERSIFIED CUSTOMERS Strategically located in the East Med, well positioned to take advantage of increasing regional natural gas demand Signed GSPAs represent a balanced composition of domestic (Israel) and internationa
Slide 13: Export Markets: Egypt
EXPORT MARKETS Material shortage expected during the coming decade Fast-rising domestic natural gas demand alongside declining EGYPT production from mature fields 100 DOLPHINUS1 GSPA TCQ of 60 BCM over 15 years ~18 BCM/A Feed-Gas 90 capacity at LNG facilities2 TOP and FLOOR PRICE 80 70 Egypt is a ma
Slide 14: Export Markets: Jordan
EXPORT MARKETS Firm and stable demand for Natural Gas JORDAN Jordan Natural Gas Demand (BCM) NEPCO GSPA TCQ of 45 BCM over 15 years TOP and FLOOR PRICE 4.2 4.1 4.1 4.1 4.1 4.0 4.0 4.0 4.0 4.0 3.9 3.9 3.8 3.8 3.8 3.8 Jordan has limited local energy sources and relies on imports for ~ 97% of its natur
Slide 15: Israel's Natural Gas Revolution
Generation by Fuel Mix ISRAEL’S NATURAL GAS End of Coal Usage REVOLUTION 6% 18% 25% 30% Security, stability and redundancy of natural gas 69% supply to the domestic market 82% 75% Forecast predicts natural gas demand growth driven 70% by structural reform of the electricity market along 25% with reg
Slide 16: Financial Overview
Financial Overview 16
Slide 17: Increase in Ratio's Financial Results
INCREASE IN RATIO’s FINANCIAL RESULTS Revenues (M$) Operating Income (M$) EBITDA (M$) +56% +58% +65% 226 158 136 145 100 82 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 2020 2021 2020 2021 2020 2021 17
Slide 18: Phase 1A Long-Term & Stable Robust Cash Flow
PHASE 1A LONG-TERM & STABLE ROBUST CASH FLOW Ratio’s net CF forecast until 2030 from Phase 1A alone (2P+2C)1 Phase 1A value 400 for Ratio2 as of 31.03.2021 300 200 NPV 10% 100 $1.5Bn 0 NPV 7.5% -100 -200 -300 $1.8Bn -400 Q2-Q4 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Income Royalties Opex C
Slide 19: Robust Cash Flow Generation
ROBUST CASH FLOW GENERATION Cumulative UFCF1 > $1.6Bn (2P+2C) AS OF Expected sales of ~113 BCM until 2030 30.09.21 Strong liquidity and conservative leverage profile $178M Cash & Cash Equivalents2 $(638(M Net Debt 1. UFCF = Unlevered Free Cash Flow. based on NSAI’s 2P+2C estimate as of 31.03.2021 fr
Slide 20: Optimal Long-Term Capital Structure
OPTIMAL Bonds Senior debt 1000 LONG-TERM Senior Debt 800 CAPITAL 320 600 USD M $820M STRUCTURE 400 Total Debt 500 Bonds1 200 0 31/12/23 31/12/20 31/12/21 31/12/22 31/12/24 31/12/25 31/12/26 31/12/27 31/12/28 OPTIMIZATION OF SIGNIFICANT SENIOR HIGH DEBT REPAYMENT CAPITAL STRUCTURE DEBT FLEXIBILITY CA
Slide 21: Key Highlights
KEY HIGHLIGHTS Leviathan Chevron’s Impressive strategically capabilities Leviathan Phase production with positioned to take facilitate 1A provides Ratio Optimization of 8.3 BCM in the advantage of the Leviathan a long-term debt structure for first nine months increasing expansion beyond robust & sta
Slide 22: Ratio Oil Exploration (1992) Limited Partnership
Ratio Oil Exploration (1992) Limited Partnership 85 Yehuda Ha’levi St. Tel-Aviv 6579614 Israel Tel: +972-3-5661338 Fax: +972-3-5661280 info@ratioil.com www.ratioil.com
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