Genel Energy Plc · LSE:GENL
Genel Energy — FY2019 Earnings Presentation
31 slides from Genel Energy's earnings presentation, Mar 19, 2020
Slide 1: A socially responsible contributor to the global energy mix
4) Genel Energy A socially responsible contributor tothe ; iG global energy mix
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: Business model resilient by design
mam A. BUSINESS MODEL RESILIENT BY DESIGN * Genel's business model positions us well in the current market - Our 2020 outlook at $30/bbI delivers new production, and allows us to reaffirm our dividend ¢ Financial discipline — Investment in lower risk development of opportunities with high potential,
Slide 4: 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 5: 2019 delivered on our strategy
a 2019 DELIVERED ON OUR STRATEGY * Growing cash-generative production - Production increased to 36,250 bopd * Recycling capital into an asset portfolio with potential for sustained cash flow growth - Growth investment increased - 152 MMbbIs of 2C oil resources, with a clear path to moving to reserve
Slide 6: A business fit for a low oil price environment
mam A BUSINESS FIT FOR A LOW OIL PRICE ENVIRONMENT * Genel is well positioned to grow in a lower oil price environment * Robust liquidity position, with net cash of c.$100 million — Limited committed capital allocation * Dividend resilient to downside risks - Material dividend - yielding over 20% at
Slide 7: The flexibility to mitigate impact of headwinds
me THE FLEXIBILITY TO MITIGATE IMPACT OF HEADWINDS ¢ Financial strength and capital flexibility allow us to match expenditure to external conditions ¢ Delays to 2020 drilling activity due to COVID-19 do not impact short-term net cash generation at current oil prices — Keen to execute exciting 2020 w
Slide 8: A business fit for the future
mam A. BUSINESS FIT FOR THE FUTURE * A portfolio that fits a future of fewer and better natural resources projects 7kg CO2/bbl . . . . producing emissions * Highly cash-generative business, with the right assets, in the end H1 2020 right area, with the right footprint - High-margin, low-cost produci
Slide 9: A diverse asset portfolio
wa A DIVERSE ASSET PORTFOLIO The only multi-licence producer in the KRI — High margin production from the Tawke, Peshkabir and Taq Taq fields Balanced portfolio with positions throughout heartland hydrocarbon areas of the KRI Material 2C resources with clear and funded route to derisking Bina Bawi M
Slide 10: Organic production growth potential
m= ORGANIC PRODUCTION GROWTH POTENTIAL * Genel's portfolio offers the potential to double production — The Company has enhanced operational capability in readiness for growth Sarta phase 3 Qara Dagh expansion Bina Bawi oil Sarta phase 2 Qara Dagh (Gu Energy FY results 2019 - 19 March 2020 10 /
Slide 11: Material cash generation, resilient to low oil prices
Slide 12: Another year of robust performance
ma ANOTHER YEAR OF ROBUST PERFORMANCE * Strong production performance Cash generation ($ million) - Year-on-year increase of 8% Average Brent (S/bb)) 64 7 Production 36,250 33,700 * Revenue $377 million, up despite lower Brent Revenue 377 355 High . Is $29/bbI Opex (38) (29) ~ Fgh margin barrels $ 9
Slide 13: Discipline of a yield stock
= DISCIPLINE OF A YIELD STOCK * Business model and capital allocation . — Maintain low breakeven oil price relative to peers: high margin, low opex, low G&A ° - Maintain flexibility on capital allocation, and ° phasing, with limited capital commitments - Diversified production asset base - Focus on
Slide 14: Business model demonstrates durability
wa BUSINESS MODEL DEMONSTRATES DURABILITY * Material cash balance of $377 million after ILLUSTRATIVE CASH AT YEAR-END 2020 payment of interim dividend in January 2020 ($ MILLION) * Comfortable debt position — No repayment until December 2022 ne %6 - Significant headroom on covenants 400 54 54 * 2020
Slide 15: Upside of a growth stock
ma UPSIDE OF A GROWTH STOCK * Opportunity to convert 152 MMbbls of 2C oil resources into near term production ¢ Funded by asset cash flow and robust balance sheet with no technical hurdles — Progress to production for each asset is low-cost — All plug into our low-cost, high capital velocity KRI ope
Slide 16: Financial priorities for 2020
we FINANCIAL PRIORITIES FOR 2020 * In recent years we have continuously strengthened NET CASH the balance sheet and future proofed our business ($ MILLION) * Well set to navigate current environment 100 — Preserve financial strength, defend dividend so _ — Make and take opportunities A ° * Maintaini
Slide 17: M&A - disciplined approach
me M&A - DISCIPLINED APPROACH * New business activity aims to ensure cash flow generation grows over long-term * Focus is on discovered resources, production and cash generation, rather than geography — Low liquidity need relative to cash generation / value potential — Cash generation in a maximum o
Slide 18: x Se
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Slide 19: Production funding resilience and growth
=a PRODUCTION FUNDING RESILIENCE AND GROWTH ¢ Multi-well high margin production, with planned expansion — Only company with multi-licence KRI production, from over 80 wells at three fields - Derisking 2C resources provides chance to double production ¢ Working interest production in 2019 was 36,250
Slide 20: Normalised oil rate to peak production
• Comparison of Taq Taq and Tawke Fields relative production after water breakthrough 100% - Matrix feeding into production - through process of imbibition • 80% Normalised Oil Rate to Peak Production 60% - at 20% WC, Tawke Cretaceous was producing 40% twice the oil rate of Taq Taq - 20% - Taq Taq O
Slide 21: Resilient 2020 cash generation
me RESILIENT 2020 CASH GENERATION * The impact of COVID-19 has led drilling activity at the Tawke PSC to be temporarily suspended - Workover rig still working at Tawke - Two other rigs remain on site, offering the potential for a rapid resumption of activity ¢ Inano further activity scenario, impact
Slide 22: Pre-production assets: Diversifying production
Slide 23: Complete bridging engineering
Complete bridging engineering Complete priority civils work Execute LOM ci contract
Slide 24: Sarta - towards 2020 production
SARTA - TOWARDS 2020 PRODUCTION Flare Location S-2 & S-3 +—Flowlines _ = < ie > Oe Storage Tanks and) : SS a Tanker Loading **-.. Pumps) 4 Se = «Phase 1A pilot production 0 Tanker Loading Station ° Initially through two existing wells (S= : of which flowed c.7,500°bopd on test (Apoereteneray FY resu
Slide 25: Sarta - converting resources to reserves
a SARTA - CONVERTING RESOURCES TO RESERVES (@) Volume Mus 2P Adaiyah 34 2 0 Mus Pilot followed by FID on WW 7 Adaiyah expanded development a n Ss $2 established short Pilot A established shor ilo > ©& Najmah oP term deliverability development a 3° 2c = 2) Lower Pilot 264 = - Sargelu development SB a
Slide 26: Select well location
— ae Select well location fs _ Tender for civil Contractor ca sgt a Contract ri rig a TS Aa ene, fan Environmental permit appro 5 Dab Aa Yak a Ae ws es rf Build pad, camp & water supply i
Slide 27: QD-2 is targeting light, sweet oil in a different, shallower fault block
QD-2 is targeting light, sweet oil in a different, shallower fault block QD-1 flowed 45º API sweet oil at low rates from fractured Shiranish Formation • North •
Slide 28: Somaliland & Morocco
== SOMALILAND & MOROCCO SOMALILAND Farmout process commenced in late 2019 The technical case remains compelling - Yemen analogue confirmed, proven working petroleum system, multiple stacked prospects — A well on Toosan prospect can test 2 play concepts with one well (>SOOMMbbIs of combined Pmean Res
Slide 29: Outlook and catalysts
Slide 30: 2020 outlook and growth catalysts
= 2020 OUTLOOK AND GROWTH CATALYSTS * Resilient to $30/bbI oil — Given our low-cost production, a flexible capital structure, and robust balance sheet, we expect to retain a material net cash position at year- end 2020, after dividend — Operating costs per barrel expected to be $3/bblI, amongst the
Slide 31: For further information please contact investor relations
For further information please contact investor relations Andrew Benbow, Head of Communications andrew.benbow@genelenergy.com