Ithaca Energy Plc · LSE:ITH
Ithaca Energy — FY2017 Earnings Presentation
13 slides from Ithaca Energy's earnings presentation, Mar 28, 2018
Slide 1: 2017 Financial Results
2017 Financial Results 28 March 2018
Slide 2: Cautionary Statement
Cautionary Statement This proprietary presentation (including any accompanying oral presentation, question and answer session and any other document or materials distributed at or in connection with this presentation) (collectively, the “Presentation”) has been prepared by Ithaca Energy Inc. (“Ithac
Slide 3: Highlights
Highlights Focused Strategy Strong Growth Outlook Solid Balance Sheet Supportive Shareholder Lower risk North Sea Growing cashflow Strong liquidity profile and Strong shareholder support production and development generation from high track record of disciplined – integral fit with Delek’s l
Slide 4: 2017 financial summary
2017 financial summary Annual Realised Unit Operating Cashflow from Production Hydrocarbon Price1 Expenditure Operations 13.9 kboe/d $68/boe2 9.3 kboe/d $50/boe2 $43/boe $29/boe3 $23/boe $19/boe3 49% 26% 17% 33% 2016 2017 2016 2017 2016 2017 2016 2017 Revenue Pre-Hedging CFFO Hedging Gain Hedging Ga
Slide 5: 2017 financial results
2017 financial results Financial Summary 2017 2016 Revenue1 $M 243.7 146.5 Increase of 66% driven by 49% increase in production and higher oil prices Hedging Cash Gain $M 7.7 87.9 Large hedging gains of 2016 associated with falling oil price, absent in 2017 Opex2 $M (97.5) (78.2) Lower cost GS
Slide 6: Strong liquidity profile
Strong liquidity profile Credit Facilities & Net Debt $715M finance facilities provide ample liquidity Deleveraging continues to be the priority for free cashflow $715M Financial strategy of Ithaca unchanged following Delek Parent Loan 30 acquisition – retain flexible low cost capital structure $6
Slide 7: Established independent North Sea operator
Established independent North Sea operator Dons North Sea pure play business – strategy focused on delivering lower risk growth Fionn* Production and development focus Broom Production step-up delivered in 2017 – free cashflow profile well established Cashflow sheltered from tax – $1.8Bn UK tax
Slide 8: Balanced portfolio
Balanced portfolio Balanced production and development asset reserves Year-End 2017 2P Reserves1 base 71.7 MMboe 72 MMboe1 2P reserves (60% liquids) at year-end 2017 4 Wytch Farm Divestment2 ~$1.4Bn post-tax NPV10 2P valuation 14 years 2P reserves life 37 Development Portfolio constructed around
Slide 9: Greater Stella Area hub and spoke strategy driving free cashflow
Greater Stella Area… “hub and spoke” strategy driving free cashflow Ithaca operated production hub – 54.66% Monetising ~45MMboe1 net 2P reserves with existing GSA asset portfolio Targeting additional production from start-up of subsea developments every ~2 years Owned infrastructure – low unit
Slide 10: Greater Stella Area building out the production hub
Greater Stella Area… building out the production hub Ithaca Energy Field Interests Stella / Harrier 54.66% Vorlich 34% Stella Harrier Vorlich Stella production started up Q1-2017 Start-up scheduled for mid-2018 – Development sanctioned in Q1-2018 – maintain FPF-1 gas plateau production two well subs
Slide 11: Greater Stella Area infrastructure
Greater Stella Area infrastructure “Plug-in” infrastructure design philosophy Subsea architecture incorporates spare manifold / mid-water arch slots for field tie-ins Spare production separator installed on FPF-1 – provides process flexibility for tie-ins ITHACA ENERGY Corporate Presentation | 1
Slide 12: 2018 outlook
2018 outlook Production & Hedging Limited Cash Outflows Continued Deleveraging $715M ~15 kboe/d $605M $60M 9.8 kboe/d $20/boe1 $560M2 Gas Oil Production 2018 Hedging Unit Opex / G&A Capex Net Debt Net Debt Forecast 31.12.18 31.03.18 Debt Facilities Year-End Forecast 31 2017 Mar. 2018 Enhanced produc
Slide 13: Investment highlights
Investment highlights Growing cashflow generation from high netback production Attractive and sustainable free cashflow outlook – readily expandable production hub Established operator with proven track record of disciplined financial management Lower risk corporate strategy Financially strong and s