International Petroleum Corp. (british Columbia) · OMXSTO:IPCO
International Petroleum Corp. (british Columbia) — International Petroleum — Q1 2020 Earnings Presentation
27 slides from International Petroleum Corp. (british Columbia)'s earnings presentation, May 6, 2020
Slide 1: Q1 2020 Operations and Financial Update
Q1 2020 Operations and Financial Update First Quarter 2020 Mike Nicholson, CEO Christophe Nerguararian, CFO May 6, 2020 NC00178 p01 04.20
Slide 2: Q1 2020 Highlights
International Petroleum Corp. Q1 2020 Highlights(1) Unprecedented twin challenge of Covid-19 outbreak on oil demand and initial OPEC+ supply response Business Plan Reset Co-ordinated measures by OPEC+, oil producers and governments should assist market rebalancing in 2H 2020 & 2021 Revised Guidance
Slide 3: 2020 Investment Strategy
International Petroleum Corp. April 2 Press Release 2020 Investment Strategy(1) Production Growth Through Time(2) Liquidity Headroom(2) 407 50 50 -85 -125 -190 46 2020 CMD CAPEX & 45 46 Decomm. 90 162 77 40 282 34 77 30 -40 217 30 Mboepd MUSD -105 77 MUSD 20 OPEX 205 245 Brent: 25 USD/bbl 140 10 10
Slide 4: 2020 Investment Strategy - Q1 Update
International Petroleum Corp. 2020 Investment Strategy - Q1 Update(1) CAPEX & Decommissioning OPEX Total expenditure reductions of MUSD 175 to 190 245 Between -90 to -105 CAPEX and decommissioning reduced by MUSD 85 to MUSD 77 162 155 -85 140 MUSD Operating costs reduced by MUSD 90 to 105 to 77 MUSD
Slide 5: Production Growth - Q1 Update
International Petroleum Corp. Production Growth - Q1 Update Production Growth Through Time(1) 50 2020 production (1) 46 Revised to 30,000 to 37,000 boepd 40 Flexibility 37 to increase Range driven by commodity prices and operational choices 34 Upper end of guidance assumes partial curtailment in Can
Slide 6: Maximising Liquidity Headroom - Q1 Update
International Petroleum Corp. Maximising Liquidity Headroom - Q1 Update(1) Additional unsecured credit facility 13 MEUR put in place with costs below current borrowing facilities Part of financial assistance package being offered by French government Increases existing liquidity headroom above 100 M
Slide 7: 2020 Production – Year to Date
International Petroleum Corp. 2020 Production – Year to Date Production – all assets Q1 production in line with CMD guidance Canada - Production curtailment and OPEX reduction 60 strategy commenced end Q1 Bertam A20 Bertam - A15 drilling suspended due to operational online Bertam rig heavy lifts and
Slide 8: Operating Costs
International Petroleum Corp. Operating Costs (1) Q1 operating costs ahead of guidance at 12.5 USD/boe Net Unit Operating Costs (USD/boe) 2020 CMD 13.7 13 Q1 2020 12.5 OPEX reductions across all assets based on the low oil price 12 Reductions of MUSD 90 – 105 from CMD guidance Unit operating costs r
Slide 9: 2020 Capital Expenditure (net)
International Petroleum Corp. 2020 Capital Expenditure (net) 2020 Capital Expenditure 162 160 ABEX 12 15 140 149 35 2020 capital and decommissioning expenditure forecast of MUSD 77 120 Reduction of MUSD 85 from CMD 100 25 MUSD Discretionary capital expenditure deferred or cancelled in all regions 80
Slide 10: ESG Updates
International Petroleum Corp. ESG Updates ESG strategy – Carbon Footprint Reductions Lowering IPC’s carbon footprint over the next 5 years to global average Emission Intensity, Upstream O&G, kg CO2e/boe1 Canadian Industry Average Operation emissions reductions Over 150,000 tonnes per year of CO2 alr
Slide 11: Financial Highlights
First Quarter 2020 Financial Highlights 11
Slide 12: Financial Highlights
First Quarter 2020 Financial Highlights First Quarter 2020 Production (boepd) 46,000 Average Dated Brent Oil Price (USD/boe) 50.1 Operating costs (USD/boe) (1) 12.5 Operating cash flow (MUSD) (1) 21.5 EBITDA (MUSD) (1) 19.0 Net result (MUSD) -40.1 (¹) Non-IFRS Measure, see MD&A 12
Slide 13: Realised Oil Prices
First Quarter 2020 Realised Oil Prices USD/bbl Q1 2020 Full Year 2019 Full Year 2018 Brent 50.1 64.2 71.3 Malaysia 48.9 (-1.2) 69.9 (+5.7) 74.9 (+3.6) France 33.6 (-16.5) 63.4 (-0.8) 70.2 (-1.1) WTI 46.1 57.0 65.1 WCS (calculated) 25.5 44.2 38.9 Canada Southern Assets 26.4 (+0.9) 45.6 (+1.4) 40.2 (+
Slide 14: Realised Gas Prices
First Quarter 2020 Realised Gas Prices CAD/mcf Q1 2020 2019 2018 Realised Price CAD/Mcf AECO 2.03 1.80 1.50 AECO Day Ahead Index Empress 2.03 2.49 3.07 Realised 2.28 (+0.25) 2.77 (+0.28) 2.54 (-0.53) Empress / AECO differential 9 8 7 3.07 6 5 3.86 CAD/Mcf 2.11 2.29 2.73 4 2.70 2.43 2.23 2.28 3 2 1 N
Slide 15: Financial Results – Operating Cash Flow
First Quarter 2020 Financial Results – Operating Cash Flow (1) Operating Cash Flow (1) EBITDA(1) 100 100 80 83.1 80 81.7 60 60 Million USD Million USD 40 40 20 20 21.5 19.0 0 0 Q1 Q1 Q1 Q1 NC00175 p13 04.20 2020 2019 2020 2019 (1) Non-IFRS Measure, see MD&A 15
Slide 16: Operating Costs
First Quarter 2020 Operating Costs (1) USD/boe USD/boe operating costs 20 20 16 16 2020 Operating Costs: 12 12 12-13 USD/boe guidance 8 8 4 4 0 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Actual Forecast Forecast Forecast NC00175 p17 04.20 (1) Non-IFRS Measure, see MD&A 16
Slide 17: Netback (USD/boe)
First Quarter 2020 Netback (1) (USD/boe) First Quarter 2020 Average Dated Brent oil price (50.1 USD/bbl) Revenue 19.2 Cost of operations -10.7 Tariff and transportation -1.3 Production taxes -0.5 Operating costs (2) -12.5 Cost of blending -1.0 Inventory movements -0.6 Revenue – production costs 5.1
Slide 18: Cash Flows and Closing Net Debt
First Quarter 2020 Cash Flows and Closing Net Debt(1) (MUSD) 0 0 -150 -150 -200 Granite Oil acquisition -200 /assumed debt MUSD -55.4 Opening Net Debt 1 Jan 2020 MUSD -231.5 -250 Operating Cash Flow -250 Development capex Change in MUSD 21.5 working capital MUSD -54.2 & other MUSD 23.2 -300 -300 Fx
Slide 19: G&A / Financial Items
First Quarter 2020 G&A / Financial Items MUSD First Quarter 2020 G&A 2.4 G&A – Depreciation 0.4 G&A Expense 2.8 First Quarter 2020 Financial Income -0.1 Interest expense 3.8 Loan facility commitment fees 0.3 Amortisation of loan fees 0.4 Foreign exchange loss (gain), net (1) 21.9 Unwinding of asset
Slide 20: Financial Results
First Quarter 2020 Financial Results 100 Revenue 100 MUSD 80.5 46,000 boepd 80 80 Production costs MUSD 59.1 60 Operating costs (1) 12.5 USD/boe 60 Million USD Million USD 40 40 Depletion MUSD 33.3 Cash Margin 20 20 MUSD 21.4 0 G&A 0 MUSD 2.8 Gross result -20 -20 MUSD -12.4 Business development MUSD
Slide 21: Balance Sheet
First Quarter 2020 Balance Sheet MUSD 31 Mar 2020 31 Dec 2019 Assets Oil and gas properties 1,099.5 1,105.5 Other non-current assets 154.3 147.1 Current assets 95.0 112.0 1,348.8 1,364.6 Liabilities Financial liabilities 301.9 244.7 Provisions 180.6 180.0 Other non-current liabilities 47.7 49.5 Curr
Slide 22: Liquidity: Maximising Financial Flexibility
Liquidity Maximising Financial Flexibility(1) IPC entered into a 13 MEUR French Government backed loan Unsecured, 90% guaranteed by the French State Cost of 0.5% per annum, no fees Initial 12 month term maturity can be extended at IPC option by another up to 5 years International RBL Working with in
Slide 23: Q1 2020 Highlights
International Petroleum Corp. Q1 2020 Highlights(1) Unprecedented twin challenge of Covid-19 outbreak on oil demand and initial OPEC+ supply response Business Plan Reset Co-ordinated measures by OPEC+, oil producers and governments should assist market rebalancing in 2H 2020 & 2021 Revised Guidance
Slide 24: Reader Advisory
Reader Advisory Forward Looking Statements This presentation contains statements and information which constitute “forward-looking statements” or “forward-looking information” (within the meaning of applicable securities legislation). Such statements and information (together, “forward-looking state
Slide 25: Reader Advisory
Reader Advisory Disclosure of Oil and Gas Information This presentation contains references to estimates of gross and net reserves and resources attributed to the Corporation’s oil and gas assets. Gross reserves / resources are the working interest (operating or non-operating) share before deduction
Slide 26: Reader Advisory
Reader Advisory This presentation includes oil and gas metrics including “cash margin netback”, “taxation netback”, “operating cash flow netback”, “cash taxes”, “EBITDA netback” and “profit netback”. Such metrics do not have a standardized meaning under IFRS or otherwise, and as such may not be reli
Slide 27: International Petroleum Corp.
as, International 1 Petroleum Corp.
International Petroleum — Q1 2020 Earnings Presentation on 6ix