Tullow Oil Plc · LSE:TLW
Tullow Oil — H1 2020 Earnings Presentation
27 slides from Tullow Oil's earnings presentation, Sep 9, 2020
Slide 1: 2020 Half Year Results
TULLOW i 2020 Half Year ~42 Results Tullow Oil plc | 2020 Half Year Results 9 September 2020
Slide 2: Agenda
2020 Half Year Results Agenda TULLOW {I Presenters Business strategy update ) 7 ja Rahul Dhir Chief Executive Officer i. Les Wood Chief Financial Officer Tullow Oil plc | 2020 Half Year Results
Slide 3: Overview & Priorities
Es OVERVIEW & PRIORITIES Ww Oil plc | 2020 Half Year Results
Slide 4: 2020 Half Year Results overview
TULLOW 2020 Half Year Results overview Ot = TULLOW §( i. Operations * Strong operational performance across the portfolio + Production guidance range updated to 73-77,000 bopd * Ghana - operational outperformance underpinned by: > Increased gas offtake by GNGC, and +> Support of Government of Ghana
Slide 5: Our business priorities
Our business priorities Safe and reliable operations Highly cost effective, efficient and profitable business Capturing full asset potential Value optimisation for all assets in all aspects Robust capital base Delivering a conservative capital structure that is fit for purpose TULLOW {I Committed to
Slide 6: Operations & Business Review
| | OPERATIONS & BUSINESS REVIEW Ww Oil plc | 2020 Half Year Results
Slide 7: FY 2017 FY 2018 FY 2019
• • FY 2017 FY 2018 FY 2019 1H 2020 • • • •
Slide 8: Improved operational performance in Ghana
Improved operational performance in Ghana Materially improved performance Production * Production in line with expectations » Ntomme-09 on stream reduces risk to downside » Ghana expected to deliver over 53,000 bopd net in 2020 * Low operating costs at $9/bbl' * Capital flexibility at very low oil p
Slide 9: Operational emissions and flaring emissions
2,500,000 250 • 2,000,000 200 • 1,500,000 150 • 1,000,000 100 500,000 50 0 0 2018 2019 2020f Operational emissions Flaring emissions Emissions intensity
Slide 10: STOIIP Production to Jun-20
• 2,000 1,500 • 1,000 500 • 0 • STOIIP Production to No further activity Jun-20 1,500 • • 1,000 500 • • 0 STOIIP Production to No further activity Jun-20
Slide 11: Côte d'Ivoire
• • • • • • 2018 2019 1H 2020 Gabon Equatorial Guinea Côte d'Ivoire
Slide 12: Exploration and appraisal spend
• 200 Full year E&A 1H 2020 Actuals 2H 2020 Forecast 150 • 100 85 150 27 50 58 • 0 2019 2020f
Slide 13: East Africa: realising value in challenging times
East Africa: realising value in challenging times Uganda > $575 million sale to Total progressing as planned + Shareholder approval received; Operatorship agreed > Good progress being made to satisfy remaining deal conditions - Transaction completion and proceeds expected in 4Q 2020 Kenya > Working
Slide 14: Working to deliver robust capital structure
Working to deliver robust capital structure Robust long term capital structure * Managing our debt maturities is a key priority Parallel and inter-related workstreams * Delivering balance sheet and value accretive disposals * Maximising the value and cash generation from our assets * Evaluating a br
Slide 15: Financial Update
TULLOW {I EE FINANCIAL UPDATE Ww Oil plc | 2020 Half Year Results
Slide 16: Financial results
1 Includes turret remediation and COVID related costs, 2 Loss after tax materially impacted by impairments of $1.4 billion NB 1H19 also includes Corporate Business Interruption insurance
Slide 17: Operating costs
400 12 350 • 10 300 • 8 • 250 • 200 6 • 150 4 100 2 50 0 0 2019 Turret 2019 2020f Turret/COVID 2020f (excl. turret) (excl. turret/COVID)
Slide 18: G&A costs
• Gross G&A Net G&A • 400 300 • 200 100 0 2019 2020f 2021 target
Slide 19: Capital expenditure
1,600 500 Exploration Uganda 2019 1H20 Book value (30 June 2020) Kenya Non-op 1,400 400 Ghana 1,200 1,000 300 800 200 600 400 100 200 0 0 TEN Non-Op Kenya Uganda Exploration 2019 2020f • • • •
Slide 20: 2020 free cash flow forecast
2020f Jubilee TEN Non-operated * Excluding Uganda proceeds and subject to working capital adjustments
Slide 21: Conservative capital structure priorities
Conservative capital structure priorities Capital structure Facility | Maturity | Outstanding (30 June 2020) Convertible bonds 2021 $300 million Senior notes 2022 $650 million Reserves based lending (RBL) 2024 $1,505 million Senior notes 2025 $800 million Reserves based lending (0 tune 2020) $1.9bn
Slide 22: Financial conclusions
Financial conclusions Balance sheet * More conservative approach to gearing and maintaining appropriate headroom * Gearing elevated, current liquidity headroom and free cash of c.$500 million Portfolio management * Proactively manage asset base to balance risk and deliver value * Targeting in excess
Slide 23: Conclusion
Es CONCLUSION Ww Oil plc | 2020 Half Year Results
Slide 24: Unlocking Tullow's true potential
TULLOW | Unlocking Tullow’s true potential Ot «—— Rigorous and detailed review of value optimisation for all assets ———» Strong capital discipline and focus on costs Ghana * Large diverse portfolio of investment opportunities > Accelerating + Very attractive returns, robust at low oil prices investm
Slide 25: Key Data
TULLOW {I | | KEY DATA Ww Oil plc | 2020 Half Year Results
Slide 26: 2020 Key data
TULLOW | 2020 Key data Ot Oil production (kboepd) 2020 forecast Group Reserves and Resources (at 30 June 2020) Operating costs! ($/boe) 2020 forecast Ghana 53.0 Ghana? 9 Jubilee 30.0 Equatorial Guinea 7 TEN 23.0 Gabon? 18 Equatorial Guinea QT Céte d'Ivoire 20 Gabon 15.2 Céte d'Ivoire 21 CDE FBG Depr
Slide 27: Tullow Oil plc
Tullow Oil plc 9 Chiswick Park, 566 Chiswick High Road London W4 5XT United Kingdom Tel: +44 (0)20 3249 9000 Fax: +44 (0)20 3249 8801 Email: ir@tullowoil.com Web: www.tullowoil.com TULLOW {I Follow Tullow on: