Nostrum Oil & Gas Plc · LSE:NOG
Nostrum Oil & Gas — Investor Day (March 2023)
23 slides from Nostrum Oil & Gas's investor day presentation, Mar 29, 2023
Slide 1: Nostrum 2.0 Capital Markets Day
Nostrum 2.0 Capital Markets Day 29 March 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared and issued by, and is the sole responsibility of, Nostrum Oil & Gas plc (the “Company”), being the current holding company of the Nostrum Oil & Gas group (the “Group”). For the purpose of this disclaimer notice, “presentation” shall include these slides
Slide 3: Agenda
Agenda • Nostrum 2.0 • Kazakhstan Energy Sector • Business Case • Q&A Capital Markets Day 3
Slide 4: Right Place, Right Time
Right Place, Right Time Nostrum has changed Nostrum 2.0 Kazakhstan has changed A mixed-asset energy company Attractive opportunity to participate in Kazakhstan’s energy transition strategy Capital Markets Day 4
Slide 5: Nostrum 2.0
Nostrum 2.0 A mixed-asset energy Well-positioned to become Cash generative asset company a major third-party gas portfolio with significant processor growth opportunities Completion of major bond New, highly-experienced Strong ESG performance restructuring Board of Directors focus: • Contributing to
Slide 6: Financial Summary (2021-2022)
Financial Summary (2021-2022) 2021 2022* Production volumes boepd 17,032 13,200 Revenues US$ 195m 200m EBITDA US$ 112m n/a** Operating cash flows US$ 117m n/a** Free cash flows US$ 87m n/a** Cash balances*** US$ 165m 233m Gross debt US$ 1,290m n/a** * Unaudited ** Figures are subject to audit and wi
Slide 7: Simplified Group Structure post Bond Restructuring
Simplified Group Structure post Bond Restructuring (9 February 2023) New Warrants Key shareholders: New Shareholders/ Shareholders EMOV Noteholders Amundi 88.89% Fidelity 11.11% ICU Trading Equity Entitlement New Notes Nostrum Listed on LSE with symbol: NOG Oil & Gas Plc US$250m 5.00% 2026 SSNs List
Slide 8: New Board of Directors
New Board of Directors Total Industry Experience: Total Industry Experience: Total Industry Experience: ~ 35 Years ~ 35 Years ~ 37 Years Technical Background: Technical Background: Technical Background: Geology Petroleum Engineering Investment Banking Stephen Whyte Arfan Khan Fiona Paulus Chair CEO
Slide 9: Kazakhstan Energy Sector
Kazakhstan Energy Sector Focus areas: • Improving cleaner energy mix • Strengthening energy security • Strategy to achieve carbon neutrality by 20601 A pivotal moment for cleaner energy providers in Kazakhstan to participate Source:1 https://adilet.zan.kz/rus/docs/U2300000121 - Decree of the Preside
Slide 10: Kazakhstan Gas Sector
Kazakhstan Gas Sector Government’s comprehensive gas development Gas Sector Overview plans1,2: • 2015-2030 General Gasification Scheme in place that sets • Ranked the 3rd largest country on gas reserves in FSU out the further development of the gas transportation after Russia and Turkmenistan system
Slide 11: Strategically Located State-of-the-Art Gas Processing Facilities and Export Hub
Strategically Located State-of-the-Art Gas Processing Facilities and Export Hub 80 km Russia Russia 60 km Russia Key North-West Kazakhstan Nostrum acreage (existing) 40 km Oil export Kazakhstan Potential acquisition pipeline Atyrau-Samara Chinarevskoye Kazakhstan Gas condensate field Oil field China
Slide 12: World-Class Production and Processing Facilities
World-Class Production and Processing Facilities Key processing units (June 2019) North OTU Power plant 26 mwh Oil/Cond. storage QG 2011 GTU1&2 1.7 BCMA 0.25% H2S LPG storage & loading GTU3 2019 2.5 BCMA 0.05% H2S Capital Markets Day 12
Slide 13: Integrated Gas Opportunity
Integrated Gas Opportunity • Contribute materially to the total commercial gas potential in Kazakhstan whilst strengthening cleaner energy mix • Regional independent midstream gas operator Vision • Major supplier of commercial processed gas in Western Kazakhstan for domestic and export markets • Pre
Slide 14: Integrated Gas Opportunity: Energy Security and Transition to Cleaner Energy
Integrated Gas Opportunity Energy Security and Transition to Cleaner Energy Upstream Midstream Chinarevskoye Producing Field Domestic & Export Gas Supply In-Progress New Gas Stepnoy Tie-Back project Leopard Under Appraisal State-of-the-Art Gas Process Infrastructure: 4 bcma dry gas supply In-Progres
Slide 15: Current Mixed-Asset Opportunity Pipeline
Current Mixed-Asset Opportunity Pipeline VALUE CREATION VALUE REALIZATION Feasibility Field Opportunity Concept Production Assessment / Development FEED EPCI Identification Selection Operations Appraisal Plan Gas and liquids mix Project Sanction Upstream (Nostrum operated) Field HC type Managing Opp
Slide 16: Value Creation by Scaling Infrastructure Utilization
Value Creation by Scaling Infrastructure Utilization Infrastructure Utilization & Scalability NPV@10% 3 $bln More Upstream, More Midstream Volume Throughput Increasing capital outlay Portfolios Value Creaming Curve Less Upstream, Less Midstream Unlocking the Compelling Value of Nostrum’s Competitive
Slide 17: Our ESG roadmap
Our ESG roadmap Our Purpose Our Commitments Alignment with Our Goals and Targets the UN SDGs Play our role in the transition to cleaner energy and minimise the environmental • Maintain strong Health, Safety, Environmental and Security impact of our operations leadership • Invest in best-in-class emi
Slide 18: Why Invest in Nostrum?
Why Invest in Nostrum? Nostrum has changed Nostrum 2.0 Kazakhstan has changed Right Place, Right Time Attractive opportunity to participate in Kazakhstan’s energy transition strategy Capital Markets Day 18
Slide 19: Appendix
Appendix
Slide 20: Investment Climate in Kazakhstan
Investment Climate in Kazakhstan • 25th in the World Bank’s “Doing Business 2020” ratings Top investors in 2022 – ahead of Russia (28th) and China (31st), and some of the world’s developed economies, such as Italy (58th), as well as major The Netherlands The USA developing countries like Brazil (124
Slide 21: Kazakhstan Today…
Kazakhstan Today… • The most stable and advanced economy in Central Asia • Abundant natural resource base • Strategic location at the crossroads of Europe and Asia – 5,000 unexplored deposits valued at over US$46 trillion – 11 transit corridors – 96,000km of auto roads – 30b barrels of proven crude
Slide 22: Strengthened Governance Structure
Strengthened Governance Structure The Board The Board meets a minimum of six times a year and is collectively responsible to shareholders for the long-term success of the Group. This is achieved by reviewing trading performances, budgets and funding, setting and monitoring the Group’s strategic obje
Slide 23: Thank you
en nostrum Thank you