Dana Gas PJSC · ADX:DANA
Dana Gas PJSC — Investor Presentation (September 2024)
30 slides from Dana Gas PJSC's investor presentation, September 2024
Slide 1: Dana Gas – Clean Energy for the Future
DANA GAS SEPTEMBER 2024 CLEAN ENERGY FOR THE FUTURE
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION AND THE INFORMATION CONTAINED HEREIN ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation has been prepared by Dana G
Slide 3: Dana Gas at a Glance
I. DANA GAS AT A GLANCE II. BUSINESS OVERVIEW III. MARKET OVERVIEW IV. FINANCIALS V. APPENDIX 3
Slide 4: Dana Gas Overview
DANA GAS OVERVIEW Established in 2005, Dana Gas is the first and largest private-sector natural gas company in the Middle East Listed on the Abu Dhabi Securities Exchange with a market cap of c. $1.2bn and c. $3mm average daily trading liquidity Iraq (KRI): OVER 1 BILLION BARRELS OF 2P RESERVES (MMB
Slide 5: Key Credit Highlights
KEY CREDIT HIGHLIGHTS WORLD-CLASS ASSET BASE WITH STRONG AND STABLE LONG-TERM PRODUCTION CAPACITY 2P gas reserves of over 1 billion boe net to Dana Gas Current daily production of 55 Kboe/d – track record: over 12 years production >50 Kboe/d Significant upside potential from expansion projects
Slide 6: Dana Gas Group Structure
DANA GAS GROUP STRUCTURE DANA GAS PJSC RWE, 10% MOL, 10% Dana Gas, 35% OMV, 10% 100% 100% Pearl Petroleum was formed in 2009 by Crescent DG MIDSTREAM Crescent Petroleum and Dana Gas. The Petroleum, DG UPSTREAM HOLDINGS LTD company is a world class partnership of HOLDINGS LTD 35% five international s
Slide 7: Delivering Impact Across Our Sustainability Framework
DELIVERING IMPACT ACROSS OUR SUSTAINABILITY FRAMEWORK KEY METRICS HIGHLIGHTS Voluntary offset Pearl’s CO2 emissions (264 kt/yr) past 3 years – one of first carbon neutral O&G production businesses in MENA Top Quartile carbon intensity – 6.21 kg CO2e/BOE Zero-Routine Flaring policy (per World B
Slide 8: Business Overview
I. DANA GAS AT A GLANCE II. BUSINESS OVERVIEW III. MARKET OVERVIEW IV. FINANCIALS V. APPENDIX 8
Slide 9: KRI Operations Overview
© jLé dla DANAGAS KRI OPERATIONS OVERVIEW ‘7 1 a :.
Slide 10: KRI: Energising the Country
KRI: ENERGISING THE COUNTRY Turkey PEARL’S FIELDS IN KRI ARE WORLD-CLASS IN SCALE: Largest 2P gas reserves in the KRI: 3.1 billion BOE (gross to Pearl) Current production capacity of 500+ MMscf/d Expansion project underway to increase capacity by further 250 MMscf/d PEARL IS THE ONLY PRIVATE S
Slide 11: KRI: Years of Reliable Production with Future Growth
KRI: 15 YEARS OF RELIABLE PRODUCTION WITH FUTURE GROWTH 200 Production (Kboe/d) (Data labels shown in MMscf/d) KM250 project expected to increase production by ~50% in capacity 2020 2023 2008 2011 2018 2019 January KM250 Expansion project January Second bypass 150 January 10- year Gas Sales
Slide 12: KRI: Payment Mechanism – All Payments on Time and in Full
KRI: PAYMENT MECHANISM – ALL PAYMENTS ON TIME AND IN FULL PEARL BEING PAID ON TIME FOR ALL PRODUCTION KRG payment record for gas has been excellent since 2017 Challenging 2023 due to ITP (Iraq Turkey Pipeline) shutdown, resulting in KRG finances being severely constrained – Gas supply uninterrup
Slide 13: KRI: KM250 Expansion Project to Add USD 150M of Revenue p.a.
KRI: KM250 EXPANSION PROJECT TO ADD USD 150M OF REVENUE P.A. EXPANSION PROJECT ADD C. 50% TO PRODUCTION KM250 CONSTRUCTION FACILITIES In 2019 Pearl signed a 20-year Gas Sales Agreement with the KRG to enable production and sales of an additional 250 MMscf/day (KM250) Will satisfy the installed c
Slide 14: Egypt Operations Overview
© jLé dla DANAGAS EGYPT OPERATIONS OVERVIEW ‘7 1 a :.
Slide 15: Egypt: Trusted Deliverer
EGYPT: TRUSTED DELIVERER EGYPT OFFERS DIVERSIFICATION OF PRODUCTION AND CASH FLOW ESTABLISHED PRODUCTION TRACK RECORD (KBOE/D) Dana Gas Egypt (DGE) has been operating in Egypt since 2007; currently the 7th largest gas producer in the country, DGE operates 13 development leases 42 43 37 40 38 40 on
Slide 16: Egypt: Potential Upside
EGYPT: POTENTIAL UPSIDE UPSIDE POTENTIAL EXISTS IN PORTFOLIO DGE has negotiated new terms with EGAS; unlocks remaining potential and extends the life of the assets by the consolidation of all existing assets under a single Concession at improved commercial terms (the “Consolidation”). The Consol
Slide 17: UAE Operations
© jLé dla DANAGAS UAE OPERATIONS
Slide 18: UAE Gas Project - Arbitration Overview & Update
UAE GAS PROJECT - ARBITRATION OVERVIEW & UPDATE DANA GAS DOES NOT HAVE ANY ONGOING OPERATIONS IN THE UAE – ONLY A LEGAL CLAIM AGAINST NIOC FOR A HISTORICAL PROJECT Late 2005 2009 2014 2017 2021 2024 2005 Dana Gas originally established to transport, process and Second arbitration, for the larger cla
Slide 19: Market Overview / Financials
I. DANA GAS AT A GLANCE II. BUSINESS OVERVIEW III. MARKET OVERVIEW IV. FINANCIALS V. APPENDIX 19
Slide 20: Financial KPIs Overview
FINANCIAL KPIS OVERVIEW Accumulated EBITDA H1 Liquidity EBITDA last 2024 position three years Net Debt: USD 42mm USD 858mm USD 115mm Net Leverage: 0.17x Avg. boepd1 in Implied asset total backing Book Equity Value: 55k boepd USD 2,443mm Market Cap: USD 1.27Bn Opex per boe SG&A per boe Capex per boe
Slide 21: Average Production
AVERAGE PRODUCTION AVERAGE GROUP PRODUCTION (KBOE/D) AVERAGE KRI PRODUCTION (KBOE/D) 37 38 62 62 32 34 34 60 4 4 59 4 4 5 7 55 4 5 6 5 5 5 7 6 9 9 6 28 8 23 25 25 27 8 7 FY2020 FY2021 FY2022 FY2023 H1 2024 AVERAGE EGYPT PRODUCTION (KBOE/D) 47 47 46 45 42 30 28 2 26 4 2 22 3 2 18 3 2 2 2 2 24 23 21 F
Slide 22: Revenue Streams
REVENUE STREAMS GROUP REVENUE* (USDM) KRI REVENUE (DG SHARE 35%) (USDM) 255 218 187 45 525 44 118 37 133 80 448 106 109 419 39 90 23 40 32 83 77 94 39 60 54 345 81 FY2020 FY2021 FY2022 FY2023 H1 2024 69 220 170 140 EGYPT REVENUE (USDM) 97 188 36 261 270 227 56 46 61 201 179 195 199 198 30 57 80 37 9
Slide 23: Profitability
PROFITABILITY GROSS PROFIT & EBITDA ($MM) NET PROFIT ($MM) 332 317 269 257 249 182 160 195 190 72 146 115 COVID19 price volatility 94 86 $36mm adjusted net profit (excl. other income and non-cash impairments) (376) FY2020 FY2021 FY2022 FY2023 H1 2024 FY2020 FY2021 FY2022 FY2023 H1 2024 Gross Profit
Slide 24: G&A / OPEX Highlights
G&A / OPEX HIGHLIGHTS G&A/OPEX ($MM) 70 4.00 60 Principal increase in OPEX expenditures YTD 60 57 due to costs related to maintenance, security 55 53 and staff 3.00 50 2.65 2.59 2.47 2.59 Company OPEX and G&A costs remain Cost/boe ($/boe) 40 2.38 extremely competitive on an industry wide Costs (
Slide 25: Robust Financials and Conservative Leverage
ROBUST FINANCIALS AND CONSERVATIVE LEVERAGE DEBT AND CASH BALANCE ($MM) DANA GAS OPERATING CASH FLOW ($MM) 456 302 225 425 162 133 120 FY 2020 FY 2021 FY 2022 FY 2023 H1 2024 252 Operating Cash Flow 397 216 199 182 Improvement in balance sheet with reduced debt and better cash 163 185 57 108 posit
Slide 26: Working Capital Overview
WORKING CAPITAL OVERVIEW BILLINGS VS COLLECTIONS ($MM) Total cash collections of $152mm in H1 2024 91% – Company’s share of Pearl’s collections in the KRI: $131mm, 255 – Company’s share of KRI trade receivables down to $81mm ($103mm at 233 83% YE2023) with a collection realization of 120% 186% 98%
Slide 27: Conclusion & Q&A
CONCLUSION & Q&A WORLD-CLASS ASSET BASE WITH STRONG AND STABLE LONG-TERM PRODUCTION CAPACITY 2P gas reserves of over 1 billion boe net to Dana Gas Current daily production of 55 Kboe/d – track record: over 12 years production >50 Kboe/d Significant upside potential from expansion projects CRIT
Slide 28: Appendix
I. DANA GAS AT A GLANCE II. BUSINESS OVERVIEW III. MARKET OVERVIEW IV. FINANCIALS V. APPENDIX 28
Slide 29: Realized Prices (USD/BOE)
REALIZED PRICES (USD/BOE) AVERAGE REALIZED PRICE - CONDENSATE (USD/BBL) AVERAGE REALIZED PRICE - LPG (USD/BOE) H1 2023 H1 2024 Q2 2023 Q2 2024 H1 2023 H1 2024 Q2 2023 Q2 2024 $84 $85 $84 $85 $80 $78 $79 $80 $78 $77 $72 $70 $56 $53 $53 $49 $45 $45 $44 $45 $44 $43 $37 $34 $34 $33 $34 $33 $28 $29 $28 $
Slide 30: Dana Gas: Corporate Governance
DANA GAS: CORPORATE GOVERNANCE DANA GAS HAS A STRONG & ESTEEMED BOARD OF DIRECTORS LEADING THE COMPANY Mr. Ahmed Abdulhamid Alahmadi is the CEO of Albaher Real Estate Mr. Hamid Jafar is the Chairman of the Board of Dana Gas PJSC. He is the Development. He is a Board Member of Shuaa Capital and an in
Dana Gas PJSC — Investor Presentation (September 2024) on 6ix