Genel Energy Plc · LSE:GENL
Genel Energy — Pareto Securities E&P Conference (January 2020)
18 slides from Genel Energy's conference presentation, January 2020
Slide 1: A socially responsible contributor to the global energy mix
A socially responsible contributor to the global energy mix
Slide 2: What you need to know
wa WHAT YOU NEED TO KNOW GROWING CASH GROWING PORTFOLIO GROWING DIVIDEND * Genel generates material and sustainable free cash flow - $153 million in pro forma free cash flow in 2019 - Net cash position of $90 million as at 31 December 2019 * Genel has material growth opportunities, with significant
Slide 3: About Genel Energy - focused on delivery
ma ABOUT GENEL ENERGY - FOCUSED ON DELIVERY * Genel aims to be a world-class creator of shareholder value by: 36,250 bopd $153 million 2019 2019 pro forma - Growing cash-generative production through net production free cash flow rapid development and a disciplined use of capital — — - Recycling cap
Slide 4: Generating cash
wm GENERATING CASH . . _ NET CASH * Cash is central to all business and activity ($ MILLION) decisions 150 - Optimise activity to achieve high margin returns 100 wero — Mitigate downside risk through low capital intensity 50 3 appraise / develop model and targeted capital a | - allocation (50) * Gen
Slide 5: Robust production
=a ROBUST PRODUCTION * Tawke PSC (25% working interest) — Gross production of c.120,000 bopd from the Tawke and Peshkabir fields — Gas from Peshkabir to be used to boost Tawke field recovery — Benefits from enhanced revenues under the Receivable Settlement Agreement * Taq Tag PSC (44% working intere
Slide 6: Investing in growth
wm INVESTING INGROWTH * Organic growth from existing portfolio provides the opportunity to double production - Appraise/develop model with DNO at Peshkabir generated material cash flow even when increasing production - Working with Chevron, Sarta provides opportunity to leverage this model on potent
Slide 7: Returning capital to shareholders
aa RETURNING CAPITAL TO SHAREHOLDERS * While investing in these opportunities, Genel will USE OF 2019 PROCEEDS generate sufficient cash to pay a material and (S MILLION) progressive dividend 350 ¢ FY2019 growth capital allocation decisions = Dividend - Sarta: to add to production in 2020 300 - Qara
Slide 8: M&A - what we look for
me M&A - WHAT WE LOOK FOR * Cash-generation drives our strategy ¢ New business activity aims to ensure cash flow generation grows over long-term * Sarta and Qara Dagh the first step — Sarta alone has the potential to replace all maturing production and cash flow * Focus is on discovered resources, p
Slide 9: Our focus on ESG
=m OUR FOCUS ON ESG Zero lost time or loss of containment incidents in 2019 — Four years since any incident at Genel operations, TTOPCO certified 5* by British Safety Council * Reducing emissions - flares out at Peshkabir — Gas management programme underway and set to be complete in March 2020 60% o
Slide 10: 2020 outlook and growth catalysts
= 2020 OUTLOOK AND GROWTH CATALYSTS * 2020 guidance - material cash generation ongoing - Genel expects to generate c.$100 million in free cash flow, pre-dividend payments, in 2020 -— Production in 2020 is expected to be close to Q4 2019 levels of 35,410 bopd, with an exit rate c.10% higher than this
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Slide 12: Sarta - technical overview
ae SARTA - TECHNICAL OVERVIEW Tm KRI Licenses lm Genel Energy Licenses * Hydrocarbons discovered in all classic KRI reservoir intervals, Tertiary to Triassic — P50 gross unrisked resource estimate of c.500 MMbbIs — Unrisked gross mid case resources relating to the Jurassic Mus-Adaiyah reservoir only
Slide 13: Sarta - delivering Phase 1A
cig se me eer ea “ —— SARTA —DELIVERING PHASE 1A | | 7 S ali ~ , a Execute LOM contract me Sn ~ * + < => a . Flowline construction ae WS I = : : . - “ ~» ae Facility construction = = %, | ( > By, Contract workover rig = pas ~ S-2 Well Workover / f é ¥ / Commission facility = Facility start-up - firs
Slide 14: Qara Dagh - technical overview
m=z QARA DAGH - TECHNICAL OVERVIEW * Qara Dagh prospect first tested by vertical exploration well QD-1 in 2011 - drilled off structure — Reservoir was encountered much deeper than prognosed due to incorrect view of the geology — Operational issues compromised flow potential — QD-1 well nonetheless t
Slide 15: Select well location
Select well location a Tender for * 2 X ¥ »~ Commercial Flow Rates? ‘a f : Oe +s : : oa Re * bi) Qdra‘Dagh:
Slide 16: Bina Bawi - commercial discussions progressing
== BINA BAWI - COMMERCIAL DISCUSSIONS PROGRESSING * Active commercial discussions with KRG ongoing Submit field development plan ¢ Understanding on commercial terms for a staged and integrated oil and gas development reached in 2019 Agree commercial framework - KRG and Company are aligned on Phase 1
Slide 17: African exploration
me AFRICAN EXPLORATION * Somaliland - seismic interpretation of new 2018 vintage 2D seismic data now | completed, current focus on eastern Blocks | SL10B13 - Confirms our longstanding view that the block has significant hydrocarbon potential — Further strengthens the comparison with prolific Yemeni
Slide 18: For further information please contact investor relations
Forfurther information please contact investor relations ~ Andrew Benbow, Head of Communications andrew.benbow@genelenergy.com
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