Genel Energy Plc · LSE:GENL
Genel Energy — FY2021 Earnings Presentation
18 slides from Genel Energy's earnings presentation, Mar 15, 2022
Slide 1: 2021 full-year results
2021 full-year results 15 March 2022 9) _ MAKING & POSITIVE » IMPACT
Slide 2: Disclaimer
a DISCLAIMER These materials are being supplied to you by Genel Energy pic (the “Company") solely for your information and for use at this presentation and does not constitute a prospectus or offering memorandum or an offer in respect of any securities. All numbers and charts included in this presen
Slide 3: We are Genel Energy
mee WE ARE GENEL ENERGY * Genel Energy is an oil and gas exploration and production company, with operations primarily in the Kurdistan Region of Iraq Our values * Our strategy is focused on the generation of cash from low-cost and low-carbon oil production, providing a compelling mix of growth and
Slide 4: An established business model
ms AN ESTABLISHED BUSINESS MODEL * Our business model ensures that we are resilient in times of a low oil price, and thrive when it is high ~ Retained material dividend when the oil price crashed in 2020, while making material investment in taking Sarta to first oil ~ Dividend increased at half year
Slide 5: A socially responsible contributor to the global energy mix
ma A SOCIALLY RESPONSIBLE CONTRIBUTOR TO THE GLOBAL ENERGY MIX * We aim to have a positive impact by fueling economic growth and directly supporting the communities in which we operate * 2022 represents 20 years of operations in the KRI, which we will commemorate through the Genel20 programme, launc
Slide 6: 2021 - Material free cash flow
a 2021 - MATERIAL FREE CASH FLOW * Low-cost production averaged 31,710 bopd in the year, in line with 2020 - Tawke PSC production remains robust - Sarta net production of 1,920 bopd offset Taq Tag decline - Total 11.6 MMbbis produced in 2021 * Production business highly cash generative, generating $
Slide 7: Progressive dividend
mm PROGRESSIVE DIVIDEND * Genel remains committed to a material and progressive dividend - 16¢ per share (2020: 15¢ per share) paid to shareholders in 2021 - Total $44 million paid in 2021 * Final dividend of 12¢ per share announced - Bringing total dividends relating to the 2021 financial year to 1
Slide 8: Margin per barrel set to increase in 2022
= MARGIN PER BARREL SET TO INCREASE IN 2022 * Production business cash generation set to materially increase ~ Production remains robust and highly cash-generative, with guidance in line with that of 2021 — Cash generation per barrel of $29/bbl at Brent $90/bbl, including deferred receivables recove
Slide 9: Putting our cash to work
a PUTTING OUR CASH TO WORK * Formidable balance sheet at 31 December 2021: CUMULATIVE CAPITAL ALLOCATION - Cash of $314 million 20182021 — Net cash $44 million * Material 2022 cash generation will add to this liquidity 400 * Balance sheet provides us with significant opportunity to deliver growth an
Slide 10: Operational focus in 2022
m= OPERATIONAL FOCUS IN 2022 * The focus is once again on maximising our low-cost high-margin production * Genel has a balanced portfolio of production and development assets with the ability to generate long-term cash flow - 104 MMbbIs of 2P oil reserves - 122 MMbbIs of 2C oil resources * The Tawke
Slide 11: Sarta - profitable pilot production
wa SARTA - PROFITABLE PILOT PRODUCTION Pilot ‘200: SARTA-2 & 3: Generating cash whilst informing 800 Sarta development plans af * Gross production averaged 6,400 bopd in 2021 * 2.5 million barrels produced in total by year end 2021 * $30 million net revenue, c.$15 million net operating profit TVDSS
Slide 12: Sarta - profitable pilot production
wa SARTA - PROFITABLE PILOT PRODUCTION SARTA-2 & 3: Generating cash whilst informing development plans * Gross production averaged 6,400 bopd in 2021 * 2.5 million barrels produced in total by year end 2021 * $30 million net revenue, c.$15 million net operating profit * Production achieved from all
Slide 13: Sarta - profitable pilot production
wa SARTA - PROFITABLE PILOT PRODUCTION SARTA-2 & 3: Generating cash whilst informing development plans * Gross production averaged 6,400 bopd in 2021 * 2.5 million barrels produced in total by year end 2021 * $30 million net revenue, c.$15 million net operating profit SARTA-1D: A smart completion, a
Slide 14: Sarta - appraisal
aa SARTA - APPRAISAL TVDSS (m) ‘CENOZOIC CRETACEOUS JURASSIC iscovered High Case Prospective TRI. | (Aiowrat Energy FY Results 2021 - 15 March 2022 Develop Infill Pilot Appraise Sarta-5: Surface well testing to commence shortly 12 km updip from the PILOT EPF Tests reservoir connectivity and delivera
Slide 15: Qara Dagh - QD-2 well and forward plan
w= ()ARA DAGH - QD-2 WELL AND FORWARD PLAN Km | SW QD Pre-drill NE] Km|SwW QD Current NE QD-2 * QD-2 well suspended in December 2021 having encountered insurmountable technical problems — The well encountered an unexpected major thrust fault which put the reservoir objective significantly deeper tha
Slide 16: Somaliland - long-term reserves replacement
a SOMALILAND - LONG-TERM RESERVES REPLACEMENT Potential Toosan-1 Well Location Odewayne Mi Hargeysa Depth im MSL) a} EH Toosan SW Toosan HW SLIOB/13, — Top Miocene — Top Auradu — Top Cretaceous — Top Qishn — Top Jurassic skm — Top Basement _| — N Farm-out agreement signed relating to the SL10B13 blo
Slide 17: 2022 outlook - free cash flow, significant opportunity
wa 2022 OUTLOOK - FREE CASH FLOW, SIGNIFICANT OPPORTUNITY * Investment in growth, creating catalysts for value creation 2022 FREE CASH FLOW SENSITIVITY TO AVERAGE BRENT ($ million) - Appraisal at Sarta has potential to add production and reserves * At $90/bbI, free cash flow in excess of a quarter o
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