Horizon Oil Limited · ASX:HZN
Horizon Oil — FY2021 Earnings Presentation
23 slides from Horizon Oil's earnings presentation, Aug 26, 2021
Slide 1: Full Year Results Presentation
FULL YEAR RESULTS PRESENTATION AUGUST 2021 HORIZON OIL LIMITED | ABN 51 009 799 455
Slide 2: FY21 Full Year Highlights
FY21 FULL YEAR HIGHLIGHTS PRODUCTION AND FINANCIAL METRICS WITHIN / EXCEEDING FY21 GUIDANCE RANGE Production Volume Sales Revenue EBITDAX 1.33 MMbbl US$63.6 million US$36.4 million Net Cash Underlying Profit after Tax Cash on Hand US$31.7 million US$7.8 million US$44.4 million FY21 RESULTS PRESENTAT
Slide 3: FY21 Executive Summary
FY21 EXECUTIVE SUMMARY STRONG CASHFLOW DRIVING VALUE FOR SHAREHOLDERS NET CASH RETURNS TO STRONG REDUCED US$32 MILLION SHAREHOLDERS PRODUCTION COSTS FY21 RESULTS PRESENTATION 26 AUGUST 2021 PAGE 3
Slide 4: Financial Results
FINANCIAL RESULTS
Slide 5: 2021 Full-Year Highlights
2021 FULL-YEAR HIGHLIGHTS LOW COST, CASH GENERATIVE OIL PRODUCER Resilient cashflow despite COVID-19 pandemic which impacted operations and oil prices • Cashflow positive during low oil prices – cashflow from operating activities of US$23.2 million FY 2021 FY 2020 Production Volumes (MMbbl) 1.33 1.4
Slide 6: Positive Cashflow Increasing Net Cash
POSITIVE CASHFLOW INCREASING NET CASH US$ MILLION ( 6.4 ) ( 15.4 ) ( 0.7 ) 3.8 14.1 23.2 44.4 25.9 Opening cash and Net cash inflows from Debt repayments and Proceeds from Investment in oil and Exploration Proceeds from PNG Closing cash and cash equivalents at operating activites share buybacks opti
Slide 7: Reduced Costs Offset Lower Oil Prices and Sales Volume
REDUCED COSTS OFFSET LOWER OIL PRICES AND SALES VOLUME US$ MILLION 10.6 (9.5) (0.3) 1.7 1.6 (10.9) 6.3 8.3 7.8 Underlying profit Operating costs Corporate & other Exploration and Financing costs Income tax and Sales volume Net realised oil Underlying profit after tax for FY 2020 income/expenses deve
Slide 8: Consistency of Sales Volumes
CONSISTENCY OF SALES VOLUMES OIL SALES (MMbbl) REVENUE1 140 80 5-year average (excl. 120 70 cost recovery): 1.35 19.2 0.29 MMbbl 60 100 0.31 18.0 50 0.30 80 0.1 US$/bbl US$m 60.9 40 1.00 0.83 60 14.2 46.8 0.86 0.80 50.9 30 0.80 38.1 40 38.0 20 0.58 0.60 20 42.3 37.1 10 0.48 0.47 31.2 25.5 0.32 16.4
Slide 9: Low Cost Production Retains Profitability
LOW COST PRODUCTION RETAINS PROFITABILITY EBITDAX1 AND COST PER BBL UNDERLYING PROFIT AFTER TAX1 (US$m) US$m US$/bbl 24.7 100.0 20.0 5.5 17.9 90.0 18.0 (2.3) 80.0 19.2 16.0 70.0 14.0 8.3 7.8 18 19.2 60.0 18.0 12.0 14.2 0.1 8.2 7.8 50.0 10.0 (0.1) 40.0 14.2 8.0 0.1 73.8 30.0 6.0 50.5 51.3 (16.5) 20.0
Slide 10: Positive Free Cashflow & Increased Net Cash Position
POSITIVE FREE CASHFLOW & INCREASED NET CASH POSITION FREE CASH FLOW (US$m) NET CASH (NET DEBT) (US$m) 80.0 31.7 60.0 40.0 72.8 0.5 57.6 20.0 35.6 36.7 23.2 0.0 (7.7) (8.1) (3.4) (10.2) (28.0) -20.0 (37.7) -40.0 -60.0 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 (88.6) Operating CF Investing CF FCF FCF (e
Slide 11: Outlook and Asset Updates
OUTLOOK AND ASSET UPDATES
Slide 12: Overview of Portfolio
OVERVIEW OF PORTFOLIO Block 22/12 Block 22/12 (Beibu (Beibu Gulf] Gulf] 26.95% // 55% 26.95% 55% • Asia Pacific focus • Asia Pacific focus • Material joint venture interests • Material joint venture interests • High margin, long life oil production • assets in China High margin, and long New life Ze
Slide 13: 2P Reserves
2P RESERVES AT 30 JUNE 2021 2P RESERVES RECONCILIATION* • Proved plus Probable Reserves (2P) of oil is 6.7 MMbbl, compared with 8.1 MMbbl last year. 8.8 • Reserves reduction driven by consistent strong 8.1 production performance from producing oil 6.7 assets, 1.3 MMbbl, and some minor technical (1.4
Slide 14: Block 22/12 (Beibu Gulf) 26.95% / 55%
Block 22/12 (Beibu Gulf] 26.95% / 55% FY21 RESULTS PRESENTATION 26 AUGUST 2021 PAGE 14
Slide 15: China Block 22-12 Reliable, High Margin Production
CHINA BLOCK 22-12 RELIABLE, HIGH MARGIN PRODUCTION BLOCK 22/12 PRODUCTION HISTORY & OUTLOOK Annual Gross Production Average Daily Gross Production 14,000 MMbbl bopd 12,000 FY 2017 2.98 8,150 12-8W Workovers FY 2018 3.20 8,779 10,000 FY 2019 3.72 10,188 8,000 FY 2020 3.37 9,230 6,000 FY 2021 3.24 8,8
Slide 16: Infill and Production Enhancement
INFILL AND PRODUCTION ENHANCEMENT CHINA BLOCK 22/12 • Production from the Group’s interest in the Beibu Gulf fields was 873,139 barrels. Crude oil sales were 801,280 barrels at a net realised price of US$54 per barrel, excluding hedging. • Cash operating costs were approximately US$12/bbl produced.
Slide 17: New Development
NEW DEVELOPMENT CHINA BLOCK 22/12 WZ 12-8E Development Project • First oil expected in Q1 CY 2022 with gross oil production from the first phase expected to average 4,000 bopd during the first year • FID made in October 2020 with the new wellhead platform launched and soon to be towed to site. The d
Slide 18: PMP 38160 (Maari/Manaia) 26%
PMP 38160 (Maari/Manaia) 26% FY21 RESULTS PRESENTATION 26 AUGUST 2021 PAGE 18
Slide 19: New Zealand – Maari/Manaia Stable Reservoir Performance
NEW ZEALAND – MAARI/MANAIA STABLE RESERVOIR PERFORMANCE MAARI/MANAIA PRODUCTION HISTORY & OUTLOOK Annual Gross Production, Average Daily Gross Production, MMbbl bopd 10000 FY 2019 2.32 6,384 FY 2020 2.18 5,982 8000 FY 2021 1.78 4,865 Workover Average 5,732 activities 6000 • Production decline rate a
Slide 20: Field Optimisation
FIELD OPTIMISATION NEW ZEALAND – MAARI/MANAIA • Net production was 461,675 barrels of oil and crude oil sales were 464,445 barrels at a realised oil price of US$58 per barrel, excluding hedging. • Production for the year reduced due to COVID-19 delays in conducting workovers. • Cash operating costs
Slide 21: Outlook
OUTLOOK CAPITALISING ON HIGHER OIL PRICES TO DELIVER VALUE • Free cashflow increases at a • Repayment of ~US$13 million STRONG rate of ~US$8 million per DISCIPLINED of debt during FY2022. OPERATIONAL annum for every US$10/bbl INVESTMENT • Maintain “flat production” by increase in oil price CASHFLOWS
Slide 22: Compliance Statements
COMPLIANCE STATEMENTS Disclaimer All references to dollars in the presentation are United States dollars unless otherwise noted. Statements contained in this material, particularly those regarding the possible or assumed Amounts in this presentation may not cast due to rounding differences. future p
Slide 23: For More Information Please Contact Us
Authorisation This ASX announcement is approved and authorised for release by the Horizon board. FOR MORE INFORMATION PLEASE CONTACT US CHRIS HODGE Horizon Oil Limited P +61 2 9332 5000 Level 6, 134 William Street info@horizonoil.com.au Woolloomooloo NSW 2011 Australia horizonoil.com.au