Tel Aviv Stock Exchange Ltd. · TASE:TASE

Tel Aviv Stock Exchange — Delek Drilling & Avner Oil Exploration — Investor Presentation (May 2017)

13 slides from Tel Aviv Stock Exchange's investor presentation, May 2017

  1. Slide 1: Investor Presentation

    Investor Presentation May 2017 Delek Drilling & Avner Oil Exploration – Energizing The Eastern Med

  2. Slide 2: Disclaimer

    Disclaimer This presentation was prepared by Delek Drilling – Limited Partnership and Avner Oil Exploration – Limited Partnership (jointly, the “Partnerships”), and is given to you only for the provision of concise information for the sake of convenience, and may not be copied or distributed to any

  3. Slide 3: Structural Change – Merger

    Structural Change – Merger ✓ Doubling free float and Volume trade ✓ Economies of scale / Costs saving ✓ Simplify structure and processes, improving efficiency within organizational process ✓ Improved investor proposition / considering dual listing Delek Drilling & Avner Oil Exploration – Energizing

  4. Slide 4: Merger Status

    Merger Status All essential CP’s for the merger have been met*, closing expected near 1Q financial statement date Subject Status Approval of the General Assembling in each LP √ Approval of council and oil commissioner √ Approval of the anti-trust commissioner √ Tax authority approval √ Notice to ove

  5. Slide 5: Tamar Continued Excellence Performance

    Tamar Continued Excellence Performance  Tamar-8 well completed and producing, on time on budget  2017 1Q record gas sales : 2014 2015 2016 2017 3.0 2.5 CAGR – 12% 2.5 2.5 2.4 2.3 2.3 2.2 2.2 2.0 2.1 2.0 1.9 1.7 1.8 1.7 BCM 1.5 1.0 0.5 0.0 Q1 Q2 Q3 Q4 1Q 2017 gas sales based on Noble Energy financi

  6. Slide 6: Tamar IPO – Sell out of up to 10% WI

    Tamar IPO – Sell out of up to 10% WI Pre IPO Structure Post IPO Structure Delek Drilling & Avner Delek Drilling 31.2% WI ~22% WI ~10%% WI Tamar Field Tamar Field Tamar SPV 100% Delek 100% Delek Tamar Bond Tamar Bond Bond Debt LTD. LTD. $1.6 B $1.28 B Senior Secured Note Senior Secured Note Delek Dri

  7. Slide 7: Robust Dividend Distribution

    Robust Dividend Distribution Cash dividend of c. $650 mm in last years, special dividend expected from Tamar sell out proceeds 200 200 150 ~ 8% Dividend 100 Yield LTM 2014 2015 2016 1Q 2017 * Dividend payment of Delek Drilling and Avner combined Delek Drilling & Avner Oil Exploration – Energizing Th

  8. Slide 8: Leviathan – Project Highlight

    Leviathan – Project Highlight Ownership Delek Drilling 22.7%, Avner 22.7%, Ratio 15% Noble Energy (operator) 39.7% 2P+2C Resources 21.9 tcf (621 bcm), 39.4 mmbbl condensate Estimated First Gas Year end 2019 Production Capacity (Phased development) Phase 1A- 1.2 bcf/d (~12 bcm/y) Phase 1B- 0.9 bcf/d

  9. Slide 9: Leviathan – Status Update

    Leviathan –Status Update ▪ Received Transmission License and critical Building Permits ▪ First 20” Subsea ball valve is ready for shipment ▪ Continuing Detailed Design for Subsea, Onshore, and Host Scopes ▪ Onshore Construction Progress ▪ Ordered 16,600-MT of Platform Steel for Fabrication ▪ Ordered

  10. Slide 10: Leviathan Drilling Campaign in progress

    Leviathan Drilling Campaign in progress Lev-5 Lev-7 Delek Drilling & Avner Oil Exploration – Energizing The Eastern Med 10

  11. Slide 11: Leviathan Phase 1A Development

    Leviathan Phase 1A Development Delek Drilling & Avner Oil Exploration – Energizing The Eastern Med 11

  12. Slide 12: Strong Financial Position

    Strong Financial Position  Strong balance sheet  Long-term, limited recourse-type debt based on significant revenues from the Tamar reservoir only  Attractive dividend record (8% dividend yield in LTM)  High cash reserves  Well-established and stable cash flow  Substantial economic value of as

  13. Slide 13: Thank You

    Thank You

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