Enquest Plc · LSE:ENQ
Enquest — Merger or Acquisition (February 2021)
18 slides from Enquest's merger presentation, Feb 4, 2021
Slide 1: EnQuest Trading update and Golden Eagle acquisition
EnQuest Trading update and Deliver Golden Eagle acquisition De-lever Grow
Slide 2: Introduction
Trading update and Golden Eagle acquisition Introduction Amjad Bseisu Chief Executive 2 EnQuest PLC Trading update and Golden Eagle Acquisition
Slide 3: 2020 performance in line with guidance
Trading update 2020 performance in line with guidance - Production within guidance at 59,116 Boepd - Operating expenditure of c.$330 million; unit opex of c.$15/Boe Deliver - Cash capex of c.$130 million - Free cash flow of c.$210 million - Voluntarily accelerated bank amortisations De-lever - Net d
Slide 4: 2021 guidance
Trading update 2021 guidance - Group production1: 46,000 to 52,000 Boepd - Kraken production (gross): 30,000 to 35,000 Boepd Deliver - Operating expenditure of c.$265 million - Cash capex and abex of c.$120 million2 - c.4.0 MMbbls hedged at floor of c.$53/bbl and ceiling of c.$62/bbl De-lever - c.3.
Slide 5: An attractive acquisition in the UK North Sea
Golden Eagle acquisition An attractive acquisition in the UK North Sea Acquisition overview Transaction benefits - Acquire 26.69% non-operated equity interest in the Golden Eagle - Immediate incremental production of c.10 kboepd from low-cost area fields1 with low near-term capital commitments - Ini
Slide 6: Golden Eagle area overview
Golden Eagle acquisition Golden Eagle area overview Martin Mentiply Business Development Director 6 EnQuest PLC Trading update and Golden Eagle Acquisition
Slide 7: Mid-life asset with a well understood subsurface
Golden Eagle acquisition Mid-life asset with a well understood subsurface Golden Eagle Area Development comprises three fields; Golden Eagle, Solitaire and Peregrine - Gas lifted production with reservoir pressure support through water injection, via platform and subsea wells - Golden Eagle: 11 prod
Slide 8: A proven high-performing asset
Golden Eagle acquisition A proven high-performing asset Impressive HSE performance Golden Eagle 2P reserves (gross) (MMboe) - Zero lost time injuries since start-up in 2014 160 120 140 113 - Zero safety critical maintenance backlog 80 - Low CO2e intensity - 2019: 11.5kg/Boe 40 40 67 Strong productio
Slide 9: Acquisition financing
Golden Eagle acquisition Acquisition financing Jonathan Swinney Chief Financial Officer 9 EnQuest PLC Trading update and Golden Eagle Acquisition
Slide 10: Acquisition enables refinancing of existing senior credit facility
Golden Eagle acquisition Acquisition enables refinancing of existing senior credit facility Debt Key milestones - Anticipate the new secured debt facility will incorporate the - Debt book building process refinancing of the existing outstanding senior credit facility - Prospectus and CPR publication
Slide 11: Summary
Golden Eagle acquisition Summary Amjad Bseisu Chief Executive 11 EnQuest PLC Trading update and Golden Eagle Acquisition
Slide 12: Acquiring a high-class, low-cost UK North Sea asset
Golden Eagle acquisition Acquiring a high-class, low-cost UK North Sea asset - Immediate incremental production of c.10 kboepd - Low unit opex: 2021 estimated at c.$5/Boe1 Deliver - Low near-term capital commitments - Strong safety record and low emissions intensity - >$100 million NPV(10)1 at $50/b
Slide 13: Q&A
Q&A
Slide 14: A clear purpose and strategy with a focused business model
Appendix A clear purpose and strategy with a focused business model Purpose - Providing creative solutions through the energy transition Strategic vision - To be the operator of choice for maturing and underdeveloped hydrocarbon assets Focused business model - A production and development led E&P bu
Slide 15: Golden Eagle area overview
Golden Eagle acquisition Golden Eagle area overview Highlights - Discovered in 2007, first oil in 2014 - Strong joint venture partnership - CNOOC: 36.54% (operator) - NEO Energy: 31.56% - Suncor Energy: 26.69% - ONE DYAS: 5.21% - Standalone processing facility consisting of a wellhead platform and a
Slide 16: Sub-sea facilities summary
Golden Eagle acquisition Sub-sea facilities summary Overview - Two sub-sea drill centres connected via rigid production flowlines - 6 slot Northern Drill Centre (NDC) manifold: 6 km - 4 slot Southern Drill Centre (SDC) manifold: 5 km - Flowlines and risers comprise: - 2 x production risers (8” and 6
Slide 17: Facilities summary
Golden Eagle acquisition Facilities summary Production, utilities and quarters (PUQ) platform with bridge linked wellhead platform (WP) - PUQ and WP are each supported by 4 steel leg substructures - PUQ topsides weight 16,400 t, WP topsides weight 6,300 t - 2x 32.75 MW dual-fuel power turbines - Sul
Slide 18: Forward-looking statements
Appendix Forward-looking statements This presentation may contain certain forward-looking statements with respect to EnQuest’s expectation and plans, strategy, management’s objectives, future performance, production, costs, revenues, reserves and other trend information. These statements and forecas