Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — H1 2019 Earnings Presentation
17 slides from Gulf Keystone Petroleum's earnings presentation, Sep 10, 2019
Slide 1: Gulf Keystone Petroleum Half Year 2019 Results
Gulf Keystone Petroleum Half Year 2019 Results 10 September 2019
Slide 2: Disclaimer
Disclaimer This proprietary presentation (the “Presentation”) has been prepared by Gulf Keystone Petroleum Limited (the “Company”). Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation to buy or a solicitation of an offer to buy securities of any kind in any
Slide 3: Half Year 2019 Highlights
Half Year 2019 Highlights • Operational progress – Considerable headway on work programme to 55,000 bopd – still expected Q2 2020 – Gross H1 production 29,362 bopd (H1 2018: 31,861 bopd) • 2019 gross production guidance revised to 30,000-33,000 bopd – SH-12 reached TD of 2,112m on 23 August and on t
Slide 4: Operational Review
1 Operational Review 2 Financial Review 3 Outlook
Slide 5: Shaikan back at c.40,000 bopd production in September
Shaikan back at c.40,000 bopd production in September • Gross H1 production 29,362 Last 12 Months Shaikan Gross Production (‘000 bopd) bopd on the back of high PF-1 planned activity level SH-3 shutdown for SH-1 workover workover maintenance and – 2019 gross production guidance 45 Start SH-1 complete
Slide 6: 55,000 bopd expansion programme on track for Q2 2020
55,000 bopd expansion programme on track for Q2 2020 • SH-1 and SH-3 tubing workovers completed; >100% and 40% production increase respectively • SH-12 drilled and expected to be on production in October • Next well, SH-9, designed to assess the gas reinjection potential of the Jurassic formation •
Slide 7: High levels of activity
High levels of activity DQE Rig 40 PF-1 debottlenecking at SH-12 PF-1 export station SH-9 well pad ready 7
Slide 8: Shaikan field development plan
Shaikan field development plan • Staged approach to de-risk long-term potential • Revised FDP submitted in May 2019 – in discussions with MNR to reach approval Subject to FDP approval 120 Phase 2: 110,000 bopd Shaikan Production Capacity (‘000 bopd) 100 Triassic expansion & Cretaceous pilot Not yet
Slide 9: Financial Review
1 Operational Review 2 Financial Review 3 Outlook
Slide 10: Half year financial highlights
Half year financial highlights • Continuous payments supported by crude oil sales agreement • Revenue decrease reflects lower oil prices and production vs. H1 2018 • EBITDA and profit after tax remain steady Revenue EBITDA Profit/(Loss) After Tax US$m US$m US$m 140 100 50 120 $116m $27m $102m $24m $
Slide 11: Sustained cost optimisation
Sustained cost optimisation • Opex and G&A increases reflect Shaikan investment activity • H1 2019 Opex and G&A at the lower end of guidance • Corporate G&A unchanged, in spite of the higher activity in H1 2019 Operating Expenses(1) General & Administrative Expenses Operating Expenses 48 35 29 31 18
Slide 12: Positive free cash flow
Positive free cash flow • $7 million net increase in cash • 2019 capital investment guidance to $110-130 million gross ($88-104 million net) reflecting increased activity in H2 • Healthy cash balance ($264m at 9 September 2019) to support investment plans and capital return to shareholders • Active
Slide 13: Outlook
1 Operational Review 2 Financial Review 3 Outlook
Slide 14: Outlook
Outlook Operational excellence – Safe operations – Meet gross production guidance of 30,000-33,000 bopd – Continued cost control discipline – Active engagement on ESG Growth – Focus on delivery of project milestones – On track to deliver the 55,000 bopd expansion project in Q2 2020 – Investing to de
Slide 15: Thank you
Thank you More resources are available at: www.gulfkeystone.com
Slide 16: Appendix – Half Year 2019 Highlights
Appendix – Half Year 2019 Highlights H1 2019 H1 2018 FY 2018 Gross production (bopd) 29,362 31,861 31,563 Brent(1) ($/bbl) 66.1 70.7 71.1 Discount ($/bbl) 21.7 22.8 22.3 Realised price ($/bbl) 44.8 47.9 49.0 Revenue ($m) 95.6 116.2 250.6 EBITDA ($m) 59.0 61.6 149.3 Profit after tax ($m) 24.2 26.7 79
Slide 17: Fully funded for entire development
Fully funded for entire development Phase 1 Phase 2 Low cost base(1): 110,000 bopd Accelerated recovery of petroleum costs pool (c.$500m gross) Opex ($3.9/bbl) (Triassic expansion & & continuous recovery of future expenditures Focus on G&A Cretaceous pilot) 85,000 bopd (Triassic pilot) 75,000 bopd (
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