Capricorn Energy Plc · LSE:CNE
Capricorn Energy — FY 2023 Earnings Presentation
22 slides from Capricorn Energy's earnings presentation, Mar 28, 2024
Slide 1: Full Year Results Presentation
Full Year Results Presentation 28 March 2024
Slide 2: Disclaimer
FY 2023 Results Disclaimer These materials contain forward-looking statements regarding Capricorn, its corporate plans, future financial condition, future results of operations, future business plans and strategies. All such forward-looking statements are based on its management's assumptions and be
Slide 3: Agenda
Agenda Introduction & Strategy Randy Neely, CEO 2023 Financial review and 2024 Guidance Nathan Piper, Commercial Director Operational review Geoff Probert, Chief Operating Officer Summary & Outlook Randy Neely 2023 Full Year Results Presentation, March 2024 3
Slide 4: Introduction & Strategy
Introduction & Strategy Randy Neely 2023 Full Year Results Presentation, March 2024 4
Slide 5: Delivered To Date
Introduction & Strategy Renewed business to deliver shareholder value • ~$568m returned to shareholders • Right-sized organisation 2023 • Transformational reduction of G&A Delivered • Exited non-core exploration positions • Reset corporate culture • Alignment on strategy with Partner • $50m sharehol
Slide 6: Immediate business priorities
Introduction & Strategy Immediate business priorities • Return excess capital to shareholders • Increase new investor interest in stock • Secure payment programme from EGPC • Collect overdue A/R • Manage USD commitments • Finalise and approve (with Partner) scale and speed of capital investment for
Slide 7: Investment thesis
Introduction & Strategy Investment thesis** • Market capitalisation of >$162m 500 Capricorn implies market values Egypt at ~$0, despite: $270m 400 ➢Egypt has never defaulted on oil and gas debts GBp/share Columbus NPV15 $14m 300 ➢Egypt business is ring-fenced 200 Market Cap. $186m* (25.03.24) ➢PLC h
Slide 8: Business in Egypt: >$50bn foreign currency injection
Introduction & Strategy Business in Egypt: >$50bn foreign currency injection • Confidence returning to "Egypt secures $8bn IMF deal after removing Egypt following significant currency controls" Financial Times, 6 March 2024 capital injections: ➢ IMF loan $8bn "Abu Dhabi steps in to ease Egypt's curr
Slide 9: 2023 Financial Review and 2024 Guidance
2023 Financial Review and 2024 Guidance Nathan Piper 2023 Full Year Results Presentation, March 2024 9
Slide 10: FY 2023 Financial Performance
Financial Review & 2024 Guidance FY 2023 Financial Performance Production: 30,044 boepd average working Production interest production, 47% liquids and 12,161 boepd on a net entitlement sales basis1 Gross Profit from Revenues from Egypt production: $200m Egypt Operations • Oil price: $81.2/bbl $140m
Slide 11: FY 2023 Cashflows – Focus on shareholder returns
Finance FY 2023 Cashflows – Focus on shareholder returns Combined Waldorf contingent and initial settlement payments * Opening cash at 1 January 2023 of $757m before Egypt debt drawn of $160m ** Closing cash at 31 December 2023 of $190m before Egypt debt drawn of $114m 2023 Full Year Results Present
Slide 12: Preliminary 2024 guidance
Finance Preliminary 2024 guidance* • 2024 Budget approval contingent upon confirmation of acceptable repayment programme • Drilling activity focus following any resumption will be a continuation of a BED area liquids strategy • 2024 well count expected to be lower y-o-y • Continued focus on costs wi
Slide 13: Operational update
Operational update Geoff Probert 2023 Full Year Results Presentation, March 2024 13
Slide 14: Egypt 2023 Development Activity Summary
Operational update Egypt 2023 Development Activity Summary Obaiyed gas field (50% working interest) Egypt’s largest onshore gas • 2023 strategy field. In 2023 4 wells drilled focused on liquids opportunities BED2 & BED3 • Accelerated (50% working interest) 19 development wells and 5 near development
Slide 15: Transition to a self-funding Egypt business
Operational update Transition to a self-funding Egypt business Rig Activity 2023-2024 2023 2024 September October November December January February March Rig 1 Rig 2 Rig 3 Rig 4 Rig 5 BED AESW Obaiyed Near field exploitation Rig released / operation ceased Operational activity management • Rig flee
Slide 16: Year End 2023 Reserves
Operational update Year End 2023 Reserves Egypt 2P Reserves 2P Reserves 50.4 mmboe (WI) / 19.4 mmboe (EI) Oil & Condensate (mmbo) Natural Gas (bcf) Total Boe (mmboe) • Capricorn engaged with a new reserves auditor, GLJ, to secure Net Net Net a refreshed asset view Net WI Entitlement Net WI Entitleme
Slide 17: PSC renegotiation to unlock material resource value
Operational update PSC renegotiation to unlock material resource value • Capricorn is working with its Partner (the Operator) to negotiate improved concession terms across those held on a 50:50 basis (e.g. BED, Obaiyed & Sitra) • Improved terms have successfully been negotiated on mature areas by Op
Slide 18: Summary and Outlook
Summary and Outlook Randy Neely 2023 Full Year Results Presentation, March 2024 18
Slide 19: Summary
Summary & Outlook Summary • Confident >$162m 500 that the receivables position will improve in the coming $270m 400 months, • Committed to GBp/share Columbus NPV15 $14m 300 aligning investment in Egypt with funds available in country, 200 Market Cap. $186m* (25.03.24) • Actively working with Partner
Slide 20: www.capricornenergy.com
www.capricornenergy.com 2023 Full Year Results Presentation, March 2024 20
Slide 21: Appendix
Appendix 2023 Full Year Results Presentation, March 2024 21
Slide 22: Egypt Contingent Resource and Exploration Activity
Operational update Egypt Contingent Resource and Exploration Activity Licence Extension 20 mmboe (WI) of contingent • Targeting maturation resources unlocked with concession extension. Obaiyed of contingent and BED the focus of EGPC resources for negotiations inclusion in merged concession terms dis