Brava Energia Sa · BMFBOVESPA:BRAV3
Brava Energia Sa — Q1 2024 Earnings Presentation
24 slides from Brava Energia Sa's earnings presentation, May 15, 2024
Slide 1: Results Presentation 1Q24
Results Presentation 1Q24 ri.3rpetroleum.com.br
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements about future events that are not based on historical facts and are not guarantees of future results. These forward-looking statements only reflect the Company's current views and estimates of future economic circumstances, industry
Slide 3: 1Q24 Highlights | The strategy keep on moving
1Q24 Highlights | The strategy keep on moving Distribution of R$92.6 million in dividends, referring to the 2023 fiscal year; 1Q24 total production: 44.4kboe/d, 2.1X higher YoY and +29% when compared to 2023 average production; Total Revenues reached R$2.0 billion in 1Q24: 3.5X higher YoY and +8.6%
Slide 4: 1Q24 Highlights | Solidifying the business
1Q24 Highlights | Solidifying the business Macau | Rio Ventura | Recôncavo | Areia Branca | Fazenda Belém Operational Evolution Peroá (85%) | Papa Terra (53.13%) | Pescada (35%) | Potiguar Quarterly Production Evolution Total annual production Oil annual production Oil + Gas (kboe/d) (Oil + Gas kboe
Slide 5: Operational & Commercial Highlights
Operational & Commercial Highlights
Slide 6: 1Q24 Commercial Aspects | Better monetization in Oil & Gas contracts
1Q24 Commercial Aspects | Better monetization in Oil & Gas contracts Evolution of oil monetization Evolution of gas monetization Average brent price vs. Average realized oil prices Average brent price vs. Average realized gas prices 113.9 113.9 120 27 110 102.2 100.8 22 102.2 100.8 102.7 100 88.9 86
Slide 7: Potiguar Complex | 1Q24 Production & Operation
Potiguar Complex | 1Q24 Production & Operation Macau | Fazenda Belém | Areia Branca | Pescada (35%) | Potiguar (3R work interest | kboe/d) Macau started Macau Cluster Evolution 2024 in a strong (kboe/d) pace after ~80% 6.9 7.4 growth in oil 6.6 production 25.1 25.1 25.5 5.2 1.2 1.4 during 2023 4.3 4
Slide 8: Recôncavo Complex | 1Q24 Production & Operation
Recôncavo Complex | 1Q24 Production & Operation Rio Ventura & Recôncavo (3R work interest | kboe/d) +32% Oil (kbbl/d) YoY 9.3 9.2 Gas (kboe/d) 7.4 7.5 7.0 3R took over Recôncavo 6.0 6.2 5.4 5.4 Cluster in 2Q22 4.4 4.2 3.9 3.1 3.3 3R took over 3.5 Rio Ventura Cluster in 3Q21 1.5 3.8 3.9 1.1 1.1 3.1 3
Slide 9: Papa Terra Cluster | 1Q24 Production & Operation
Papa Terra Cluster | 1Q24 Production & Operation Papa Terra Production¹ Update on programed interventions: ✓ Storage tanks evolution: enough capacity to support up to 25 3R | 53.13% WI (Kboe/d) days of production compared to less than 10 days on the take Other (kboe/d) over, representing an increase
Slide 10: Peroá Cluster | 1Q24 Production & Operation
Peroá Cluster¹ |1Q24 Production & Operation 3.2 3.2 Oil (kbbl/d) 2.9 2.9 Gas (kboe/d) 2.5 2.5 1.8 3.0 3.0 2.8 2.8 2.4 2.4 1.7 0.1 0.1 0.1 0.1 0.1 0.1 0.1 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 jan/24 Operation: Peroá output was stable QoQ. The asset recorded an average production of ~442 thousand m³/day of n
Slide 11: 3R Historical Production
3R Historical Production Total Oil & Gas Production Oil & Gas average production 45.9 (3R work interest) 44.4 42.7 in 1Q24 (% boe/d) 9.8 8.9 10.2 Oil (kbbl/d) 28.4 Gas (kboe/d) 20.7 8.5 23% 15.4 77% 14.9 36.1 7.2 33.8 34.2 10.6 9.2 6.0 6.7 6.5 7.4 19.9 5.5 5.6 1.5 2.8 0.9 1.1 13.5 0.9 0.8 7.9 8.9 8.
Slide 12: Reserves Certification Update
Reserves Certification Update
Slide 13: Reserves Certification Update | Comparison vs. Certification 2023
Reserves Certification Update| Comparison vs. Certification 2023 Reserves Main KPI’s (WI 3R | MMboe) (WI 3R) Certification Certification 530 543 2023 2024 516 29 13 NPV @10¹ of the 2P curve, (15) US$ US$ already including taxes (IR and 6.3 bi 6.4 bi CSLL) Project classified as contingent resources f
Slide 14: Reserves Certification Update | 2P Reserves Breakdown per Complex & Type
Reserves Certification Update | 2P Reserves Breakdown per Complex & Type 2P Reserves breakdown per Complex (WI 3R | MMboe) 120 10 ✓ Relevant volume of certified reserves among 530 peers in Latin America 89 ✓ 379 MMboe in proven reserves (1P), which 144 MMboe are classified ad PDP: reduced execution
Slide 15: Financial Highlights
PS) - SR PETROLEUM Financial Highlights an -.
Slide 16: Consolidated Net Revenues
Consolidated Net Revenues¹ Quarterly View 1Q24 Net Revenues Breakdown (R$MM) (R$MM) 3.5X YoY +8.6% 2,360 QoQ 2,008 1,392 1,849 2,008 1,436 821 837 574 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Upstream Mid & Eliminations 1Q24 Downstream Macro Aspects ✓ Consolidated net revenues summed R$ 2.0
Slide 17: Upstream Net Revenues
Upstream Net Revenues¹ Quarterly View (R$ MM) Upstream Revenues reached R$1.4 billion in 1Q24, down 10.7% QoQ. 3R 2.5X had a concentrated sell of crude oil in the 4Q23 as the Company carried YoY -11% out maintenance activities in Potiguar’s mid & downstream installations QoQ on the quarter enlarging
Slide 18: Consolidated Adjusted EBITDA
Consolidated¹ Adjusted EBITDA Quarterly view 1Q24 Adjusted EBITDA Breakdown (R$MM) (R$MM) 4.7X YoY +4.0% 829 QoQ Adjusted EBITDA 59 -69 697 725 -42 Transition Period Costs 829 776 725 697 725 224 174 24 18 156 200 1Q23 2Q23 3Q23 4Q23 1Q23 2Q23 3Q23 4Q23 1Q24 Upstream Mid & Corp. Eliminations³ Adjust
Slide 19: Lifting Cost
Lifting Cost -2.0% QoQ 23.6 3R Petroleum 3R lifting cost 20.7 ❖ Potiguar Complex (Macau, Areia Branca, Pescada, Faz. Belém & Potiguar Clusters) (US$ / boe) 16.0 15.7 includes all logistic 13.6 ✓ -2% QoQ due to the greater operational efficiency recorded in the cost associated with the production qua
Slide 20: Consolidated Capex | Historically evolution until 1Q24
Consolidated Capex | Historically evolution until 1Q24 (US$ MM | Considers 100% of 3R Offshore) Annual Breakdown Quarter Breakdown Capex breakdown per activity in 1Q24 (%) 325.0 43% 164.5 38% 85.3 92.3 92.3 69.5 42.2 7% 33.0 4% 8% 26.4 2.8 Workover & Reactivation Inventory, IT & Corporate 2020 2021
Slide 21: Capital Structure | 1Q24
Capital Structure | 1Q24 Indebtedness end of 1Q24 Cash Flow 1Q24 (US$ MM) (US$ MM) Cash Position impacted by: 664 Abandonment agreement ~US$ 16 1,922 753 Storage Delta ~US$ 16 MTI Default ~US$ 33 Total US$ 66 391 1,560 934 22 1 1,169 28 753 19 109 13 736 Approximately 70% US$505 US$500 of the gross
Slide 22: Hedge Position | 1Q24
Hedge Position | 1Q24 NDF | Average Brent Price / Barrels hedged Collar | Call x Put Brent Price / Barrels hedged Thousand of barrels | US$ Thousand of barrels | US$ 130 .0 NDF Brent médio AVG Brent 140 0 Collar Put Call 300 0 120 .0 110 .0 120 0 96 98 97 96 92 88 100 .0 81 80 90. 0 250 0 86 84 78 7
Slide 23: Next Steps for 2024
Next Steps for 2024 ❖ Possible business combination with Enauta: potential creation of one of the largest oil and gas companies in LATAM with a relevant production of non associated gas and extensive storage and logistics capacity; ❖ 3R will analyze the possible outcomes of the compulsory assignment
Slide 24: Q&A 1Q24
Q&A 1Q24 ri.3rpetroleum.com.br