Gulf Keystone Petroleum Limited · LSE:GKP

Gulf Keystone Petroleum — Gulf Keystone Pet Ord New — H1 2022 Earnings Presentation

20 slides from Gulf Keystone Petroleum's earnings presentation, Sep 1, 2022

  1. Slide 1: 2022 Half Year Results

    2022 Half Year Results 1 September 2022

  2. 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

  3. Slide 3: 2022 Half Year Results highlights

    2022 Half Year Results highlights  Continued focus on safety & sustainability  0 LTIs for 315 days 0 LTIs: 315 days(2)  Delivering sustainability strategy priorities ’000 bopd  Strong cash flow generation, robust balance sheet 45 2022 YTD gross production(1)  Leverage to strengthening oil price

  4. Slide 4: ESG

    ESG Safety & sustainability underpin our business Performance highlights Hydroponic fodder project  Rigorous focus on safety  0 LTIs for 315 days  Progressing Gas Management Plan tender  Underpins >50% reduction in emissions intensity by 2025  Working towards full compliance with TCFD (1)  Del

  5. Slide 5: Operational Review

    Operational Review

  6. Slide 6: 2022 production performance & guidance

    2022 production performance & guidance  2022 YTD gross average production of c.45,000 bopd  Production from new wells offsetting natural field decline  Prudent reservoir management constraining output ahead of water handling installation  Optimising production from existing wells  2022 producti

  7. Slide 7: Preparing for future sustainable growth

    Preparing for future sustainable growth Delivering 2022 work programme  Completed SH-15  Constructed SH-16 & SH-N well pad  Spud SH-16 targeting start-up towards year-end  Progressing water handling and facilities expansion  Increasing 2022 net capex guidance to $110-$120 million  Addition of

  8. Slide 8: Preparing for future sustainable growth

    Preparing for future sustainable growth Field Development Plan update  Working towards FDP approval  Preparing infrastructure for growth  Well pads, flowlines, facilities and long lead items  Progressing Gas Management Plan tender process 8

  9. Slide 9: Financial Review

    Financial Review

  10. Slide 10: Financial performance highlights

    Financial performance highlights Strong financial results Adjusted EBITDA ($m) Profit/(loss) after tax ($m) 223 165 163 209 65 123 44 94 57 (47) 2019 2020 2021 H1 21 H1 22 2019 2020 2021 H1 21 H1 22 Shareholder distributions ($m) Net Capex ($m) Dividends 90 Share buybacks 51 46 42 215 30 14 100 50 2

  11. Slide 11: Adjusted EBITDA

    Adjusted EBITDA Strengthening oil price and higher production drove increase in EBITDA $m  $84.3/bbl realised price, up $40.6/bbl  3% increase in gross average production to 44,941 bopd  Gross Opex $2.9/bbl, in line with 2022 guidance of $2.9–$3.3/bbl 11 * Capacity Building Payments

  12. Slide 12: Cash flow

    Cash flow Record free cash flow generation $m Free cash flow $177 million  122% increase in Adjusted EBITDA versus H1 2021  Capex related to SH-15 drilling, well workover & intervention activity, wellsite preparation and facility expansion 12

  13. Slide 13: Operating costs & Other G&A

    Operating costs & Other G&A Rigorous focus on cost control  On track to achieve gross Opex per barrel guidance of $2.9–$3.3/bbl  Increase in Other G&A expenses to enable future growth Operating expenses(1) Other G&A expenses(2) Operating expenses 37 27 34 15 19 ($m) bopd bopd 7 50,000 18 50,000 44

  14. Slide 14: Continuing strong cash receipts in 2022

    Continuing strong cash receipts in 2022  $354 million net received in YTD 2022(1) for crude oil sales and arrears  Outstanding arrears balance fully recovered with Feb-22 payment 50 45 40 8 7 8 35 7 $m (net) 30 5 5 5 5 25 4 49 44 20 38 33 35 15 33 30 25 25 25 27 24 10 5 - Month of (2) (3) Producti

  15. Slide 15: Robust balance sheet

    Robust balance sheet Resilience through commodity price cycle with downside protection  Strong free cash flow has enabled record dividend payments and redemption of $100m bond Net cash balance(1) ($m) Free cash flow ($m) Net cash $100m bond 177 150 132 112 122 100 91 70 48 50 67 0 -50 (26) (23) -10

  16. Slide 16: Sector leading shareholder returns

    Sector leading shareholder returns Track record of balancing profitable growth with returns to shareholders  $215 million dividends declared in 2022, more than double 2021  $25 million interim dividend declared today payable on 7 October  Continuing strong free cash flow provides flexibility to c

  17. Slide 17: Outlook

    Outlook

  18. Slide 18: Outlook

    Outlook Driving sustainable growth & shareholder returns  Gross production: 44-47,000 bopd Achieve 2022  Net Capex: $110-$120 million guidance  Gross Opex/bbl: $2.9-$3.3/bbl  Targeting start-up of SH-16 towards year end Drive sustainable  Execute 2022 work programme in preparation for FDP growt

  19. Slide 19: Thank you

    Thank you More resources are available at: www.gulfkeystone.com 19

  20. Slide 20: Appendix: Key historical financials

    Appendix: Key historical financials HY HY FY FY FY FY FY 2022 2021 2021 2020​ 2019 2018 2017 Gross production 44,941 43,516 43,440 36,625​ 32,883 31,563 35,298 (bopd) Dated Brent ($/bbl)(1) 107.6 64.9 70.8 42.0​ 64.6 71.3 54.9 Discount ($/bbl) 23.3 21.2 21.2 21.1​ 21.7 22.3 20.3 Realised price ($/bb

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