Otto Energy Limited · ASX:OEL
Otto Energy — Shareholder Meeting (November 2022)
20 slides from Otto Energy's shareholder meeting presentation, Nov 18, 2022
Slide 1: 2022 AGM CEO Update
2022 AGM CEO UPDATE Delivering and growing value in 2022 and beyond ASX: OEL
Slide 2: Disclaimer and important notices
Disclaimer and important notices Forward Looking Statements This presentation contains "forward-looking statements" that are subject to risk factors that are associated with oil and gas businesses. It is believed that the targets reflected in these statements are reasonable, but they may be affected
Slide 3: Otto Energy: delivering value
Otto Energy: delivering value 1 Experienced management 4 Phased growth A mature, opportunity-rich environment Creating growth access through rigorous inorganic opportunities evaluation 2 Maximizing our base A diverse, high-margin portfolio 5 Greater shareholder returns Build company size and scale t
Slide 4: Otto – Balance Sheet Strong - Debt Free Enterprise
Otto – Balance Sheet Strong - Debt Free Enterprise CAPITAL STRUCTURE LIQUIDITY POSITION SHARE REGISTER COMPOSITION Shares on issue 4,795 M Cash (31 Oct 2022) US$25.0 M Corporate/strategic 49% Share price (31 Oct 22) A$ 0.014 PANR stock * (31 Oct 2022) US$3.8 M Retail 47% Options and share rights 96
Slide 5: Global pressures vs Otto's positioning
Global pressures vs Otto’s positioning Globally Otto Energy • Volatile geopolitical and economic environment • Debt / hedge free • Energy security is a top priority across the globe • Robust cash flow generation • Energy industry is facing significant regulatory and • Strong balance sheet driven by
Slide 6: Company Overview
Company ST 48 Overview Growing in the Gulf of Mexico Onshore/Offshore Basin 6
Slide 7: Otto's Strategic Focus – Rebasing the Company to Deliver Growth
Otto’s Strategic Focus – Rebasing the Company to Deliver Growth 7
Slide 8: OEL – Disciplined Capital Management
OEL – Disciplined Capital Management Our Disciplined Technical and Operating Model provides framework for sustainably creating value Exploration Build diversification of Gulf portfolio via: Returns to Shareholders Lower risk infrastructure led A. PDP Acquisitions, Distributions via sale, special B.
Slide 9: FY 22 Highlights
REVENUE FY 22 US$51.1m US$40.6m Highlights 29% 35% Total WI revenue Net Operating Revenue EARNINGS Set against the backdrop of the past year’s complexities, Otto’s strategy, US$30.2m US$27.1m together with its excellent EBITDAX * 348% EBITDA * 564% operational results, and strong oil and gas pricing
Slide 10: FY 22 – Financial and Operational Highlights
FY 22 – Financial and Operational Highlights FINANCIAL PERFORMANCE (USD$) 28% 41% 3%/4% $26.8m $2.3m Return on Average Gearing/Debt to Equity Cash Balance Debt Balance at 30 June Return on Equity Capital Employed at 30 June 2022 2022, scheduled to be paid off by 30 September 2022 845 Mboe $10.77 O P
Slide 11: Capital Allocation Framework
Capital Allocation Framework Clear Target Investment Criteria Our capital allocation framework sets clear target investment criteria for oil and gas investments we are targeting. Using these criteria while maintaining balance sheet and financial discipline allows us to build a diversified folder whi
Slide 12: FY 2023 guidance ranges for performance
FY 2023 guidance ranges for performance Compared to FY 2022 actual delivery Performance category FY 22 (act.) FY 23 guidance range - Production (WI)(MMBOE) 0.845 0.90 – 1.05 Metrics to deliver fiscally disciplined performance - Capex spend (US$MM) 6.5 15.0 – 20.0 * - Opex FLC spend (US$MM) 3.1 5.5 –
Slide 13: Historical Stock Price
Historical Stock Price April 2020 – Nov 2022 Historical Stock Price Performance Driven By
Slide 14: Otto: TSR Strong compared to Peer Universe
Otto: TSR Strong compared to Peer Universe Australia Peers 80.00% Horizon Oil Limited (ASX:HZN) Byron Energy Limited (ASX:BYE) Cue Energy Resources Limited (ASX:CUE) GOM Comps 60.00% Cooper Energy Limited (ASX:COE) Up 60% Central Petroleum Limited (ASX:CTP) Australis Oil & Gas Limited (ASX:ATS) Empi
Slide 15: Current Market Value Challenge
Current Market Value Challenge Market vs Otto Resources Owned True Remaining Asset Value 7.81 Mmboe 2 Possible 1.98 Mmboe 2 Market Cap A$67.1 million 1 Probable Remaining Asset Value (per mkt) 2.11 Mmboe 2 A$18.5 million PANR Stock + ORRI ~ A$10 million 1 Proved Cash on Hand A$38.6 million 1 3.72 Mm
Slide 16: Indicative EV Range – Relative Value
Relative Value Indicative EV Range – AUS Peers Indicative EV Range – US Peers See Appendix for Source Data
Slide 17: Summarizing Otto's Strategic Focus Forward
Summarizing Otto’s Strategic Focus Forward Continue to Establish Track Record on Building and Transforming OEL 17
Slide 18: Appendix
Appendix 4 OTTO ENERGY
Slide 19: Relative Value Source Data
Relative Value Source Data Market Enterprise FY22 FY22 1P 2P Cap Value Revenue EBITDA Production Reserves Reserves EV/FY22 EV/FY22 EV/ EV/1P EV/2P Ticker Company (A$m) (A$m) (A$m) (A$m) (kboepd) (mmboe) (mmboe) Revenue EBITDA Production Reserves Reserves Australian Peers ASX:OEL Otto Energy Limited
Slide 20: Pillar 1: Excellence in base asset delivery
Pillar 1: Excellence in base asset delivery SM 7XXXX1 SM 71 Lightning GC 21 Mos. Bay Oyster Bayou Eaves DOFP CY 2018 CY 2019 CY 2020 CY 2022 CY 2022 CY 2022 Commodity Weight 86% Oil 85% Gas 90% Oil 84% Gas 52% Oil 97% Gas Net Capex Reqd (US$) $27.4 MM $19.4 MM $50.6 MM $3.6 MM $3.4 MM $0.25 MM Net I