Energean Plc · LSE:ENOG
Energean — Investor Presentation (January 2021)
33 slides from Energean's investor presentation, January 2021
Slide 1: Energean in 2021: Our Year of Transition
Energean in 2021: Our Year of Transition The Leading Independent E&P Player in the East Mediterranean
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Energean believes the expectations reflected herein to be reasonable considering the infor
Slide 3: Energean – The Largest E&P Company Listed on LSE
Energean – The Largest E&P Company Listed on LSE & First in the World to Commit to Net Zero Emissions 9 Countries +1 Billion Boe Of operation 2P reserves & Med-focused 2C resources* +200 Kboed +70% Medium-term Gas-weighted production target portfolio Governance Management Premium listing 30 years on
Slide 4: 2020: Strong Delivery Despite a Challenging Year
2020: Strong Delivery Despite a Challenging Year
Slide 5: Key Milestones Achieved
Key Milestones Achieved Strong Delivery Against Strategic Goals Despite COVID-19 Related Challenges 80% Y-o-Y Increase in 2P reserves to 956 MMboe (2019: 341 MMboe)* Production 48.3 Kboepd (74% gas) Strong Operational Performance Karish development 87% Complete at 31 December 2020 Took FID on Karish
Slide 6: Our Transition into the Top Tier of European E&Ps
Our Transition into the Top Tier of European E&Ps Moving into the top tier of E&Ps expected to enhance liquidity, valuations & investor attention 1.200 Norwegian Peers LSE-Listed Peers WI 2P Reserves 1.000 800 (MMboe) 600 400 200 0 Energean Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Pee
Slide 7: 2021: Our Year of Transition
2021: Our Year of Transition
Slide 8: 2021 Guidance and Medium-Term Targets
2021 Guidance and Medium-Term Targets Substantially Improved Medium-Term Outlook Through successfully delivering our strategic objectives in 2021 we will achieve our Medium-Term Targets which underpin our goal of generating sustainable Free Cash Flow and delivering a sustainable dividend 2021 Guidan
Slide 9: Focused on Monetising Billion Barrels of Reserves
Focused on Monetising 1 Billion Barrels of Reserves to Deliver Production of more than 200 Kboed W.I. 2P Reserves + 2C Resources 2016-20E* W.I. Hydrocarbon Production 2021+ 1.200 250 2016-20E CAGR 45% Medium-term Target 200 kboe/d 1.000 200 Key growth drivers 800 • Karish & Karish North 150 • Increm
Slide 10: Revenues Forecast to Reach Over $2 Billion
Revenues Forecast to Reach Over $2 Billion Growth Underpinned by Gas Sold Under Fixed-price Contracts Revenue Outlook 2021-25 Revenue Outlook % 2021-25 3% 2% 9% 7% 7% Medium-term Target $2 billion 41% 42% 37% 36% 39% 56% 56% 56% 56% 53% 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Gas sold unde
Slide 11: Creating a Sustainable Low-Cost Business
Creating a Sustainable Low-Cost Business Secured Lower Unit Cost of Production Further Targeted Cost Optimisation Expected 18 • Full, bottom-up internal review initiated • Operating cost reductions 16 • Third party tariff optimisation 14 • Mothballing 12 Medium-term Target • Production efficiencies,
Slide 12: Disciplined Capital Allocation Remains a Priority
Disciplined Capital Allocation Remains a Priority Development & Production Capex 2021-24 W.I. Capex Allocation 2021-24 600 100% 17% 21% 33% 80% 52% 500 60% 40% 83% 79% 400 67% 48% 20% $ Million* 300 0% 2021 2022 2023 2024 Greenfield Brownfield 200 Strong ability to reduce capital spend in a low comm
Slide 13: Capital Allocation Prioritising Total Shareholder Return
Capital Allocation Prioritising Total Shareholder Return With Core Focus On Distribution Policy That Underpins Sustainable Dividend Sustainable Target for inaugural Dividend 2022 dividend Organic > 20% 40% IRR Karish North Growth IRR Project Sanctioned Capital Structure < 2x Net debt / EBITDAX targe
Slide 14: Current Capital Structure
Current Capital Structure Net Debt Position* Committed Facilities To be refinanced in 2021 Group net debt: $1,241 million • $1.45bn PFF ($1.15bn drawn) • $(201) million cash Israel • Extended maturity to September 2022 • $1,442 million debt • Non-recourse to parent PFF • Interest payments & other pr
Slide 15: Project Updates: Israel
Project Updates: Israel
Slide 16: Karish Project – First Gas Expected Late 2021
Karish Project – First Gas Expected Late 2021 Project Close to 90% Complete Despite COVID-19 Related Challenges in 2020 At 31 Dec 2020 KARISH FPSO SUBSEA ONSHORE PROJECT ~93% ~76% *90-100% complete complete complete ~87% complete • Main modules & pipe racks • 14-line mooring system & • Installation
Slide 17: Karish North Sanctioned – First Gas Expected 2H 2023
Karish North Sanctioned – First Gas Expected 2H 2023 FID Reached 21-Months After Announcement of 32 Bcm Discovery Low-Cost High-Return Tieback to FPSO 2P Reserves 241 MMboe (84% Gas) Initial Capex ~$150 Million ($0.6 / Boe) 300 MMscf/d Well Deliverability (per well) Minimal Operating Costs (Incremen
Slide 18: Focused on Developing & Expanding Liquids Output
Focused on Developing & Expanding Liquids Output Through Committed Investment Programme • 100 MMbbl 2P liquids certified by DeGolyer & MacNaughton CPR: Material Reserves • 17.4 MMbbl (21.4%) increase in 2P liquids (light oil) volumes & Production • 28 kbpd production over a 5-year plateau period • F
Slide 19: Investment Synergies Targeted from Low-Cost Deepwater Tie-Back Options
Investment Synergies Targeted from Low-Cost Deepwater Tie-Back Options Approx. Distance from FPSO 5 km 15-30 km 40-55 km Karish Karish North Block 12 Tanin Approximate Life of Field capex/boe $6/boe $1.5/boe <$4/boe $5/boe • Economics of whole project • Low-cost tie-back option • “On the Way” to Tan
Slide 20: Israel – 7.4 Bcm/yr Gas Sales Agreements
Israel – 7.4 Bcm/yr Gas Sales Agreements Secured Revenues with 93% of Energean Power FPSO Capacity Utilised Protection 1.8 Bcm/yr new Against Take-or-Pay / High Quality GSPAs Signed Floor Pricing Downside Exclusivity Counterparties in 2020 Commodity Price Risk 9 Energean Israel Gas Supply Profile 8
Slide 21: 4-Well E&A Programme Targeting >1 bn boe Prospective Resources
4-Well E&A Programme Targeting >1 bn boe Prospective Resources to Commence Early 2022 Karish North drilled as part of a 5-well programme providing cost synergies KM 04 + Pilot Hole (PH) ATHENA 01 A discovery would significantly de-risk prospects in the rest of Block 12 Audited Approx. Prospect Size
Slide 22: Project Updates: Egypt
Project Updates: Egypt
Slide 23: NEA / NI Sanctioned – Monetisation of Well Defined, High Return Drilling Opportunities
NEA / NI Sanctioned – Monetisation of Well Defined, High Return Drilling Opportunities Key Project Metrics Peak Production 15 – 16 Kboed 2P Reserves 49 MMboe (87% Gas) PYTHON SUBSEA WELL Capex <$5 / Boe YAZZI-NEA 6 SUBSEA WELL NAQ NAQPIII PIII Platform Opex <$2 / Boe YAZZI-NEA 5 SUBSEA 10’’ 8 km WEL
Slide 24: Proposed Acquisition of Kerogen's 30% Holding in Energean Israel Limited
Proposed Acquisition of Kerogen’s 30% Holding in Energean Israel Limited
Slide 25: Agreed to Acquire Kerogen Capital's 30% holding in Energean Israel Limited
Agreed to Acquire Kerogen Capital’s 30% holding in Energean Israel Limited (EISL) for $380-405 Million Compliments our gas-weighted portfolio Group 2P+2C to reach +1 billion boe Energean Acquired assets Pro-forma • Natural strategic fit that gives full control over capital 14% structure of EISL 29%
Slide 26: Transaction Structure & Financing
Transaction Structure & Financing Part of use of proceeds for Term Up-Front $175 Million Payable on completion Loan provided by J.P. Morgan & Consideration Morgan Stanley Deferred Cash Contingent on Practical Completion To be funded by optimised capital $125-150 Million of Karish structure Considera
Slide 27: Milestones to Completion
Milestones to Completion Transaction Close Expected 1Q 2021 Timing Milestone 30 Dec 2020 Transaction announcement Jan / Feb 2021 Israeli Petroleum Commissioner Approval Feb 2021 Publication of Circular Feb 2021 EGM & shareholder votes Feb / Mar 2021 Closing of the Proposed Transaction 27
Slide 28: ESG & Our Path to Carbon Neutrality
ESG & Our Path to Carbon Neutrality
Slide 29: Creating a Low Carbon Business with Industry-Leading ESG Credentials
Creating a Low Carbon Business with Industry- Leading ESG Credentials First E&P Company Globally to Commit to Net Zero Emissions by 2050 Net Zero Carbon emissions by 2050 Visibility on Absolute Carbon Emissions Intensity to Half the Current Global Average Rolling Three-year Emissions Target 30 Curre
Slide 30: Prinos – Carbon Capture & Storage Initiative
Prinos – Carbon Capture & Storage Initiatve Multiple CC&S Opportunities Under Evaluation in Greece Greece Sources of CO2 Emissions Possible CO2 Storage Sites in Greece Mesohellenic Western Prinos Industry Facilities # CO2 Emitted (kt) Trough Thessaloniki Basin Energy Sector 21 36,463 Minerals 6 13,4
Slide 31: 2021: The Outlook
2021: The Outlook
Slide 32: 2021-22 Outlook
2021-22 Outlook Continue Strong Performance Versus Strategic Goals & Deliver Our Year of Transition Deliver First Gas at Karish & Develop Karish North 2021 - 2023 Operational Develop NEA / NI in Egypt 2021 - 2022 Performance Deliver (up to) 5-well E&A programme, offshore Israel 2022 - 2023 Kerogen A
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