Tullow Oil Plc · LSE:TLW
Tullow Oil — H1 2023 Earnings Presentation
20 slides from Tullow Oil's earnings presentation, Sep 13, 2023
Slide 1: Tullow Oil plc 2023 Half Year Results
Tullow Oil plc Tullow Oil plc | 2023 Half Year Results 13 September 2023
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 Tullow believes the expectations reflected herein to be reasonable in light of the informa
Slide 3: Inflection point for five-year plan
Inflection point for five-year plan Foundations laid for material free cash flow generation Jubilee South-East Gross Jubilee production over 100 kbopd start-up Investment to grow production now materially complete Operational Excellent drilling performance; high uptime at Ghana FPSOs Cash flows de-r
Slide 4: Financial Review
FINANCIAL REVIEW Tullow Oil plc | 2023 Half Year Results
Slide 5: Continued financial strength in 2023
Continued financial strength in 2023 2023 guidance 1H 2022 Financial performance 1H 2023 (Restated) Production (kboepd) 60.9 53.5 Production 58-60 kboepd Realised price after hedging ($/bbl) 86.3 73.3 Revenue ($m) 859 777 Gross profit ($m) 633 351 Administrative expenses ($m) 23 19 Capex c.$ 400 mil
Slide 6: Flexible capex outlook whilst maintaining Jubilee production
Flexible capex outlook whilst maintaining Jubilee production Planned reduction in capex in 2024-25, with ability to flex in line with market dynamics Ghana Non-op Kenya Exploration 400 354 30 Cumulative capital expenditure 45 60 of c.$550 million 2024-25 43 263 48 Ability to reduce capex to 51 c.$15
Slide 7: Prudent hedging policy to protect revenue and support investment
Prudent hedging policy to protect revenue and support investment Policy implementation Hedging policy protects against oil price downside and • Legacy hedges put in place in 2021 roll off by May 2024 maintains material exposure to upside • Remainder of 2023 and 1H 2024 supplemented with $60/bbl Puts
Slide 8: Inflection point of material cash flow generation
Inflection point of material cash flow generation Sources and uses of cash 2023-25 at $80/bbl 3 Net debt reduction to c.$1billion and gearing <1x at $80/bbl by 2 YE25 Increasing free cash flow generation Sources and uses of cash ($bn) 1 2021-HY23 HY23-2025 c.$900million $370million at $80/bbl Mid-23
Slide 9: Low debt business by 2025 supports refinancing strategy
Low debt business by 2025 supports refinancing strategy Evolution of debt and gearing through 2020-25 Achieve a diversified and 4.0 sustainable capital structure Net debt at YE Gross debt at YE Cash gearing at YE Address 2025s Progressing a range of options to Debt reduction through free cash Organi
Slide 10: Operations Review
OPERATIONS REVIEW Tullow Oil plc | 2023 Half Year Results
Slide 11: Building a better future through responsible oil and gas development
Building a better future through responsible oil and gas development Phase III of Senior High Schools programme Safe operations are a complete $ 45 million core value and are at the forefront of our decarbonisation daily work and programme decision-making Continuous reinforcement of our Increasing g
Slide 12: Production growth through 2023 underpinning higher run rate
Production growth through 2023 underpinning higher run rate Jubilee Increasing production run-rate • Start-up of Jubilee South East, increasing gross production above 100 kbopd 80 • Infill drilling to sustain and extend plateau 70 Ghana gas CdI TEN 60 Ghana gas Gabon CdI Ghana gas • Improved pressur
Slide 13: Start-up of Jubilee South East takes field into its next phase
Start-up of Jubilee South East takes field into its next phase Positive outlook for Jubilee field production Well executed, on budget project brings previously 120 undeveloped reserves to production Gross Jubilee oil production (kbopd) 100 Opportunities to extend plateau Project delivered to high sa
Slide 14: Continued delivery of operational excellence
Continued delivery of operational excellence Wells delivering production growth Operational focus on gas handling improvements • Increased gas handling capacity work is underway on Jubilee FPSO Four Jubilee wells brought on stream in 2023 Two further WI wells due on stream before YE • Increased gas
Slide 15: Optimising portfolio and unlocking future value
Optimising portfolio and unlocking future value Leveraging our technical skills to focus on more material positions in key fields Tullow Guyana BV sale Including Orinduik licence Tchatamba New facility and upgrades during 2023, planning for development expansion in 2025 Contingent payments of $14 Wa
Slide 16: Conclusion
CONCLUSION Tullow Oil plc | 2023 Half Year Results
Slide 17: Progressing to the next phase of our plan
Progressing to the next phase of our plan 2020-2022 2023 2024 – 2025 Investment focus A major inflection point A cash generative business → Shift in strategy → Jubilee South East start up → Gross Jubilee production to be sustained c.100kbopd → Capital discipline → Material step up in free cash flow
Slide 18: A compelling value proposition
A compelling value proposition Cash-generative business with Flexibility to invest a diverse portfolio in organic growth of assets Significant equity and value accretive value accretion on M&A opportunities A unique Material step up in core business as Opportunity rich African platform free cash flo
Slide 19: Q&A
Q&A Tullow Oil plc | 2023 Half Year Results
Slide 20: Tullow Oil plc
Tullow Oil plc 9 Chiswick Park, 566 Chiswick High Road London W4 5XT United Kingdom Tel: +44 (0)20 3249 9000 Email: ir@tullowoil.com Web: www.tullowoil.com Follow Tullow on: