Horizon Oil Limited · ASX:HZN
Horizon Oil — HY2021 Earnings Presentation
20 slides from Horizon Oil's earnings presentation, Feb 24, 2021
Slide 1: Half-Year 2021 Results Presentation
HALF-YEAR 2021 RESULTS PRESENTATION 24 FEBRUARY 2021 HORIZON OIL LIMITED | ABN 51 009 799 455
Slide 2: HY21 Executive Summary
HY21 EXECUTIVE SUMMARY STRONG CASHFLOW DRIVING VALUE FOR SHAREHOLDERS NET CASH INCREASING INCREASING OIL SHAREHOLDER US$10 MILLION PRODUCTION/ PRICE VALUE LOWER COSTS HY21 RESULTS PRESENTATION 24 FEBRUARY 2021 PAGE 2
Slide 3: Financial Results
FINANCIAL RESULTS
Slide 4: 2021 Half-Year Highlights
2021 HALF-YEAR HIGHLIGHTS LOW COST, CASH GENERATIVE OIL PRODUCER The 2021 Half-Year results were achieved in a low oil price environment & demonstrate the resilience of Horizon’s cashflow and base business • Cashflow positive during low oil prices – cashflow from operating activities of US$10.0 mill
Slide 5: Positive Cashflow Increasing Net Cash
POSITIVE CASHFLOW INCREASING NET CASH US$ MILLION - 1.6 - 13.5 27.8 -2.1 -0.7 - 2.5 3.8 - 2.7 - 1.4 - 10.0 33.4 33.4 34.4 33.0 33.0 25.9 Opening cash Crude oil sales Hedging Operating Corporate & Interest Net cash Debt Proceeds from Investment in Exploration Closing cash and cash settlements costs (
Slide 6: Reduced Opex Offsets Lower Oil Price
REDUCED OPEX OFFSETS LOWER OIL PRICE US$ MILLION 30.0 25.0 9.5 - 9.4 20.0 0.1 - 0.5 0.8 15.0 7.5 10.0 - 17.1 5.0 9.5 0.4 0.0 Underlying profit Operating costs G&A / Exploration and Financing costs Income tax and Sales volume Net realised oil Underlying profit after tax for HY 2020 other income devel
Slide 7: Consistency of Sales Volumes
CONSISTENCY OF SALES VOLUMES OIL SALES (mmbbls) REVENUE1 140 80 120 70 0.39 24.5 4.2 5-year average (excl. cost 0.06 60 recovery): 1.36 mmbbls 100 50 0.15 0.29 80 59.1 US$/bbl US$m 0.97 59.0 40 0.92 15.2 60 7.3 0.82 30 0.89 0.82 40 34.6 42.6 36.2 20 43.8 48.2 0.65 0.63 20 10 0.47 24.4 21.4 0.34 0.29
Slide 8: Low Cost Production Retains Profitability
LOW COST PRODUCTION RETAINS PROFITABILITY EBITDAX AND COST PER BBL UNDERLYING PROFIT BEFORE TAX (US$m) US$m US$/bbl 100.0 25.0 40.0 90.0 4.2 30.0 80.0 4.2 20.0 24.5 20.0 24.5 70.0 30.6 60.0 15.0 10.0 15.2 50.0 7.3 7.6 40.0 15.2 10.0 - 0.8 7.3 75.8 (9.2) 30.0 63.8 (18.4) (10.0) 20.0 36.1 5.0 33.2 30.
Slide 9: Positive Free Cashflow & Increased Net Cash Position
POSITIVE FREE CASHFLOW & INCREASED NET CASH POSITION FREE CASH FLOW (US$m) NET DEBT/(NET CASH) (US$m) 80.0 120.8 60.0 40.0 94.3 67.6 62.7 20.0 35.3 40.2 22.5 64.2 0.0 -5.8 -4.9 -18.7 -13.7 -20.0 -35.6 -40.0 -60.0 7.4 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 Operating CF Investing CF FCF FCF (excl. co
Slide 10: Outlook & Asset Updates
OUTLOOK & ASSET UPDATES
Slide 11: Overview of Portfolio
OVERVIEW OF PORTFOLIO Block 22/12 Block 22/12 (Beibu (Beibu Gulf] Gulf] 26.95% // 55% 26.95% 55% • Asia Pacific focus • Asia Pacific focus • Material joint venture interests • Material joint venture interests • High margin, long life oil production • assets in China High margin, and long New life Ze
Slide 12: Block 22/12 (Beibu Gulf)
Block 22/12 (Beibu Gulf] 26.95% / 55% HY21 RESULTS PRESENTATION 24 FEBRUARY 2021 PAGE 12
Slide 13: Reliable, Long-Life & High Margin Production
RELIABLE, LONG-LIFE & HIGH MARGIN PRODUCTION CHINA - BLOCK 22/12 Average Daily Gross BLOCK 22/12 PRODUCTION HISTORY & OUTLOOK Annual Gross Production, Production, mmbbls bopd 14,000 CY 2016 3.28 8,981 12,000 CY 2017 3.04 8,326 Successful infill wells CY 2018 3.60 9,857 10,000 CY 2019 3.43 9,399 8,00
Slide 14: New Development
NEW DEVELOPMENT CHINA - BLOCK 22/12 WZ 12-8E Project • Final investment decision made in October 2020 with the fabrication of the wellhead platform progressing well. • First oil is expected in early calendar year 2022 with gross oil production from the first phase expected to average a first-year oi
Slide 15: PMP 38160 (Maari/Manaia)
PMP 38160 (Maari/Manaia) 26% HY21 RESULTS PRESENTATION 24 FEBRUARY 2021 PAGE 15
Slide 16: Stable, Long-Life Production
STABLE, LONG-LIFE PRODUCTION NEW ZEALAND – MAARI/MANAIA MAARI/MANAIA PRODUCTION HISTORY & OUTLOOK Annual Gross Production, Average Daily Gross Production, mmbbls bopd 10,000 CY 2018 2.28 6,256 CY 2019 2.44 6,675 8,000 CY 2020 1.81 4,957 MR6A Workover Average 2.18 5,963 6,000 • Gross daily production
Slide 17: Outlook
OUTLOOK RESILIENT IN A LOW OIL PRICE ENVIRONMENT – A PLATFORM TO DRIVE SHAREHOLDER VALUE • Oil price recovery – free cashflow • De-gearing through the required STRONG increases at a rate of approximately STRENGTHENED repayment of ~US$15 million of the US$8 million for every US$10/bbl OPERATIONAL inc
Slide 18: FY21 Guidance
FY21 GUIDANCE RECOVERING OIL PRICE TO AID INCREASED CASH GENERATION PRODUCTION SALES VOLUME 1.3 – 1.4 mmbbls 1.2 – 1.3 mmbbls VOLUME (Net Working Interest Volumes) REVENUE US$55 - 60 million EBITDAX US$25 - 35 million The above Guidance represents forward looking statements. Such statements relate t
Slide 19: Compliance Statements
COMPLIANCE STATEMENTS Disclaimer All references to dollars in the presentation are United States dollars unless otherwise noted. Statements contained in this material, particularly those regarding the possible or assumed Amounts in this presentation may not cast due to rounding differences. future p
Slide 20: For More Information Please Contact Us
Authorisation This ASX announcement is approved and authorised for release by the Horizon board. FOR MORE INFORMATION PLEASE CONTACT US CHRIS HODGE Horizon Oil Limited P +61 2 9332 5000 Level 6, 134 William Street info@horizonoil.com.au Woolloomooloo NSW 2011 Australia horizonoil.com.au