Horizon Oil Limited · ASX:HZN
Horizon Oil — FY2024 Earnings Presentation
22 slides from Horizon Oil's earnings presentation, Aug 28, 2024
Slide 1: FY2024 Full Year Results
FY2024 FULL YEAR RESULTS
Slide 2: Important Information: Compliance Statement
IMPORTANT INFORMATION COMPLIANCE STATEMENT ● Statements contained in this material, particularly those regarding the possible or assumed ● For Mereenie: future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Horizon Oil Limited, industry grow
Slide 3: FY2024 Investment Highlights
FY2024 INVESTMENT HIGHLIGHTS STATUTORY PROFIT FINAL FY24 DIVIDEND BEFORE TAX US$39.2 m AUD1.5 cps (~US$16 M) 1 NET CASH SALES VOLUME US$26.2 m 1,301,155boe SALES REVENUE EBITDAX FY US$111.5 m US$71.5 m 1 Final dividend to be paid following the interim dividend of AUD 1.5 cents per share paid in Apri
Slide 4: ESG Performance
ESG PERFORMANCE CONTINUED FOCUS ON ESG PERFORMANCE ● Strong safety record better than industry benchmarks. ● Continued focus on emission reductions and striving Horizon FY performance is LOST TIME INJURIES benchmarked against to make a positive impact in the communities where Per million hours worke
Slide 5: Delivering on Strategy
DELIVERING ON STRATEGY MAXIMISE FURTHER DISTRIBUTIONS CONTINUE INVESTING FREE CASHFLOW1 TO SHAREHOLDERS IN PRODUCTION GROWTH ● Generated EBITDAX for the 2024 Financial Year of ● Final FY24 dividend announced of AUD 1.5 cents per ● Block 22/12 workover and four-well infill drilling US$71.5 million, w
Slide 6: FY2024 Highlights
FY2024 HIGHLIGHTS STRONG CASHFLOW GENERATION CONTINUING TO DRIVE SHAREHOLDER RETURNS FINANCIAL OPERATIONAL SHAREHOLDER ESG RETURNS ● Revenue for the financial ● Completed acquisition of ● AUD 1.5 cent per share interim ● Strong safety record better than year was within guidance at 25% interest in Me
Slide 7: Reserves & Resources
RESERVES & RESOURCES 1 2P CRUDE & CONDENSATE (%) 2P GAS (%) 2C CRUDE & CONDENSATE (%) 2C GAS (%) ● Horizon booked net 2P gas Reserves of 32 PJ (5.5 MMboe) following the acquisition of a 25% interest in the Mereenie 7 2 producing oil and gas field with an effective date of 1 April 2023. 34 4.4 32.0 5
Slide 8: Financial Results
FINANCIAL RESULTS FINANCIAL YEAR 2024 RESULTS PRESENTATION PAGE 8
Slide 9: FY24 Financial & Commercial Highlights
FY24 FINANCIAL & COMMERCIAL HIGHLIGHTS HIGHLIGHTS FY 2024 FY 2023 Production Volumes (MMboe) (net working ● ROBUST PRODUCTION & SALES VOLUMES – 1.4 million 1.43 1.92 interest) boe produced and 1.3 million boe sold in FY24 with production from Block 22/12 declined naturally as Sales Volumes (MMboe) 1
Slide 10: Strong Cashflow
STRONG CASHFLOW DRIVING BOTH SHAREHOLDER RETURNS & CONTINUED INVESTMENT IN PRODUCING ASSETS US$ MILLION ( 32.1 ) ( 27.5 ) 123.8 ( 8.0 ) ( 36.9 ) 64.2 ( 9.7 ) ( 0.6 ) 52.6 43.6 Opening cash and Net revenue Cash operating Corporate, tax, Net cash inflows Repayment of Dividends Investment in oil Net Me
Slide 11: Production & Revenues
PRODUCTION & REVENUES NEAR 5 YEAR AVERAGE OIL & GAS SALES REVENUE 1 2.5 200 100 2.0 160 80 Oil & Gas Sales, boe 35.5 0.37 1.5 120 0.4 60 US$/boe US$m 0.02 0.60 33.8 34.2 0.47 0.37 1.0 0.36 80 3.9 40 0.05 37.1 1.40 116.7 25.5 0.5 40 74.3 72.9 20 0.83 0.80 0.84 0.86 46.8 38.1 - 0 0 FY 2020 FY 2021 FY
Slide 12: Continued Strong Profitability
CONTINUED STRONG PROFITABILITY EBITDAX1 AND CASH COST PER BOE PROFIT AFTER TAX 1 120 30 60 100 25 50 80 20 40 3.9 US$/boe US$m US$m 60 15 30 0.1 103.5 2.9 40 10 43.9 73.0 20 67.6 0.1 51.3 24.3 23.0 20 36.4 5 10 16.3 4.9 0 0 0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2020 FY 2021 FY 2022 FY 2023 FY
Slide 13: Strong Free Cashflow Generation
STRONG FREE CASHFLOW GENERATION FREE CASH FLOW1 NET CASH 100 160 80 140 60 120 40 100 72.0 64.2 56.9 US$m 118.1 US$m 20 36.7 80 23.2 81.2 - 60 34.8 (8.1) (10.4) (9.7) (3.4) (20) (32.3) 40 (40) 20 42.8 35.7 31.7 26.2 0.5 (60) 0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2020 FY 2021 FY 2022 FY 2023 F
Slide 14: Asset Update & Outlook
ASSET UPDATE & OUTLOOK FINANCIAL YEAR 2024 RESULTS PRESENTATION PAGE 14
Slide 15: Block 22/12
BLOCK 22/12 SOLID PRODUCTION PERFORMANCE & RESERVES REPLACEMENT PLANS CONTINUE ASSET OVERVIEW Export to Weizhou Terminal WZ6-12 North WZ6-12 Mid WZ6-12 Sliver ● Block 22/12, Beibu Gulf, China, 26.95% ● Low cash operating costs of WZ6-12 South CNOOC approximately $20/bbl produced for the Facilities ●
Slide 16: Block 22/12: Indicative Future Opportunities
BLOCK 22/12 INDICATIVE FUTURE OPPORTUNITIES 1 INDICATIVE FUTURE OPPORTUNITIES Infill/appraisal drilling Infill drilling ● The Block 22/12 joint venture continues to Water injection project evaluate and mature further infill drilling targets with a view to executing a drilling program during calendar
Slide 17: Maari
MAARI PRODUCTION REMAINS RELIABLY STABLE; LICENCE EXTENSION APPLICATION THIS CALENDAR YEAR ASSET OVERVIEW ● Maari, New Zealand. JV: OMV (69% - Operator), Horizon (26%), Cue Energy (5%) ● Maari/Manaia generates approximately 25% of Horizon operating cashflow ● Maari crude continues to attract strong
Slide 18: Mereenie
MEREENIE ACQUISITION OF A STRATEGIC DOMESTIC GAS ASSET ● Mereenie, Australia, JV: Central Petroleum (25% - Operator), Echelon (42.5%), ASSET OVERVIEW Horizon (25%), Cue Energy (7.5%) ● Mereenie, Australia, JV: Central Petroleum (25% - Operator), ● Acquired a 25% non-operated interest in the producin
Slide 19: Mereenie Transaction Highlights
MEREENIE TRANSACTION HIGHLIGHTS MEREENIE IS A HIGH MARGIN AND LOW-COST CONVENTIONAL OIL & GAS PROJECT WHICH IS LINKED TO THE EAST COAST GAS MARKETS VIA THE NORTHEN GAS PIPELINE (NGP). THE PROJECT HAS A TRACK RECORD OF STABLE PRODUCTION AND CASH FLOWS CONVENTIONAL PRODUCING ONSHORE STRATEGIC ASSET PO
Slide 20: Production Forecast To End 2030
PRODUCTION FORECAST TO END 2030 FORECAST STABLE PRODUCTION FROM OUR THREE ASSETS WITH RUNNING ROOM TO END 2030 GROUP PRODUCTION FORECAST TO END 2030, BOEPD 7,000 Mereenie forecast Maari forecast 6,000 Indicative Maari license extn. Block 22/12 forecast 5,000 Portfolio - other indicative future activ
Slide 21: Plan for the Next 12 Months
PLAN FOR THE NEXT 12 MONTHS 1 2024 2025 Q3 Q4 Q1 Q2 Q3 Water-handling capacity upgrade1 Scheduled online by Q1 ‘26 CHINA, BLOCK 22/12 1 Scope, start date & duration 2025 drilling & workover program1 subject to JV approval Workover nearing Reinstate production from MR6a completion NEW ZEALAND, MAARI
Slide 22: Contacts
CONTACTS RICHARD BEAMENT CEO +61 2 9332 5000 info@horizonoil.com.au Horizon Oil Limited Level 4, 360 Kent Street Sydney NSW 2000 Australia horizonoil.com.au