Tullow Oil Plc · LSE:TLW
Tullow Oil — Debt Investor Presentation (April 2021)
24 slides from Tullow Oil's debt investor presentation, April 2021
Slide 1: Credit Presentation
Credit Presentation Tullow Oil plc April 2021
Slide 2: Business overview
Business overview Tullow Oil plc | Credit presentation
Slide 3: Tullow: A well-established company with a broad footprint
Tullow: A well-established company with a broad footprint Geographical presence Key metrics PF YE20 RESERVES & FY20 W.I. PRODUCTION FY20 UNIT OPEX2 RESOURCES1 2P: 250mmboe 74.9kboepd $ 12.1/boe 2C: 615mmboe Côte d’Ivoire Ghana Guyana FY20 REVENUE FY20 ADJ. EBITDAX FY20 CAPITAL INVESTMENT Suriname Ga
Slide 4: Robust audited reserves and resources base
Robust audited reserves and resources base > 160% 2020 reserves replacement1 Guyana, 3 55 Non-Op, 40 Jubilee, 112 EG • Significant value underpinned by a large 47 115 125 reserves and resources base 38 216 • Two flagship operated assets in Ghana, Jubilee YE19 YE19 243 121 Kenya, 1,102 and TEN, both
Slide 5: Highly experienced and committed leadership team
Highly experienced and committed leadership team Rahul Dhir Chief Executive Officer Joined Tullow 2020; formerly Delonex and Cairn India Les Wissam Mike Julia Jean-Medard Amalia Madhan Wood Al-Monthiry Walsh Ross Madama Olivera-Riley Srinivasan Chief Financial Officer Ghana General Counsel People &
Slide 6: A year of significant change
A year of significant change Leadership New CEO, new leadership and lean organization Operational turnaround Focus on maintenance, reliability, asset integrity and process safety Cost focus Ghana operating costs and corporate G&A significantly reduced Capital discipline Flexible opportunities identi
Slide 7: Unlocking value
New Tullow positioned to maximize value from its world class production assets Production base with material resource play Significant positions in discovered and emerging basins 2030 Business Plan Targets Operational turnaround >95% uptime target c.$7 to $8.3bn underlying operating <$11 opex/boe ta
Slide 8: Substantial Ghanaian resource base across two areas
Substantial Ghanaian resource base across two areas Rich opportunity pipeline at Jubilee and TEN Two FPSOs and subsea infrastructure in place Wells: 25 producers, 18 water injectors and four gas injectors Structurally advantaged assets with potential to increase recovery to unlock additional reserve
Slide 9: Potential to increase recoveries and unlock additional reserves
Potential to increase recoveries and unlock additional reserves Jubilee gross1 oil volumes (mmbbls) TEN gross1 oil volumes (mmbbls) c.1,900mmbbls in place with relatively low recoveries to date c.1,100mmbbls in place with relatively low recoveries to date c. 1,900 RF 46% c. 1,100 RF 47% 226 RF 38% R
Slide 10: Delivering consistent and reliable operating performance
Delivering consistent and reliable operating performance Uptime (%) • Improvement to processing systems reliability → Defect elimination process Uptime performance 92% 98% 91% >95% in Ghana → Well optimisation → Maintenance and integrity management 2018 2019 2020 Jubilee average water rate (kbw/d) •
Slide 11: Greater capital efficiency through reduction in drilling costs
Greater capital efficiency through reduction in drilling costs Driving drilling costs down by c.20% Top quartile drilling cost performance Drilling cost per well ($m gross) Simplified well design and 76 reduced completion complexity c.60 Targeted continuous Improved rig reliability through improveme
Slide 12: Structurally advantaged assets with attractive investment opportunities
Structurally advantaged assets with attractive investment opportunities Attractive portfolio of African production investments Value accretive producing assets 200% → Significant improvement in reliability and profitability → Prioritising investments in producing assets → More than 60 well-defined a
Slide 13: Stable non-operated production performance from Central West African asset base
Stable non-operated production performance from Central West African asset base1 Reliable, cash-generative portfolio • Light oil and gas, two fields, offshore Performance • Working interest 21.3% Stable production c.15-19 kboepd 2018-20 Côte d’Ivoire Gabon Strong operators Perenco and CNR, experienc
Slide 14: Unlocking value from discovered and prospective resources
Unlocking value from discovered and prospective resources Kenya Emerging basins Guyana Côte d’Ivoire 50.0% to 100.0% Kenya 37.5% to 60.0% Four blocks Two blocks 60.0% to 90.0% 3D seismic repro. Two blocks 3D seismic repro. • Material positions in Suriname 50.0% to 100.0% • Material recoverable emerg
Slide 15: Capital flexibility across portfolio of short cycle investment opportunities
Capital flexibility across portfolio of short cycle investment opportunities Capital allocation focusing largely on high return and short cycle production opportunities Producing assets Other investments 10% 20% 40% 50% >90% c.80% 60% 50% 2019 2020 2021E Medium-term target • Ability to manage capita
Slide 16: Strong ESG focus
Strong ESG focus Focused on reducing GHG emissions Creating lasting social and economic benefits Strong transparency and governance Net Zero by 2030 More than a third c. $2bn of Ghana's gas demand for domestic power (Scope 1 and 2) supplied at zero cost, providing access to in-country socio-economic
Slide 17: Financial overview
Financial overview Tullow Oil plc | Credit presentation
Slide 18: Roadmap to creating a resilient, self-funded business
Roadmap to creating a resilient, self-funded business Operational Capital Capital Unlocking turnaround discipline structure value New leadership and lean Refocused and defined Refinancing to Continue to create lasting organization investment portfolio address debt maturities social and economic bene
Slide 19: Continuous focus on reducing operating costs
Continuous focus on reducing operating costs A lean organization ($m) Pursuing lower steady state operating costs Annual cash cost savings of >$125m2 Gross G&A Net G&A $400 Net operating costs Employee headcount reduced 369 $350 351 c.280 Outsourcing of certain routine activities $300 1 c.281 $250 C
Slide 20: Pathway to sustainable capital structure
Pathway to sustainable capital structure Four years of consecutive net debt reduction 2016-20 6000 Net debt ($m) 5000 4.8 Tullow is developing a simpler capital structure 4000 Capital allocation on value accretive assets to improve cashflow generation 3000 3.1 2.4 2000 Path to deliver gearing of 1x-
Slide 21: Approximately $1 billion in cash generated via self-help
Approximately $1 billion1 in cash generated via self-help Self-help Cost savings initiatives • Annual cash cost savings of >$125m2 • Uganda sale – $500m plus $75m FID consideration and potential contingent consideration • Equatorial Guinea sale completed – $89m consideration plus Non-core asset sale
Slide 22: Expanded hedging program provides commodity price protection
Expanded hedging program provides commodity price protection Hedging policy overview Minimum hedged volumes (%) Hedging program leads to robust downside protection Expansion of the Company’s prudent risk management and hedging program • New hedges will be added to Tullow’s existing hedges; 2021 is c
Slide 23: Well-defined business plan that delivers material cash flow
Well-defined business plan that delivers material cash flow 2030 Business Plan1 Capex and Oil price Production Costs Operating cash flow2 Pre-financing cash flow3 decommissioning <$2/boe $55/bbl c.$7bn c.$4bn net G&A c.270 <$11/boe c.$3bn over mmboe over opex 10 years 10 years $65/bbl Taxes and c.$8
Slide 24: Tullow Oil plc
Tullow Oil plc 9 Chiswick Park, 566 Chiswick High Road London W4 5XT United Kingdom Tel: +44 (0)20 3249 9000 Fax: +44 (0)20 3249 8801 Email: info@tullowoil.com Web: www.tullowoil.com Follow Tullow on: