Horizon Oil Limited · ASX:HZN
Horizon Oil — FY2023 Earnings Presentation
22 slides from Horizon Oil's earnings presentation, Aug 29, 2023
Slide 1: FY2023 Full Year Results
FY2023 FULL YEAR RESULTS
Slide 2: Compliance Statement
COMPLIANCE STATEMENT Disclaimer Reserves Disclosure ► Statements contained in this material, particularly those regarding the possible or assumed ► Unless otherwise stated, all petroleum reserves and resource estimates refer to future performance, costs, dividends, returns, production levels or rate
Slide 3: FY2023 Investment Highlights
FY2023 INVESTMENT HIGHLIGHTS Statutory profit after tax Final FY23 distribution Sales revenue to Shareholders U S $43.9 million A U D 2.0 cps 1 U S $152.1 million 80% (~US$21 million) 41% Net cash Sales volume EBITDAX U S $35.7 million 1,774,437 bbls U S $103.5 million 47% 42% FINANCIAL YEAR 2023 RE
Slide 4: Delivering on Strategy
DELIVERING ON STRATEGY FURTHER DISTRIBUTIONS TO CONTINUE INVESTING IN MAXIMISE FREE CASHFLOW1 SHAREHOLDERS PRODUCTION GROWTH ► Generated record EBITDAX of US$103.5 million in ► Total FY23 Distributions of AUD 3.5 cents per ► ~US$30 million invested in successful WZ12-8E FY23, with net cash of US$35.
Slide 5: Financial Year 2023 Highlights
FINANCIAL YEAR 2023 HIGHLIGHTS STRONG CASHFLOW GENERATION DRIVING SHAREHOLDER RETURNS FINANCIAL OPERATIONAL SHAREHOLDER RETURNS ESG ► 46% increase in revenue to ► WZ12-8E project successfully ► AUD 1.5 cent per share interim ► Strong safety record better than US$152.1 million completed – production
Slide 6: Reserves & Resources
RESERVES & RESOURCES1 2P RESERVES RECONCILIATION 4.9 RESERVES & RESOURCES 5.8 1.8 (14% YOY ► ~55% 2P reserves replacement as strong 46% 2P – 4.9 54% 1.0 reduction) production CONTINUE (1.8 MMbbl HorizonINnet) was substantially INVESTING MMbbl FURTHER DISTRIBUTIONS TO offset by 1.0 MMbbls revisions t
Slide 7: Financial Results
FINANCIAL RESULTS
Slide 8: FY23 Financial & Commercial Highlights
FY23 FINANCIAL & COMMERCIAL HIGHLIGHTS HIGHLIGHTS FY 2023 FY 2022 ► Robust production & sales volumes – 1.9 million Production Volumes (MMbbl) (net working interest) 1.92 1.33 bbls produced and CONTINUE 1.8 millionIN INVESTING bbls sold in FY23 ► RevPRODUCTION GROWTHincreased 41% during enue growth
Slide 9: Strong Cashflow Driving Shareholder Returns and Investment in Production Growth
STRONG CASHFLOW DRIVING BOTH SHAREHOLDER RETURNS AND INVESTMENT IN PRODUCTION GROWTH US$ MILLION ( 33.8 ) ( 46.2 ) 19.7 (13.3) 151.9 ( 32.3 ) 72.0 (46.6) 44.1 43.6 Opening cash and Net revenue Cash operating Corporate, tax, Net cash inflows Net proceeds from Debt repayments Investment in oil Distrib
Slide 10: Production Growth Drives Increased Profitability
PRODUCTION GROWTH DRIVES INCREASED PROFITABILITY US$ MILLION ( 4.8 ) ( 12.1 ) 48.8 ( 11.5 ) ( 0.9 ) 43.9 24.3 Profit after tax for FY 2022 Sales volume Net realised oil price, Operating costs Amortisation of fields Taxes, levies, royalties & Profit after tax for FY 2023 inclusive of hedge other sett
Slide 11: Increased Production & Sales Volumes Drives Revenue Growth
INCREASED PRODUCTION & SALES VOLUMES DRIVES REVENUE GROWTH OIL SALES REVENUE1 2.5 160 100 140 90 2.0 35.5 80 120 70 Oil Sales (MMbbl) 0.29 19.2 0.37 100 1.5 60 US$/bbl - 33.8 US$m 0.58 80 42.3 50 0.60 1.0 0.47 0.36 37.1 40 60 116.7 25.5 30 1.40 40 74.3 0.5 1.00 60.9 20 0.83 0.80 0.84 46.8 20 38.1 10
Slide 12: Production Growth Drives Increased Profitability
PRODUCTION GROWTH DRIVES INCREASED PROFITABILITY EBITDAX1 AND CASH COST PER BBL PROFIT AFTER TAX1 120 20 50 18 45 100 16 40 19.2 14 35 80 12 30 US$/bbl US$m US$m 60 10 25 19.2 0.1 103.5 8 43.9 20 40 73.8 73.0 6 15 0.1 51.3 4 24.3 20 10 36.4 16.6 16.3 2 5 0 0 4.9 0 FY 2019 FY 2020 FY 2021 FY 2022 FY
Slide 13: Strong Free Cashflow
STRONG FREE CASHFLOW FREE CASH FLOW1 NET CASH/(NET DEBT) 80 140 60 120 100 40 72.8 56.9 72.0 80 81.2 US$m 20 36.7 60 34.8 US$m 23.2 0 40 (10.2) (8.1) (10.4) (3.4) 20 31.7 42.8 35.7 -20 (32.3) 0.5 0 (28.0) -40 -20 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 -40 Operating CF Investing CF FCF FCF (excl. co
Slide 14: Asset Update & Outlook
ASSET UPDATE & OUTLOOK
Slide 15: Block 22/12: Record Production
BLOCK 22/12: RECORD PRODUCTION Export to Weizhou ASSET OVERVIEW Terminal WZ6-12 North WZ6-12 Mid WZ6-12 Sliver ► Block 22/12, Beibu Gulf, China, 26.95% WZ6-12 South CNOOC ► JV: CNOOC (51% - Block 22/12 Operator), Roc Oil (19.6%), Oil Australia Pty. Ltd. (2.45%) Facilities ► Block 22/12 generates app
Slide 16: Block 22/12: Indicative Future Opportunities
BLOCK 22/12: INDICATIVE FUTURE OPPORTUNITIES1 INDICATIVE FUTURE INDICATIVE FUTURE OPPORTUNITIES OPPORTUNITIES Infill/appraisal drilling Infill drilling Water injection ► The JV has a strong portfolio of indicative future project opportunities, CONTINUE comprising INVESTINGinfill IN and appraisal dri
Slide 17: Block 22/12: History & Forecast (Gross)
BLOCK 22/12: HISTORY & FORECAST (GROSS) 20,000 History Forecast History 2P forecast Indicative future activities 15,000 End of End of WZ6-12/12-8W Block 22/12 PSC Gross oil rate (bopd) Production (Petroleum Period (SDA) Contract) 10,000 Indicative future activities WZ12-8E production continues until
Slide 18: Maari: Reliable Performance Justifying Field Life Extension Assessment
MAARI: RELIABLE PERFORMANCE JUSTIFYING FIELD LIFE EXTENSION ASSESSMENT ASSET OVERVIEW ► Maari, New Zealand, 26% ► JV: OMV (69% - Operator), Cue Energy (5%) ► Maari/Manaia generates approximately 20% of Horizon operating cashflow ► Maari crude continues to attract strong premiums with an average 2023
Slide 19: Maari: History & Forecast (Gross)
MAARI: HISTORY & FORECAST (GROSS) 10,000 History Forecast History Forecast Life Extension Indicative future activities Current permit 8,000 expiry Indicative future activities1 Gross Oil Rate (bopd) Expected Life extension cessation of 6,000 production of December 2030 (subject to permit extension)
Slide 20: Plan for the Next 12 Months
PLAN FOR THE NEXT 12 MONTHS1 2023 2024 Q3 Q4 Q1 Q2 Q3 Block 22/12 possible infill drilling Planning in progress (between two and five wells)1 Block 22/12 & WZ12-8E possible liquid- Design in progress & handling capacity upgrades1 ongoing Preliminary planning in progress; WZ12-8E Phase 3 planning1 su
Slide 21: Delivering on Strategy
DELIVERING ON STRATEGY FURTHER DISTRIBUTIONS TO CONTINUE INVESTING IN MAXIMISE FREE CASHFLOW1 SHAREHOLDERS PRODUCTION GROWTH ► Recent investment in Block 22/12 ► Regular distributions continue to be a priority ► Focus on developing the Company’s substantial WZ12-8E development, and WZ6-12 infill dri
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