Gulf Keystone Petroleum Limited · LSE:GKP

Gulf Keystone Petroleum — Gulf Keystone Pet Ord New — H1 2023 Earnings Presentation

20 slides from Gulf Keystone Petroleum's earnings presentation, Aug 31, 2023

  1. Slide 1: 2023 Half Year Results

    2023 Half Year Results 31 August 2023

  2. Slide 2: Disclaimer

    Disclaimer This proprietary presentation (the “Presentation”) has been prepared by Gulf Keystone Petroleum Limited (the “Company”). Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation to buy or a solicitation of an offer to buy securities of any kind in any

  3. Slide 3: 2023 Half Year Results highlights & current performance

    2023 Half Year Results highlights & current performance Production 48% lower due to ITP(1) Days without Lost Time Incident H1-2023  impacted by closure >225 exports  $151m overdue receivables from KRG(2) suspension & H1 2023 gross average production Reduced profitability and cash 23,256 bopd  pay

  4. Slide 4: Operational Review

    Operational Review

  5. Slide 5: Overview of current operating environment

    Overview of current operating environment KRG exports  Iraq-Turkey Pipeline shut-in on 25 March, following ICC(1) award to Iraq  Negotiations active between the KRG, Iraq and Turkey regarding restart  No official timeline announced  Outstanding receivables for Oct-22 to Mar-23 total $151 million

  6. Slide 6: 2023 operational activity

    2023 operational activity Rapid shift from profitable production growth to liquidity preservation & local sales 2023 gross average production / sales (‘000 bopd)(1) H1 2023 gross average production: 23,256 bopd (H1 2022: 44,941 bopd) 55kbopd exceeded Iraq-Turkey Pipeline shut-in on 5 days in Mar-23

  7. Slide 7: Local sales in pictures

    Local sales in pictures Smooth transition from pipeline to trucking operations at PF-1 and PF-2 7

  8. Slide 8: GKP & the Shaikan Field

    GKP & the Shaikan Field Upside potential with improvements in operating environment Shaikan Field Reserves & Resources (Gross) (31-Dec-22)(1) Large, long-life asset confirmed by 2022 Jurassic Triassic Cretaceous Competent Person’s Report 900 Total 2C: Total 2P + 2C: 311 MMstb 817 MMstb 800 53 53 Lea

  9. Slide 9: Financial Review

    Financial Review

  10. Slide 10: Financial performance

    Financial performance Material impact in H1 2023 from exports suspension & KRG payment delays Adjusted EBITDA ($m) Profit/(loss) after tax ($m) 359 266 165 163 223 209 57 34 -3 -47 2020 2021 2022 H1-22 H1-23 2020 2021 2022 H1-22 H1-23 Shareholder distributions ($m) Net Capex ($m) Dividends Share buy

  11. Slide 11: Adjusted EBITDA

    Adjusted EBITDA 84% decrease reflecting exports suspension & lower realised prices in Q1 2023 $m  48% decrease in gross average production to 23,256 bopd following ITP closure in March  Average realised price for Q1 sales prior to suspension of $51.3/bbl, down $32.2/bbl due to lower Dated Brent pr

  12. Slide 12: Cash flow

    Cash flow $m Free cash outflow: $10 million  Free cash outflow reflects decrease in Adjusted EBITDA & delays to KRG payments  Q2 net capex reduced 67% versus Q1 following suspension of all expansion activity  $25 million interim dividend paid in March prior to cancellation of final 2022 dividend

  13. Slide 13: Operating costs & other G&A

    Operating costs & other G&A Continued focus on reducing costs across the business Operating costs ($m) (1) Other G&A expenses ($m) $/bbl 2.6 2.7 3.2 2.9 5.6 13.6 12.3 12.2 Reduced costs due to COVID-19 4 9.1 5 5 2 6.1 19 42 3 34 10 2 27 7 Q2 7 7 19 12 4 4 Q1 2020 2021 2022 H1-22 H1-23 2020 2021 2022

  14. Slide 14: Swift response to preserve & bolster liquidity

    Swift response to preserve & bolster liquidity Average monthly net capex & cost run rate ($m)(1)  Reduced H2 2023 net capex, opex and G&A to average monthly run rate of c.$6m 17  65% reduction vs Q1 2023 run rate  2023 capex guidance: $60-$65m (previously $70- $75m)  Estimated <$15m capex remain

  15. Slide 15: Outlook

    Outlook

  16. Slide 16: Outlook

    Outlook Focusing on what we can control to preserve liquidity  Continued focus on cost reduction, accounts Focus on payable management and inventory sales liquidity  c.$6m H2 2023 monthly cost run rate(1) preservation − <$15m net capex remaining in H2 2023  Further liquidity actions without adequ

  17. Slide 17: Appendix

    Appendix

  18. Slide 18: Key historical financials

    Key historical financials Q1 HY HY FY FY FY FY 2023 2023 2022 2022 2021 2020​ 2019 Gross production (bopd) 46,228 23,256 44,941 44,202 43,440 36,625​ 32,883 Dated Brent ($/bbl)(1) 81.2 NA 107.6 101.4 70.8 42.0​ 64.6 Realised price ($/bbl) 51.3 NA 83.5 74.1 49.7 20.9​ 42.9 Discount to Brent ($/bbl) 2

  19. Slide 19: Shaikan Field fiscal terms

    Shaikan Field fiscal terms As at 30 June 2023 Shaikan Field fiscal take waterfall Calculating GKP entitlement GROSS REVENUE A PRE-ROYALTY B Stage % Notes 100% Gross production x realised ROYALTY 10% Gross revenue pre-royalty 100 price (Dated Brent less quality A discount & transport costs) C GROSS R

  20. Slide 20: Thank you

    Thank you More resources are available at: www.gulfkeystone.com 20

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