Newmed Energy Limited Partnership · TASE:NWMD
Newmed Energy Limited Partnership — Delek Drilling — JP Morgan EM Credit Conference 2019
27 slides from Newmed Energy Limited Partnership's conference presentation, Sep 25, 2019
Slide 1: Energizing The Eastern Med
Energizing The Eastern Med Delek Drilling LP – Energizing the Eastern Med
Slide 2: Disclaimer
Disclaimer This presentation was prepared by Delek Drilling - Limited Partnership (the “Partnership”), and is given to you only for the provision of concise information for the sake of convenience, and may not be copied or distributed to any other person. The Data and information included in this pr
Slide 3: Delek Drilling – Eastern Med E&P Operation
Delek Drilling – Eastern Med E&P Operation Transforming the Levant Basin into a Natural Gas Export Hub Top Tel-Aviv- 35 index listed LP with a market cap of c. $2.7 Billion World class E&P portfolio of assets, from exploration through development and producing Senior partner in all major gas discove
Slide 4: Israeli and Cypriot EEZ – Over 42 TCF Discovered
Israeli and Cypriot EEZ – Over 42 TCF Discovered 2013 2012 2011 5.94 3 tcf 4.5 tcf 2009 12.9 tcf 2 2010 2009 21.5 tcf 2011 0.5 tcf 0.1 tcf 1999 0.1 tcf 1 2000 1 tcf 1 Resources: 2P + 2C + Prospective (2U), based on NSAI reports. ¹ Estimated ultimate recoverable; Now almost depleted and classified as
Slide 5: Tamar – World Class Deepwater Project
Tamar – World Class Deepwater Project Ownership Delek Drilling 22%, Isramco 28.7%, Dor Gas 4%, Everest 3.5%, Tamar Petroleum 16.75%, Noble Energy (operator) 25% 2P Reserves* 11.1 tcf (337 bcm); / 14.5 mmbbl condensate First gas End of Q1 2013 Development budget: $3.1 Billion (100%) Overall Tamar cos
Slide 6: Tamar – Contracts and Sales Breakdown
Tamar – Contracts and Sales Breakdown Long term contractual structure with limited commodity price risk Israel Electric IPP & Electricity Industry & Other Corp. Related ❑ TCQ : 87 bcm (~3.07 tcf) ❑ TCQ : 72 bcm (~2.54 tcf) ❑ TCQ : 8.5 bcm (0.3 tcf) + Condensate ❑ 15-17 years ❑ 15-19 years ❑ 5-8 year
Slide 7: Robust Steady CF Generating Project
Robust Steady CF Generating Project Gross revenues ($mm) 2,000 1,500 ◼ Revenue increase resulting from supply growth and price 1,000 $1,577 $1,601 $1,749 $1,860 $2,020 protective GSPAs (despite weakness in O&G market) 500 0 FY2014 FY2015 FY2016 FY2017 FY 2018 Natural gas production cost per output u
Slide 8: Tamar Reserves
Tamar Reserves Tamar reserves consistently increased since pre-drill estimation and during last 5 years of production Tamar 12,577 BCF EUR Volumes - including 1,789 BCF cumulative production 14,000 Revised Tamar Tamar SW Tamar-8 13,000 Production Mapping well 604.9 12,000 Tamar-3,4,5&6 604.9 604.9 P
Slide 9: Tamar Divestment Process
Tamar Divestment Process ❑ Delek Drilling is examining various alternatives for satisfying its commitment to divest its working interest in Tamar ❑ The first step was accomplished in July 2017, a divestment of working interest through the Capital Markets via the IPO of “Tamar Petroleum” (a special p
Slide 10: Potential Spin Off of Business
Potential Spin Off of Business Examining a plan for the spin-off of the Partnership’s non-Tamar assets and liabilities. The main purposes of which is to reside in a more suitable venue and to unlock value ❑ In terms of the strategic objectives of the partnership, which are related to the corporate s
Slide 11: Current Structure
Current Structure Delek Group Ltd Public 60% 40% Delek Drilling LP All Other licenses Aphrodite Leviathan Tamar(+TP**) & Assets * * Represents all other licenses and assets not related to Tamar, Leviathan and Aphrodite, and include, inter alia: Yam Tethys, Alon license, EMED, Karish-Tannin royalties
Slide 12: Spin Off Process
Spin Off Process Delek Group Ltd Public 60% 40% Delek Drilling LP Distribution in kind to Delek Drilling Unit holders 100% London NewCo. Tamar (+ TP) All Other licenses & Aphrodite Leviathan Assets* * Represents all other licenses and assets not related to Tamar, Leviathan and Aphrodite, and include
Slide 13: Final Structure
Final Structure Delek Group Ltd Public Delek Group Ltd Public 60% 40% 60% 40% London NewCo. Delek Drilling LP All Other licenses & Leviathan Aphrodite Tamar (+TP) Assets* * Represents all other licenses and assets not related to Tamar, Leviathan and Aphrodite, and include, inter alia: Yam Tethys, Al
Slide 14: Tamar Related Debt
Tamar Related Debt ❑ Initial issuance of $2.0B Tamar Bond (Devtam) with 5 bullets payment maturities of $400mm each ❑ 2016 and 2018 bullets payed as well as $320mm repayment due to sale of 9.25% WI ❑ $960mm outstanding in 3 series of $320mm bullets payment in years : 2020, 2023, 2025 Delek Drilling
Slide 15: Leviathan – A Regional Energy Game Changer
Leviathan – A Regional Energy Game Changer Ownership Delek Drilling 45.3%, Ratio 15%, Noble Energy (operator) 39.7% 2P+2C Resources* 21.5 tcf (616 bcm), 38.6 mmbbl condensate Estimated First Gas 4Q 2019 Production Capacity (to be built in 3 stages) DSM - 1.2 bcf/d (~12 bcm/y) DSMX - 0.4 bcf/d (~4 bc
Slide 16: Leviathan – Modular Development
Leviathan – Modular Development Leviathan partners approved $25mm for FEED In order to examine various expansion alternatives Capacity of 1.2 bcf/d (approx. 12 bcm/y) Capacity of 1.6 bcf/d (approx. 16 bcm/y) Capacity of 2.4 bcf/d (approx. 24 bcm/y) DSM – Domestic Modul DSMX – Domestic Modul REM – Re
Slide 17: Leviathan Development on Time on Budget
Leviathan Development on Time on Budget ❑ Phase 1a development ~95% completed ❑ Jacket & TopSide installation completed ❑ Hook-up & Commissioning to be started soon ❑ To date, the project budget has been revised downwards by $150mm ❑ First gas expected by year end Source: Leviathan operator (NBL) De
Slide 18: Leviathan – Contracts and Sales Breakdown
Leviathan – Contracts and Sales Breakdown Long term contractual structure with limited commodity price risk Domestic – Israel Regional Export Israel Electric IPP & Electricity Jordan NEPCO Egypt- Dolphinus Corp. Related ❑ ~4 bcm for a period of 2 ❑ Aggregate of number of ❑ ~3-3.5 bcm/y ❑ ~3.5 bcm/y
Slide 19: Leviathan Financing
Leviathan Financing Project finance facility to be taken out with a Bond issuance Project Finance Facility Future International Bond ❑ Delek Drilling Leviathan Capex ❑ Refinancing of the project finance share of c. $1.75 B fully funded facility with a Bond issuance through first gas ❑ Facility raisi
Slide 20: Cyprus – Aphrodite Field
Cyprus – Aphrodite Field Ownership Delek Drilling 30%, Shell 35%, Noble Energy (operator) 35% Discovered Contingent Resources (2C) * 3.5 tcf (100 bcm) Additional Prospective Resources (P50) 1.0 tcf (29 bcm) Location 168 km south of Limassol 1,700m water depth Target markets Cyprus - Domestic Egypt -
Slide 21: Delek Regional Strategy
Delek Regional Strategy Israel – Domestic market Jordan - NEPCO Palestinian Authority Egypt – Domestic market Egypt – LNG Export Facilities Turkey Existing infrastructure Potential infrastructure Under construction Delek Drilling - Energizing The Eastern Med 21
Slide 22: Israel Long Term Demand Growth
Israel Long Term Demand Growth Israel Expected Natural Gas Demand (BCM) Electricity Generation Mix 34.0 32.8 Gas Coal Renewable 31.9 31.0 2% 29.9 5% 8% 29.0 28.0 27.0 8% 26.2 21% 25.3 24.4 23.7 45% 22.8 22.0 21.1 20.3 19.5 18.7 18.0 15.4 14.0 84% 10.9 11.2 74% 53% 2018 2019 2020 2021 2022 2023 2024
Slide 23: Egypt – Long Term Supply Demand Imbalance
Egypt – Long Term Supply Demand Imbalance ▪ Significant consumption of over 60 bcm/y, and Egypt - Domestic Production vs Demand, BCM/y increasing by Approx. 8% year on year +20 BCM of LNG facilities* ▪ Additional gas is required for two existing LNG facilities, consuming approx. 17 to 20 bcm/y ▪ Zoh
Slide 24: Jordan NEPCO – Ideal Export Offtaker
Jordan NEPCO – Ideal Export Offtaker An anchor contract for Leviathan phase-1 development NEPCO GSPA main parameters: ❑ Buyer : National Electric Power Company of Jordan (NEPCO) ❑ Seller : NBL Jordan Marketing Limited (SPV owned pro-rata by Leviathan partners, according to their working interests) ❑
Slide 25: The Levant Basin Geology
The Levant Basin Geology Leviathan Deep Oil potential Delek Drilling LP – Energizing the Eastern Med 25
Slide 26: Near Term Milestones
Near Term Milestones Leviathan Leviathan First Gas : Leviathan Activity & Tamar – Platform Israel + Jordan + Refinancing Dolphinus Installation Operation : Flow Test & Egypt (Potential Bond issuance) Sales Leviathan Leviathan Expansion Aphrodite EMG Deep DSMX + REM Marketing + FID Transaction Closin
Slide 27: Thank You
Thank You Delek Drilling - IR Tel. +972 9 971 2421 IR@delekng.co.il Eastern Med 27