Dana Gas Pjsc · ADX:DANA

Dana Gas Pjsc — Investor Presentation (September 2015)

38 slides from Dana Gas Pjsc's investor presentation, September 2015

  1. Slide 1: Clean Energy For the MENA Region's Tomorrow

    Clean Energy For the MENA Region’s Tomorrow Dana Gas Investors Presentation September 2015 www.danagas.com 1

  2. Slide 2: Forward Looking Statement

    Forward Looking Statement This presentation contains forward-looking statements Forward-looking statements are based on certain assumptions which may be identified by their use of words like “plans,” and expectations of future events. The Company, its “expects,” “will,” “anticipates,” “believes,” “i

  3. Slide 3: Presentation Outline

    Presentation Outline  Increasing role of gas in MENA  Dana Gas – Business Profile  Country Operations – Egypt, KRI and UAE  Valuation and Credit Metrics  Summary www.danagas.com 3

  4. Slide 4: Gas is the growth fuel of the 21st Century

    Gas is the growth fuel of the 21st Century. It has strong environmental credentials, is cost competitive, is accessible and available in abundance Current full lifecycle costs for new-build power generation including externalities (USD per boe) 300 250 Fall in oil price has brought its price below r

  5. Slide 5: Middle East gas demand is poised for continued growth

    Middle East gas demand is poised for continued growth as the region’s population and economy grows in coming decades GDP Growth of Middle East1 Regional Gas Demand Growth in Last Decade 3,500 CAGR: 8.2% 3,000 500% 162 2,500 2013 Gas GDP, USD bn 450% Demand 2,000 (bcm pa) 1,500 400% Total Gas Demand

  6. Slide 6: MENA region holds ca. 50% of global oil & gas reserves

    MENA region holds ca. 50% of global oil & gas reserves but with limited access. Dana Gas has established presence in both large resource plays and growth market with open access Oil & Gas Proved Reserves (Source: BP Statistical Review 2014) 400 1688 6558 Gas 350 MENA Reserve Ranking bln bbl Tcf MENA

  7. Slide 7: Dana Gas as regional gas integrated player

    Dana gas as regional gas integrated player focused on matching resource with markets Gas Resource Holders in Middle East (incl. Egypt) 40 (Total Reserves: c. 82 Tcm) Proved Gas Reserves, tcm 35 Access to Private Capital Based on IHS estimates Open 30 approx. 60% of ME Potentially Open 25 Incl. KRI r

  8. Slide 8: Dana Gas – Business Profile

    Dana Gas – Business Profile www.danagas.com 8

  9. Slide 9: Dana Gas: Independent E&P company listed on the ADX

    Dana Gas: Independent E&P company listed on the ADX Dana Gas is operating at the heart of the World’s  Dana Gas is a MENASA focused gas Largest Hydrocarbon region independent headquartered in the UAE  Dana Gas is quoted in the Abu Dhabi Securities Exchange. Bloomberg: DANA:UH  Shares outstanding:

  10. Slide 10: Dana Gas works across the gas value chain

    Dana Gas works across the gas value chain addressing both domestic and export market needs in MENA region Dana Gas is operating at the heart of the Production Profile world’s largest hydrocarbon bearing region CAGR 11% Reserve & Resources Mid Stream and Business Model across the gas value (YE 2014)

  11. Slide 11: Consistent growth, delivery and financial performance since 2007

    Consistent growth, delivery and financial performance since 2007 Production Revenue 800 700 600 USD Million 500 400 690 652 683 300 636 487 200 349 282 311 100 231 0 2007 2008 2009 2010 2011 2012 2013 2014 H1 2015 EBITDAX Profit After Tax www.danagas.com 11

  12. Slide 12: Dana Gas: Country Business Highlights

    Dana Gas: Country Business Highlights www.danagas.com 12

  13. Slide 13: Egypt gas fundamentals are robust

    Despite a challenging business environment; Egypt gas fundamentals are robust. Dana Gas to play a key role in increasing gas production in the core Nile Delta region Egypt GDP (USD bln) Egypt Primary Energy Demand (mln toe pa) 450 100 Primary Energy Demand (mln toe pa) Other Renewables 400 90 Coal G

  14. Slide 14: 6th largest operator and 4th largest onshore producer in Egypt

    Dana Gas is the 6th largest operator and 4th largest onshore producer in Egypt 2015e Gas Production Ranking in Egypt (* denotes company is an operator) 1,000 900 2015 WI Production, mmcfpd 800 Dana Gas Egypt Credentials: 700 8th largest producer 600 6th largest operator th 4 largest onshore producer

  15. Slide 15: Egypt: Nile Delta Operations

    Egypt: Nile Delta Operations Development Leases: El • Onshore acreage consisting of 14 Wastani Development Leases in the prolific Nile Delta region. Begonia, the most recently awarded lease, was approved in Jan-15 Production: • 2Q 2015 average of 35.01 kboe/d currently on a decline due to natural fi

  16. Slide 16: Gas Production Enhancement Agreement (GPEA)

    Gas Production Enhancement Agreement (GPEA) helps Egypt increase production while delivering long term value to Dana Gas Gas Enhancement Project – Execution Progress • 3 drilling and workover rigs secured with spud dates during May/June  650 HP workover – 14 activities planned, expected start date

  17. Slide 17: Block 6 – North El Arish Offshore Opportunity

    Block 6 – North El Arish Offshore Opportunity • Integration of regional 2D multi- client seismic data into evaluation • Environmental Impact Assessment completed • Military approval in progress • ~1750 sqkm of 3D seismic acquisition planned before end 2015, located over the deep-water portion of the

  18. Slide 18: Newly awarded exploration blocks in Nile Delta

    Newly awarded exploration blocks in Nile Delta enables Dana Gas to build on its core area production and utilising existing infrastructure Blocks 1 & 3 located adjacent to Dana Gas’ prolific Nile Delta development leases • North El Salhiya (Block-1) and El Matariya (Block-3) onshore concessions rati

  19. Slide 19: Operations in Kurdistan Region of Iraq

    Operations in Kurdistan Region of Iraq • Gross production averaged 75,540 boepd during 1H 2015 including: • Gas: 317 MMSCFD • Condensates: 14062 boepd • LPG: 737 MTD • Dana Gas has a 40% WI • Dana gas saw a 6% increase over 1H 2014 as a result of increased LPG production. • All liquids continue to b

  20. Slide 20: Rich gas and condensate producer with strong growth track record

    Rich gas and condensate producer with strong growth track record Khor Mor Field Production, Dana Gas net share (40%) 35 Gas 3 30 Liquids(Condensate + LPG) 25 Production (kboed) 20 15 10 5 0 2Q09 3Q10 4Q08 1Q09 3Q09 4Q09 1Q10 2Q10 4Q10 H1 15 2013 2011 2012 2014 www.danagas.com 3. Current Condensate G

  21. Slide 21: Khor Mor and Chemchemal are world class assets

    Khor Mor and Chemchemal are world class assets: potentially largest gas fields in the KRI and comparable to some of the largest gas field developments in the region Some Large Gas Developments in MENA under development 60 Gas in Place * (in TCF) 30 0 KhorMor + Miran Bina Bawi Bab Leviathan + Arabiya

  22. Slide 22: UAE: Zora Project Update

    UAE: Zora Project Update  Project plan for first gas in 2015 with a capacity of 40 mmscfd (6,650 boepd)  Offshore Pipeline pre- commissioning complete  Offshore Platform jacket installed  Drilling complete and Well stimulation ongoing  Topsides pre-commissioned  Onshore plant pre-commissioning

  23. Slide 23: UAE: Zora Project Update

    UAE: Zora Project Update Offshore Trenching for the Zora Gas Pipeline www.danagas.com 23

  24. Slide 24: UAE: Zora Project Update

    UAE: Zora Project Update Onshore Gas Plant Construction Slug Catcher Being Positioned www.danagas.com 24

  25. Slide 25: Dana Gas: Relative Valuations

    Dana Gas: Relative Valuations www.danagas.com 25

  26. Slide 26: EV and Production valuation relative to peers

    EV and Production valuation relative to peers Enterprise Value vs. Production (2015E) EV ($bn) 2015E Production (kboepd) 10 100 9 90 8 80 WI Production (kboepd) Enterprise Value ($ bn) 7 70 6 60 5 50 4 40 3 30 2 20 1 10 0 0 www.danagas.com Source: Company Data, Bloomberg 26

  27. Slide 27: Significantly undervalued relative to peers

    Significantly undervalued relative to peers EV/EBITDA P/E 6.0 20 17.4 5.3 5.1 5.0 Price/EPS (2016E) EV/EBITDA (2016E) 15 4.0 Mean* ~3.7 3.6 3.5 11.1 10.7 3.4 3.0 10 Mean * ~9.8 8.0 7.2 2.0 1.2 5 4.4 1.0 0.0 0 Tullow Lundin Premier Genel Dana DNO Lundin Tullow Genel Premier Dana DNO Gas Gas P/CF P/B

  28. Slide 28: Dana Gas has mostly outperformed peers since Jan 2013

    Dana Gas has mostly outperformed International and Middle Eastern (ME) peers since Jan 2013 International Peers ME Peers 150% 200% Dana Gas -2% Dana Gas -2% 150% 100% Relative performance (%) Relative performance (%) DNO International -48% 100% Lundin Petroleum -47% 50% 50% Genel Energy -65% - Premi

  29. Slide 29: Relative Performance

    Relative Performance -90% -80% -70% -60% -50% -40% -30% -20% -10% 0% 20% 10% DanaGas www.danagas.com Africa Oil Cairn Energy Det Norske Lundin Petroleum Faroe Petroleum Cobalt Lekoil Green Dragon Soco Intl. Ithaca Kosmos Bowleven EnQuest Karoon Gas Brent Shamaran Indus gas TransGlobe Premier Oil Roc

  30. Slide 30: Dana Gas: Credit Metrics

    Dana Gas: Credit Metrics www.danagas.com 30

  31. Slide 31: Additional Financial Information

    Additional Financial Information Dana Gas Additional Financial Metrics EBITDA (LTM) $mln 252 EBIT (LTM) $mln 149 Net Debt $ mln 595 Net Debt/EBITDA x 2.4 Interest Cover Ratio (LTM) x 2.2 Book Leverage (Net debt/Total assets) x 16% Weighted Avg Years to Maturity Years 2.2 www.danagas.com *LTM as of 2

  32. Slide 32: Dana Gas Sukuk Instruments

    Dana Gas Sukuk Instruments Convertible Bond Performance Convertible Price Share Price Convertible Sukuk: 130 1.2 Dana Gas Convertible Trading Value  Principal amount: $352 mln Dana Gas Share Price, AED 120 1.0 110 0.8  Coupon: 7% (payable 100 0.6 quarterly) 90 0.4  Maturity: 31/10/2017 80 0.2  C

  33. Slide 33: Leverage and interest coverage ratio in line with peers

    Leverage and interest coverage ratio in line with peers 5 3 1 Net Debt / EBITDA -1 -3 -5 -7 -9 Net Debt /EBITDA (LTM*) -11 (Source: Bloomberg) -13 -15 DNO Dana Gas Premier Petroceltic Genel Tullow Lundin 30 EBIT/Interest Expense 15 0 -15 EBIT / Interest Expense (LTM*) (Source: Bloomberg) -30 Dana Ga

  34. Slide 34: Book gearing and Leverage comparable to industry peers

    Book gearing and Leverage comparable to industry peers 60 50 Debt to Book value of Assets Debt/Total Assets (Source: Bloomberg) 40 30 20 10 0 Lundin Premier Petroceltic Tullow Dana Gas DNO Genel 140 120 Debt to Book value of Equity (Source: Bloomberg) Debt/Common Equity 100 80 60 40 20 0 Lundin Prem

  35. Slide 35: Reserve life c. x average year to maturity of Debt

    Reserve life c. 2 x average year to maturity of Debt 8 Werighted Avg Years to Maturity 7 Debt : Average year to maturity 6 (Source: Bloomberg) 5 4 3 2 1 0 Tullow DNO Premier Genel Dana Gas 45 40 Reserve Life (2014 YE*) 35 (Source: Company Data) Reserve Life, Years 30 25 20 15 10 Note: Dana Gas Reser

  36. Slide 36: Summary

    Summary www.danagas.com 36

  37. Slide 37: Summary

    Summary  Marginal reduction in production resulting from natural field decline in Egypt despite the steep fall in oil prices  Further upside potential in 2015 with enhanced production following planned commencement of GPEA (Egypt) and Zora gas field (UAE)  10% production upside from Zora field de

  38. Slide 38: Reach Us: Dana Gas PJSC

    Reach Us: Dana Gas PJSC P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : rsingh@danagas.com Direct : +971 6 519 4401 Fax : +971 6 556 6522 www.danagas.com 38

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