Capricorn Energy Plc · LSE:CNE
Capricorn Energy — Q2 2022 Earnings Presentation
20 slides from Capricorn Energy's earnings presentation, Sep 6, 2022
Slide 1: Creating a Leading African Energy Company
Creating a Leading African Energy Company JUNE 2022 1
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. This presentation has been prepared by Tullow Oil plc (“Tullow”) and Capri
Slide 3: Disclaimer (cont’d)
Disclaimer (cont’d) Capricorn Shareholders in the United States should note that the Combination relates to the shares of a Scottish company and is proposed to be made by means of a scheme of arrangement provided for under, and governed by Scots law. Securities proposed to be issued pursuant to the
Slide 4: Creating a Leading African Energy Company
Creating a Leading African Energy Company Scale Material and diversified resource base Focus African energy player Growth Financial flexibility to accelerate growth Base annual dividend $60 MM; additional returns driven by Returns disciplined capital allocation Focus on responsible resource developm
Slide 5: Value Creation, Growth and Returns
Value Creation, Growth and Returns Low-cost, substantial production base underpins robust free cash flow generation High return opportunities to accelerate growth Supporting economic and social development for host nations Deep commitment to environmental stewardship Significant value creation and c
Slide 6: Material and Diversified Resource Base
Material and Diversified Resource Base 2P Reserves: 343 MMboe1,2 2C Resources: 696 MMboe2 2021 Production: 96 kboe/d2 31 December 2021 31 December 2021 2021 Others Others Others 12% 12% 18% Egypt 10% Ghana Ghana Egypt 45% 44% 26% Ghana 62% Kenya Egypt 33% 38% • Diversified reserves base • 2P + 2C li
Slide 7: Delivering Growth
Delivering Growth Timeline1 2022 2023 2024 2025 Jubilee infill Jubilee South-East / North-East wells Jubilee infill Jubilee facilities expansion Jubilee SE/NE infrastructure install Ghana GNT2 appraisal GNT2 development and well construction Enyenra infill Enyenra/Ntomme infill Tweneboa oil Tweneboa
Slide 8: Supporting Host Nations and Communities
Supporting Host Nations and Communities Creating Value Through Discovery1 • Well placed to deliver substantial benefits Bn boe ~0.6 ~6.5 ~0.6 • Long-standing local content programmes and ~1.4 commitment to local employment ~1.7 • Social investment programmes focused on education, skills development
Slide 9: Commitment to Environmental Stewardship
Commitment to Environmental Stewardship Scope 1 + 2 Net Zero Delivery Pathway • Net zero scope 1 + 2 CO2 emissions by 2030 Non-Operated emissions Operated emissions • Decarbonisation of assets Annual Scope 1 + 2 GHG ‒ Emissions (tCO2e) Operated emissions reduction underway in Ghana ‒ Non-operated em
Slide 10: Robust, Low-Cost Cash Flow Generation
Robust, Low-Cost Cash Flow Generation 2022-25 Cumulative Outlook Operating Cash Capex and Pre-financing Oil Price1 Production Costs2 Flow3 Decommissioning Cash Flow4 $100/bbl ~$1.5/boe ~$5.7 Bn ~$3.6 Bn net G&A ~170 <$10/boe $75/bbl MMboe from ~$4.7 Bn ~$2.4 Bn ~$2.4 Bn opex 2022 - 2025 Taxes and $5
Slide 11: Resilient Balance Sheet
Resilient Balance Sheet Capital Structure Net Debt at December 31, 2021 ($ Bn) • Pro forma 2021A leverage of 1.5x and $1.8 Bn3 of liquidity 0.2 2.8 2.6 1.5x • Expected leverage <1x at year end 20222 1.5 (1.3) • Combined group well positioned to optimise its capital structure and cost of capital • Pr
Slide 12: Disciplined Capital Allocation
Disciplined Capital Allocation 1 Grow production and decarbonise existing portfolio 2 Maintain resilient balance sheet 3 Base annual dividend of $60 MM1 4 High return organic growth projects 5 Excess cash flow to support additional shareholder distributions and inorganic growth Notes: 1. Since Tullo
Slide 13: Merger of Equals
Merger of Equals • Recommended all-share combination Key Terms • Exchange ratio: 3.8068 new Tullow shares for every Capricorn share • Pro forma ownership: 53% Tullow shareholders, 47% Capricorn shareholders • Name change intended to take effect upon completion Name • Combined Group will have a disti
Slide 14: Creating a Leading African Energy Company
Creating a Leading African Energy Company Scale Material and diversified resource base Focus African energy player Growth Financial flexibility to accelerate growth Base annual dividend $60 MM; additional returns driven by Returns disciplined capital allocation Focus on responsible resource developm
Slide 15: Appendix
Appendix 15
Slide 16: Ghana Overview
Ghana Overview Key Metrics1 Key Priorities • Significant potential in Ghana with ~13% of STOIIP 2021 Production2 42 kboe/d recovered as of 31 December 2021 • Focus on unlocking potential from largely undeveloped areas east of Jubilee core 2P Reserves2,3,4 212 MMboe • TEN strategic wells expected to
Slide 17: Egypt Overview
Egypt Overview Key Metrics1 Key Priorities • Maximise near-term oil and condensate production 2021 Production2 36 kboe/d • Add new resources through field life extension and ILX in new concessions 2P Reserves2,3 91 MMboe • Unlock new gas resources 2C Resources2,3 70 MMboe • Centralise power, improve
Slide 18: Kenya Overview
Kenya Overview Key Metrics Key Priorities • Robust development project with highly competitive Gross Asset Plateau project economics 120 kboe/d Production • Kenya’s first oil-exporting development 2P Reserves1,2 - • FDP submitted in December 2021, constructive discussions with Government 2C Resource
Slide 19: Other Regions
Other Regions Key Metrics1 Key Priorities • Gabon 2021 Production2 17 kboe/d ‒ Focus on near-field and infrastructure-led exploration opportunities ‒ Compelling economics: IRRs of >60% and paybacks within six months 2P Reserves2,3 40 MMboe • Cote d’Ivoire ‒ Westward extension of producing play in Gh
Slide 20: TULLOW CG
TULLOW CG it Capricorn