Dana Gas Pjsc · ADX:DANA

Dana Gas Pjsc — Investor Presentation (September 2018)

27 slides from Dana Gas Pjsc's investor presentation, September 2018

  1. Slide 1: Corporate Presentation: Clean Energy For the Future

    Corporate Presentation Clean Energy For the Future September 2018 1

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections abo

  3. Slide 3: Recent Highlights

    Recent Highlights i ———a

  4. Slide 4: Strong H1 2018 Results

    Strong H1 2018 Results Financial Operations  $236m H1 revenue  Group production averaged 63,600 boepd – down 6% - Up 6%; due to higher realized prices - Decrease primarily result of natural field declines in Egypt  $82m in gross profit  KRI expansion plans (phase 1) on track for 25% production -

  5. Slide 5: New Sukuk: favourable terms and enhanced structure

    New Sukuk: favourable terms and enhanced structure Current Proposal – Simplified Term New Sukuk Sheet OPTION A  New Sukuk Issued and Listed on the Irish Stock Exchange Purchase price 90.5% (if tender received before Early Participation Deadline) on face value of existing Sukuk allocated to Option A

  6. Slide 6: Strategy

    Strategy

  7. Slide 7: Where are we today

    Where are we today Kurdistan Region of Iraq  26,100 boepd (H1 2018) MENA’s largest independently listed,  Two world class fields – largest gas reserves in KRI natural gas-focused E&P company  10 years of historical production Supplies two major power-stations $24m $3.7bn  H1 2018 net profit Tota

  8. Slide 8: Why to invest in Dana Gas

    Why to invest in Dana Gas: Growth strategy through to 2021 3-year plan to triple production to 900 MMscf/d in KRI; significant growth ahead • Settlement Agreement signed in August 2017 with favorable terms • Clears the way for development of world-class fields: 1 billion boe of 2P reserves (DG share

  9. Slide 9: Key Focus / Strategy: 2018

    Key Focus / Strategy: 2018 1. 2. 1 2 Deliver full asset value through Develop world-class assets in continued operational efficiencies and Kurdistan to add 25% gas and focus on costs condensate production 3. 3 4. 4 Improving collections and reducing Conserve cash by balancing receivables exploration

  10. Slide 10: Promising Operational Tailwinds

    Promising Operational Tailwinds

  11. Slide 11: KRI: World Class Assets

    KRI: World Class Assets Pearl Petroleum Company Ltd  DG holding 35% (Dec 2015)  Crescent (35%), OMW, MOL, RWE (10%)  2 major fields: 75 Tcf GIIP, 7 bln bbls STOIIP  Daily production of 300 MMscf of gas, 13mbbl of condensate and 1000 MT of LPG Khor Mor and Chemchemal fields  DG share of producti

  12. Slide 12: Operate two of the largest gas fields in MENA

    Operate two of the largest gas fields in MENA Large Gas Developments in MENA Kurdistan MENA 120 (Source: Company Disclosure) Gas Initially in place resources (TCF) 80 40 0 Khor Mor & Miran Bina Bawi Khazzan Leviathan & Zohr (Egypt) Al Hosn (UAE) Atoll (Egypt) Chemchemal ** (Oman) * Tamer (E. Med) No

  13. Slide 13: KRG & Pearl Petroleum close chapter on dispute

    KRG & Pearl Petroleum close chapter on dispute “The Parties have mutually agreed to fully and finally settle all their differences amicably by terminating the Arbitration and related court proceedings… implementing a mechanism for settlement of $2,239 million…” Settlement Highlights: Settlement – in

  14. Slide 14: KRI: Expansion plans underway

    KRI: Expansion plans underway  Ambitious programme to increase production by 170% to 900 MMscf/d by 2021  Building 2x 250MMscf/d trains sequentially to expand gas production by 500 MMscf/d in Khor Mor – first train to commence in 2020  Pearl Petroleum signs 10-year Gas Sales Agreement with KRG to

  15. Slide 15: Egypt: Identifying Upside

    Egypt: Identifying Upside  First entered Egypt in 2007  Production 35,600 boepd (H1-18)  Reserves stand at 117 mmboe (2P)  14 development leases under 3 concessions in Nile Delta region • El-Manzala ( 3 Development leases) • West El-Manzala ( 9 Development leases) • West El-Qantara ( 2 Developme

  16. Slide 16: Egypt: Growth potential

    Egypt: Growth potential Nile Delta Concessions ( 100% WI)  South Faraskur workover added 4 MMscf/d  SAEN-9 tested successfully and will add up to 5 MMscf/d  Balsam-8, spudded in August 2018 Expected to add 25- 30MMscf/d by end 2018 North El Salhiya (Block 1 – 100% WI)  ESAEN test results of 5 MM

  17. Slide 17: Egypt: Gas Market Fundamentals are Intact

    Egypt: Gas Market Fundamentals are Intact 17

  18. Slide 18: UAE: Zora Gas Field

    UAE: Zora Gas Field  Producing gas since February 2016  2P reserves at 24 mmboe  Production rate of 1,300 (H1 18)  Detailed modelling of future performance conclude not all reservoir is productive with today’s technology  Any final decision on future expenditure to assess the economic viability

  19. Slide 19: 2P Reserves (mmboe)

    Reserves 2P Reserves (MMboe) Reserves Comparison EV vs 2P reserves 16 1.20 14 Total 1.00 1,131 12 0.80 2P Reserves (mmboe) 10 EV ( million USD)* KRI 990 8 0.60 Egypt 117 UAE 6 24 0.40 4 0.20 2 0 0.00 Lundin Tullow Premier Dana Gas DNO Maurel & Genel Ophir Oil Prom Energy Energy EV 2P reserves *As of

  20. Slide 20: Production (boepd) & Realized Prices (USD/boe)

    Production (boepd) & Realized Prices ( USD/boe) Average production H1 2018 vs H1 2017 Average production Q2 2018 vs Q2 2017 65,400 62,400 67,550 Q2 2017 63,600 H1 2017 Q2 2018 H1 2018 37,650 34,400 39,300 35,600 25,400 26,000 25,900 26,100 1,650 1,200 700 800 1,700* 1,300 650 600 Group Egypt KRI UAE

  21. Slide 21: Financials

    Financials

  22. Slide 22: Financial Highlights

    Financial Highlights Gross Revenue (million USD) EBITDA (million USD) 250 236 222 150 2017 2018 200 122 122 150 100 116 104 100 53 51 50 50 0 0 H1 2017 2018 Q2 H1 Q2 Gross Profit (million USD) Net Profit (million USD) 82 30 2017 2018 2017 2018 24 80 23 59 60 20 37 12 40 10 10 21 20 0 0 H1 Q2 H1 Q2 2

  23. Slide 23: CAPEX & OPEX

    CAPEX & OPEX G&A / OPEX (million USD) CAPEX (million USD) G&A OPEX 56 52 52 122 80 27 25 25 23 47 13 38 13 15 7 7 8 2015 2016 2017 H1 2016 H1 2017 H1 2018 2016 2017 H1 2016 H1 2017 H1 2018 G&A / OPEX CAPEX  Company continues to optimise costs  $38m of H1 Capex ( $15m in KRI and $23m in Egypt)  OP

  24. Slide 24: Cash Flow, Liquidity & Receivables

    Cash Flow, Liquidity & Receivables  $613m cash (inc. $95m dividend payment) Free Cash Flow (million USD)  Positive FCF - $96 million 465 450 413  Sukuk refinancing concluded • New profit payment of 4% p.a.; 3-yrs • Save $35m+ in financing costs p.a. 203 181 200 • Payment of $235m in respect of su

  25. Slide 25: Arbitration

    Arbitration UAE Gas Project (NIOC)  Contract between Crescent Petroleum(CP) and National Iranian Oil Company (NIOC) to supply 600 mmscf/d of gas from Iran to the UAE  NIOC never honored the contract despite Dana Gas having invested over $1 billion, to build the offshore riser platform, associated

  26. Slide 26: Group Production

    Group Production Group Egypt KRI (DG 35%) UAE EBEDCO 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 Gas (MMSCF/D) 299 301 177 187 307 299 15 9 - - Condensate (BBLs/D) 10,899 11,326 5,306 6,018 13,269 12,885 199 98 750 700 LPG ( MT/D) 534 516 245 196 826 914 - - - - Net Production ( boed) 67050 67

  27. Slide 27: Reach Us: Dana Gas PJSC

    Reach Us: Dana Gas PJSC P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : mohammed.mubaideen@danagas.com Direct : +971 6 519 4401

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