Tullow Oil Plc · LSE:TLW
Tullow Oil — H1 2021 Earnings Presentation
27 slides from Tullow Oil's earnings presentation, Sep 15, 2021
Slide 1: Tullow Oil plc Half Year Results
Tullow Oil plc Tullow Oil plc | Half Year Results 15 September 2021
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Tullow believes the expectations reflected herein to be reasonable in light of the informa
Slide 3: Overview
OVERVIEW Tullow Oil plc | 2021 Half Year Results
Slide 4: Tullow: A leader in Africa
Tullow: A leader in Africa Tullow is a leading We are committed to We maximise value through operational African Oil & Gas responsible & safe excellence and technical expertise in engineering, Company operations subsurface and exploration Continued delivery of our business plan can create material v
Slide 5: Positive steps during a transitional year
Positive steps during a transitional year Significant progress in 1H Near-term catalysts Clear path to value creation ✓ Reliable operating performance → Organic growth from existing assets → Plan supports material deleveraging ✓ Consistent gas offtake in Ghana → Revised Kenya development plan → Equi
Slide 6: Building a better future for our host countries
Building a better future for our host countries RESPONSIBLE OPERATIONS NET ZERO Low cost and capital efficient Targeting Net Zero by 2030 by operations that ensure the reducing carbon emissions, safety and wellbeing of our helped by the elimination of people while minimising our routine flaring by 2
Slide 7: Carbon reduction initiatives
Targeting Net Zero by 2030 (Scope 1 & 2) 2020 Jubilee gas emissions de-bottlenecking baseline to eliminate routine flaring Gas compressor work and capacity TEN process expansion modifications to eliminate routine flaring Abatement projects such as MF separator tie-in NPV+ projects under Interim targ
Slide 8: First Half Results
FIRST HALF RESULTS Tullow Oil plc | 2021 Half Year Results
Slide 9: 2021 Half Year Results
2021 Half Year Results 93 1H20 1H21 1H20 1H21 30 June ‘20 30 June ‘21 1H202 1H21 Revenue ($m) Opex ($/boe)1 LTM Adjusted EBITDAX ($m) Profit after tax ($m) 1H20 1H21 1H20 1H21 30 June ‘20 30 June ‘21 30 June ‘20 30 June ‘21 Capital investment ($m) Free cash flow ($m) Net debt ($bn) Gearing (x) 1 Inc
Slide 10: 2021 Guidance
2021 Guidance Key guidance figures Group production breakdown 60.0 58-61kboepd c.$ 260million c.$90million 17.9 2021f Group production (kboepd) Production Capex Decommissioning 15.7 c.$ 0.6billion c.$13/boe c.$50million Underlying operating cash flow 26.4 Opex1 Net G&A 0.1billion c.$ 2 Free cash flo
Slide 11: Business plan supports deleveraging target
Business plan supports deleveraging target Sources and uses of cash 2021-25 ($65/bbl flat nominal) 4.0 Business plan generates material cash flow to support deleveraging and significantly reduce debt by 2025 and reach gearing of <1.5x Revenue and cash flow 3.0 underpinned by material three-year hedg
Slide 12: Maximising value from our asset base
MAXIMISING VALUE FROM OUR ASSET BASE Tullow Oil plc | 2021 Half Year Results
Slide 13: Delivering reliable production performance
Delivering reliable production performance Wells Uptime First new Jubilee production well onstream delivering good rates High efficiency from Ghana FPSO’s, averaging >98% Group production guidance narrowed upwards Jubilee water injector; Jubilee producer and TEN gas injector; Embedding efficiencies
Slide 14: Jubilee - Extensive untapped remaining resource
Jubilee - Extensive untapped remaining resource Jubilee North East Jubilee has nearly 2 billion EUR: 98mmbbls barrels oil initially in place 13 87% Jubilee Core: MH5 Targeting recovery of c.40% Jubilee Core: MH4+3 EUR: 94mmbbls of oil initially in place1 EUR: 286mmbbls 64% 36% 49% 51% Produced less
Slide 15: Eastern Jubilee – Sanctioned projects near existing infrastructure
Eastern Jubilee – Sanctioned projects near existing infrastructure Highly profitable projects east of Jubilee core areas • Jubilee South East - Subsea production loop and water injection manifold - Infill well opportunities require only minimal tie-in architecture - First oil and water injection exp
Slide 16: Significant additional resource potential from TEN fields
Significant additional resource potential from TEN fields TEN Development & Production Area TNAG TEN has approximately 1 billion Enyenra North Gas in place: 138 bcf barrels oil initially in place Oil in place: 67 mmbo 100% 100% Targeting recovery of c.30% TNAG West recovery of oil initially in place
Slide 17: Non-operated portfolio – Collaborative approach creates value
Non-operated portfolio – Collaborative approach creates value Portfolio highlights Simba – high-value near field project delivery 8.0 • Field significantly exceeding sanction case: Steady production & - Expected recovery almost 5x higher Simba expansion under way Working interest production positive
Slide 18: Unlocking value from selective emerging basins
Unlocking value from selective emerging basins Emerging basins of Guyana and Argentina Beebei – Potaro high impact exploration well targeting Cretaceous light oil play in Kanuku Block Opportunities to extract Continue to mature Orinduik prospect inventory value from selected Significant >1Bnbo prosp
Slide 19: Building confidence in Kenya resources & recovery
Building confidence in Kenya resources & recovery 2.85 billion bbls STOIIP1 confirmed 2C of 585 million bbls represents by independent auditor2 c.20% of oil-in-place 585 million bbls 2.85 (Tullow net 231) billion bbls 433 million bbls (Tullow net 171) 1.77 Phase 1 billion bbls Optimised Development
Slide 20: Kenya optimisation has created a robust project
Kenya optimisation has created a robust project Plateau production rate of 120kbopd based on EOPS productivity data 120 120kbopd Gross production (kbopd) • Flowrates from Amosing and Ngamia EOPS wells provided confidence of potential in the core development areas plateau production • Amosing IP c.1,
Slide 21: Well-defined projects support production potential
Well-defined projects support production potential Five-year activity outlook 2021 2022 2023 2024 2025 Infill Jubilee Jubilee SE Jubilee NE Additional wells and infrastructure-led exploration Facilities expansion TEN Infill Strategic wells Additional wells and infrastructure-led exploration Non-oper
Slide 22: Pipeline of projects to replenish and grow reserves
Pipeline of projects to replenish and grow reserves 400 Net volume (mmboe) 350 300 Set to deliver sustainable self-funded production Potential 2P 250 reserves 2P reserves Visible reserves replacement 200 c.115-120 from currently defined projects c.100 150 Further potential reserves additions from IL
Slide 23: Conclusion
CONCLUSION Tullow Oil plc | 2021 Half Year Results
Slide 24: Tullow: A leader in Africa
Tullow: A leader in Africa Tullow is a leading We are committed to We maximise value through operational African Oil & Gas responsible & safe excellence and technical expertise in engineering, Company operations subsurface and exploration Continued delivery of our business plan can create material v
Slide 25: Tullow Oil plc
Tullow Oil plc 9 Chiswick Park, 566 Chiswick High Road London W4 5XT United Kingdom Tel: +44 (0)20 3249 9000 Fax: +44 (0)20 3249 8801 Email: ir@tullowoil.com Web: www.tullowoil.com Follow Tullow on:
Slide 26: Key Data
KEY DATA Tullow Oil plc | 2021 Half Year Results
Slide 27: 2021 Key data
2021 Key data Production (kboepd) 2021 forecast Debt maturity profile ($m) 2021 2022 2023 2024 2025 2026 Ghana 42.1 Senior Secured Undrawn - - - - - Revolving Credit Facility 500 Jubilee 26.4 Senior Notes - - - - 800 - TEN 15.7 Senior Secured Notes - 100 100 100 100 1,400 Equatorial Guinea1 1.1 Gabo