Delek Group Ltd. · TASE:DLEKG
Delek — Delek Group Investor Conference 2017
29 slides from Delek's conference presentation, May 14, 2017
Slide 1: Delek Group – Leading Israeli Independent E&P
Delek Group – Leading Israeli Independent E&P Asaf Bartfeld, President & CEO Investor Conference 14.05.2017 DELEK GROUP LTD > Expanding, Empowering 1
Slide 2: Delek Group’s Strategy
Delek Group’s Strategy Turning into an International E&P Acquisition of Ithaca Maintaining the Dividend Yield Listing on a Foreign Stock Exchange 2 DELEK GROUP LTD > Expanding, Empowering 2
Slide 3: Delek Group – E&P with International Operations
Delek Group – E&P with International Operations North Sea East Med. North America 3 DELEK GROUP LTD > Expanding, Empowering 3
Slide 4: Since the Beginning of 2016 and Until Today
Since the Beginning of 2016 and Until Today Strategy Execution E&P Activities Regulation Acquisition of Ithaca FID in Leviathan – first Approval of the Faroe Petroleum gas by the end of 2019 natural gas outline Merger of the A financing agreement Sale of Karish and Partnerships was sig
Slide 5: Delek Group Assets Portfolio post Ithaca
Delek Group Assets Portfolio post Ithaca E&P in East Med 27% E&P 73% E&P Internaitonal 12% 61% Non-core Assets 5 * Publicly traded assets - based on market value as of 11.5.2017 Private assets - Based on the average value published by the sell-side analysts covering the Delek Group DELEK GROUP LTD >
Slide 6: Reserves and Contingent Resources, Net to Delek Group
Reserves and Contingent Recourses, Net to Delek Group Delek Group Gross Economic Interest 1500 2P+2C (Based on FY 2016 including Ithaca Energy) 1000 2C 500 2P MMBOE 0 1,459.25 MMBOE 6 DELEK GROUP LTD > Expanding, Empowering 6
Slide 7: Benchmark to European E&P
Benchmark to European E&P 2P + 2C (mmboe) 1,600 1,400 1,200 1,000 800 600 400 200 0 7 Source: BofA Merrill Lynch Global Research DELEK GROUP LTD > Expanding, Empowering 7
Slide 8: Daily Production (Net WI) – Delek Group
Daily Production (NET WI) – Delek Group 2017E Production (boe/d) Tamar 30,800 Ithaca Energy 19,000 Total Net to Delek Group 49,800 8 * Based on the DCF model as published in the Company’s 2016 Annual Report and Ithaca’s Production Guidance for 2017 DELEK GROUP LTD > Expanding, Empowering 8
Slide 9: DELEK GROUP LTD > Expanding, Empowering
9 DELEK GROUP LTD > Expanding, Empowering 9
Slide 10: What Ithaca Brings to Delek Group
What Ithaca Brings to Delek Group Ongoing cash Operational Delek Group will flow generation E&P no longer depend Capabilities on solely 3rd party operators Reservoirs with future potential Proven Low production Proven Track cost – outlook in Experien Record 2017 of $18/boe Geographical -ce in in Div
Slide 11: Production Cost Per Barrel - Ithaca
Production Cost Per Barrel - Ithaca $23 Financing - $4 G&A - $1 Opex - $18 11 DELEK GROUP LTD > Expanding, Empowering 11
Slide 12: Phoenix
Phoenix Phoenix Share Performance in the last 12 months Financial Highlights (NIS Million) 2016 2015 General 694 325 Profit Equity 4,807 4,160 Sale Price as per the Agreement with Yango – NIS 2.15bn 12 DELEK GROUP LTD > Expanding, Empowering 12
Slide 13: Net Income According to Contribution – by Segment
Net Income According to Contribution – by Segment NIS Million (100%) 2016 2015 Q4 2016 Q4 2015 Oil & Gas Exploration & Production Operations 413 272 119 58 Fuel Operations in Israel 21 87 )24( 11 Automotive Operations 80 138 31 10 Contribution to net income from continuing 514 497 126 79 operations
Slide 14: Financial Highlights of 2016
Financial Highlights of 2016 NIS Million (100%) 2015 2016 Revenues 6,356 5,778 Gross Profit 1,764 2,034 Operational Profit 1,003 1,486 Net Profit 25 625 Dividend per year 450 560 14 DELEK GROUP LTD > Expanding, Empowering 14
Slide 15: Q&A
Q&A 15 DELEK GROUP LTD > Expanding, Empowering 15
Slide 16: GSA – First Gas in February 2017
GSA – First Gas in February 2017 16 Source: http://www.ithacaenergy.com/operations/greater-stella-area DELEK GROUP LTD > Expanding, Empowering 16
Slide 17: Disclaimer
Disclaimer This presentation has been prepared by Delek Group Ltd )“Delek” or “the Group”( and is provided to you solely for your information and is not to be copied or distributed to any other person. This presentation does not purport to be all-inclusive or to contain all of the information that m
Slide 18: Thank You
Thank You DELEK GROUP LTD > Expanding, Empowering 18
Slide 19: Delek Group Ltd Investor Conference – May 2017
Delek Group Ltd Investor Conference – 14 May 2017 Les Thomas – Ithaca Energy Inc., Chief Executive Officer
Slide 20: Cautionary Statement
Cautionary Statement This proprietary presentation (including any accompanying oral presentation, question and answer session and any other document or materials distributed at or in connection with this presentation) (collectively, the “Presentation”) has been prepared by Ithaca Energy Inc. (“Ithac
Slide 21: North Sea… well developed province with strong growth potential
North Sea… well developed province with strong growth potential NTD: Include UK stat on remaining reserves (OGUK data) Aberdeen London ITHACA ENERGY Corporate Presentation | 3
Slide 22: Established UK North Sea operator
Established UK North Sea operator North Sea pure play business – well understood Dons and developed hydrocarbon basin Offshore oil and gas operator since 2006 Fionn* Broom Balanced production / development asset portfolio Production stepping up to >20kboe/d with Stella 76MMboe 2P reserves1 Coo
Slide 23: Clear business plan
Clear business plan Maximise production and cashflow from existing asset base Maintain high production netbacks and quick payback production enhancements Execute low cost, high return Greater Stella Area satellite developments Leverage value of existing portfolio and infrastructure position Deli
Slide 24: Highly experienced organisation
Highly experienced organisation Les Thomas Chief Executive Officer Graham Forbes Chief Financial Officer Roy Buchan Chief Operations Officer Richard Smith Chief Commercial Officer Organisational skills and experience gained from background with international “Majors” Core competences maintained
Slide 25: Proven track record
Proven track record Acquisitions Counterparties Extensive acquisition experience, with track record for innovative deal structures Attractive environment for securing growth opportunities – active portfolio management on-going across many players Photo: ENSCO 100 dilling rig during Stella develo
Slide 26: Stable and highly developed North Sea operating environment
Stable and highly developed North Sea operating environment Flexible and competitive fiscal regime Extensive network of offshore infrastructure – facilitates efficient development solutions UK authorities focused on incentivising development activity via licencing regime Sophisticated and ex
Slide 27: Greater Stella Area… “hub and spoke” development strategy
Greater Stella Area… “hub and spoke” development strategy Ithaca operated production hub – 54.66% Monetising >45MMboe1 net 2P reserves ~16kboe/d forecast net initial annualised production from Stella Highly attractive tie-back economics Central hub infrastructure in place for Stella Low incr
Slide 28: Flexible, high quality infrastructure hub
Flexible, high quality infrastructure hub Development status Driving long term value growth Stella field into production phase Targeting new field start-ups every ~2 years, Harrier development drilling campaign Flexible infrastructure – new facilities, spare commenced April 2017 capacity, lo
Slide 29: Ithaca Energy… set-up for long term success
Ithaca Energy… set-up for long term success Established Operator Production & Developments Limited Growing Decommissioning Production Subsea developments / Step up to >20kboe/d floaters UK Tax Shelter Reducing ~$1.7Bn Tax Pool Operating Costs ~$18/boe in 2017 Commodity Hedging Increasing Protection