Horizon Oil Limited · ASX:HZN
Horizon Oil — HY20 Earnings Presentation
27 slides from Horizon Oil's earnings presentation, Feb 28, 2020
Slide 1: HY20 Results Presentation
HY20 RESULTS PRESENTATION 28 FEBRUARY 2020 HORIZON OIL LIMITED | ABN 51 009 799 455
Slide 2: Overview
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Slide 3: Recent Events Update
Recent Events Update • Recent weeks challenging following media articles pertaining to PNG licence transactions dating back to 2011 • Strong and proactive Company and Board response to allegations • Independent external investigation commenced with Herbert Smith Freehills and Deloitte • Independent
Slide 4: HY20 Highlights
HY20 HIGHLIGHTS Production Volume Sales Revenue EBITDAX 754,862 bbls US$53 million US$31 million Net Debt Reduced Underlying Profit after Tax Cash on Hand US$7.4 million US$6.2 million US$22 million HY20 RESULTS PRESENTATION 28 FEBRUARY 2020 PAGE 4
Slide 5: HY20 Delivering on Objectives
HY20 DELIVERING ON OBJECTIVES STRONG PRODUCTION AND CASHFLOW PROVIDING PATHWAY TO FURTHER GROWTH • Continued strong high margin • Progressive debt reduction Strong production from Maari and Progressive Debt with Net Debt reduced to Production & Beibu Reduction US$7.4 million Cashflow • Cash operatin
Slide 6: Financial Results
02— FINANCIAL RESULTS
Slide 7: HY20 Financial Results
HY20 FINANCIAL RESULTS (US$ million) HY 2020 HY 2019 Change (%) Sales volume reverted to approximate net Production volume, bbls 754,862 801,904 [6%] working share of production following early recoupment of cost recovery entitlement in Sales volume, bbls 770,744 1,021,218 [25%] China. Revenue 52.7
Slide 8: HY20 Key Cashflow Drivers
HY20 KEY CASHFLOW DRIVERS US$ MILLION 2.8 -19.0 -7.3 49.9 -2.2 -20.1 24.2 -1.1 -2.4 21.5 22.1 Cash & cash Crude oil sales Hedging Operating Corporate & Interest Net cash Debt Investment in Exploration Cash & cash equivalents at settlements costs (excl tax inflows from repayment & oil & gas and expen
Slide 9: HY20 Underlying Profit Drivers
HY20 UNDERLYING PROFIT DRIVERS 14 US$m 12 10 8.7 8 6.2 6 4 (0.7) 6.4 2 (1.8) [13.9] 0 4.6 -2 -4 6.2 -6 [3.2] -8 -10 Underlying Cost recovery Production Volume Net realised oil Operating costs Other income/costs Exploration and Financing costs Underlying Profit after tax volumes recouped price, inclu
Slide 10: Calendar Year Financial Highlights
CALENDAR YEAR FINANCIAL HIGHLIGHTS OIL SALES (mmbbls) REVENUE1 (US$m) 130 80 120 4.2 24.5 70 0.39 110 5-year average: 1.55 mmbbls 0.06 100 60 90 0.15 80 59.1 50 0.29 59.0 US$/bbl 70 US$m 0.97 0.92 48.5 15.2 40 60 7.3 0.86 0.89 50 30 0.82 40 34.6 42.6 30 20 43.6 43.8 48.2 0.65 0.63 20 0.48 10 0.34 10
Slide 11: Calendar Year Financial Highlights
CALENDAR YEAR FINANCIAL HIGHLIGHTS EBITDAX AND COST PER BBL UNDERLYING PROFIT BEFORE TAX (US$m) 88.3 90 30 77.3 80.0 34.8 80 32.1 25 70 60 20 51.3 US$/bbl 50 US$m 40.5 15 5.9 40 6.1 30 10 20 5 10 -11.1 0 0 CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 EBITDAX Cash o
Slide 12: Calendar Year Financial Highlights
CALENDAR YEAR FINANCIAL HIGHLIGHTS FREE CASH FLOW (US$m) NET DEBT (US$m) 127.7 120.8 65.5 67.6 62.7 94.3 35.3 40.2 64.2 -18.7 -5.8 -42.5 -13.7 -35.6 7.4 CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 Investing CF Operating CF FCF* CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 * Free Cash Flow represents cash flo
Slide 13: Outlook & Portfolio Updates
03— OUTLOOK & PORTFOLIO UPDATES
Slide 14: Overview of Portfolio
OVERVIEW OF PORTFOLIO Block 22/12 (Beibu Gulf] 26.95% / 55% • Asia Pacific focus PDL 10 (Stanley) 30% • Material joint venture interests PRL 21 (Elevala/Ketu) 30.15% PRL 28 (Ubuntu) 30% • High margin, long life oil production PRL 40 (Puk Puk/Douglas) 20% assets in China and New Zealand PPL 372 95% g
Slide 15: 2P Reserves: 4.4 mmbbls, 2C Resources: 2.0 mmbbls
2P Reserves: 4.4 mmbbls 2C Resources: 2.0 mmbbls As at 30 June 2019 HY20 RESULTS PRESENTATION 28 FEBRUARY 2020 PAGE 15
Slide 16: China Block 22/12
CHINA BLOCK 22/12 BLOCK 22/12 PRODUCTION HISTORY & OUTLOOK 16,000 Annual Average • Current gross daily production rate Gross Daily Gross 14,000 Production, Production, above 10,000 bopd – above average mmbbls bopd historical daily production rate. 12,000 CY 2013 3.02 9,882 10,000 • Production rates
Slide 17: China Block 22/12
CHINA BLOCK 22/12 During HY20 • Crude oil sales were 410,811 barrels with cost recovery volumes of 2,474 barrels at a net realised price of US$65.19 per barrel. • Production from the Group’s interest in the Beibu Gulf fields was 444,740 barrels of oil with average gross production rate of 8,969 bopd
Slide 18: China Block 22/12
CHINA BLOCK 22/12 BLOCK 22/12 WZ 12-8E Project • Basic engineering for the development has been completed. • The development of WZ 12-8E is planned with a new wellhead platform tied back to the existing WZ 12-8W platform. The new platform will be leased by the joint venture, reducing upfront capital
Slide 19: Maari/Manaia Fields
2P Reserves: 4.4 mmbbls 2C Resources: 5.5 mmbbls As at 30 June 2019 MAARI/MANAIA FIELDS HY20 RESULTS PRESENTATION 28 FEBRUARY 2020 PAGE 19
Slide 20: New Zealand
NEW ZEALAND MAARI/MANAIA PRODUCTION HISTORY & OUTLOOK 12,000 Annual Gross Production, Average Daily Gross Production, mmbbls bopd 10,000 CY 2017 2.94 8,064 CY 2018 2.28 6,256 8,000 CY 2019 2.44 6,675 bopd 6,000 Average 2.55 6,998 4,000 • Current gross daily production rate approx. 7,000 bopd – in li
Slide 21: New Zealand
NEW ZEALAND MAARI/MANAIA FIELDS During HY20 • Crude oil sales were 359,933 barrels at a net realised oil price of US$71.9 per barrel. • Production from the Group’s interest in Maari and Manaia fields was 310,122 barrels of oil with average gross production rate of 6,482 bopd, 11% higher than HY2019.
Slide 22: 2C Resources: Liquids 26.9 mmbbls, Raw gas 599 bcf
2C Resources: Liquids: 26.9 mmbbls Raw gas: 599 bcf As at 30 June 2019 HY20 RESULTS PRESENTATION 28 FEBRUARY 2020 PAGE 22
Slide 23: PNG
PNG During HY20 • In Papua New Guinea, Horizon Oil continued planning for the commercialisation of the gross appraised resource of 2,200 PJ of sales gas and 64 million barrels of associated condensate in four petroleum licences in the foreland basin of Western Province. • During the period, activiti
Slide 24: Outlook & Targets
OUTLOOK & TARGETS STRONG PRODUCTION AND CASHFLOW PROVIDING PATHWAY TO FURTHER GROWTH • Pursue and promote production • Continued strong cashflow Strong Operating enhancement opportunities at Strengthen generation allowing for progressive Maari/Manaia and Beibu fields Cashflow Balance Sheet reduction
Slide 25: FY20 Guidance
FY20 GUIDANCE STRONG PRODUCTION AND CASHFLOW PROVIDING PATHWAY TO FURTHER GROWTH PRODUCTION SALES (NET WORKING INTEREST VOLUMES) 1.4 – 1.5 mmbbls (VOLUMES) 1.4 – 1.5 mmbbls REVENUE US$90 – 100 million EBITDAX US$50 – 60 million • The above Guidance represents forward looking statements. Such stateme
Slide 26: Disclaimer
DISCLAIMER Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Horizon Oil Limited, industry growth or other trend projections and any estimated co
Slide 27: For More Information Please Contact Us
Authorisation This ASX announcement is approved and authorised for release by the Horizon Oil board. FOR MORE INFORMATION PLEASE CONTACT US CHRIS HODGE Horizon Oil Limited P +61 2 9332 5000 Level 6, 134 William Street info@horizonoil.com.au Woolloomooloo NSW 2011 Australia horizonoil.com.au