Energean Plc · LSE:ENOG
Energean — Investor Presentation (November 2019)
29 slides from Energean's investor presentation, November 2019
Slide 1: November 2019 Corporate Presentation
November 2019 Corporate Presentation 1 1
Slide 2: Energean at a Glance
Energean at a Glance The leading sustainable, gas-focused, independent E&P company in the Mediterranean 9 ESG & HSE Countries of 609 mmboe 70 kboed 80% FTSE 250 & focused 2P Reserves production gas-weighted Operations A rating MSCI TA-35 Med Focused 2 2
Slide 3: A Continuous Growth Story Since 2008
A Continuous Growth Story Since 2008 Analysts Third Point Energean Energean IPO Edison 700 Acquisition Development Analysts predict predict invests acquires & E&P of Prinos of Prinos $20 oil price $200 oil price in Energean Karish & Tanin Project FID acquisition 609 600 500 400 mmboe 300 200 100 2 0
Slide 4: Our Strategy in Action – Consistent Growth & Value Creation
Our Strategy in Action – Consistent Growth & Value Creation Production 2007 2018 2019 2022 Fast track 140 Growing production 1 4 Edison Acquisition 70 development of 185 kboe/d with from mature assets FPSO at full Karish capacity kboe/d Reserves 127 Italy 14% (85 mmboe) Israel 49% Egypt 25% 79% (297
Slide 5: Strong Deal Delivery Capabilities
Strong Deal Delivery Capabilities 2013-2015 $250 million Third Point investment $200 million RBL for Prinos & Epsilon 2018 $1.275 billion Project Finance facility for Karish $460 million equity raise through LSE IPO $750 million Acquisition $265 million equity raise on LSE and TASE 2019 $600 million
Slide 6: The E&P Company Of The Future – ESG Is A Top Priority
The E&P Company Of The Future – ESG Is A Top Priority • Operating in Environmentally Sensitive areas with >10 blue flagged beaches next to our oil & gas production platforms • Actively reducing CO2 Footprint with goal to be a net 0 emitter • c.80% of reserves and production from Natural Gas • Decarb
Slide 7: Karish and Tanin Project Update
Karish and Tanin Project Update 7
Slide 8: At a Glance: Our Acreage in Israel
At a Glance: Our Acreage in Israel Key Facts & Figures 2.4 Tcf + 32.8 mmbbls (gross) 2P (92%) + 2C (8%) RESOURCES 0.9 Tcf + 34.2 mmbls (gross) Karish North discovery 6.3 Tcf + 83 mmbbls gross prospective resources OWNERSHIP Energean Israel is owned 70% Energean plc, 30% Kerogen1 4.5 Bcm/yr firm GSPA
Slide 9: On Track to Deliver First Gas in 2021 – Key Milestones
On Track to Deliver First Gas in 2021 – Key Milestones FID (1Q 2018) First Gas On track FPSO Workstream 2018 2019 2020 2021 Hull and Hull Sailaway Hull and Topsides First Hull Keel FPSO mooring Hull First Steel Cut Topsides from Cosco Topsides Performance Steel Cut Laying hookup and 4Q Construction
Slide 10: Execution Capabilities – Developing Karish
Execution Capabilities – Developing Karish Hull ready for undocking, COSCO Zhoushan Yard (Sept 2019) Hull towing, Zhoushan (Sept 2019) 10 Topsides overview, Sembcorp Marine Admiralty Yard (Sept 2019) Assembly, Sembcorp Marine Admiralty Yard (Sept 2019) 10
Slide 11: Project Progress
Project Progress 636 610 54% of contract value by expenditure Physical progress ahead at 60% MCC= Milestone Completion Certificate 11 11
Slide 12: 2019 Firm Four Well Drilling Programme
2019 Firm Four Well Drilling Programme JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Karish KARISH WORK PROGRAMME Karish Main Karish North North 3x DEV Wells + 1x EXP Well 1,2 & 3 Karish Main 1, 2, & 3 DRILLING Karish Main COMPLETION EXPLORATION APPRAI TOPHOLES SAL • 3x Karish Main development wel
Slide 13: Karish North Discovery
Karish North Discovery Low Case Best Estimate High Case GIIP (Tcf) 1.1 1.3 1.8 GIIP (BCM) 30.0 35.6 51.6 Recoverable Gas (Tcf) 0.7 0.9 1.4 Recoverable Gas (BCM) 19.5 24.9 38.7 Recoverable Liquids 25.2 34.2 55.0 KARISH NORTH (MMbbls) Seismic Attribute • Appraisal completed November 2019 • Sidetrack 7
Slide 14: 2020 Drilling Opportunities
2020 Drilling Opportunities 2.4Tcf (68bcm) 2P & 2C 1 – 1.5 Tcf (c.28 - 42bcm) GIIP at Karish North 6.3 Tcf (c.178bcm) Prospective Resources c. 10 Tcf (c.283bcm) Total Reserves & Resources 14 14
Slide 15: Zeus Exploration Well
Zeus Exploration Well Unrisked in Geological Place Volumes Chance of (Bcf / Bcm) Success (%) A Sand 467 / 13 77 B Sand 123 / 3 72 C Sand 52 / 1 68 Total 641 / 18 NA • Block 12 − Between Karish & Tanin leases − Development synergies with Tanin • Any discovery would be tied back to the Energean Power
Slide 16: 'Filling The Boat': Capacity Overview
‘Filling The Boat’: Capacity Overview Or Contract 6.1 0.7 BCM/yr contingent on Or Power Plant Close. Or has unlimited capacity to dispose of gas for alternate 9 Contracted volumes & spare capacity uses 8 MRC Contract 7 0.5 BCM/yr term sheet. MRC is the winning bidder Available for tie-back of future
Slide 17: Key Demand Driver: Gasification of the Israeli Economy
Key Demand Driver: Gasification of the Israeli Economy Israel Gas Demand Growth Recent Updated and Progress 35 Closure of the following coal-fired power-stations 30 announced, increasing demand for gas: 25 20 • Units 5-6 of Orot Rabin, Hadera – 1150 MW bcma • Units 1-4 of Rotenberg, Ashkelon – 2250
Slide 18: Edison Transaction Update
Edison Transaction Update
Slide 19: Edison E&P: Attractive Metrics
Edison E&P: Attractive Metrics1 2.6 c.3 yrs. 18% Payback on 10yr estimated Pre-Neptune Disposal AV/2P Production unlevered IRR Post-Neptune 1.9 c.3 yrs. 26% Payback on 10yr estimated Disposal AV/2P Production unlevered IRR Reported Working Interest 2P Reserves Reported 2018 Working Interest Producti
Slide 20: Creating a Material Mediterranean-Focused Player
Creating a Material Mediterranean-Focused Player… (1) Immediate cash flows & Growth story, focused on EBITDAX with incremental developing new reserves growth opportunities Reserves (mmboe) W.I. 2P 347 262 Production (kboe/d) 4 66 Revenue ($ MM) 90 566 Full-Cycle, Low Cost, Growth Oriented but with a
Slide 21: …and Enhancing Production and Cash Flow Generation
…and Enhancing Production and Cash Flow Generation Clear Trajectory to 200 kboe/d(1) (2) Combined 2019 - 2025 Production Profile by Country (kboe/d) Enhancing post 2021 cash 250 flows and supporting medium- term ambition to pay a dividend 200 150 Bridging near term cash flow generation We need exact
Slide 22: Consideration and Financing Structure
Consideration and Financing Structure Consideration and Funding Equity Placing • Total consideration − $850 MM • Equity placing of $265 MM ‒ $750 MM up-front cash • ABB announced 4 July 2019 ‒ $100 MM contingent on Cassiopea first gas funded via FCF • Placing executed at 900p ‒ 8% profit oil royalty
Slide 23: Transaction Timing and Next Steps
Transaction Timing and Next Steps July 19 Transaction Signing & Announcement July 19 Equity Raise July 19 Bridge Facility Agreement signed H2 19 Regulatory Approvals and Partner Consents Initiated & Progressing as Expected H2 19 Reserve Based Facility Takeout of Bridge Loan Initiated & Progressing a
Slide 24: Other Assets Update
Other Assets Update 24 24
Slide 25: Mature Basin Operating Expertise – Ongoing Success in Greece
Mature Basin Operating Expertise – Ongoing Success in Greece Demonstrable Operational Track Record Prinos Basin Highlights Continuous Growth in Reserves & Resources 80 70 73 73 • Operator, 100% WI 60 58 58 57 50 • Shallow water – 36 meters mmboe 40 30 30 24 20 11 17 • Four platforms operating next t
Slide 26: Wider Potential: Upside in Greece…
Wider Potential: Upside in Greece… Material Position • 40% WI in the Ioannina and Aitoloakarnania licences • Repsol operated (60% WI). • Neighboring Block 4 in Albania acquired by Shell Prolific Geology • Onshore Western Greece part of the Hellinide fold belt, which hosts the prolific Ionian Basin a
Slide 27: …and the Adriatic - Montenegro
…and the Adriatic - Montenegro Material Position • Operator, 100% WI in offshore blocks 4219-26 and 4218- 30 • Best estimate unrisked prospective resources 143.9 mmbbls and 1,766.1 Bcf Commitments Fulfilled • First round exploration commitment fulfilled − 338 km2 new 3D shot in Feb 2019 − To be proc
Slide 28: Our Next 24 Months: Catalyst-Rich
Our Next 24 Months: Catalyst-Rich Country Asset Activity H2 2019E H1 2020E H2 2020E 2021E/22E Additional Israeli Wells Potential exploration drilling Karish North Appraisal Karish First Gas Karish Additional GSPAs North Thekah Offshore Exploration NEA Final Investment Decision FID North East Hap’y E
Slide 29: Thank you!
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