Serica Energy Plc · LSE:SQZ
Serica Energy — Corporate Update (January 2025)
11 slides from Serica Energy's corporate update, Jan 21, 2025
Slide 1: Trading and operations update
Trading and operations update Contributing responsibly towards meeting the world's energy needs through the safe and efficient production of hydrocarbons 21 JANUARY 2025
Slide 2: Who we are
Who we are • Production from two major hubs supports material cash generation and shareholder returns for years to come • Even split of oil and gas, with Bruce Hub gas c.5% of UK total production • Successful drilling programme at Triton with production enhancement and cash to come • Untapped potent
Slide 3: 2024 production impacted by unscheduled downtime
2024 production impacted by unscheduled downtime Production (BOEPD) 50000 40000 30000 Annual maintenance programmes 20000 10000 0 January February March April May June July August September October November December Bruce Hub Triton Hub Other Assets • Production averaged 34,600 boepd in 2024 • Issue
Slide 4: 2024 financial performance
2024 financial performance 2024 illustrative gross cash bridge ($ MILLION) 1200 • Production downtime at Triton reduced revenue and liftings in the year • Tax efficient investment at Triton in 2024 1000 726 delivering returns in 2025+ 800 • Opex and capex in line with guidance 600 542 • Net debt pos
Slide 5: More robust and resilient production expected in 2025
More robust and resilient production expected in 2025 • Production expected to be around 40,000 boepd in 60000 Production 2025, an increase in 16% year-on-year (BOEPD) • Production broadly split between oil and gas 50000 • Guidance assumptions - P90 production from new wells – B6 and GE05 40000 both
Slide 6: Investing in attractive organic opportunities
Investing in attractive organic opportunities • Capex guidance of $220-250 million Forecast capital expenditure 2025 • Committed spend focused on the ongoing Triton drilling programme • Retention of investment allowances in the Autumn Budget allows accelerated spend on resilience • Flare Gas Recover
Slide 7: Triton drilling programme progressing well
Triton drilling programme progressing well Field Activity Serica interest 2025 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Gannet E GE05 well 100% Guillemot NW W7Z well 10% Evelyn EV02 well 100% Belinda BE01 well 100% Indicative duration Expected commencement of incremental production Timeta
Slide 8: Material cash generation expected in 2025
Material cash generation expected in 2025 Key guidance items 2025 2024 • Substantial free cash generation in 2025 Production c.40,000 bopd 34,600 bopd • Retains ability to continue making Capex $220-250 million $260 million material direct returns to shareholders • Increase of $1/bbl to Brent adds o
Slide 9: Focused on creating value for shareholders
Focused on creating value for shareholders Ensure safe and reliable operations and best in class ESG Create value for shareholders through Deliver more consistent and greater predictability in distributions and capital growth our operational performance Robust Material cash Growth and High-grading o
Slide 10: Q&A
Q&A Half-yearand Trading Results 2024 Iupdate operations 10 September 2024 I 21 January 2025 10
Slide 11: Update on hedging positions
Update on hedging positions • Hedging protects downside risk while retaining upside Hedged ratio Gas Oil TOTAL commodity exposure 2025 25% 39% 31% • Legacy hedges rolling off to boost cash flow from largely 2026 20% 5% 13% tax-sheltered oil production 12 Oil hedging 50 Gas hedging 10 (kbopd) (mmscf/