Tullow Oil Plc · LSE:TLW
Tullow Oil — FY2019 Earnings Presentation
32 slides from Tullow Oil's earnings presentation, Mar 12, 2020
Slide 1: Tullow Oil plc 2019 Full Year Results
Slide 2: Disclaimer
. . TULLOW 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
Slide 3: Agenda and Presenters
TULLOW | Introduction Ot Agenda Presenters aS a a :| B ; : = Dorothy Thompson Mark MacFarlane Conclusion Tullow Oil plc | 2019 Full Year Results
Slide 4: Strategic progress 1Q 2020
Strategic progress 1Q 2020 2020 oil production on track - New leadership delivering improvements - |ntegrated approach to production management Tullow reserves and resources verified - Reserves and resources base verified by external auditors - New development opportunities identified in producing f
Slide 5: Business Review — framework & outcomes
Business Review — framework & outcomes Ot Framework ah Organisation review: Deliver a robust Stelaise Wulters ° efficiency and eee — Asset portfolio review business with attractive post-2019 effectiveness free cash flow Outcomes ry Bo Portfolio review complete and New management team from Re-structu
Slide 6: Business Review conclusion
TULLOW Business Review conclusion Ot Assets Low-cost production base, valuable discovered resources, attractive exploration portfolio Tullow Oil plc | 2019 Full Year Results
Slide 7: Financial Update
TULLOW Ot Es FINANCIAL UPDATE Tullow Oil plc | 2019 Full Year Results
Slide 8: Financial strategy
Financial strategy ie Balance sheet - More conservative approach to gearing and maintaining appropriate headroom Portfolio management - Proactively manage asset base to balance risk and deliver value Commodity risk management - Reduce volatility impact through sustained hedging programme Capital all
Slide 9: 2019 Full Year Results
2019 Full Year Results Revenue ($m) Capital investment ($m) Underlying cash operating costs ($/boe) Free cash flow ($m) Adjusted EBITDAX ($m) YE 2018 YE 2019 Net debt ($b) TULLOW Profit after tax ($m) YE 2018 YE 2019 Gearing (x) Hovde rues TT
Slide 10: 2020 free cash flow
Production Capex Decommissioning Opex Net G&A Free cash flow 2020f Jubilee TEN Non-operated
Slide 11: Gross and Net G&A
Gross G&A Net G&A 400 300 200 • • 100 • • 0 2019 2020 forecast 2021 estimate
Slide 12: Prudent commodity risk management
| Prudent commodity risk management Ot 2020 hedging position Exposure to upside $57/bbl floor for 60% of 2020 sales volumes _——— S Ceiling 2 $88/bbl 2 * Hedging policy: ® 9 ) ) = 40 % ] 5 % 45 % - 60% hedged in current year 5 sales volume sales volume sales volume - 30% hedged in year 2 ye Floor * S
Slide 13: Debt facilities and drawings
• • • YE 2019 Expected post March redetermination Drawings Undrawn
Slide 14: Operations Update
TULLOW Ot a OPERATIONS UPDATE Tullow Oil plc | 2019 Full Year Results
Slide 15: Operating priorities
TULLOW | Operating priorities Ot Safe operations - Continuous improvement Stabilising production - Addressing operational challenges and improving performance * Controlled and integrated operations management - Subsurface Well delivery Production and maintenance Commercial Fully integrated planning
Slide 16: Audited group reserves and resources
Audited group reserves and resources Ot Robust, independently audited reserves and resources base _————— | ° 2P Reserves: - Jubilee: Reserves remain flat - TEN: Reduction due to Enyenra downgrade - Non-op: 25% reserves increase * 2C Resources: - Jubilee: Increase from new opportunities - Ntomme: Inc
Slide 17: Ghana — Making significant improvements
Ghana — Making significant improvements Ot Management and accountability [ l I l [ Major functions 1] coo New Asset Director being centralised accountable for accountable for .. in London; all operations integrating Ghana Day-to-day operations execution in | | l | | Ghana j Realistic forecasting ass
Slide 18: Ghana — Year-to-date production performance
Ghana — Year-to-date production performance Delivering against key forecasting assumptions TULLOW {I Gas management - offtake, processing and options to flare * Jubilee gas handling sed to c.175 * Flaring a| 90 mm Water injection reliability improvements at Jubilee * System optimisation during plann
Slide 19: Ghana — Future production delivery
TULLOW | Ghana — Future production delivery Ot NUBIIES Robust Jubilee Ntomme Reserves opportunities Reserves additions in 2P reserves remain robust almost offsetting production ta Drill f suai rilling of new production Multiple future drilling dj well ongoin ‘a ie-in @ 2020 opportunities in under-de
Slide 20: Production in Gabon, Equatorial Guinea and Côte d'Ivoire
2018 2019 2020f Gabon Equatorial Guinea Côte d'Ivôire
Slide 21: Disciplined exploration activity
Disciplined exploration activity Guyana Céte d'Ivoire Data integration from 2019 campaign 2D onshore seismie Suriname programme Goliathberg-Voltzberg North spud 4@20 Peru Marina unsuccessful Data integration Namibia Total planned drilling in adjacent block in 2020 Comoros Potential 2021 Argentina dr
Slide 22: Steps to FID
Steps to FID ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 23: Conclusion
TULLOW EE Conclusion [ Tullow Oil plc | 2019 Full Year Results r]
Slide 24: Looking forward to a sustainable future
TULLOW Looking forward to a sustainable future Ot A focused strategy rs Oe es Oe es Oe | Disciplined Efficient and Delivering vow oot «exploration and 9s" effective voce Committed to ° development organisation sustainability ee | Underpinned by a more conservative capital structure i Restructured Im
Slide 25: Appendix
TULLOW Es Appendix [ Tullow Oil plc | 2019 Full Year Results r]
Slide 26: Committed to sustainability
TULLOW Committed to sustainability Ot Responsible Shared Environmental Operations Prosperity Stewardship oust Inequames som cATA sue ocd pe Romans ff 12 Gree owme sts A earcmn Wh ‘o>maurctn ind! Aligning and supporting the UN Sustainable Development Goals New Sustainability Reporting in line with th
Slide 27: Total Recordable Injuries Frequency
• • 1.2 • 1 • 0.8 0.6 • 0.4 0.2 0 2017 2018 2019 Tullow Total Recordable Injuries Frequency (TRIF) IOGP Total recordable Injuries frequency top quartile benchmark
Slide 28: 1200 1067 1005 1000 2015 2016 2017 2018 2019
1200 1067 1005 1000 909 909 800 667 600 400 200 0 2015 2016 2017 2018 2019
Slide 29: • ₁ ₂ • • • •
• ₁ ₂ • • • 350 300 • 250 200 150 100 50 0
Slide 30: Equality & Transparency
| Equality & Transparency Extractive Industries Transparency Initiative First oil company to publicly support contract transparency Leading disclosure on Modern Slavery in Transparency in the Supply Chain Report Female Board representation at 38% African Board representation at 25% VOLUNTARY PRINCIP
Slide 31: 2020 Key Data
| TULLOW 2020 Key Data Ot Oil production (kboepd) 2020 forecast Operating costs! ($/boe) 2020 forecast Capex ($m) 2020 forecast Ghana 9.0 Ghana 140 Shana 920 Equatorial Guinea 20.0 Non-Op 80 Jubilee 29.0 Gabon? 22.0 Kenya 40 Céte d'Ivoire 19.0 Uganda 15 TEN 23.0 Exploration 75 Equatorial Guinea 5.0
Slide 32: Tullow Oil plc
TULLOW Tullow Oil pic 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