Harbour Energy Plc · LSE:HBR
Harbour Energy — Premier Oil — H1 2017 Earnings Presentation
23 slides from Harbour Energy's earnings presentation, Aug 24, 2017
Slide 1: Half-Year Results
2017 Half-Year Results 24 August 2017
Slide 2: Forward-looking statements
Forward-looking statements This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events and are subject to known and unknown risks and uncertainties. A number of factors could cause actual results,
Slide 3: Agenda
Agenda 2017 delivery Tony Durrant Financial results Richard Rose Producing and development portfolio Robin Allan Outlook Tony Durrant August 2017 | P2
Slide 4: 2017 – a year of strong delivery
2017 – a year of strong delivery Production Cost Base Disposals Catcher 1H Highlight 1H Highlight 1H Highlight 1H Highlight Record production of Opex of $14.7/boe; Wytch Farm and FPSO on schedule; 82.1 kboepd FY capex guidance Pakistan sales positive drilling reduced to $325m announced results Full
Slide 5: Financial results
Financial results Richard Rose
Slide 6: Financial highlights 1H
Financial highlights 1H Revenue $566 million 1H 2016: $394 m Operating Cash Flow $292 million 1H 2016: $108 m Operating Costs $14.7/boe 1H 2016: $16.5/boe Profit After Tax $41 million 1H 2016: $167 m * Capex $136 million 1H 2016: $319 m Free Cash Flow $52 million 1H 2016: $(433) m Net Debt $2,739 mi
Slide 7: Positive cash flow in 1H
Positive cash flow in 1H 6 months 6 months Capital expenditure ($m) to 30 June to 30 June 400 2017 2016 Abandonment 325 Development 300 Working Interest production (kboepd) 82.1 61.0 Exploration Entitlement production (kboepd) 76.1 57.0 200 136 Realised oil price (US$/bbl) – post hedge 49.9 48.6 100
Slide 8: Net debt and refinancing
Net debt and refinancing Net debt Comprehensive refinancing completed Facilities confirmed 1 • Net debt of $2.7bn, reduced from YE2016 $4.0 bn Cash & position $3.4 bn Undrawn • Net debt/EBITDAX(1) ratio of 4.5x at 30 June 2017 Drawn Debt Total Facilities • >US$500mn of cash and undrawn facilities (i
Slide 9: Financial outlook
Financial outlook Operating Costs Capex 2014-2017 2014-2017 • Down from c$20/boe to <$15/boe • Reduced from over $1.0bn pa. to $325m in • Over $300m of absolute cost savings 2017 delivered since 1/1/2015 • Reduced forward commitments 2018-2020 2018-2020 • Stable operating cost base at current levels
Slide 10: Producing and development portfolio
Producing and development portfolio Robin Allan
Slide 11: Production overview
Production overview UK accounts for c. 55% of production Largest 5 fields account for c. 70% of production August 2017 | P10
Slide 12: Development portfolio
Development portfolio >800 mmboe of discovered but undeveloped reserves and resources August 2017 | P11
Slide 13: Catcher – on schedule for start up by year end
Catcher – on schedule for start up by year end • All 12 wells planned pre-first oil now • Marine trials underway complete confirming good quality light oil • Sailaway to North Sea • Subsea activities complete; short campaign imminent to support hook-up and commissioning • On schedule for 2017 first
Slide 14: Catcher – continuing positive drilling results
Catcher – continuing positive drilling results • 12 wells completed to date (4 on each of Varadero Catcher, Varadero and Burgman fields) • Good test results: – Net pay encountered by the 8 production wells > 30 % longer than forecast – Initial production delivery rate per well >40% higher than predi
Slide 15: Tolmount – infrastructure partnership
Tolmount – infrastructure partnership • Partnership with Dana Petroleum and CATS Management Ltd (1) PMO • Dana and CML will jointly own: CML 19% – platform 31% Capex – export pipeline Split • Tolmount gas will use the facilities – LoF tariff Dana 50% • Premier’s share of project capex $100m • Premie
Slide 16: Tolmount – progressing on schedule for FID in 1H 2018
Tolmount – progressing on schedule for FID in 1H 2018 • Development concept selected Q1 Dimlington Terminal >1 bcf gas processing capacity, 600 mmscfd installed compression capacity • Initial phase: targeting 540 Bcf resources plus additional condensate processing • Peak production capacity 300 MMsc
Slide 17: Tolmount – future phases planned
Tolmount – future phases planned Tolmount East • Subsea tie-back or small platform • 2019 well planned to confirm resource Tolmount Tolmount Far East area Mongour Tolmount ~ 1 Tcf Far East • Subsea tie-back or small platform to Tolmount or Tolmount East Tolmount East Mongour • Subsea tie-back or ext
Slide 18: Zama-1 oil discovery - volume estimates
Zama-1 oil discovery - volume estimates W Zama-1 Well E • Major hydrocarbon discovery in shallow water, offshore Mexico • Initial gross oil in place estimates are 1.2 – 1.8 Bnbbls (unrisked Full stack reprocessed P90-P10 resources of 400-800 mmboe), exceeding pre-drill seismic data in depth estimate
Slide 19: Zama – illustrative development scenario
Zama – illustrative development scenario Location of Zama discovery Indicative development metrics Resources 400-800 mmboe1 Zama Daily peak production 100-150 kbopd Hokchi Capex +/- $1.8 billion Amoca Appraisal 2018-19 First oil 2022-23 (1) Including the extension onto the neighbouring block Block 7
Slide 20: Outlook
@ PremierOil Outlook Tony Durrant S Ana * : Bea ||
Slide 21: Delivering on our strategy
Delivering on our strategy Acquisitions • Opportunistic acquisitions Stakeholder Returns Production Development Exploration • 80 kboepd • Operated • Proven basins • FPSO’s • Under drilled • Partner-funded Value Costs • $16/bbl Debt Reduction Portfolio Management • Disposals – realising value August
Slide 22: Future plans
Future plans Portfolio Management – Acquisitions Portfolio Management – Disposals • Disposals by majors • Non core assets • Tax optimisation • Mitigating risk Stakeholder Returns Production Development Exploration • Continuing • Catcher • High value, growth • Tolmount near field • Reserve life >10 y
Slide 23: Premier Oil Plc contact details
August 2017 www.premier-oil.com Premier Oil Plc 23 Lower Belgrave Street London SW1W 0NR Tel: +44 (0)20 7730 1111 Fax: +44 (0)20 7730 4696 Email: premier@premier-oil.com