Meren Energy Inc. · TSX:MER
Meren Energy — Africa Oil — Q1 2024 Earnings Presentation
18 slides from Meren Energy's earnings presentation, May 16, 2024
Slide 1: The Next Phase of Value Creation: First Quarter 2024 Results
Africa Oil Corp. THE NEXT PHASE OF VALUE CREATION FIRST QUARTER 2024 RESULTS 16th May 2024 WWW.AFRICAOILCORP.COM
Slide 2: Speakers and Agenda
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. SPEAKERS AGENDA Roger Tucker President & CEO • Introduction • Operational Highlights Pascal Nicodeme • First Quarter 2024 Results Highlights CFO • Capital Framework and Shareholder Returns • Strategic Priorities • Q&A Oliver Quinn CCO Shahin
Slide 3: Forward-Looking Statements
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. FORWARD-LOOKING STATEMENTS This document has been prepared and issued by and is the sole responsibility of Africa Oil Corp. (the Actual results may differ materially from those expressed or implied by such forward-looking “Company”) and its s
Slide 4: Developments Since the Leadership Change
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. DEVELOPMENTS SINCE THE LEADERSHIP CHANGE JUL 2023 New President and CEO JAN 2024 appointed, marking the Implemented a strategic MAR 2024 New strategy approved and new next phase of growth and SEP 2023 farm down agreement for Farm down agreeme
Slide 5: Delivering in Line with Our Strategic Principles
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. DELIVERING IN LINE WITH OUR STRATEGIC PRINCIPLES Value Creation & Growth Growth through focused exposure to world- class assets Target near-term rewards for Partner with tier-1 operators, shareholders whose budgets and timetable are not disru
Slide 6: Portfolio of Material Assets to Deliver Transformational Growth
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. PORTFOLIO OF MATERIAL ASSETS TO DELIVER TRANSFORMATIONAL GROWTH Tier-1 Operators Chevron, TotalEnergies World Class Production Assets 3 of the top 5 fields in Nigeria with production base through to 2040s NIGERIA1 World Class Discovery Venus
Slide 7: PMLS 2/3/4 & PPL 261: Highly Attractive Low Risk & Short-Cycle Return Opportunity Set
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. PMLS 2/3/4 & PPL 261: HIGHLY ATTRACTIVE LOW RISK & SHORT- CYCLE RETURN OPPORTUNITY SET • Rig contract extended to drill 5 wells from Feb’24 through to end Oct’24 • Egina ‒ Three infill wells drilled in 2023 ‒ Producer achieved daily rate of ~
Slide 8: Preowei (PML 4): Low Risk Development Project
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. PREOWEI (PML 4): LOW RISK DEVELOPMENT PROJECT • Located 29km north of Egina in water depths ranging between 1,100m and 1,300m • End of FEED exercise expected in Q3’24 & FID in Q4’24 • Main development phase with 16 wells • The subsea wells wi
Slide 9: Blocks 2912/2913B: World-Class Acreage With Significant Potential
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. BLOCKS 2912/2913B: WORLD-CLASS ACREAGE WITH SIGNIFICANT POTENTIAL “At least 1-2 bn barrels1” • Venus: major discovery, TotaleEnergies’ CEO on the scale of Venus TotalEnergies (operator) has confirmed that the development is very likely “We wi
Slide 10: Financial Highlights
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. FINANCIAL HIGHLIGHTS AOC Net Income ($ million) Primes EBITDAX1 and CFFO2 ($ million) Notes: Notes: Q4’23 includes a $131.7m post-tax non-cash impairment recorded by Prime, mainly due to Prime applying a 1 EBITDAX is not a generally accepted
Slide 11: Disciplined Cash Management
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. DISCIPLINED CASH MANAGEMENT Africa Oil Cash Balances & Movements ($ million) AOC Debt-Free Balance Sheet End Q1’24 AOC Cash Balance $195.5m (YE’23: $232.0m) Prime End Q1’24 Prime Net Debt $240.7m (YE’23: $298.9m) Combined End Q1’24 Combined N
Slide 12: Oil Sales
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. OIL SALES The Oil Marketing Strategy Implemented in 2H’22 Continues To Achieve Superior Realised Sales Prices to Dated Brent Q1’24 Average sales price Sales Price Dated Brent 120 $85.5/bbl Q1’24 Dated Brent: $83.1/bbl 100 Post Q1’24 sold two
Slide 13: Africa Oil Capital Framework and Shareholder Returns
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. AFRICA OIL CAPITAL FRAMEWORK AND SHAREHOLDER RETURNS ~$130m Returned Since 2022 Dividend Declared $0.025/share First 2024 Semi-Annual Dividend Distributed 2024 Share Buyback ~38% of the Annual NCIB Limit Repurchased SLIDE 13
Slide 14: Africa Oil's Offer to Impact's Minority Shareholders
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. AFRICA OIL’S OFFER TO IMPACT’S MINORITY SHAREHOLDERS • Calibrated capital allocation step following removal of capital exposure ‒ Reflecting significant potential of Namibia position and Impact’s ability to drive AOC’s valuation and future gr
Slide 15: Evaluating Options for Further Portfolio Simplification and Growth
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. EVALUATING OPTIONS FOR FURTHER PORTFOLIO SIMPLIFICATION AND GROWTH • Delivery of first two strategic farm down transactions provides greater financial flexibility and supports options for consolidation and growth • Enables AOC to take advanta
Slide 16: 2024 Strategic Priorities
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. 2024 STRATEGIC PRIORITIES Consolidate, streamline and Farmout and full carry financially de-risk portfolio achieved for Namibia Acquired additional interest in our core operated Block 3B/4B Maintain financial flexibility to accelerate growth
Slide 17: Africa Oil Corp.
A AfricaOil Corp.
Slide 18: Reader Advisory
Q1'24 Results Presentation | 16 May 2024 AFRICA OIL CORP. READER ADVISORY Accounting for Africa Oil’s (Africa Oil, AOC or the Company) Oil and Gas Information Interest in Prime Aggregate oil equivalent production data are comprised of light and medium crude oil and The 50% shareholding in Prime is a