Otto Energy Limited · ASX:OEL
Otto Energy — Shareholder Meeting (November 2022)
21 slides from Otto Energy's shareholder meeting presentation, Nov 17, 2022
Slide 1: ASX Release: AGM CEO Update Presentation
17 November 2022 ASX RELEASE AGM CEO UPDATE PRESENTATION For personal use only Otto Energy Limited (ASX: OEL) (Otto or the Company) advises that it has today released a CEO Update presentation for the 2022 AGM. A copy of the presentation is appended to this release. Additional information can be fou
Slide 2: 2022 AGM CEO Update
For personal use only 2022 AGM CEO UPDATE Delivering and growing value in 2022 and beyond ASX: OEL
Slide 3: Disclaimer and important notices
Disclaimer and important notices For personal use only Forward Looking Statements This presentation contains "forward-looking statements" that are subject to risk factors that are associated with oil and gas businesses. It is believed that the targets reflected in these statements are reasonable, bu
Slide 4: Otto Energy: delivering value
Otto Energy: delivering value For personal use only 1 Experienced management 4 Phased growth A mature, opportunity-rich environment Creating growth access through rigorous inorganic opportunities evaluation 2 Maximizing our base A diverse, high-margin portfolio 5 Greater shareholder returns Build co
Slide 5: Otto – Balance Sheet Strong - Debt Free Enterprise
Otto – Balance Sheet Strong - Debt Free Enterprise For personal use only CAPITAL STRUCTURE LIQUIDITY POSITION SHARE REGISTER COMPOSITION Shares on issue 4,795 M Cash (31 Oct 2022) US$25.0 M Corporate/strategic 49% Share price (31 Oct 22) A$ 0.014 PANR stock * (31 Oct 2022) US$3.8 M Retail 47% Option
Slide 6: Global pressures vs Otto's positioning
Global pressures vs Otto’s positioning Globally Otto Energy For personal use only • Volatile geopolitical and economic environment • Debt / hedge free • Energy security is a top priority across the globe • Robust cash flow generation • Energy industry is facing significant regulatory and • Strong ba
Slide 7: Company Overview: Growing in the Gulf of Mexico
Company ST 48 For personal use only Overview Growing in the Gulf of Mexico Onshore/Offshore Basin 6
Slide 8: Otto's Strategic Focus – Rebasing the Company to Deliver Growth
Otto’s Strategic Focus – Rebasing the Company to Deliver Growth For personal use only 7
Slide 9: OEL – Disciplined Capital Management
OEL – Disciplined Capital Management Our Disciplined Technical and Operating Model provides framework for sustainably creating value For personal use only Exploration Build diversification of Gulf portfolio via: Returns to Shareholders Lower risk infrastructure led A. PDP Acquisitions, Distributions
Slide 10: FY Highlights
REVENUE FY 22 US$51.1m US$40.6m For personal use only Total WI revenue Net Operating Revenue Highlights 29% 35% EARNINGS Set against the backdrop of the past year’s complexities, Otto’s strategy, US$30.2m US$27.1m together with its excellent EBITDAX * 348% EBITDA * 564% operational results, and stro
Slide 11: FY – Financial and Operational Highlights
FY 22 – Financial and Operational Highlights For personal use only FINANCIAL PERFORMANCE (USD$) 28% 41% 3%/4% $26.8m $2.3m Return on Average Gearing/Debt to Equity Cash Balance Debt Balance at 30 June Return on Equity Capital Employed at 30 June 2022 2022, scheduled to be paid off by 30 September 20
Slide 12: Capital Allocation Framework
Capital Allocation Framework Clear Target Investment Criteria For personal use only Our capital allocation framework sets clear target investment criteria for oil and gas investments we are targeting. Using these criteria while maintaining balance sheet and financial discipline allows us to build a
Slide 13: FY 2023 guidance ranges for performance
FY 2023 guidance ranges for performance Compared to FY 2022 actual delivery For personal use only Performance category FY 22 (act.) FY 23 guidance range - Production (WI)(MMBOE) 0.845 0.90 – 1.05 Metrics to deliver fiscally disciplined performance - Capex spend (US$MM) 6.5 15.0 – 20.0 * - Opex FLC s
Slide 14: Historical Stock Price
Historical Stock Price April 2020 – Nov 2022 For personal use only Historical Stock Price Performance Driven By
Slide 15: Otto: TSR Strong compared to Peer Universe
Otto: TSR Strong compared to Peer Universe Australia Peers For personal use only 80.00% Horizon Oil Limited (ASX:HZN) Byron Energy Limited (ASX:BYE) Cue Energy Resources Limited (ASX:CUE) GOM Comps 60.00% Cooper Energy Limited (ASX:COE) Up 60% Central Petroleum Limited (ASX:CTP) Australis Oil & Gas
Slide 16: Current Market Value Challenge
Current Market Value Challenge Market vs Otto Resources Owned True Remaining Asset Value 7.81 Mmboe 2 For personal use only Possible 1.98 Mmboe 2 Market Cap A$67.1 million 1 Probable Remaining Asset Value (per mkt) 2.11 Mmboe 2 A$18.5 million PANR Stock + ORRI ~ A$10 million 1 Proved Cash on Hand A$
Slide 17: Relative Value
Relative Value For personal use only Indicative EV Range – AUS Peers Indicative EV Range – US Peers See Appendix for Source Data
Slide 18: Summarizing Otto's Strategic Focus Forward
Summarizing Otto’s Strategic Focus Forward Continue to Establish Track Record on Building and Transforming OEL For personal use only 17
Slide 19: Appendix
For personal use only Appendix
Slide 20: Relative Value Source Data
Relative Value Source Data For personal use only Market Enterprise FY22 FY22 1P 2P Cap Value Revenue EBITDA Production Reserves Reserves EV/FY22 EV/FY22 EV/ EV/1P EV/2P Ticker Company (A$m) (A$m) (A$m) (A$m) (kboepd) (mmboe) (mmboe) Revenue EBITDA Production Reserves Reserves Australian Peers ASX:OE
Slide 21: Pillar 1: Excellence in base asset delivery
Pillar 1: Excellence in base asset delivery For personal use only SM 7XXXX1 SM 71 Lightning GC 21 Mos. Bay Oyster Bayou Eaves DOFP CY 2018 CY 2019 CY 2020 CY 2022 CY 2022 CY 2022 Commodity Weight 86% Oil 85% Gas 90% Oil 84% Gas 52% Oil 97% Gas Net Capex Reqd (US$) $27.4 MM $19.4 MM $50.6 MM $3.6 MM