Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Gulf Keystone Pet Ord New — FY2023 Earnings Presentation
20 slides from Gulf Keystone Petroleum's earnings presentation, Mar 21, 2024
Slide 1: 2023 Full Year Results
y EVSTONE PETROLEUM 2023 Full Year Results 21 March 2024
Slide 2: Disclaimer
Disclaimer This proprietary presentation (the “Presentation’) has been prepared by Gulf Keystone Petroleum Limited (the “Company’), Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation to buy or a solicitation of an offer to buy securities of any kind in any
Slide 3: 2023 operational & financial highlights
2023 operational & financial highlights 2023 impacted by exports suspension & payment delays Decisive response to preserve liquidity Resilient & cash generative in current environment Pushing for exports restart solution to unlock value Remain focused on safe operations Production 50% lower y-o-y du
Slide 4: Operational Review
Operational Review
Slide 5: Resilient in current local sales environment
Resilient in current local sales environment Robust local sales demand and low-cost operations generating cash flow SH-16 &SH-17 SH- @ Wells mm Facilities 2 — Flowlines autre — Oil pipelines > Road network — Block boundaries » KILOMETRES it Production & trucking operations = Production increased to
Slide 6: 2023: a year of significant operational transition
2023: a year of significant operational transition We protected our business by successfully adapting to the new environment Gross average production / sales (‘000 bopd)”) I lrag-Turkey a7 1 Pipeline shut-in 7A -Mar- 48.0 46.6 \ on 25-Mar-23 fi fi fi fi fi 1114 fl 1.6 I! 7° f Jan Feb Mar 1 Mar Apr (
Slide 7: Estimated gross 2P reserves
Estimated gross 2P reserves Significant Shaikan Field upside development potential No degradation to reservoir from 2023 production shut-in Internal reserves estimates reflect a delayed return to development = Modelling exports restart in Q4 2024 » Assume resumption of facilities expansion with wate
Slide 8: Significant potential upside to unlock for all stakeholders
Significant potential upside to unlock for all stakeholders Significant cash flow generation potential Selling at international prices could more than double current realised prices Cost recovery pool supportive of cash flows $151m" KRG receivables repayment tery c Committed to shareholder returns S
Slide 9: Financial Review
Financial Review
Slide 10: Financial performance highlights
Financial performance highlights Successfully managed impact of exports suspension & KRG payment delays Net cash balance) ($m) Adjusted EBITDA ($m) @ Net cash $100m bond 359 (100) (100) (100) | 57 50 | | 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Net Capex ($m) Shareholder distributions ($m)
Slide 11: Adjusted EBITDA
Adjusted EBITDA Cost reductions implemented to manage lower sales volumes and prices $m 400 359 350 300 250 200 (144) 150 100 50 26 & a 50 a (10) 7 0 (192) FY-22 Adj. Realised Production Capacity Operating Other One-off Share FY-23 Adj. EBITDA price Building costs G&A costs option EBITDA Payment exp
Slide 12: Cash flow
Cash flow Proactively managed cash flows to preserve liquidity sm Free cash outflow: $13 million 180 160 140 120 58 — 100 (8) (10) 92 86 80 (25) 119 Opening Adjusted Net Working Inventory Interest Dividends Closing Cash cash EBITDA Capex capital sale cash balance (31-Dec-22) & Other (31-Dec-23) (20-
Slide 13: Operating costs & other G&A
Operating costs & other G&A Continue to focus on cost reduction initiatives Operating costs ($m) Other G&A expenses ($m)(2) $/obl @ @ @ @ 5.6) @ Corporate G&A li Shaikan Field G&A ™ Non-recurring 10.5 42 37 36 34 13.6 27 4] 21 34 95 Exe) 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 15.7 12.3 12
Slide 14: Decisive action to reduce costs & strengthen balance sheet
Decisive action to reduce costs & strengthen balance sheet Driving local sales to generate excess cash and further improve liquidity position Average monthly net capex & cost run rate Cash balance & accounts payable’) ($m) (Sm) 17.6 85 82 86 om -— <2 12.6 > 48 : | : | | LJ _ Q1-23 Q2-23 H2-23 FY-24
Slide 15: Outlook
Outlook
Slide 16: 2024 outlook
2024 outlook Maximise local sales Expect robust local sales . demand in the near term Subject to local sales demand, current gross production potential of 43,000-45,000 bopd with minimal investment . Local sales market demand remains difficult to predict Minimise costs & * improve liquidity Focused
Slide 17: Appendix
Appendix
Slide 18: Key historical financials
Key historical financials FY FY FY FY FY 2023 2022 2021 2020 2019 Gross production (bopd) 21,891 44,202 43,440 36,625 32,883 Dated Brent ($/bbl)(”) 82.6 101.4 70.8 42.0 64.6 Realised price ($/bbl) 40.9 74.1 49.7 20.9 42.9 Discount to Brent ($/bb!) 41.7 27.2 21.2 21.1 21.7 Revenue ($m) 123.5 460.1 30
Slide 19: Shaikan Field fiscal terms
Shaikan Field fiscal terms As at 31-Dec-23 Shaikan Field fiscal take waterfall Calculating GKP entitlement 0 =a re) = Not 100% ROYALTY Gross production x realised —--—---——- 10% Gross revenue pre-royalty 100 | price (Dated Brent less quality discount & transport costs) GROSS REVENUE POST-ROYALTY LES
Slide 20: Thank you
20 Thank you More resources are available at: www.gulfkeystone.com > Lc \ kJ
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