Genel Energy Plc · LSE:GENL
Genel Energy — FY2020 Earnings Presentation
24 slides from Genel Energy's earnings presentation, Mar 18, 2021
Slide 1: “oriffibutor tothe
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Slide 2: 2020 - Strategic delivery sets foundations for growth
as 2020 - STRATEGIC DELIVERY SETS FOUNDATIONS FOR GROWTH * Delivery in 2020 has set us up for year-on-year production increase, with 2020 OIL PRODUCTION numerous investment catalysts in 2021 ‘pop * Low-cost production averaged 31,980 bopd in the year , - Already the only multi-licence producer in th
Slide 3: Material progress on ESG
ae MATERIAL PROGRESS ON ESG * Zero lost time injuries (‘LTIs') and zero tier one losses of primary containment in 13 kgCO2e/bbI 2020 at Genel and TTOPCO operations producing emissions in 2020 - NoLTls since 2015 * A portfolio that fits a future of fewer and better natural resources projects 14 socia
Slide 4: 2021 - A year of growth catalysts
we 2021 - A YEAR OF GROWTH CATALYSTS * Continued delivery on simple strategy * Increasing low-cost production - Production in 2021 is expected to be slightly above the 2020 average Sarta-5 2 " - Potential for a higher exit rate and further growth in 2022 depending on Spud in Q2;results in Q3 success
Slide 5: The financial strength to combine growth and returns
Slide 6: Low-cost and resilient assets materially profitable even at low oil prices
Low-cost and resilient assets materially profitable even at low oil prices - Corporate and interest costs are well covered by asset revenues ~ Efficiencies in operating and corporate costs delivered in 2020 - Capital programme flexibility enabled rapid recut of activity, with c.$80 million removed f
Slide 7: Delivery: capital put to work on business model priorities
aa DELIVERY: CAPITAL PUT TO WORK ON BUSINESS MODEL PRIORITIES + Business model and capital allocation priorities * FY 2020 sources and uses overview - Prioritise investment in near-term cash generation and — Cash flows funded costs and comfortably maintain dividend value generation - Balance sheet p
Slide 8: Delivery: exit FY2020 with balance sheet strengthened
wee DELIVERY: EXIT FY2020 WITH BALANCE SHEET STRENGTHENED * Maintain and protect strong balance sheet eee BALANCE SHEET - Liquidity of $274 million after settlement of old bonds — Low leverage, net cash position of $6 million - Balance sheet oil assets and receivables over $900 million of value — Pr
Slide 9: Positioning to benefit from external environment and oil price improvement
* Work done in FY2020 positions the Company to maximise benefit from positive developments in external environment and oil price improvement * The Kurdistan Regional Government (‘KRG’) has now commenced payment mechanism for unpaid income - Resumption of override from January 2021 — Increases cash r
Slide 10: Outlook: business model, capital allocation priorities unchanged
sm OUTLOOK USES: BUSINESS MODEL, CAPITAL ALLOCATION PRIORITIES UNCHANGED In line with our business model, we continue to invest in those areas that promise the fastest return on investment and maximum stakeholder value creation Invest in existing high value production fields - production capex c.$80
Slide 11: High-margin, growing production
High-margin, growing production (then hal Photo credit - DNO
Slide 12: Diverse, low-cost, high-margin production
a D| VERSE, LOW-COST, HIGH-MARGIN PRODUCTION FY2021 MARGIN PER BARREL * Low-cost production reduces exposure to oil price volatility ($/bbb - Low-cost production, with opex of $2.8/bbl in 2020 30 - Onshore fields, operated safely and efficiently * Tawke PSC with override margin Sart * Blended margin
Slide 13: Low-cost high-quality operations
wae | OW-COST HIGH-QUALITY OPERATIONS Operational excellence at a low cost positions us well as partner of choice — Years of KRI experience allows us to maximise operational efficiency in KRI 2021 to see significant expansion of our operational footprint — Genel transitioning to operator at Sarta, o
Slide 14: Delivering year-on-year production growth - 2021 activity
ae DELIVERING YEAR-ON-YEAR PRODUCTION GROWTH - 2021 ACTIVITY Genel expects production in 2021 to be higher than 2020 - Production year-to-date is c.33,000 bopd, in line with guidance YEAR TO DATE OIL PRODUCTION - Production from Sarta expected to more than outweigh declines from Tawke and Taq , 4 Ta
Slide 15: Robust reserves, with focus on material additions
== ROBUST RESERVES, WITH FOCUS ON FOR MATERIAL ADDITIONS * Robust 2P reserves provide the foundation of our resilient business model NET OIL RESERVES AND RESOURCES (MMbbIs, as of end 2020) — 1P reserves replacement of over 100% in 2020 350 a3 - 2P reserves replacement of over 40% in 2020 = Tawke * T
Slide 16: The potential for material reserves additions
Slide 17: Sarta facility and flowline construction
Complete bridging engineering —e ee Complete priority civils work eee Execute LOM | contract LOL 4 aaa Facility construction ~Flowline ‘construction FMGAGE PORTS
Slide 18: Sarta appraise phase - S-5 and S-6 well sites
mm SARTA APPRAISE PHASE - S-5 AND S-6 WELL SITES * Civil works preparations completed for 2021 appraisal well drilling campaign * APPRAISE phase targets a combination of material reserves and resource additions whilst adding to Phase 1A PILOT production * Updip well S-5 to be drilled first (early 2Q
Slide 19: Sarta appraise phase - reserves conversion & production adds
mm SARTA APPRAISE PHASE - RESERVES CONVERSION & PRODUCTION ADDS * APPRAISE campaign aims to reduce resource uncertainty, establish deliverability and fast track incremental production * The 3 wells target high margin barrels in a combination of the Mus-Adaiyah and other proven Jurassic reservoir int
Slide 20: QD-2 well timeline
Select well location le EES ARR Se EE eee Tender for Civil Contractor = San es Contract rig “eat ee = RS. : Environmental permit approval Build pad, camp & water supply ~ ee Contract rig services ris ar a aie ~ Mobilise rig and services to well site x Sa is Sass 3 % &! - Rig up and spud QD-2 well Sa
Slide 21: Qara Dagh - appraising a potentially sleeping giant
== ()ARA DAGH - APPRAISING A POTENTIALLY SLEEPING GIANT QD-2 is targeting light, sweet oil ina different, shallower fault block QD+1 flowed 45° API sweet oil at low rates from fractured Shiranish Formation (Aiowrat Energy FY 2020 Results - 18 March 2021 Fractures intersected 1 Reservoir contact QD-2
Slide 22: African exploration - long-term reserves replacement post farmout
mae AFRICAN EXPLORATION - LONG-TERM RESERVES REPLACEMENT POST FARMOUT MOROCCO GZIRA OFFSHOR: SOMALILAN Nour Deep North . ; RS Ww = ie Lagzira Offshore oO * Additional deeper prospectivity illuminated by multi azimuth * Farmout process continues to progress, active discussions broadband 3D seismic co
Slide 23: ety
ety Material capital = Growing, high- ae Cash flow returns = margin, production generative oe
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