27 slides from Etablissements Maurel & Prom Sa's earnings presentation, Apr 1, 2020
Slide 1: FY 2019 results
FY 2019 results 1 April 2020 MAUREL PROM
Slide 2: Key messages
Key messages 1 1. Focused on EHS-S performance and operations resilience o Safety is the first priority of the company and its entire management: it stems from its leadership, culture, systems, and quality on the work floor o Strong measures taken to ensure work continuity despite COVID-19 situation
Slide 3: Focused on EHS-S performance and operations resilience
Focused on EHS-S performance and 1 operations resilience 3
Slide 4: 2019 EHS-S performance
2019 EHS-S performance 0.45 2.70 LTIF (Lost Time Injury Frequency) TRIR (Total Recordable Injury Rate) as of as of 31 December 2019 31 December 2019 Key performance indicators LTIF TRIR Safety is the first priority of the company and its entire management: it stems from its leadership, 7 culture,
Slide 5: EHS-S in practice: M&P's response to the COVID-19 situation
EHS-S in practice: M&P’s response to the COVID-19 situation Response to the COVID-19 situation Committed to the development of health infrastructure Active monitoring of the situation Full compliance with all recommendations from health authorities Work from home is the preferred option whenev
Slide 6: M&P's commitments to reducing its environmental impact
M&P’s commitments to reducing its environmental impact Environmental leadership Practical example: initiatives to reduce gas flaring Since 2015, M&P has participated in the CDP In December 2017, M&P commissioned a new gas-fired study which aims to assess the initiatives taken power plant on Ezan
Slide 7: Capitalise on our know-how to grow a sustainable business
Capitalise on our know-how to grow a 2 sustainable business 7
Slide 8: Business model and management team
Business model and management team M&P’s business model: explore, develop, operate Board of Directors Aussie Gautama Chairman Nathalie Delapalme Denie S.Tampubolon Independent Director Director Carole Delorme d’Armaillé Ida Yusmiati Independent Director Director Roman Gozalo 4 Portfolio Independent
Slide 9: Focused on key objectives
Focused on key objectives First priority: relentlessly focus on EHS-S excellence Maximise value from existing assets Capital discipline: strengthen balance sheet and maintain liquidity Grow the business through exploration and M&A Create value and return it to shareholders 9
Slide 10: A rich portfolio of assets at various stages of development
A rich portfolio of assets at various stages of development M&P WI M&P operated Type WI 2P reserves Strategic objectives Immediate priorities • Maximise resource and recovery Reduce costs Ezanga 80% Onshore oil 138.6mmbbls • Optimise remaining development plan Focus on water injection and ligh
Slide 11: The method: increase collaboration and share information
The method: increase collaboration and share information Towards a more collaborative and contributive work culture: from individual performance to collective success Teamwork Creation of an empowered Management Committee Enhanced internal challenge of key decisions Quality Creation of a Val
Slide 12: 2019: sound financial results led by operational delivery
2019: sound financial results led by 3 operational delivery 12
Slide 13: 2019 and early 2020 saw progress in the delivery of M&P's objectives
2019 and early 2020 saw progress in the delivery of M&P’s objectives Stated objectives 2019 and early 2020 initiatives and delivery Focus on operational safety and frequency of on-site management visits First priority: relentlessly focus 54% reduction in LTIF (lost time injury frequency) on EHS-
Slide 14: 2019 activity review – Production
2019 activity review – Production WI production Commentary bopd +19% 19,828 Production up sharply as pipeline issues faced in 2018 have been solved 16,723 7 development wells drilled in 2019 Ezanga 4 exploration and delineation wells on near field opportunities, two of which successful FY 2018
Slide 15: 2019 activity review – Finance
2019 activity review – Finance $mm FY 2019 FY 2018 Change Commentary Income statement Sales 504 440 +14% Average sale price of oil in 2019 decreased by 2% in 2019 Opex & G&A (195) (140) ($67.2/bbl from $68.8/bbl in 2018) Royalties and production taxes (65) (45) Change in overlift/underlift positio
Slide 16: 2019 activity review – Kama-1 exploration well
2019 activity review – Kama-1 exploration well Drilling location Structural map Cap Lopez Kama-1 well Ezanga (production) M&P: 80% Kari (exploration) M&P: 100% Kama-1 well Nyanga-Mayombé (exploration) M&P: 100% Several series of oil shows between 1,865 and 2,701 metres (total depth of the well) in
Slide 17: High liquidity and renewed support from banks and PIEP
High liquidity and renewed support 4 from banks and PIEP 17
Slide 18: Robust capital structure and high liquidity
Robust capital structure and high liquidity $231 million cash balance as Capital structure as of 31 December 2019 of 31 December 2019 Liquidity $100 million available via the x LTM Rate Maturity Amount Shareholder Loan EBITDA Term Loan Libor + 1.5% Dec-23 $600mm 2.1x Agreement with banks and R
Slide 19: In March 2020, M&P announced the re-profiling of its debt repayments
In March 2020, M&P announced the re-profiling of its debt repayments Before re-profiling After re-profiling Term Loan Shareholder Loan Term Loan Shareholder Loan $350mm $350mm $303mm $300mm $300mm $28mm $250mm $250mm $200mm $200mm $188mm $174mm $174mm $174mm $13mm $6mm $156mm $24mm $24mm $24mm $150m
Slide 20: Taking immediate actions to address the fall in oil price
Taking immediate actions to address the 5 fall in oil price 20
Slide 21: M&P is strongly positioned to weather the current challenging environment
M&P is strongly positioned to weather the current challenging environment Operatorship of main assets (Ezanga, Mnazi Bay, exploration) allows significant control and Flexibility flexibility over development plans and cost reduction initiatives Ability to restart promptly when conditions allow
Slide 22: Cash preservation initiatives
Cash preservation initiatives Immediate actions Targets Optimisation of logistics Reduction on operated assets: Reorganisation of well interventions Opex/G&A >20% for opex & >15% for G&A Optimisation of consumables and chemicals Equivalent to $25mm to $30mm of savings on an Reduction in cont
Slide 23: 2020 guidance
2020 guidance Average Brent price in Q1 2020: $51/bbl Production guidance Cash flow guidance Gross M&P WI FY 2020 operating cash flow @$25/bbl: $70 million at various Brent prices @$30/bbl: $100 million (price from 1 April 2020) @$35/bbl: $125 million Gabon 23,000bopd 18,400bopd Tanzania 70mmc
Slide 24: Appendix
6 | Appendix MAURELY PROM 24
Slide 25: Production (boepd)
M&P has managed to steadily increase production over the years… Working interest production over time Congo Colombia Venezuela Gabon Tanzania Angola Nigeria (equity interest) Sale of Congo Sale of Colombia 45,000 40,000 2009-2019: 15% CAGR 35,000 Production (boepd) 30,000 25,000 20,000 15,000 10,000
Slide 26: …whilst maintaining a large, diversified reserves base
…whilst maintaining a large, diversified reserves base Working interest 2P reserves 2P reserves by country as of 31 December 2019 Gabon Tanzania Angola France of which 1P reserves Gabon Tanzania 2009-2019 CAGR: 35% 2P: 8% / 1P: 9% Angola 250mmboe 47% France 225mmboe Nigeria (equity stake) 0% 200mmbo
Slide 27: Shareholder information
Shareholder information Shareholding distribution as of 31 December 2019 Employees, 0.38% Treasury shares, 2.29% Other, 1.66% Institutional investors, 6.27% Listing venue: Euronext Paris ISIN code: FR0000051070 Individual investors, Index inclusion: 18.11% CAC All-Tradable, CAC Small, CAC Mi