Karoon Energy Ltd · ASX:KAR
Karoon Energy — 1H FY2023 Earnings Presentation
23 slides from Karoon Energy's earnings presentation, Feb 22, 2023
Slide 1: FY2023 First Half Results
FY2023 First Half Results 22 February 2023 KAROON ENERGY
Slide 2: Disclaimer
Disclaimer ones Disclaimer Thispresentation has been prepared by Karoon Energy Ltd, The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in thi
Slide 3: FY2023 First Half Highlights and Achievements
KAROON ENERGY FY 2023 FIRST HALF HIGHLIGHTS AND ACHIEVEMENTS JULIAN FOWLES CEO AND MANAGING DIRECTOR 03 Karoon Energy - FY2023 First Half Results
Slide 4: FY2023 First Half Highlights
FY2023 First Half Highlights 35% increase in production, underlying NPAT up 275% KAROON ENERGY Strong operational and financial results > One Lost Time Injury, two Medical Treatment Injuries, TRIR of 0.77.No significant environmental incidents > Production of 3.37 MMbbl, with 97.5% facilities uptime
Slide 5: Strategy scorecard
Strategy scorecard Progress against October 2021 Strategic Refresh promises KAROON ENERGY Safe operations TRIR for both FY22 and 1H FY23 of 0.77 Reliable operations Qe@ Uptime in 1H FY23 of 97.5% (excluding scheduled shut-downs) Responsible operations Q Emissions reductions focus, no significant env
Slide 6: Financial Results
KAROON ENERGY FINANCIAL RESULTS RAY CHURCH CFO 06 Karoon Energy - FY2023 First Half Results
Slide 7: FY2023 First Half Financial Highlights
FY2023 First Half Financial Highlights bhuse REVENUE UNIT PRODUCTION COSTS UNDERLYING EBITDA US$299.4m (4) US$17.3/bbl (©) US$175.9m_ (4) Up 61% from US$186.5m! Down 26% from 23.5/bbl! Up 97% from USS$89.5m!? OPERATING CASHFLOW INVESTING CASHFLOW LIQUIDITY USS167.1m (4) US$142.4m (4) US$343.2m (4) U
Slide 8: Underlying result - 1H FY2023
Underlying result - 1H FY2023 KAROON y ENERGY USS million 1H23 1H22 1H23. 1H22 Revenue 299.4 186.5 Production (MMbbI) 3.37 2.50 Other income MM Ot Sales Volume (MMbbI) 3.41 257 Production Costs (incl FPSO depn & finance) (72.5) (58.8) Realised Oil Price (USS/bbI 3786 73.43 Royalties (incl SPT & R&D
Slide 9: Cash flow - 1H FY2023
Cash flow —- 1H FY2023 1H23 Cash Flow (USS Million) 550 500 450 350 — (9) (2) Zz 300 277 (21) (3) 250 200 — (13) (139) 150 | 100 Net cash generated of $144m supporting CAPEX 50 ° Cash Receipts ProdSpend Corporate Expl & Income Financing Hedge CAPEX - &Cash (incl FPSO & Eval Tax Costs Settlements Wor
Slide 10: Cash and available liquidity
Cash and available liquidity Debt and Liquidity at 31 December 2022 > Debt Facility: > USS160m reserve-based, non-recourse syndicated loan facility, 425bps margin over SOFR > USS50m committed accordion facility > Total liquidity USS343m (USS163m cash plus US$180m undrawn debt) > Facility was sized t
Slide 11: FY2023 guidance
FY2023 guidance! Low High Production (MMbbl) 75 9.0 Costs Unit Production Costs (US$/bbl)? 13 7 Other Operating Costs (USS million)? 19 23 Business Development, share-based payments & Neon studies (USS million) 12 14 Finance costs and interest (USS million)4 9 10.5 Unit DD&A (USS/bbIl)* 12 14 Invest
Slide 12: Reconciliation of Underlying Result to Statutory Result
Reconciliation of Underlying Result! to Statutory Result bie USS million 1H23 1H22 EBITDA NPAT EBITDA NPAT Reported results 166.8 77.6 (91.8) (97.7) Underlying adjustments. Change in FV of contingent consideration 0.4 0.3 183.8 121.3 Fair value losses on cash flow hedges 72 AT - . Social investments
Slide 13: Strategy and Outlook
KAROON ENERGY STRATEGY AND OUTLOOK JULIAN FOWLES CEO AND MANAGING DIRECTOR 13 Karoon Energy - FY2023 First Half Results
Slide 14: BM-S-40 field layout
BM-S-40 PRA-1 SPS-57 SPS-93 SPS-92 Piracaba PRA-2 PRA-3 Baúna PAT-1 PAT-2 SPS-56 SPS-91 BAN-1 SPS-87D Patola SPS-88 SPS-89
Slide 15: Piracaba, Baúna, Patola
BM-S-40 Piracaba Baúna PAT-1 PAT-2 Patola
Slide 16: Baúna Reserves and Resources
Bauna Reserves and Resources! Oil reserves at 31 December 2022 (MMbbIl) BM-S-40 (Batina, Piracaba and Patola) 1P 2P 3P Developed? 30.9 38.6 45.3 Undeveloped3 11.9 16.4 20.2 Total 42.8 55.0 65.5 % change on 30 June 2022 +17% +23% +7% Contingent Oil Resources at 31 December 2022 1c 2c 3c BM-S-40 (Bati
Slide 17: Potential Neon Development
Potential Neon Development KAROON Control well drilling to reduce subsurface uncertainty ENERGY > First Neon control well, Neon-1, reached final total depth (TD) of 2,382m MD on 10 February 20232. Logging now complete Neon Oil Accumulation > Confirmed presence of primary reservoir targets and acquir
Slide 18: Sustainability Report and emissions targets
Released first Sustainability Report in August 2022 Submitted second Modern Slavery Statement in December 2022 FY 2022 carbon emissions lower than anticipated. Expect to achieve carbon neutrality! on Batina operations with Verified Emission Reductions (VERs) purchased under the VER agreement with Sh
Slide 19: Summary: Creating shareholder value
Summary: Creating shareholder value uccessful Batina intervention campaign completed on time and within revised budget > Production expected to increase from current ~21,500 bopd to >30,000 bopd when Patola comes onstream, prior to resumption of natural decline > Significant uplift in reserves, with
Slide 20: Appendix 1: Contingent consideration on Baúna Acquisition
Appendix 1: bie Contingent consideration on Batina Acquisition! > Contingent consideration of up US$285m plus interest Average Brent payable to Petrobras for Batina acquisition Price (in USS units) _ CY2022 CY2023 CY2024 CY2025 CY2026 Total > Contingent on annual average Platts Dated Brent oil price
Slide 21: Appendix 2: Royalty reduction, SP and R&D levies
Appendix 2: KAROON ENERGY Royalty reduction, SP and R&D levies Royalties > Tiered royalty reduction on incremental production from Batina interventions and Patola development applied from November 2022 onwards > Historical 10% royalty rate applies to ANP’s! base production profile (oil production ra
Slide 22: Santos Basin
Santos Neon Basin Goiá Baúna, Piracaba & Patola Clorita Itajai Production and Development Blocks Exploration Blocks Fields and Discoveries 50km Prospects
Slide 23: Definitions
Definitions bie 1H Financial period from 1 July to 31 December API American Petroleum Institute’s Inverted scale for denoting the “lightness” or “heaviness” of crude oils and other liquid hydrocarbons bbl or barrel Barrel of oil = 42 United States gallons; equivalent to approximately 159 litres bn b