Karoon Energy Ltd · ASX:KAR
Karoon Energy — Shareholder Meeting (May 2024)
34 slides from Karoon Energy's shareholder meeting presentation, May 23, 2024
Slide 1: Annual General Meeting – Address by Chairman and Presentation by CEO
23 May 2024 Company Announcements Office ASX Limited Dear Sir / Madam For personal use only Annual General Meeting – Address by Chairman and Presentation by CEO In accordance with ASX Listing Rule 3.13.3, enclosed is the Chairman’s address and CEO Presentation to be delivered at the Karoon Energy Lt
Slide 2: 2024 Annual General Meeting Chair's Address
ASX RELEASE 23 May 2024 | ASX: KAR 2024 Annual General Meeting Chair’s Address Slide 4: TY 23 Results In July 2023, the Board decided to change Karoon’s year end from 1 July – 30 June, to 1 January – 31 December. This was done to streamline the preparation of statutory annual financial statements an
Slide 3: Operating environment and strategy delivery
Slide 6: Operating environment While recent production has been lower than anticipated, Karoon is currently benefiting from the strength in crude oil prices, which are driving improved revenues. While off its peak of US$96/bbl reached in September 2023, the Brent crude price is trading at approximat
Slide 4: Bond issue and long-term growth strategy
A key element in our long term growth strategy is ensuring we have access to a competitive long term source of debt capital. Karoon recently accessed the bond market for the first time with an inaugural issue of US$350 million. We consider this a highly strategic step in the Company’s evolution. The
Slide 5: Remuneration and incentives
management and employees to take ownership and expedite projects by leveraging the diverse talents and capabilities of our staff. The Board is responsible for setting and monitoring the strategic direction of the Company and setting the remuneration structure. The Board firmly believes that the appr
Slide 6: MD and CEO's Address: Opening
I would also like commend the entire Karoon team for their hard work and commitment to Karoon during our Transition Year. In closing I thank you for your time and attention so far and I look forward to answering your questions shortly. I will now ask our CEO, Julian Fowles, to address the meeting an
Slide 7: Financial Highlights and 1Q24 Trading Update
Slide 14: Financial Highlights Over the last three years, you can see the transformation of Karoon reflected in our production and financial results. Our investment in the Baúna intervention and Patola development has resulted in production increasing from around 2 million barrels of oil in the six
Slide 8: Who Dat Operating Performance
Slide 17: Who Dat Operating Performance Turning to the US, production from the Who Dat asset for the 2024 March quarter was below our expectations. Ongoing JV technical workshops have highlighted that production has been impacted by several operational factors, including delays in bringing new wells
Slide 9: Exploration prospects and Neon
In the event of success at one or more of these prospects, further appraisal may be required. Field development plans would then be created based on subsea tiebacks to the FPS, with the specifics of timing and cost dependent on what is encountered. Slide 19: Neon In March, the Board approved the Neo
Slide 10: Contact information and reserves notes
Thank you, and I will now hand back to Peter. This announcement has been authorised by the Board of Karoon Energy Ltd. FOR FURTHER INFORMATION ON THIS RELEASE, PLEASE CONTACT INVESTORS MEDIA - AUSTRALIA MEDIA - BRAZIL Ann Diamant - SVP Investor Relations P&L Corporate InPress Porter & Communications
Slide 11: Forward-looking statements
This announcement may contain certain “forward‐looking statements” with respect to the financial condition, results of operations and business of Karoon and certain plans and objectives of the management of Karoon. Forward-looking statements can generally be identified by words such as ‘may’, ‘could
Slide 12: Karoon Energy Annual General Meeting May 2024
For personal use only Karoon Energy Annual General Meeting 23 May 2024
Slide 13: Disclaimer
Disclaimer This presentation 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 this presentation
Slide 14: Chair's Address
For personal use only Peter Botten Chair, Karoon Energy Chair’s Address
Slide 15: TY23 Results
TY23 Results $ For personal use only 5.5 MMboe 0 US$81.51/boe US$144.7m Production in TY23 Lost Time or Recordable Weighted average realised Underlying Net Profit After Incident oil and gas price Tax % CO2e US$284.2m 10% 10.9kgCO2e/boe 2 Cashflow Generated1 Gearing at 31 Dec 232 Emissions intensity
Slide 16: Operations
Operations For personal use only Baúna Project Quarterly Production (MMbbl) Who Dat gross quarterly production (MMboe) 3.0 3.5 2.85 2.53 3.0 2.5 2.16 2.5 2.08 1.98 2.0 2.0 1.68 1.5 1.5 1.29 1.0 1.0 0.5 0.5 0.0 June September June March September June March September March December March December Dec
Slide 17: Operating Environment
Operating Environment Oil prices have remained volatile Prices expected to remain elevated to meet emerging supply gap 100 Liquids Supply Gap by 2035 (MMbbld) For personal use only 95 90 85 US$/bbl 80 75 70 65 60 Nov-23 Apr-23 May-23 Jul-23 Apr-24 May-24 Aug-23 Oct-23 Feb-23 Sep-23 Dec-23 Feb-24 Jan
Slide 18: Strategy delivery adding value
Strategy delivery adding value 2C Contingent Resources 1 (MMboe) For personal use only 2P Reserves 1 (MMboe) 2U Prospective Resources 1 (MMboe) 1. See pages 16 – 19 of TY23 Annual Report for full details, including the basis of calculation of Reserves and Resources and Governance and Competent Perso
Slide 19: Strategy delivery adding value – EPS and ROA
Strategy delivery adding value – EPS and ROA Underlying EPS 1 0.40 0.36 >800% For personal use only 0.30 0.26 since FY21 when KAR 0.20 took operatorship of Relative performance of Karoon vs Australian peers Baúna (Nov 20) 0.15 400 US$/sh 0.10 0.04 350 0.00 FY20 FY21 FY22 FY23 TY23* 300 -0.10 250 Str
Slide 20: Capital allocation framework
Capital allocation framework Framework aimed at supporting safe and reliable operations, maintaining liquidity and balance sheet strength, while supporting Operating cash flow For personal use only both value accretive organic and inorganic growth, as well as capital returns to shareholders. Non-dis
Slide 21: Corporate Governance Framework
Corporate Governance Framework Framework is building trust and driving growth to unlock value Appointment of two non-executive directors to Shareholders For personal use only deepen Board skills and for succession planning Accountability Aim (at an appropriate time) to appoint a further non-executiv
Slide 22: CEO and MD's Address
For personal use only Julian Fowles CEO and Managing Director CEO and MD’s Address
Slide 23: Overview
Overview Oil and gas producer with strong cash flows from high quality assets Interests in two world class oil and gas basins: For personal use only Baúna Project in BM-S-40 offshore Brazil Who Dat/Dome Patrol in US GoM Interests in Who Focus is to maximise performance and value of existing asset ba
Slide 24: Delivering our strategy
Delivering our strategy Successfully executed strategy set in October 2021 to transform Karoon Strategic objectives What we said What we achieved “Safety is our first priority. It is also For personal use only Safe and reliable production the first of our five pillars of TRIR of 0 over last 12 month
Slide 25: Six Month Financial Highlights
Six Month Financial Highlights1 Production growth with largely fixed cost base, supported by robust balance sheet Production (MMboe) Sales revenue (US$m) Unit Production Cost (US$/boe) For personal use only 6 5.47 500 30 27.49 26.10 412.9 5 25 23.54 400 4 3.67 299.4 3.37 20 17.25 300 267.1 3 2.50 14
Slide 26: 1Q24 Trading Update
1Q24 Trading Update No Lost Time or Recordable incidents in 1Q24 in either Brazil or US For personal use only Baúna Project Who Dat Assets Growth & exploration Robust balance sheet 1Q24 production of 2.16 MMbbl, 15% 1Q24 production of 0.78 MMboe on a Who Dat East appraisal/exploration At 31 March 20
Slide 27: Brazil: Baúna, Patola and Piracaba
Brazil: Baúna, Patola and Piracaba Facilities uptime remains key focus to optimise production Average BM-S-40 (Baúna Project) production ~24,000 bopd for 1QCY24. Production impacted by SPS-88 offline (since Nov 2023), gas dehydration unit For personal use only BM-S-40 and compression reliability iss
Slide 28: US: Who Dat operating performance
US: Who Dat operating performance Optimisation of production ongoing 1 G2 & G4 wells brought online in February 2024. Challenges experienced handling high pressures from new wells, including upper For personal use only G2 reservoir Comingled flow from upper and lower zones in G2 well started on 1 Ma
Slide 29: Organic Growth US: Infill and exploration at Who Dat
Organic Growth US: Infill and exploration at Who Dat Attractive near-field exploration/appraisal opportunities Oil discovery well MC 421 Who Dat East well spudded on 27 April. Who Dat South well to 2024 potential exploration well spud in mid-24 Drill Centre / Production manifold For personal use onl
Slide 30: Organic Growth Brazil: Potential Neon development
Organic Growth Brazil: Potential Neon development Further analysis over next 12 months to narrow range of uncertainties Board approved Neon Project to enter Concept Select (Decision Gate DG -1)2 For personal use only During Concept Select, will focus on addressing key economic and technical challeng
Slide 31: Funding strategy – bond issue diversifies funding sources
Funding strategy – bond issue diversifies funding sources Strategy for growth underpinned by strong balance sheet Karoon Energy Ltd assigned credit rating of “B” with stable outlook by both S&P Global and Fitch 1 For personal use only Inaugural US$350 million US 144A high yield issue priced at 10.5%
Slide 32: Summary
Summary Focus on creating long term shareholder value Highest priority remains delivering safe and reliable operations while maximising production and value For personal use only Two high quality, low unit operating cost, producing assets in prolific hydrocarbon basins, with organic growth opportuni
Slide 33: Glossary
Glossary Term Definition 1QCY24 Quarter ended 31 March 2024 Bcf billion cubic feet For personal use only Boe Barrels of oil equivalent Carbon Neutral refers to having a balance between emitting and offsetting greenhouse gas emissions, achieved through acquiring carbon Carbon Neutral offsets in respe
Slide 34: Karoon Energy
For personal KAROON ENERGY