Tullow Oil Plc · LSE:TLW
Tullow Oil — Investor Presentation (April 2020)
34 slides from Tullow Oil's investor presentation, April 2020
Slide 1: Tullow Oil plc Overview Presentation April 2020
Slide 2: Disclaimer
e . TULLOW Disclaimer This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Tullow believes the expectations reflected herein to be reasonable in light of
Slide 3: Introduction
TULLOW Ot — INTRODUCTION Tullow Oil plc | Overview presentation
Slide 4: Our portfolio of assets
Our portfolio of assets Production Mauritania Guyana Suriname SB oe Uganda Y Céte d'Ivoire Ghana Equatorial Guinea @ x Kenya: Significant scale project enya Gabon progressing towards FID. Uganda: Sale of Ugandan interests Peru agreed to Total for $575m cash Namibia ration Extensive icreage In fronti
Slide 5: Executive leadership
. . TULLOW Executive leadership ot Dorothy Thompson Executive Chair Les Wood = Mark MacFarlane Chief Financial Officer Chief Operating Officer Rahul Dhir From 1 July 2020: Chief Executive Officer Tuten Ol Over Prsetten
Slide 6: Strategic progress so far in 2020
Strategic progress so far in 2020 Ot 2020 oil production on track - New leadership delivering improvements - |ntegrated approach to production management Financial strategy fit for purpose - Sale of Ugandan interests first step to realising in excess of $1 billion proceeds - Capital structure being
Slide 7: Business Review — framework & outcomes
Business Review — framework & outcomes Ot Framework ah Organisation review: Deliver a robust tabilise Tull a A P . 5 . Stabi Be UL OW, - efficiency and . « — Asset portfolio review business with attractive post-2019 u effectiveness free cash flow Outcomes ry ERO} New management team from Re-structur
Slide 8: Looking forward to a sustainable future
TULLOW Looking forward to a sustainable future Ot A focused strategy rs Oe es Oe es Oe | Disciplined Efficient and Delivering vow oot «exploration and 9s" effective voce Committed to ° development organisation sustainability ee | Underpinned by a more conservative capital structure i Restructured Im
Slide 9: Financial Update
TULLOW Ot Es FINANCIAL UPDATE Tullow Oil plc | Overview presentation
Slide 10: Financial strategy
Financial strategy ot Balance sheet - More conservative approach to gearing and maintaining appropriate headroom Portfolio management - Proactively manage asset base to balance risk and deliver value Commodity risk management - Reduce volatility impact through sustained hedging programme Capital all
Slide 11: 2019 Full Year Results
2019 Full Year Results Revenue ($m) Capital investment ($m) Underlying cash operating costs ($/boe) Free cash flow ($m) Adjusted EBITDAX ($m) YE 2018 YE 2019 Net debt ($b) Profit after tax ($m) YE 2018 YE 2019 Gearing (x) Tullow Oil plc | Overview Presentation
Slide 12: 2020f Jubilee TEN
2020f Jubilee TEN Non-operated
Slide 13: Sale of Uganda interests to Total
Sale of Uganda interests to Total ia 4 Delivering against ambitions laid out at Full Year Results I 1 - First step in raising in excess of $1 billion of proceeds Tullow has agreed to * Proactive portfolio management strategy sell its entire stake in - Fair value achieved in a challenging external en
Slide 14: Gross G&A and Net G&A
Gross G&A Net G&A 400 300 200 • • 100 • • 0 2019 2020 forecast 2021 estimate
Slide 15: Prudent commodity risk management
TULLOW | Prudent commodity risk management Ot 2020 hedging position Exposure to upside I 1 $57/bbl floor for 60% of 2020 sales volumes Ceiling a | a 2 $88/bbI # g 40% 15% Y 5 \ ; \ ; 45% * Hedging policy: = sales volume sales volume sales volume meCcnecqee netnentesy Floor - 30% hedged in year 2 7 $
Slide 16: Targeting a more conservative capital structure
‘Targeting a more conservative capital structure Capital structure — current position Facility Maturity | Outstanding (YE 2019) Convertible bonds 2021 $300 million Senior notes 2022 $650 million Reserves based lending (RBL) 2024 $1,345 million Senior notes 2025 $800 million RBL — successful March 20
Slide 17: Operations
TULLOW Ot a OPERATIONS Tullow Oil plc | Overview presentation
Slide 18: Operating priorities
| Operating priorities Ot Safe operations - Continuous improvement Stabilising production - Addressing operational challenges and improving performance * Controlled and integrated operations management - Subsurface Well delivery Production and maintenance Commercial Fully integrated planning Focused
Slide 19: Audited group reserves and resources
TULLOW Audited group reserves and resources , Robust, independently audited reserves and resources base _————— | * 2P Reserves: + Jubilee: Reserves remain flat > TEN: Reduction due to Enyenra downgrade + Non-op: 25% reserves increase TEN, 73 * 2C Resources: > Jubilee: Increase from new opportunities
Slide 20: Ghana — Making significant improvements
TULLOW Ghana — Making significant improvements Ot Management and accountability [ l I l [ Major functions 1] coo New Asset Director being centralised ee accountable for .. in London; eee integrating Ghana Day-to-day operations execution in | | l | | Ghana j Realistic forecasting assumptions Gas mana
Slide 21: Ghana — Year-to-date production performance
Ghana — Year-to-date production performance Delivering against key forecasting assumptions © = Gas management - offtake, processing and options to flare ilee gas handling reased to c.175 * Flaring approval up to 90 mmscfd Water injection reliability improvements at Jubilee + System optimisation duri
Slide 22: Ghana — Future production delivery
TULLOW | Ghana — Future production delivery OW Robust Jubilee Ntomme Reserves opportunities Reserves additions in 2P reserves remain robust almost offsetting production Drilling of new production Multiple future drilling ‘ well ongoing; tie-in Q2 2020 opportunities in under-developed North E: Focus
Slide 23: Gabon, Equatorial Guinea, Côte d'Ivoire
2018 2019 2020f Gabon Equatorial Guinea Côte d'Ivôire
Slide 24: Disciplined exploration activity
Disciplined exploration activity Guyana Céte d'Ivoire Data integration from 2019 campaign 2D onshore seismie Suriname programme Goliathberg-Voltzberg North spud 4@20 Peru Marina unsuccessful Data integration Namibia Total planned drilling in adjacent block in 2020 Comoros Potential 2021 Argentina dr
Slide 25: Project Oil Kenya
Project Oil Kenya Progress in 2019 TULLOW Remaining deliverables for FID +> FEEDs complete +> First crude shipment > Draft water agreement First Lamu Port berth > ESIAs completed > Financing launched > UpstreamEPC tenders issued Joint Venture workstreams Tender, contractor selection & award of EPC c
Slide 26: Sustainability
TULLOW Sustainability [I Tullow Oil plc | Overview presentation
Slide 27: Committed to sustainability
TULLOW Committed to sustainability Ot Responsible Shared Environmental Operations Prosperity Stewardship oust Inequames som cATA sue ocd pe Romans ff 12 Gree owme sts A earcmn Wh ‘o>maurctn ind! Aligning and supporting the UN Sustainable Development Goals New Sustainability Reporting in line with th
Slide 28: Total Recordable Injuries Frequency
• • 1.2 • 1 • 0.8 0.6 • 0.4 0.2 0 2017 2018 2019 Tullow Total Recordable Injuries Frequency (TRIF) IOGP Total recordable Injuries frequency top quartile benchmark
Slide 29: 1200 1067 1005 1000 2015 2016 2017 2018 2019
1200 1067 1005 1000 909 909 800 667 600 400 200 0 2015 2016 2017 2018 2019
Slide 30: • ₁ ₂ • • • •
• ₁ ₂ • • • 350 300 • 250 200 150 100 50 0
Slide 31: Equality & Transparency
| Equality & Transparency Extractive Industries Transparency Initiative First oil company to publicly support contract transparency Leading disclosure on Modern Slavery in Transparency in the Supply Chain Report Female Board representation at 38% African Board representation at 25% VOLUNTARY PRINGIP
Slide 32: Key data
TULLOW Es Key data [I Tullow Oil plc | Overview presentation
Slide 33: 2020 Key Data
| TULLOW 2020 Key Data Ot Oil production (kboepd) 2020 forecast Group Reserves and Resources (at 31 Dec 2019) Operating costs! ($/boe) 2020 forecast Ghana 52.0 Ghana 9.0 Jubilee 29.0 Equatorial Guinea 20.0 TEN 23.0 Gabon? 22.0 Equatorial Guinea 5.0 Céte d'Ivoire 19.0 Gabon 16.0 Cote d'Ivoire 2.0 Dep
Slide 34: Tullow Oil plc
TULLOU Tullow Oil pic 9 Chiswick Park, 566 Chiswick High Road London W4 5XT United Kingdom Tel: +44 (0)20 3249 9000 Fax: +44 (0)20 3249 8801 Email: ir@tullowoil.com. Web: www.tullowoil.com