Tullow Oil Plc · LSE:TLW
Tullow Oil — Shareholder Meeting (April 2015)
14 slides from Tullow Oil's shareholder meeting presentation, Apr 30, 2015
Slide 1: Annual General Meeting
2015 AGM Tullow Oil plc ANNUAL GENERAL MEETING 30 April 2015
Slide 2: Disclaimer
2015 AGM 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 th
Slide 3: Challenging market for Oil & Gas companies
2015 AGM Challenging market for Oil & Gas companies 1. Emerging US shale industry 2. OPEC decision and market reaction in H2 2014 • Changed investor focus • Significant fall in oil prices in 2014 • Effect on oil supply / demand balance • Effect on share prices especially in E&P sector 200 US E&Ps se
Slide 4: 2014 Full year financial results
2015 AGM 2014 Full year financial results 2014 2013 Sales revenue $2,213m $2,647m Gross profit $1,096m $1,493m Administrative expenses ($192m) ($219m) (Loss)/profit on disposal ($482m) $30m Goodwill impairment ($133m) - Exploration costs written off 1 ($1,657m) ($871m) Impairment of property, plant
Slide 5: Business reset for current market conditions
2015 AGM Business reset for current market conditions • Strong production and development business • Reduced exploration budget focusing on low cost plays and long term options • Reducing costs and dividend suspension provides increased flexibility • Funded through TEN first oil • Focused on deliver
Slide 6: West & North Africa
2015 AGM West & North Africa 71,300 63,400 580 7 Countries 26 Licences 29 Years experience Sq km boepd mmboe Acreage 2014 production Reserves & Resources West & North Africa • Material business with potential to generate $m Operating Cash Flow 2000 material cash flow 1500 • Rising production base to
Slide 7: Ghana: at the heart of Tullow
2015 AGM Ghana: at the heart of Tullow Strong 2015 Jubilee production and cost Tullow’s production in Ghana 80 performance 70 • Jubilee exceeded production guidance in Q1 at 103,000 60 bopd 50 boepd 40 • High FPSO operating efficiency underpinned 2014 30 performance 20 10 • Low operating cost ~$10/b
Slide 8: Progressing East Africa regional development
2015 AGM Progressing East Africa regional development 85,000 2.3 Bbo 1 to 5 Bbo 3 Countries 10 Licences 10+ Years experience Sq Km Discovered Risked Yet to Find Acreage Resources (Gross) Resources (gross) East Africa upstream developments • Good progress on development studies & resource base • Ugan
Slide 9: Low-cost exploration options
2015 AGM Low-cost exploration options Caribbean-Guyanas Norway Atlantic Margin Plays Atlantic Margin Plays 1. Licence activity 1. Licence activity - Prospecting & - Johan Sverdrup charge farming down fairway (APA 2014) 2. Frontier wildcatting 2. Frontier wildcatting - Spari in Suriname - Zumba & Hag
Slide 10: Exploration remains at the heart of the business
2015 AGM Exploration remains at the heart of the business 18 320,000 sq km $200m Countries with 2015 Expl expl activities Expl acreage Budget • Ambitious campaigns in Kenya, Norway and South America • Building prospect inventory to drill once market conditions improve • Key wells: Cheptuket (Kenya),
Slide 11: Shared prosperity: transparency
2015 AGM Shared prosperity: transparency Transparency • 2014 is the third year we have reported payments to governments • Payments to governments were lower in 2014 due to a reduction in payments in kind caused by lower production entitlements per barrel in West and North Africa and lower income tax
Slide 12: Shared prosperity: Invest in Africa
2015 AGM Shared prosperity: Invest in Africa • A cross-sector group of companies (local & international) working together to support investment into 5 key sectors across Sub Sahara Africa: Infrastructure, extractives, telecommunications, financial services & agribusiness • IIA works with… The Busine
Slide 13: Summary: action taken to enhance long term performance
2015 AGM Summary: action taken to enhance long term performance Restructuring the business for the current challenging environment • Organisational changes will generate savings of c.$500m of cost savings over three years • Focused on delivering TEN and maintaining ongoing high margin West Africa pr
Slide 14: Tullow Oil plc
2015 AGM Download the Tullow Investor Relations and Media App from the Apple and Android stores: Tullow Oil plc 9 Chiswick Park 566 Chiswick High Road London, W4 5XT United Kingdom Follow Tullow on: Tel: +44 (0)20 3249 9000 Fax: +44 (0)20 3249 8801 Email: ir@tullowoil.com Web: www.tullowoil.com