ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Merger or Acquisition (October 2015)
14 slides from ORLEN Spolka Akcyjna's merger presentation, Oct 13, 2015
Slide 1: Execution of PKN ORLEN 2014-2017 Strategy in the upstream segment
Execution of PKN ORLEN 2014-2017 Strategy in the upstream segment Kicking Horse Energy and FX Energy Agreements Signing Wa r s a w, O c t o b e r 1 3 , 2 0 1 5 ORLEN. FUELLING THE FUTURE.
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by PKN ORLEN S.A. (“PKN ORLEN” or “Company”). Neither the Presentation nor any copy hereof may be copied, distributed or delivered directly or indirectly to any person for any purpose without PKN ORLEN’s knowledge and consent. Copying,
Slide 3: PKN ORLEN strategy in upstream segment (1/2)
PKN ORLEN strategy in upstream segment (1/2) Hydrocarbons production* Value creation levers million boe/year 6.0 Organic growth in Poland Increased focus on conventional projects Delineation of prospective areas of the unconventional upstream assets 0.1 Development of Upstream in Canada 2013 2017 Pr
Slide 4: PKN ORLEN strategy in upstream segment (2/2)
PKN ORLEN strategy in upstream segment (2/2) Challenging macroeconomic conditions PKN ORLEN’s response to the challenging market conditions: Project portfolio rationalization in Poland – focus on the more prospective areas (CAPEX for organic growth in Poland reduced to PLN ~0.1 bn in 2015) Adjusted
Slide 5: PKN ORLEN's new upstream acquisitions: Kicking Horse Energy and FX Energy
PKN ORLEN’s new upstream acquisitions: Kicking Horse Energy and FX Energy Acquisitions of producing assets – strengthening of PKN ORLEN’s presence in Canada and project portfolio diversification in Poland The new acquisitions by PKN ORLEN: Consistent with PKN ORLEN strategy Next step to strengthen P
Slide 6: Kicking Horse Energy Executive Summary: Transaction
Kicking Horse Energy Executive Summary: Transaction ORLEN Upstream Canada (OUC), a subsidiary of ORLEN Upstream (OU) has signed an Arrangement Agreement that initiates acquisition of Kicking Horse Energy, a Canadian E&P company listed on the TSX Venture Exchange (trading symbol: KCK) Price per share
Slide 7: Kicking Horse Transaction Overview
Kicking Horse Energy Executive Summary: Transaction Overview Business rationale Top quality assets in Alberta with within the most condensate-rich part of the Montney play Very good economics Possible synergies with ORLEN Upstream Canada Talented team of highly experienced people available to streng
Slide 8: Kicking Horse Asset Overview
Kicking Horse Energy Executive Summary: Asset Overview Top quality production area of Alberta Current production of 4,000 boe/d (57% Current liquids) cash flows Alberta Large and highly prospective 471 & upside Lands gross/350 net section potential land position High IRR wells driven by significant
Slide 9: FX Energy Executive Summary: Transaction
FX Energy Executive Summary: Transaction ORLEN Upstream has signed an Agreement and Plan of Merger to initiate an acquisition of FX Energy, a U.S. based E&P company listed on NASDAQ (trading symbol: FXEN) with the core business in Poland Offered price per share USD 1.15 Shares to be acquired 100% Tr
Slide 10: FX Transaction Overview
FX Energy Executive Summary: Transaction Overview Business rationale Best producing assets with upside potential available in the Polish market Successful track record in the Fences area Talented team of highly experienced people available to strengthen ORLEN Upstream Process ORLEN Upstream’s offer
Slide 11: FX Asset Overview
FX Energy Executive Summary: Asset Overview 1 • Concessions 3 450 sq km Current • Gas production: over 1650 Fences boe/d cash flows • Partnership with PGNiG 2 2 • Concessions 2 967 sq km • Exploration & development Upside phase potential Edge • 1155 sq km of 3D seismic 1 acquired 3 • New prospects i
Slide 12: ORLEN Upstream Portfolio Post Acquisitions
ORLEN Upstream Portfolio Post Acquisitions 2P Reserves (MM boe) as of 2014YE 8 FX Energy* OU Canada 30 Kicking Horse Energy Total 2P reserves: Over 88 MM boe Source: Company reports 50 * Assuming 80% methane content oin the Fences gas fields Oil and Gas production (boe/d) 2015 H1 FX Energy* 2014 OU
Slide 13: Summary
Summary Strategic rationale The acquisitions are consistent with PKN ORLEN strategy Next step to strengthen PKN ORLEN’s market position in the upstream segment Opportunistic acquisitions of quality assets in favorable hydrocarbon price environment Top quality producing assets in Canada with plenty o
Slide 14: Thank You for Your attention
Thank You for Your attention For more information on PKN ORLEN, please contact Investor Relations Department: phone: + 48 24 256 81 80 fax: + 48 24 367 77 11 e-mail: ir@orlen.pl www.orlen.pl