Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — Shareholder Meeting (June 2022)
15 slides from Gulf Keystone Petroleum's shareholder meeting presentation, Jun 24, 2022
Slide 1: 2022 Annual General Meeting
2022 Annual General Meeting 24 June 2022
Slide 2: Disclaimer
Disclaimer This proprietary presentation (the “Presentation”) has been prepared by Gulf Keystone Petroleum Limited (the “Company”). Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation to buy or a solicitation of an offer to buy securities of any kind in any
Slide 3: Driving sustainable growth & shareholder returns
Driving sustainable growth & shareholder returns Safety & sustainability underpin our business 0 LTIs: >240 days Strong cash flow generation underpins sector leading dividends ’000 bopd 44.9 2022 YTD gross Intend to call outstanding $100 million bond production(1) Prudently managing wells to
Slide 4: ESG: Safety & sustainability underpin our business
ESG Safety & sustainability underpin our business Performance highlights Our sustainability strategy priorities Rigorous focus on safety 0 LTIs for >240 days as at 24 June 2022 Address climate risk Progressing FDP with target >50% reduction E Minimise impact on environment in emissions int
Slide 5: 2022 production performance & guidance
2022 production performance & guidance 2022 YTD gross average production of c.44,900 bopd Tightening 2022 gross average production guidance to 44,000 – 47,000 bopd Prudently managing wells to avoid traces of water Reviewing options to expedite installation of water handling to increase produ
Slide 6: 2022 work programme
2022 work programme On track to deliver $85-$95 million net capex guidance SH-15 drilled and online in record time Progressing well workover & intervention programme Advance works to support continuous drilling programme Exploring options to accelerate water handling Preparing to resume
Slide 7: Field Development Plan
Field Development Plan Drive profitable production growth while more than halving carbon intensity While approval timing remains uncertain, progressing towards sanction FDP Phase 1 components: Expand Jurassic gross production plateau up to 85,000 bopd Test Triassic reservoir, targeting gross
Slide 8: Step change in cash generation & distributions in 2021
Step change in cash generation & distributions in 2021 Adjusted EBITDA ($m) Profit/(loss) after tax ($m) 223 165 150 80 123 44 104 14 57 (47) 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Free cash flow ($m) Shareholder distributions ($m) 138 Dividends 122 Share buybacks 67 30 100 50 (26) (23) 2
Slide 9: Continuing strong cash receipts in 2022
Continuing strong cash receipts in 2022 $273 million net received in YTD 2022(1) for crude oil sales and arrears Exceeds total net receipts in 2021(2) of $222 million Outstanding arrears balance fully recovered with Feb-22 payment $50 $45 $40 $8m $8m $7m US$m (net) $35 $7m $30 $5m $5m $5m $5m
Slide 10: Committed to maintaining leading low-cost position
Committed to maintaining leading low-cost position Rigorous focus on cost control underpins cash generation GKP is a leading low-cost operator Lowest cost producer in Kurdistan Region of Iraq 2022 gross opex per bbl guidance: US$2.9–3.3/bbl 2021 benchmarking: Opex + G&A per barrel (US$/bbl W
Slide 11: Robust balance sheet
Robust balance sheet Balance sheet strength provides resilience and downside protection Intend to call $100 million bond after step down in call premium in July No current hedging programme Cash balance(1) ($m) Equity ratio(1) (%) 296 72 73 71 247 69 68 191 170 161 148 $100m bond Covenant: 40%
Slide 12: Sector leading shareholder returns
Sector leading shareholder returns $190 million dividends declared 2022 YTD: $115m dividends paid $75m dividends for approval at today’s AGM, to be paid in July $390 million aggregate dividends & share buybacks since 2019 Continuing strong cashflow provides flexibility for incremental dist
Slide 13: Outlook
Outlook Driving sustainable growth & shareholder returns Gross production: 44-47,000 bopd(1) Achieve 2022 Net Capex: $85-$95 million guidance Gross Opex/bbl: $2.9-$3.3/bbl Execute Maintain rigorous focus on safety as operational activity increases Continue to generate significant economic
Slide 14: Thank you
Thank you More resources are available at: www.gulfkeystone.com 14
Slide 15: Appendix: Key historical financials
Appendix: Key historical financials FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Gross production (bopd) 43,440 36,625 32,883 31,563 35,298 Dated Brent (US$/bbl) 70.8 42.0 64.6 71.3 54.9 Discount (US$/bbl) 21.2 21.1 21.7 22.3 20.3 Realised price (US$/bbl) 49.7 20.9 42.9 49.0 34.6 Revenue (US$m) 301.4 108
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