Brava Energia Sa · BMFBOVESPA:BRAV3
Brava Energia Sa — Q4 2023 Earnings Presentation
28 slides from Brava Energia Sa's earnings presentation, Mar 19, 2024
Slide 1: Results Presentation 4Q23 & 2023
Results Presentation 4Q23 & 2023 ri.3rpetroleum.com.br
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements about future events that are not based on historical facts and are not guarantees of future results. These forward-looking statements only reflect the Company's current views and estimates of future economic circumstances, industry
Slide 3: 4Q23 & 2023 Highlights | Ending a remarkable year in a high note
4Q23 & 2023 Highlights | Ending a remarkable year in a high note… Portfolio consolidation: Potiguar Cluster added production, reserves, flexibility and the mid & downstream segment to the strategy of the company. 3R ended 2023 among the main players in LATAM and as the largest independent onshore pr
Slide 4: 4Q23 & 2023 Highlights | Evolution in all fronts
4Q23 & 2023 Highlights | Evolution in all fronts Macau | Rio Ventura | Recôncavo | Areia Branca | Fazenda Belém Operational Evolution Peroá (85%) | Papa Terra (53.13%) | Pescada (35%) | Potiguar Organic Growth in 2023 (Production growth considering the Total Production - Oil + Gas (kboe/d) Oil Produ
Slide 5: Operational & Commercial Highlights
Operational & Commercial Highlights
Slide 6: Potiguar Complex Operation
Potiguar Complex 3R ended 2023 as the most relevant Operation onshore producer in Brazil: the only player fully integrated, with its own and verticalized infrastructure and truly independent located Storage Capacity: in the Potiguar basin >2.0 MM bbl Refinery Capacity: 40 kboepd NGPU Oil Capacity: G
Slide 7: The value of the infrastructure | Full verticalized operation sets the dominance in the basin
The value of the infrastructure | Full verticalized operation sets the dominance in the basin Most relevant player in Potiguar basin in all aspects Average Oil Production in the Potiguar Basin 3R has signed an offtake 3R is the main buyer of the 3R oil produced by other Others agreement (36 months)
Slide 8: 4Q23 Commercial Aspects | Better monetization in Oil & Gas contracts
4Q23 Commercial Aspects | Better monetization in Oil & Gas contracts Evolution of oil monetization Evolution of gas monetization Average brent price vs. Average realized oil prices Average brent price vs. Average realized gas prices 113.9 113.9 120 27 110 102.2 102.2 100.8 22 102.7 100.8 100 88.9 86
Slide 9: Potiguar Complex | 4Q23 Production & Operation
Potiguar Complex | 4Q23 Production & Operation Macau | Fazenda Belém | Areia Branca | Pescada (35%) | Potiguar (3R work interest | kboe/d) Macau started Macau Cluster Evolution 2024 in a strong (kboe/d) pace after ~80% 6.9 7.3 growth in oil 6.6 production 26.2 25.2 25.1 5.2 1.2 1.4 during 2023 4.3 4
Slide 10: Recôncavo Complex | 4Q23 Production & Operation
Recôncavo Complex | 4Q23 Production & Operation Rio Ventura & Recôncavo (3R work interest | kboe/d) +48% 9.2 9.1 Oil (kbbl/d) YoY Gas (kboe/d) +22% 2 7.4 7.5 QoQ 7.0 3R took over 6.0 6.2 Recôncavo 5.4 5.2 cluster in 2Q22 4.4 4.2 3.9 3.1 3.3 3R took over 3.5 Rio Ventura cluster in 3Q21 1.5 3.8 3.9 1.
Slide 11: Papa Terra Cluster | 4Q23 Production & Operation
Papa Terra Cluster | 4Q23 Production & Operation Papa Terra Production¹ Papa Terra Operational Efficiency 3R | 53.13% WI (Kboe/d) 16.4 16.9 Other (kboe/d) 93% 95% 13.0 13.0 +26% QoQ 72% 7.7 7.9 10.1 6.1 6.1 52% 4.7 80% 22% 8.7 9.0 6.9 6.9 5.3 1 2 3 4 1Q23 2Q23 3Q23 4Q23 jan/24 last 12 months 1H23 -
Slide 12: Peroá Cluster | 4Q23 Production & Operation
Peroá Cluster |4Q23 Production & Operation 3.2 3.2 Oil (kbbl/d) 2.9 2.9 Gas (kboe/d) 2.5 2.5 1.8 3.0 3.0 2.8 2.8 2.4 2.4 1.7 0.1 0.1 0.1 0.1 0.1 0.1 0.1 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 jan/24 Operation: Peroá output was stable QoQ. The asset recorded an average production of ~450 thousand m³/day of na
Slide 13: 3R Historical Production | Operational evolution since day one
3R Historical Production | Operational evolution since day one Total Oil & Gas Production 47.2 Oil & Gas average production 45.9 (3R work interest) 42.7 in 4Q23 (% boe/d) 9.8 10.0 8.9 Oil (kbbl/d) 28.4 Gas (kboe/d) 20.7 9.3 79% 21% 14.9 15.4 36.1 37.1 7.2 33.8 10.6 9.2 6.0 6.7 6.5 7.4 19.9 5.5 5.6 1
Slide 14: Strong Organic Growth | 3R among the best operational results in O&G industry in 2023
Strong Organic Growth | 3R among the best operational results in O&G industry in 2023 3R Oil & Gas Production throughout 2023 (3R Working Interest | kboe/d) | Considers the organic growth of the assets operated since the beginning of 2023 43% organic growth in 2023: 30.1 1 3R among the best operatio
Slide 15: Financial Highlights
Financial Highlights
Slide 16: Consolidated Net Revenues 4Q23 & 2023
Consolidated Net Revenues 4Q23¹ & 2023 Quarterly Annual Comparison (R$ MM) (R$ MM) 4.2X YoY 7.7X 5,620 -22% QoQ 2,360 3.3X 1,849 YoY 837 1,722 574 2.4X 2 445 728 YoY 1 2 3 4Q22 1Q23 2Q23 3Q23 4Q23 2021 YTD 2021 2022 YTD 2022 2023 YTD 2023 4Q23 Net Revenues Breakdown (R$MM) 591 ✓ Consolidated net rev
Slide 17: Upstream Net Revenues 4Q23 & 2023
Upstream Net Revenues 4Q23¹ & 2023 Quarterly Annual Comparison (R$ MM) (R$ MM) 4,452 Upstream Revenues reached R$1.61 billion in 4Q23 3.6X - 7% growth QoQ driven by higher output combined YoY +7% with better monetization and operational efficiency: QoQ 1,608 ✓ All time high upstream revenue in 4Q23
Slide 18: Consolidated Adjusted EBITDA 4Q23 & 2023
Consolidated¹ Adjusted EBITDA 4Q23 & 2023 Adjusted EBITDA Transition Period Costs Quarterly Annual Comparison (R$ MM) (R$ MM) 6.2X YoY -16% 1,880 QoQ 2.6X 2 YoY 829 2.0X 2 710 224 697 174 YoY 162 356 24 49 18 156 200 113 4Q22 1Q23 2Q23 3Q23 4Q23 202 1 202 2 202 3 4Q22 1Q23 2Q23 3Q23 4Q23 2021 2022 2
Slide 19: Lifting Cost 2023 | Ending 2023 improving efficiency
Lifting Cost 2023 | Ending 2023 improving efficiency +17% 23.6 QoQ 20.7 3R Petroleum 16.0 ❖ Potiguar Complex (Macau, Areia Branca, Pescada, Faz. Belém & Potiguar Clusters) (US$ / boe) 13.6 3R lifting cost ✓ 4Q23 results reflects (i) new contracts related to the operation and calculation includes mai
Slide 20: Consolidated Capex 4Q23 & 2023
Consolidated Capex 4Q23 & 2023 (US$ MM | Considers 100% of 3R Offshore) Capex breakdown per activity in 4Q23 (%) 325.0 325.0 2023 Quarter Breakdown Acquisition of inventory for Items purchased for use revitalization campaigns 42.5 in 2024 (ESP¹, pipelines (offshore pumps and and facilities equipment
Slide 21: Capital Structure | End of 2023
Capital Structure | End of 2023 Cash Flow 4Q23 Consolidated net debt / EBITDA Pro Forma (US$ MM) 193 (41) (6) 418 Leverage linked to Leverage linked portfolio obligations financial debts 123 (1.4) (10) (59) 2.4X 207 2.2X 0.7X 0.6X 1.7X 1.6X 1 2 Cash and cash Operational Hedge Portfolio Capex Debêntu
Slide 22: Capital structure ready to move forward | Liability management successfully implemented
Capital structure ready to move forward | Liability management successfully implemented 3R concluded in February 2024 the issuance of a US$ 500 million Bond (with annual coupon rate of 9.750%, senior secured notes, due 2031) to refinance US$ 500 million of the Secured Syndicated Loan (issued to supp
Slide 23: Hedge Position | 4Q23
Hedge Position | 4Q23 NDF | Average Brent Price / Barrels hedged Collar | Call x Put Brent Price / Barrels hedged Thousand of barrels | US$ Thousand of barrels | US$ 100 0 130 .0 Collar Put Call 900 NDF AVG médio Brent Brent 300 0 110 .0 120 .0 800 98 96 98 98 98 83 92 90 81 86 100 .0 80 250 0 78 90
Slide 24: ESG, Value Creation and Next Steps
ESG, Value Creation and Next Steps
Slide 25: ESG Highlights | Strategies that combine Performance and Corporate Responsibility
ESG Highlights | Strategies that combine Performance and Corporate Responsibility Key social aspects Main ESG Initiatives Active preservation of mangrove Caminhos no Mar Project, which aims Flexible and multicultural ecosystems through a community- to carry out an audiovisual diagnosis organizationa
Slide 26: Reinforcing the Fundamentals of the 3R Thesis
Reinforcing the Fundamentals of the 3R Thesis… 5 Robust cash position, controlled leverage (downward 3 trend supported by production increase and cost dilution) and diversified financing sources (local debentures, US bond High potential for organic and bank credit lines) growth: >500M of 2P reserves
Slide 27: Next Steps for 2024 | Focus on production, safety and integrity
Next Steps for 2024 | Focus on production, safety and integrity ❖ Efficiency of onshore and offshore surface systems: ✓ Complete the integrity recovery plan for the Papa Terra FPSO ✓ Expansion of water processing and steam injection systems in the Potiguar Basin ✓ Reinforcing the Company's position
Slide 28: Q&A 4Q23 & 2023
Q&A 4Q23 & 2023 ri.3rpetroleum.com.br