Horizon Oil Limited · ASX:HZN
Horizon Oil — H1 2018 Earnings Presentation
13 slides from Horizon Oil's earnings presentation, Feb 26, 2018
Slide 1: Half Year Results Presentation
HORIZON OIL LIMITED / ABN 51 009 799 455 Half Year Results Beibu Gulf fields, China Presentation Papua New Guinea 26 February 2018 Maari field, New Zealand
Slide 2: Disclaimer
Disclaimer Statements contained in this material, particularly those regarding the possible or assumed future performance, costs, dividends, returns, production levels or rates, prices, reserves, potential growth of Horizon Oil Limited, industry growth or other trend projections and any estimated co
Slide 3: 2018 Half Year highlights
2018 Half Year highlights • No significant loss or containment incidents (<1 barrel of oil equivalent) and Lost Time Injury Frequency Rate (LTIFR) of 0.0 • Sales revenue of US$36.4 million 15% higher than HY 2017, with calendar year sales revenue of US$73.4 million • EBITDAX of US$24.5 million 33% h
Slide 4: Operational results – China
Operational results – China • Continued strong production from Beibu Gulf averaging 8,400 bopd gross over the half year (HZN share including cost recovery 2,879 bopd). • Six well workover program completed on the WZ 6-12 producing fields utilising the Haiyang 943 drilling rig. Gross production incre
Slide 5: Operational results – New Zealand
Operational results – New Zealand • Average production over the half year of 7,571 bopd (757 bopd net to HZN), with a current production rate of ~8,000 bopd (800 bopd net to HZN). • Production improvement program commenced, involving workovers, re- perforations, water injection enhancement and insta
Slide 6: Operational results – Papua New Guinea
Operational results – Papua New Guinea • Planning for the proposed Western LNG development project progressed, with pre- FEED studies substantially completed during the period; technical viability of selected project concept and cost estimates confirmed. • Acreage position strengthened and balanced,
Slide 7: Financial overview
Financial overview (US$ million) HY 2018 HY 2017 ∆ ∆ (%) • Consistent production volumes. Production volume (mmbbl) 0.56 0.55 0.01 1% • Robust and increasing EBITDAX and Revenue cashflow generation at field level. 36.4 31.6 4.7 15% EBITDAX 24.5 18.4 6.0 33% • Statutory loss result impacted by Underl
Slide 8: Key cashflow drivers
Key cashflow drivers Horizon Oil 70 rc---- o22-----e ee -<---------e =<---------- \ ussm \ H 36.4 (9.7) \ 60 ~ 1 \ 1 \ I (2.8) \ 1 26.7 s 1 y 47 \ 24.3 50 | 1 Y (4.3) . (10.1) ! Y oO 1 Y 40 4 { Y (7.0) ! Y 1 1 yy 31.7 30 - H Y 24.5 1 1 Up J 1 i 4 1 u 20 1 i 1 i 1 ! 1 / 10 + H 1 eee ee ee ee ee ee ee
Slide 9: Low FCF breakeven, oil price hedging and LOPI provide financial certainty and stability
Low free cashflow (FCF) breakeven, oil price hedging and LOPI provide financial certainty and stability Free cashflow breakeven • Low breakeven price provides stability in low oil price environment and funding for development activities in PNG and capacity for debt repayment. • Low opex in China and
Slide 10: Debt reduction trajectory continuing
Debt reduction trajectory continuing • Horizon Oil’s proven, developed and producing Beibu Gulf and Maari fields provide substantial debt security in a challenging environment for small and mid-cap companies to access debt. • US$58.8 million in convertible bonds redeemed in 2H 2016 with cash and a 5
Slide 11: Calendar year performance and 2018 forecast
Calendar year performance and 2018 forecast 11
Slide 12: Outlook for 2018
Outlook for 2018 Financial • Operating cash flows to significantly increase with increased interest in Maari/Manaia, continuing steady production at Beibu Gulf fields, including cost recovery production entitlement and ongoing control of opex and capex • Continued focus on debt reduction • Continuin
Slide 13: For more information please contact: Horizon Oil Limited
For more information please contact: Horizon Oil Limited T: +61 2 9332 5000 Level 6, 134 William St Brent Emmett Chief Executive Officer F: +61 2 9332 5050 Woolloomooloo NSW 2011 E: info@horizonoil.com.au horizonoil.com.au Media enquiries Gavan Collery M: +61 419 372 210 ResourceComms E: gavan@resou