Gulf Keystone Petroleum Limited · LSE:GKP
Gulf Keystone Petroleum — FY2020 Earnings Presentation
22 slides from Gulf Keystone Petroleum's earnings presentation, Mar 31, 2021
Slide 1: 2020 Full Year Results
2020 Full Year Results 31 March 2021
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: 2020 highlights
2020 highlights Safely delivered record production and maintained strong financial position in challenging conditions "Continued strong safety performance — no LTI in over 450 days * Protecting health and safety of staff is our first priority * Committed to partnering with local communities * Contin
Slide 4: Committed to ESG
Committed to ESG = Commitment to reduce Scope 1 and 2 CO,e emissions intensity by 50% by 2025 = Commencing TCFD reporting " High standards and improving waste management Help where most needed with long lasting impact Investment in local communities: = Emergency services supplies = Local employment
Slide 5: Operational Review
Operational Review
Slide 6: Shaikan Field map
Shaikan Field map Continued development momentum despite COVID-19 challenges Planned wells @ Completed wells (2 Facilities (5) Pipe Yard SH-13 flowline Shaikan flowlines Kurdistan oil pipeline —— Export pipeline River network Block licences =» Suspended 55,000 bopd expansion due to COVID-19 in March
Slide 7: Strong reliable production operations
Strong reliable production operations Plant availability remained high throughout 2020 =" Exceeded 2020 guidance with record average annual production: 36,625 bopd * Record average monthly production achieved in January 2021: 44,405 bopd * On track to deliver 2021 guidance: 40 - 44,000 bopd Shaikan
Slide 8: Updated reserves and resources
Updated reserves and resources 2020 CPR reaffirms significant potential of Shaikan Field Gross Shaikan Reserves & Resources” (31-Dec-2020) = CPR supports GKP’s internal view 1000 of the Shaikan geological model Total 2P + 2C: * Significant incremental information b ‘ . 800 me Ns since last CPR in Ju
Slide 9: Vision to develop Shaikan
Vision to develop Shaikan Phased approach provides flexibility to time capital investment Triassic expansion & Cretaceous pilot Triassic pilot Jurassic expansion & gas management To 85,000 To 75,000 Jurassic expansion Gross Production Capacity (bopd) 50,000 Today Phase Phases not yet sanctioned; . r
Slide 10: Resumption of 55,000 bopd programme
Resumption of 55,000 bopd programme Drilling targeted restart in Q3 2021 * Production increase towards 55,000 bopd (gross) expected in Q1 2022 " Key activities: * Complete SH-13 * Drill SH-I from same well pad = Install ESPs in two existing wells = Complete PF-2 debottlenecking « Project Capex: = US
Slide 11: Financial Review
Financial Review
Slide 12: Cash flow
Cash flow Prudent cash flow management through the cycle to conserve cash Ussm 350 * Adjusted EBITDA down over 50% driven by oil price 300 decline 250 S7 | *c.50% Capex reduction from 200 to (46) =o = 2019 150 (20) _ — ge ~ * Strong cash balance 100 provides significant flexibility 50 0 x < > » 2 5
Slide 13: Adjusted EBITDA
Adjusted EBITDA Decisive action mitigated oil price decline and preserved liquidity “em = 35% decline in Brent oil price > to US$42/bblI impacted 120 : revenue 100 . . = 11% increase in gross 80 average production to 36,625 7 bopd slightly mitigated Brent 60 2 = a impact 40 10 0 = Delivered Opex and
Slide 14: Sharp focus on capital discipline
Sharp focus on capital discipline Top quartile cost performance Delivered 2020 cost reduction targets v¥ Opex USS2.6/bbl Vv Opex + G&A savings > 20% compared to 2019 Vv Opex + G&A savings > 30% run rate v¥ Net Capex USS46 million Operating expenses") General & administrative expenses Operating expen
Slide 15: Crude oil payments
Crude oil payments KRG re-establishing track-record of predictable payments * Consistent monthly oil sales receipts since March 2020 " Received first repayment of Nov-19 to Feb-20 arrears invoices * Remaining arrears balance ~US$71 million (net) $25 $20 Ss $3m S oO £ $15 £ wD 3 $10 |si9m IS17m $14m
Slide 16: Strong balance sheet
Strong balance sheet Robust financial profile resilient through the economic cycle * Limited capital commitments and low-cost structure = 60% of production for Q2 21 hedged at US$35/bbl and Q3 21 at US$40/bbl * Full upside retained * US$100 million bond maturity July 2023; significant covenant headr
Slide 17: Return to shareholder distributions
Return to shareholder distributions Reinstating annual dividend of at least US$25 million " Committed to balance of development growth and distributions * Over 2019 and Q]1 2020, distributed US$99 million to shareholders » USS49 million dividends * USS50 share buy-backs * Annual dividend suspended i
Slide 18: Outlook
Outlook
Slide 19: Outlook
Outlook Realise long-term Shaikan potential with shareholder distributions © Sustainable approach ~ ESG principles embedded in GKP’s ethos Target to more than halve CO, emissions JS Achieve 2021 guidance Gross production: 40,000 - 44,000 bopd Net Capex: US$55 - 65 million Opex: US$2.5 - 2.9/bbI Deli
Slide 20: Thank you
20 Thank you More resources are available at: www.gulfkeystone.com ic \ k JP
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Slide 22: Key historical financials
| Key historical financials FY 2020 FY 2019 FY 2018 FY 2017 Gross production (bopd) 36,625 32,883 31,563 35,298 Brent (US$/bbl) 42.0 64.6 713 54.1 Discount (USS$/bbI) 21.1 21.7 22.3 20.3 Realised price (USS/bbl) 20.9 42.9 49.0 34.6 Revenue (USSm) 108.4 206.7 250.6 172.4 Adjusted EBITDA (USSm) 56.7 1
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