Dana Gas Pjsc · ADX:DANA
Dana Gas Pjsc — Non-Deal Roadshow (November 2013)
40 slides from Dana Gas Pjsc's roadshow presentation, November 2013
Slide 1: Clean Energy For the MENA Region's Tomorrow
Clean Energy For the MENA Region’s Tomorrow Dana Gas Investor Presentation November 2013 www.danagas.com 1
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking Forward-looking statements are based on certain statements which may be identified by their use of assumptions and expectations of future events. The words like “plans,” “expects,” “will,” “anticipates,” Company, its subsidiaries a
Slide 3: Presentation Outline
Presentation Outline The MENA Region and its relevance Dana Gas: A Brief Overview Recent Performance Country Operations Valuations Summary www.danagas.com 3
Slide 4: Region holds largest share of global conventional oil & gas reserves and production
Focused on a region that holds the largest share of global conventional oil & gas reserves and production Proved Gas Reserve (2012) Global Gas Production (2012) 6614 Tcf 118 Tcf p.a Proved Oil Reserve (2012) Global Oil Production (2012) 1669 Bln bbl 86.2 mln bopd Countries included: Iran, Iraq, Saud
Slide 5: Natural Gas fast becoming the Fuel of Choice
Natural Gas fast becoming the Fuel of Choice for the growing energy demand in MENA and else where Growing economies fueling demand for Global Population Trends energy (Source: UN) Increased demand for denuclearization 70% less CO2 than coal in power generation (old plants) Small physical footprint v
Slide 6: Fast growing domestic demand in MENA
Fast growing domestic demand in MENA MENA Primary Energy Demand MENA Country Primary Energy Mixes3 (Source: EIA) (Source: BP Statistical Review 2013 & IEA Data) CAGR of gas consumption 7% Percentages represent gas consumption as 35% share of total primary energy consumption 27% 24% 41% 46% 50% CAGR
Slide 7: Dana Gas: A Brief Overview
Dana Gas: A Brief Overview www.danagas.com 7
Slide 8: Independent E&P company listed on the ADX
Independent E&P company listed on the ADX Dana Gas is a MENASA focused gas Dana Gas is operating at the heart of the World’s independent headquartered in the UAE Largest Hydrocarbon region Dana Gas is quoted in the UAE stock exchange (Abu Dhabi Securities Exchange). Bloomberg: DANA:UH Shares outstan
Slide 9: Board of Directors providing access to key markets
Board of Directors consisting of luminaries from the MENA region provide unparalleled access to key markets Dr. Adel Al Sabeeh Sheikh Sultan Bin Ahmed Dr. Tawfeeq Al Moayed Ahmed Al Arbeed Chairman Al Qasimi Deputy Chairman Hamid Jafar KUWAIT KUWAIT UAE BAHRAIN UAE Former Chairman of Board Former Oi
Slide 10: Board of Directors providing access to key markets (cont.)
Board of Directors consisting of luminaries from the MENA region providing unparalleled access to key markets Ahmed Al Midfaa Abdullah Al Majdouie UAE Varouj Nerguizian Nasser Al Nowais Salah Al Qahtani SAUDI ARABIA Chairman of Sharjah UAE UAE SAUDI ARABIA Group President and Vice Chamber of Commerc
Slide 11: Portfolio with substantial upside
Portfolio with substantial upside www.danagas.com 11
Slide 12: Proven track record: exploration, accelerated development and inorganic opportunities
Proven track record based on top class exploration, accelerated development and inorganic opportunities Value Delivery Model Drill bits success – Nile delta exploration success – Reserve growth Exploration √ Nile Delta Exploration 2007-2012 M&A (47 exploratory wells with – Egypt entry: acquisition o
Slide 13: International and Experienced Management Team
International and Experienced Management Team Patrick Allman-Ward Rashid Al Jarwan Mark Fenton CEO Robinder Singh Executive Director DGE– General Manager IR Director Over 30 years in the Oil & Gas business. Held senior roles at Over 35 years in Oil & Gas, held Over 28 years of experience in the posi
Slide 14: Largest independent gas producer amongst regionally owned peers
Largest independent gas producer amongst regionally owned peers Reserve Ranking of MENA region owned Independent E&P companies 1400 (Source: Woodmac) WI Commercial and Technical Reserves Technical 1200 Commercial 5 (mmboe) 1000 800 600 400 200 0 GKP Genel Dana Gas DNO Kuwait Pico Energy Corp 80 Prod
Slide 15: Key Financial Metrics have doubled in 6 years
Key Financial Metrics have doubled in 6 years Revenue: Profit After Tax: Operations Cash Flow: EBITDAX: www.danagas.com 15
Slide 16: Dana Gas: Recent Performance Highlights
Dana Gas: Recent Performance Highlights www.danagas.com 16
Slide 17: 3Q/9M 2013 Performance Highlights
3Q/9M 2013 Performance Highlights Production Group production up at 63,400 BOEPD, up by 6% on a year-on-year basis In Egypt, total production up 16% to 36,100 BOEPD and in July 2013 achieved highest production (39,000 BOEPD) since 2011 Production in Kurdistan Region of Iraq remained flat at just ove
Slide 18: 9M 2013 Financial Performance
9M 2013 Financial Performance Percentage (In $ million) 9M – 2013 9M – 2012 Change Gross Revenue 466 482 (3) Net Profit 121 134 (10) EBITDAX 261 311 (16) EPS (AED fils) 6.7 7.5 (11) Higher production in Egypt offset by lower hydrocarbon prices in 9M 2013 and suspension of LPG production in KRI since
Slide 19: Dana Gas: Country Business Highlights
Dana Gas: Country Business Highlights www.danagas.com 19
Slide 20: Egypt: Business Environment
Egypt: Business Environment Economic and political situation appears to be gradually stabilizing Egyptian government continues to confirm its commitment to subsidy removal including implementation plans for high consumption industrials by end 2013 Staring to see signs of consolidation - Apache sale
Slide 21: Meaningful position in rich hydrocarbon zones in Egypt
Meaningful position in rich hydrocarbon zones in Egypt 20 Egypt Proved Oil and Gas 18 Reserves History Oil and Gas Reserves, Bn boe Gas 16 Egypt has managed c. Dana Gas focus area in Egypt 14 Oil 100% reserves 12 replacement of oil since 10 mid-1980s 8 6 Nile Delta / East 4 Mediterranean 2 0 Western
Slide 22: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations New Development Leases under Ministerial approval: – El Basant Amendment (Allium) El Wastani – Balsam – Begonia Av. Production Rate (3Q13): – 39.4 kboepd luca (+14.7%) Projects in Progress: – El Basant Compression Station ETD: 2H2014 – EW Capacity De-bottlenecking (200mm
Slide 23: Largest Investor and gas producer in Kurdistan Region of Iraq
Largest Investor and gas producer in high-potential Kurdistan Region of Iraq Oil Resource Potential Gas Resource Potential (Source: ANP,MNR,USGS) (source: MNR, ANP, Songas) 70 Resource Potential 60 120 Gas Resource Potential 50 100 (Bln bbl) Mostly 40 80 associated 30 gas (Tcf) 60 20 10 40 0 20 Braz
Slide 24: Rich gas and condensate producer with strong growth track record
Rich gas and condensate producer with strong growth track record Kor Mor Field Production, Dana Gas net share www.danagas.com 24
Slide 25: Operations in Kurdistan Region of Iraq
Operations in Kurdistan Region of Iraq • Total net production averaged at 27,133 BOEPD during 3Q 2013: 132 MMSCFD of natural gas 5,210 Bbl/D of condensate • Completed the new LPG loading bay resulting in restoration of the facility with capacity of 900 MT on July 17, 2013 System fully tested MNR adv
Slide 26: Dana Gas Kurdistan Assets – Substantial Resources Upside
Dana Gas Kurdistan Assets – Substantial Resources Upside* Pearl Petroleum appointed Gaffney, Cline & Associates Limited (GCA), to provide an estimate of hydrocarbons in-place as at 31st December, 2012 for both the Khor Mor and Chemchemal fields GCA have estimated the gas initially in-place volumes (
Slide 27: UAE: Zora Gas Field Development Update
UAE: Zora Gas Field Development Update • Proven shallow water Gas Field across Sharjah & Ajman • Long term concession agreement in place • Project scope includes the following: – Offshore platform – Offshore & Onshore Pipeline (35 km offshore & 2.5km onshore – Gas Treatment Onshore Plant (to receive
Slide 28: Dana Gas: Relative Valuations
Dana Gas: Relative Valuations www.danagas.com 28
Slide 29: Significantly undervalued relative to peers
Significantly undervalued relative to peers 12.0 45 P/E EV/EBITDA 40 10.0 EV/EBITDA 2013e (x) 35 P/EPS 2013e (x) 8.0 30 25 6.0 11.0 9.5 20 40.3 4.0 8.4 15 27.3 26.4 6.1 2.0 4.0 4.0 10 3.4 2.9 5 11.9 10.6 9.3 8.9 5.9 0.0 0 6.0 P/B 5.0 P/B 2013e (x) 4.0 3.0 5.2 2.0 2.8 2.6 1.0 1.4 1.4 1.0 0.7 0.4 0.0
Slide 30: EV and Production valuation relative to peers
EV and Production valuation relative to peers Enterprise Value vs. Production EV ($bn) H1 2013 Production (kboepd) 16.3 7.5 5 100 H1 2013 Production (kboepd) 90 Enterprise Value ($ bn) 4 80 70 3 60 50 2 40 1.6 30 1 20 10 0 0 www.danagas.com Source: Company Data, Bloomberg 30
Slide 31: Recent developments positively impacting stock performance
Recent developments positively impacting stock performance www.danagas.com 31
Slide 32: Summary
Summary www.danagas.com jie aouils DANAGAS 32
Slide 33: Summary
Summary ● Strong operational track record of organic and inorganic growth across the natural gas value chain ● Unique composition of the Board of Directors and network of relationships providing unparalleled access to the resource-rich MENA region ● Track record of project delivery and HSSE performa
Slide 34: Reach Us: Dana Gas PJSC
Reach Us: Dana Gas PJSC P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : rsingh@danagas.com Direct : +971 6 519 4401 Fax : +971 6 556 6522 www.danagas.com
Slide 35: Back-up Information
Back-up Information www.danagas.com
Slide 36: HSSE - On Track to Outperform Performance Metrics
HSSE - On Track to Outperform Performance Metrics Exceeding targets in all aspects of HSE : – On track to beat all the HSE metrics on our Group scorecard, but do not under estimate what needs to be done to maintain this level of performance – Significant progress in closing out audit actions followi
Slide 37: Achieved significant success in Egypt following a successful acquisition
Achieved significant success in Egypt following a successful acquisition Dana Gas has added c.140 mmboe of reserves since Exploration Success Ratio acquisition in 2007 80% Exploration Success (%) 70% – Centurion 2P reserves were at c.67.9 mmboe at the 67% 67% 67% time of acquisition 60% 64% 57% 50%
Slide 38: Established itself as a key onshore gas player in Egypt
Established itself as a key onshore gas player in Egypt Reserve holders in Egypt 3.6 2.1 (source: Woodmac) 2.0 WI Commercial & Technical 1.8 Technical Commercial Reserves, bn boe 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 - Egypt gas production ranking (2013e) (source: Woodmac) WI Gas Production, mmcfd 1200 10
Slide 39: Significantly undervalued relative to listed peers in international markets
Significantly undervalued relative to listed peers in international markets P/E ranking of Dana Gas Peers (Source: Bloomberg Consensus 03rd Sep 2013) 45 40 2013e 35 2014e 30 25 P/E (X) 20 15 10 5 0 www.danagas.com Source: Bloomberg Consensus 39
Slide 40: The End
jie aouils DANAGAS The End www.danagas.com