Tullow Oil Plc · LSE:TLW
Tullow Oil — Investor Presentation (September 2024)
21 slides from Tullow Oil's investor presentation, September 2024
Slide 1: Investor Presentation
Investor Presentation September 2024
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Tullow believes the expectations reflected herein to be reasonable in light of the informa
Slide 3: Overview
Overview Investor Presentation
Slide 4: Tullow at a glance
Tullow at a glance An African focused oil and gas company What we do Our core operations Produce and sell We responsibly produce oil and gas from our West African assets and sell to Ghana - Operated production international and domestic markets. from the Jubilee and TEN fields Develop and explore No
Slide 5: Evolving Tullow
Evolving Tullow Progressing to the next phase of our plan 2020-2022 2023 2024+ Turnaround and investment A major inflection point Pan-African Platform • Strategy shift to production • Jubilee South East start up • Reliable production delivers material cash flow • Portfolio rationalisation • Material
Slide 6: Building a unique Pan-African platform
Building a unique Pan-African platform Tullow is well positioned with a reputation as a trusted partner and responsible operator Africa: a growing global energy supplier Tullow: opportunities to • 8% of global energy supply; potential to play growing role utilise expertise in energy mix • Significan
Slide 7: Financial
Financial Investor Presentation
Slide 8: 2024 Half Year Results
2024 Half Year Results Improved key metrics compared to 1H 2023 1H23 Actual 1H24 Actual Production 60.8 kboepd 63.1 kboepd Oil price $ 73.3 /bbl $ 77.7 /bbl realised realised Capital expenditure $ 187 million $ 157 million Decommissioning $ 44million $ 9million Free cash flow $ (142) million $ (126)
Slide 9: Reiterating 2024 full-year guidance
Reiterating 2024 full-year guidance Sustainable, cash generative business providing investment optionality 1H-2H cash flow drivers 1H24 2H24 62-68 Production kboepd expected to be at lower end of the range Production (62-68 kboepd) C.$230 million Capex reduced by $20 million versus previous guidance
Slide 10: Driving capital efficiency through a disciplined approach
Driving capital efficiency through a disciplined approach Reductions in operating costs Reset G&A cost base >$300m 15 > % net reduction c.$250m >$100m Non-op > 50 % net reduction Operating costs1 ($m) TEN c.$50m Net G&A ($m) Jubilee 2 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Disci
Slide 11: Protecting revenues and retaining upside through hedging
Protecting revenues and retaining upside through hedging Significantly increased upside exposure after legacy Hedging policy designed to protect against extreme oil hedges rolled off in May 2024 price downside whilst retaining access to upside Puts, 20% 1H24 2H24 (at least) 60% upside exposure Avera
Slide 12: Continued balance sheet strengthening
Continued balance sheet strengthening Net debt evolution No uncovered debt maturities until May 2026 $2.4bn Track record of managing maturities and reducing net debt YE20 • Over $700 million net debt reduction 2020-23 $2.1bn Demonstrated access to long-term capital YE21 • $2.7 billion raised over 20
Slide 13: Operations
Operations Investor Presentation
Slide 14: Maintaining operational excellence across our assets
Maintaining operational excellence across our assets Delivering complex projects FPSO facility upgrades $1bn Jubilee South East Projects to sustain production, minimise project on stream in July 2023 decline and reduce flaring Complex offshore project delivered on budget; >280 mbw/d water injection
Slide 15: Jubilee entering period of lower capital intensity
Jubilee entering period of lower capital intensity Field continues to underpin and deliver material cash generation Drill programme completed safely, and ahead of schedule • Completed approximately six months early and with zero recordable EHS incidents Final well of campaign onstream in June 2024 •
Slide 16: Strong production from TEN and Non-op portfolio
Strong production from TEN and Non-op portfolio Ongoing optimisation of fields delivering results TEN 1H24 FPSO uptime Non-op c. 96% 1H24 production above expectations 1H24 production in-line • Positive reaction to injection and optimisation Simba re-start 2H24 Additional Ntomme/Enyenra projects • P
Slide 17: Earning our reputation as a trusted partner for African energy
Earning our reputation as a trusted partner for African energy Safe Shared Environmental Equality and operations prosperity stewardship transparency 2023 performance 0.20 $221m Progress $713m total recordable injury frequency local supplier spend to eliminate routine flaring and total socio-economic
Slide 18: FID taken on unique nature-based carbon offset initiative
FID taken on unique nature-based carbon offset initiative In partnership with the Ghana Forestry Commission Emissions Reduction Purchase Agreement (ERPA) • Project will deliver high integrity, certified carbon offsets in line with Tullow’s 2030 Net Zero roadmap Up to 1 million tonnes per annum of ce
Slide 19: Conclusion
Conclusion Investor Presentation
Slide 20: Strong FY 2024 outlook; continued business delivery
Strong FY 2024 outlook; continued business delivery A cash generative platform for growth 2024 delivery and outlook Compelling value Continued focus on costs and capital discipline proposition Strong financial and operational performance Increased oil price upside exposure Cash-generative business O
Slide 21: Tullow Oil plc
Tullow Oil plc 9 Chiswick Park, 566 Chiswick High Road London W4 5XT United Kingdom Tel: +44 (0)20 3249 9000 Email: ir@tullowoil.com Web: www.tullowoil.com