Tullow Oil Plc · LSE:TLW
Tullow Oil — Investor Day (May 2013)
22 slides from Tullow Oil's investor day presentation, May 14, 2013
Slide 1: Investor Forum
2013 - Investor Forum Tullow Oil plc INVESTOR FORUM 14 May 2013
Slide 2: Disclaimer
2013 - Investor Forum 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 i
Slide 3: Substantially strengthened the business in 2012
2013 - Investor Forum Substantially strengthened the business in 2012 • Basin-opening exploration success in Kenya • Five new country entries (4 x Atlantic Margin, 1 x East Africa) • Successful and cost-effective remediation of Jubilee • Development plans presented in Ghana and Uganda • $2.9bn farm-
Slide 4: 2012 financial summary
2013 - Investor Forum 2012 financial summary 2012 2011 Change Sales revenue $2,344m $2,304m +2% Operating profit $1,185m $1,132m +5% Profit after tax $666m $689m -3% Basic earnings per share 68.8c 72.5c -5% Full year dividend per share 12.0p 12.0p 0% Capital investment1 $1,870m $1,432m +31% Cash gen
Slide 5: Reserves and Resources
2013 - Investor Forum Reserves and Resources Group Reserves and Resources Reserves and Resources 1,203 mmboe 2,000 • Commercial Reserves - 388 mmboe 1,800 1,600 - TEN transferred to Reserves - 112 mmbo 1,400 • Contingent Resources - 815 mmboe 1,200 mmboe 1,000 - Uganda Resources commercialised - 604
Slide 6: Tullow's exploration-led strategy
2013 - Investor Forum Tullow’s exploration-led strategy Additional cash flow from new production ~$4bn debt facilities Exploration and High Margin Monetisation Production Appraisal Options & Selective Cash flow $1bn + p.a. Portfolio Development Management Fully Funded Costs & Dividends Additional Ex
Slide 7: Exploration strategy is focused on Africa & Atlantic Margins
2013 - Investor Forum Exploration strategy is focused on Africa & Atlantic Margins Norwegian North Atlantic Continental Shelf Exploration & Business Development Central Atlantic Central Atlantic Major Exploration Margin East African Campaign Launched Rift Basins Guyanas East African Transform Margin
Slide 8: Capital expenditure for 2013
2013 - Investor Forum Capital expenditure for 2013 $2,000m for full year 2013 2013 $800m $270m $580m $350 • Ghana: Jubilee phase 1A & TEN development $2,000m • Uganda: Continuing appraisal and development • Other Africa: Maintaining mature production & high-impact exploration 2012 $756m $378m $776m
Slide 9: West & North Africa
2013 - Investor Forum West & North Africa Strong production & high-impact West & North Africa (WNA) exploration & development • 57,850 boepd production - Exceptional performance from Jubilee - Jubilee well issues resolved • 647 mmboe total reserves and resources • Major exploration campaigns in 2013
Slide 10: South & East Africa
2013 - Investor Forum South & East Africa South & East Significant milestones reached & new Africa (SEA) basin opened • 441.6 mmboe total reserves and resources (post-Uganda sale) • $433 million investment in 2012 - E&A in Kenya, Uganda and Ethiopia Uganda • $2.9 billion Uganda farm-down deal comple
Slide 11: Europe, South America & Asia
2013 - Investor Forum Europe, South America & Asia 2 Europe, South New ventures & asset sales America & Asia (ESAA) • 21, 350 boepd production 1 • On-going French Guiana exploration campaign 4 3 7 2 6 - Limited success this year, but oil in all three wells • Acquisition of Spring Energy in Norway 9
Slide 12: Tullow in Ghana
2013 - Investor Forum Tullow Oil plc – 2013 Investor Forum Tullow in Ghana
Slide 13: The Jubilee field
2013 - Investor Forum The Jubilee field Jubilee production stable • Strong production in 2013 • Average of 104,000 bopd year to date Well capacity of over 120,000 boepd • All Phase 1A wells completed by end Q3 2013 • Phase 1A project delivery on schedule and within budget FPSO debottlenecking underw
Slide 14: TEN development – progressing to sanction
2013 - Investor Forum TEN development – progressing to sanction PoD submitted November 2012 • Discussions with GoG progressing towards approval • FPSO and Subsea award decisions being finalised • West Leo rig contract extended to 5 years • First oil still targeted 32-36 months after PoD approval Dev
Slide 15: Tullow in Ghana
2013 - Investor Forum Tullow in Ghana Investment $669m invested by Tullow in Ghana in 2012 Supply chain Tullow alone spent $114m with Ghanaian registered supply and service companies in 2012. Of this, $69.2m was placed with supply and service companies that were /are Ghanaian owned Tax Corporate tax
Slide 16: Corporate Responsibility
2013 - Investor Forum Tullow Oil plc – 2013 Investor Forum Corporate Responsibility
Slide 17: How we do business
2013 - Investor Forum How we do business • We manage our business in a responsible Creating Shared Prosperity way to maximise sustainable development opportunities for host nations. • We are committed to ensuring long-term benefits to local people and economies where we operate. • The foundation of
Slide 18: Open, transparent disclosure
2013 - Investor Forum Open, transparent disclosure • We are committed to transparent disclosure of payments to governments and other stakeholders in the countries in which we operate • Revenue transparency and disclosure enables a country’s citizens to hold their government and Tullow to account • I
Slide 19: Conclusions
2013 - Investor Forum Tullow Oil plc – 2013 Investor Forum Conclusions
Slide 20: Conclusions
2013 - Investor Forum Conclusions • Strong production base to fund industry-leading exploration • Major developments making good progress securing revenue over the medium-term • Strong and well-balanced financial position • Major exploration campaigns throughout 2013 in Kenya, Ethiopia, Mozambique,
Slide 21: Questions and Answers
2013 - Investor Forum Tullow Oil plc – 2013 Investor Forum Questions and Answers
Slide 22: Tullow Oil plc
2013 - Investor Forum Tullow Oil plc 9 Chiswick Park 566 Chiswick High Road London, W4 5XT United Kingdom Tel: +44 (0)20 3249 9000 Follow Tullow on: Fax: +44 (0)20 3249 8801 Email: chris.perry@tullowoil.com