Genel Energy Plc · LSE:GENL
Genel Energy — H1 2021 Earnings Presentation
20 slides from Genel Energy's earnings presentation, Aug 3, 2021
Slide 1: Cash generation. Growth. Progressive returns. Half-Year Results 2021
Slide 2: Ongoing strategic delivery
= ONGOING STRATEGIC DELIVERY * Low-cost production averaged 32,760 bopd in Hi 2021, an increase year-on-year, in line with guidance — $19 margin per barrel, compared to $6 per barrel in 2020 - Boosted by the increase in oil price and resumption of override payments * Free cash flow before investment
Slide 3: Strategy underpinned by socially responsible commitment
me STRATEGY UNDERPINNED BY SOCIALLY RESPONSIBLE COMMITMENT Zero lost time injuries since 2015, and zero tier one losses of primary containment since 2017, at Genel and TTOPCO operations - Significantly ramped up operations in the KRI as our operating footprint expands, retaining relentless focus on
Slide 4: Generate cash - low-cost high-margin oil production
mame GENERATE CASH - LOW-COST HIGH-MARGIN OIL PRODUCTION * H1 working interest production 32,760 bopd, a small increase on H1 2020, in line WORKING INTEREST OIL PRODUCTION with guidance (bopd) * Tawke PSC increased year-on-year production 35,000 — Peshkabir continues excellent performance 30,000 ~ T
Slide 5: Invest in growth - near-term catalysts to come
ms |NVEST INGROWTH - NEAR-TERM CATALYSTS TO COME * Continuing to deliver on a clear strategy to create shareholder value, investing in areas with the potential to deliver near-term cash generation * Capital expenditure weighted to H2 as growth investment delivers exciting drilling catalysts - Four a
Slide 6: Sarta TLS
Sarta TLS ee
Slide 7: Capital allocation priorities - maintain and build resilience
a CAPITAL ALLOCATION PRIORITIES - MAINTAIN AND BUILD RESILIENCE * We continue to invest in those areas that promise the fastest return on investment and maximum stakeholder value creation * Careful focus on cash generation and building multiple diverse and resilient income oor streams that can stand
Slide 8: Cash generation supports investment and progressive dividend
mm CASH GENERATION SUPPORTS INVESTMENT AND PROGRESSIVE DIVIDEND . i i 7: ij i Financial performance HI HI FY — Tawke revenue $24/bbI (2020: $13/bbl), override resumed Average Brent $65/bbl_ $40/bbI_— $42/bbI ~ Sarta revenue of $39/bb! Production (bopd) 32,760 32,100 31,980 - Significantly higher tha
Slide 9: Capital put to work on business model priorities
we CAPITAL PUT TO WORK ON BUSINESS MODEL PRIORITIES + Business model and capital allocation priorities + HY 2021 sources and uses overview ~ Prioritise investment in near-term cash generation and ~ Half-year cash flows comfortably funded costs and dividend, value generation despite loss of $30 milli
Slide 10: Monthly payments and payments for overdue amounts
ms MONTHLY PAYMENTS AND PAYMENTS FOR OVERDUE AMOUNTS * $145 million nominal owed at period end down from $159 million AMOUNTS OVERDUE * $121 million was owed for deferral of payments made by the KRG for sales (Pope) made Nov 2019 to February 2020 60 — In December 2020, the KRG announced a mechanism
Slide 11: Sarta EPF
ta EPF
Slide 12: Sarta - pilot production ongoing, appraisal underway
SARTA - PILOT PRODUCTION ONGOING, APPRAISAL UNDERWAY (Asm Energy HY Results 2021 -3 August 2021 |
Slide 13: Sarta - upwards revision in gross rock volume
a SARTA - UPWARDS REVISION IN GROSS ROCK VOLUME Legacy Interpretation Revised Interpretation TVDSS (m) TVDSS (m) * Revised Chevron seismic modelling and interpretation adopted by the joint venture partners * Refinement of container geometry results in a significant upwards revision to gross rock vol
Slide 14: Sarta - low-cost pilot production
wa SARTA - LOW-COST PILOT PRODUCTION TVDSS (m) ‘200: 800 400: “400: 800 “200° 600: 2000: 2400 2800 2200 Pilot Production Area Sarta-3 Sarta-2 x — eI Discovered Low Case OF ll Discovered High Case Phase 1A PILOT development of 34 MMbbis 2P Reserves via 2 existing wells (S-2 and S-3) H1 2021 PILOT pro
Slide 15: Sarta - appraisal programme targeting resources
ma SARTA - APPRAISAL PROGRAMME TARGETING RESOURCES OF 250 MMBBLS TVDSS (m) 1200 800 400 400: 800 1200: 1600: 2000 2400: 2800 3200 Pilot Production Area Sarta-3 Sarta-2 * Three well 2021 APPRAISE programme in by year-end), S-6 to follow S-5 with not impacted by PILOT leanings to date * Sarta-5 curren
Slide 16: Sarta - wells to be completed to optimise production management
gam SARTA - WELLS TO BE COMPLETED TO OPTIMISE PRODUCTION MANAGEMENT TVDSS (m) Sarta-1D, 5,6 1200 800 400 400 800 1200: %600- 2000 2400: 2800 2200 Pilot Production Area Sarta-3 Sarta-; * Optimal trajectories and smart completions allow for zonal isolation during testing and production - particularly
Slide 17: Qara Dagh-2 well progress
Select well location Ze ee PSS ree A sate Tender for Civil Contractor pS Fe Bee } Contract rig Fee a / * Results anticipated around the end of Q3 =e ae e ee te cee . ?. a = Environmental permit approval BS eS. Build pad, camp & water supply a SS Contract rig services Mobilise rig and services to wel
Slide 18: African exploration - long-term reserves replacement post farmout
wae AFRICAN EXPLORATION - LONG-TERM RESERVES REPLACEMENT POST FARMOUT sw Potential Toosan-1 NE Well Location 1 Berbera SOMALILAND = ‘Odewayne 5S Toon sw/ 7 © ued SLIOB/13 Depth (m MSL) — Top Miocene — Top Auradu — Top Cretaceous Top Qishn Top Jurassic — Top Basement nell * Farmout process continues
Slide 19: Summary: increased cash generation, well results, dividend
Increased cash : % Three high-impact . Progressive interim Potential for generationinH2 § ¥ well results by year- _=g# dividend paid in material reserve November additions
Slide 20: For further information please contact investor relations
For further information pleaseycontact investor relatioris ) Genel Energy Andrew Benbow, Head of Communications / i) andrew.benbow@genelenergy.com