Newmed Energy Limited Partnership · TASE:NWMD
Newmed Energy Limited Partnership — Delek Drilling & Avner Oil Exploration — J.P. Morgan 2017 Global Emerging Markets Corporate Conference
28 slides from Newmed Energy Limited Partnership's conference presentation, Mar 1, 2017
Slide 1: J.P. Morgan 2017 Global Emerging Markets Corporate Conference
J.P. Morgan 2017 Global Emerging Markets Corporate Conference Yaniv Friedman – Deputy CEO Delek Drilling & Avner Oil Exploration – Energizing The Eastern Med
Slide 2: Disclaimer
Disclaimer This presentation was prepared by Delek Drilling – Limited Partnership and Avner Oil Exploration – Limited Partnership (jointly, the “Partnerships”), and is given to you only for the provision of concise information for the sake of convenience, and may not be copied or distributed to any
Slide 3: Delek Drilling & Avner – Business Card
Delek Drilling & Avner – Business Card Transforming the Levant Basin into a Natural Gas Export Hub Top Tel-Aviv- 25 index listed LP’s with a combined market cap of c. $4.5 billion World class E&P assets portfolio, from production to development and exploration Senior partner in all major gas discove
Slide 4: Near Term Structural Change
Near Term Structural Change Merger of Avner with and into Delek Drilling to simplify structural holdings Doubling free float and Volume trade Economies of scale / Costs saving Simplify structure and processes, improving efficiency within organizational process Improved investor proposition /
Slide 5: Israeli and Cypriot EEZ – Over 42 TCF Discovered
Israeli and Cypriot EEZ – Over 42 TCF Discovered Delek and Avner 2011 2013 Field Working Interest 2012 Aphrodite Karish 4.5 tcf Tanin 1.8 tcf 1.2 tcf Leviathan 45.34% 2009 2010 Tamar Tamar (including TSW) 31.25% Leviathan 2013 10.1 tcf 2 21.9 tcf TSW 2009 Dalit 31.25% 0.9 tcf 2011 Dalit Dolphin 0.5
Slide 6: Levant Basin – Geology
Levant Basin – Geology Leviathan Deep Delek Drilling & Avner Oil Exploration – Energizing The Eastern Med
Slide 7: Tamar Project
Tamar Project 7
Slide 8: Tamar – World Class Deepwater Project
Tamar – World Class Deepwater Project Ownership Delek Drilling 15.6% Avner 15.6%, Isramco 28.7%, Dor Gas 4%, Noble Energy (operator) 36% 2P Reserves* 10.3 tcf (310 bcm); / 13.3 mmbbl condensate First gas End of Q1 2013 Development budget: $3.1 Billion (100%) Overall Tamar costs to date: $4 Billion (
Slide 9: Tamar – Operational Reliability
Tamar – Operational Reliability Since startup of Tamar thru 2016, 99.98% Uptime from unplanned zero flow Delek Drilling & Avner Oil Exploration – Energizing The Eastern Med 9
Slide 10: Tamar in Numbers
Tamar in Numbers Robust steady Cash-flow generative project mm$ 2015 2016E 2017E 2018E Sales (bcm/y) 8.3 9.7 10.9 10.9 Revenue 1,478.70 1,798.41 2,154.28 2,224.80 OPEX 168.4 148.70 152.39 156.09 EBITDA 1,109.50 1,386.22 1,628.57 1,538.07 FCF 842.9 1,122.37 1,050.50 1,224.39 • Table represent Perform
Slide 11: Tamar – Contracts and Sales Breakdown
Tamar – Contracts and Sales Breakdown Tamar contractual structure – low exposure to commodity risk Israel Electric IPP & Electricity Industry & Other Corp. Related TCQ : 87 bcm (~3.07 tcf) TCQ : 72 bcm (~2.54 tcf) TCQ : 8.5 bcm (0.3 tcf) + Condensate 15-17 years 15-19 years 5-8 years Pri
Slide 12: Tamar Expansion – Unlocking Value
Tamar Expansion – Unlocking Value UFG-Damietta agreement will serve as an anchor for capacity expansion of up to 20.4 bcm/y Expansion program A third pipeline (20") from the reservoir to Tamar and Mari-B platforms Development of Tamar SW and additional Tamar wells Expansion of Mari-B treatment
Slide 13: Leviathan Project
Leviathan Project 13
Slide 14: Leviathan – A Regional Energy Game Changer
Leviathan – A Regional Energy Game Changer Ownership Delek Drilling 22.7%, Avner 22.7%, Ratio 15% Noble Energy (operator) 39.7% 2C Resources* 21.9 tcf (613 bcm), 39.4 mmbbl condensate Estimated First Gas 4Q 2019 Production Capacity (to be built in 2 stages) 1.2 bcf/d (~12 bcm/y) – for Domestic, Jord
Slide 15: Leviathan – Modular Development
Leviathan – Modular Development Phase 1A of Leviathan development sanctioned, future cost efficient expansion Capacity of 1.2 bcf/d (approx. 438 bcf/y) Capacity of 2.1 bcf/d (approx. 766 bcf/y) Development plan for phase 1A includes construction of an offshore fixed platform with a 1.2 bcf/d (appr
Slide 16: Development Work Plan Schedule
Development Work Plan Schedule Source: Leviathan operator (NBL) Delek Drilling & Avner Oil Exploration – Energizing The Eastern Med 16
Slide 17: Leviathan – Technical Status Update
Leviathan – Technical Status Update Front End Engineering Designed Finalized Subsea gathering pipeline route finalized ~75% of budget based on firm bids and signed LOI’s Drill 1 to 2 new production wells in 2017 Critical regulatory approvals for on- shore landing received Risk modeling o
Slide 18: Leviathan– Various Potential Markets
Leviathan– Various Potential Markets Israel – Domestic market Jordan - NEPCO Palestinian Authority Egypt – Domestic market Egypt Turkey Delek Drilling & Avner Oil Exploration – Energizing The Eastern Med 18
Slide 19: Jordan NEPCO – Ideal Export Offtaker
Jordan NEPCO – Ideal Export Offtaker An anchor contract for Leviathan phase-1 development NEPCO GSPA main parameters: Buyer : National Electric Power Company of Jordan (NEPCO) Seller : NBL Jordan Marketing Limited (SPV owned pro- rata by Leviathan partners, according to their working interests)
Slide 20: Egypt – Supply Demand Imbalance
Egypt – Supply Demand Imbalance Significant consumption of over 50 bcm/y, and increasing by Approx. 8% year on year (2001 to 2012) Additional gas is required for two existing LNG facilities, consuming approx. 17 to 20 bcm/y Natural gas is currently imported using two floating regasification te
Slide 21: Regional Export – Turkey's Huge Potential
Regional Export – Turkey's Huge Potential Turkish Market Consumed approx. 48 bcm/y of natural gas in 2014 and 2015 Is 99% dependent on import for natural gas Approx. 85% imported by pipeline, 15% imported as LNG Highly Developed Natural Gas Transportation Grid, and connection to the decreasi
Slide 22: Regional Sales- Infrastructure Entry Options
Regional Sales- Infrastructure Entry Options Domestic Egyptian market access via multiple option (substitute to the EMG pipeline option) *Resources: 2C, based on NSAI report 2014 Delek Drilling & Avner Oil Exploration – Energizing The Eastern Med 22
Slide 23: Cyprus – Aphrodite Field
Cyprus – Aphrodite Field Ownership Delek Drilling 15%, Avner 15%, Shell 35%, Noble Energy (operator) 15% Discovered Contingent Resources (2C) * 3.5 tcf (100 bcm) Additional Prospective Resources (P50) 1.0 tcf (29 bcm) Location 168 km south of Limassol 1,700m water depth Target markets Cyprus - Domes
Slide 24: 2017 Drilling Program
2017 Drilling Program Atwood Advantage Drillship on site Tamar-8 well, Leviathan-5 Considering drilling Leviathan-7, after Tamar-8 and Leviathan-5 Delek Drilling & Avner Oil Exploration – Energizing The Eastern Med 24
Slide 25: Financial Strategy
Financial Strategy 25
Slide 26: Strong Financial Position
Strong Financial Position Strong balance sheet Long-term, limited recourse-type debt based on significant revenues from the Tamar reservoir only Attractive dividend policy (9% dividend yield in LTM) High cash reserves Well-established and stable cash flow Substantial economic value of as
Slide 27: Project and Corporate Financing
Project and Corporate Financing $1.6 B Tamar bond- 4 series of $400 mm bullet payment in years : 2018, 2020, 2023, 2025 When selling down 3.25% WI in Tamar there are no limitation Sell down of additional 6.25% requires bond redemption pro-rata to the sell Sell down of remining WI in Tamar, a
Slide 28: Thank You
Thank You