Financial and Operating Results 15 November 2019 9M 2019 Highlights - PowerPoint PPT Presentation

Financial and Operating Results 15 November 2019

9M 2019 Highlights  Approved ECC and DMPF for underground sub-level cave mining method for the Silangan Project paves way for the commencement of Early Works Program, preparatory to full development phase  Ongoing search for possible strategic partners for Silangan Project  Reported net income of P439 million for the 9M of 2019  Core net income of P58 million for the third quarter of 2019, reversing year- to-date results to core net income of P39 million. 2 2

Operating Statistics Q1 Q2 Q3 9M 9M +/- +/- 2019 2019 2019 (Q3 vs Q2) 2019 2018 Tonnes Milled (‘000) 1,832 1,973 2,134 8% 5,939 6,529 -9% Production: Gold – ozs 10,493 13,182 14,450 10% 38,125 48,929 -22% Copper – lbs (‘000) 5,727 6,280 6,852 9% 18,859 20,509 -8% Recovery: Gold 74% 78% 78% 0% 77% 76% 1% Copper 81% 82% 81% -1% 81% 78% 4% Ore Grade: Gold – gms/dmt 0.239 0.266 0.272 2% 0.260 0.307 -15% Copper - % 0.175 0.176 0.179 2% 0.177 0.183 -3% Average Realized Prices: Gold – (US$/oz) 1,304 1,329 1,445 9% 1,365 1,304 5% Copper – (US$/lb) 2.96 2.66 2.57 -3% 2.67 3.00 -11% • Mining Operations: Higher metal output for Q3 2019 due to continued operational efficiencies 3

Financial Summary Q1 Q2 Q3 9M 9M +/- +/- (in Php mn) 2019 2019 2019 2019 2018 Gross Revenues 1,613 1,752 1,943 11% 5,308 6,586 -19% Smelting Charges 137 139 165 19% 442 531 -17% Net Revenues 1,476 1,613 1,777 10% 4,866 6,055 -20% Costs and Expenses 1,566 1,567 1,677 7% 4,809 5,087 -5% Operating Income (90) 46 101 120% 57 968 -94% Other Income (Charges) 294 143 (2) -101% 436 (172) -353% Net Income 206 185 48 -74% 439 570 -23% Core Net Income (Loss) (112) 93 58 -38% 39 687 -94% EBITDA 217 443 475 7% 1,135 2,276 -50% Margins: EBITDA Margin (%) 13% 25% 24% -1% 21% 35% -14% Net Income Margin (%) 13% 11% 2% -9% 8% 9% -1% • Operating Income: Continuous improvement in quarterly production and higher gold prices • Core Net Income: Q3 core net income of P58 million reversed year-to-date results from a loss in the first half into P39 M core net income for the 9M 2019 4

Capital Expenditure 1,387 1,374 • Silangan Project: Mainly for the completion of the DFS covering the Boyongan deposit 5 6 5

Balance Sheet Sep-19 Dec-18 (in Php mn) Cash & Cash Equivalents 280 871 Receivables & Others 3,644 3,582 Total Current Assets 3,924 4,453 • Total Assets: Silangan Project Property, Plant & Equipment 4,915 5,404 accounts for 59% of total assets Deferred Exploration Costs 26,256 25,448 Others 5,389 5,406 • Short-Term Debt: Additional loan availments for Silangan’s DFS Total Assets 40,483 40,712 completion and Early Works Short-Term Debt 2,644 2,156 Program Others 2,744 4,104 Total Current Liabilities 5,388 6,260 Bonds Payable 7,624 7,333 Deferred Tax Liabilities & Others 3,359 3,419 Total Liabilities 16,371 17,012 Total Equity 24,112 23,699 6

PXP Energy Corporation Financial Highlights and Operational Updates

Financial Highlights – Profit and Loss % Inc (in PhP millions) 9M 2019 9M 2018 (Dec) Gross revenue ₱ 51 ₱ 106 -52% Cost and expenses 94 174 -46% Loss from operations (43) (68) -36% Other income - net 21 18 15% Reported net income (loss) ₱ (22) ₱ (49) -56% • 52% decrease in gross revenue due to:  Nil lifting in SC 14C-1 Galoc; Shut-in of SC 14 Nido and Matinloc wells; Lower average crude price • 46% decrease in cost and expenses due to:  Lower depletion due to nil lifting in Galoc and  Plug and Abandonment of SC14 Nido and Matinloc • 56 % lower net loss due to:  Higher other income, lower cost and expenses offset by lower revenue from petroleum 8

Financial Highlights – Financial Position ASSETS (in PHP millions) As of Sep 30, As of Dec 31, 2019 2019 2018 2018 % Inc (Unaudited) (Audited) (Dec) Cash & cash equivalents ₱ 269 ₱ 342 -21.5% Receivables and other CA 68 86 -21.2% Current assets 337 429 -21.4% Deferred exploration costs & other NCA 6,833 6,818 0.2% Total assets ₱ 7,170 ₱ 7,247 -1.1% LIABILITIES AND STOCKHOLDERS’ EQUITY (in PHP millions) As of Sep 30, As of Dec 31, 2019 2019 2018 2018 % Inc (Unaudited) (Audited) (Dec) Due to affiliate ₱ 739 ₱ 2,125 -65.2% Accounts payable & others 27 34 -22.8% Current liabilities 766 2,160 -64.5% Deferred income tax liability 1,114 1,113 0.1% Others 200 192 4.1% Non-current liabilities 1,314 1,305 0.7% Total liabilities 2,080 2 3 3,465 -40.0% Capital stock 1,960 1,960 0.0% Additional Paid-in Capital 2,817 2,821 - Subscription receivable (924) (2,311) - Deficit (1,383) (1,374) 0.7% Others 237 276 -14.0% Non-controlling interest 2,384 2,410 -1.1% Total equity 5,090 3,782 34.6% Total Liabilities and SHE ₱ 7,170 ₱ 7,247 -1.1% 9

Operations Update SC 6A SC 14C1 SC 14C2 SC 6B SC 14B Cadlao SC 14A TUMBES BASIN, OFFSHORE PERU 10 10 10

Operations Update 1/3 SC 72 Recto Bank (Forum 70%)  Under Force Majeure (FM) since December 15, 2014.  Forum will have 20 months upon lifting of the FM to drill the two (2) commitment wells.  The Sampaguita Field Re-evaluation is being undertaken by VGS Consultancy. Scope of work includes 3D seismic interpretation of the PSDM newly reprocessed data, update of volume calculation, petrophysics study, economic analysis, and well drilling strategies.  In accordance with the Memorandum of Understanding (MOU) on cooperation on oil and gas development signed in November 2018, the Philippines and China recently created an inter-governmental Steering Committee to be composed of government officials from both countries. Under the MOU, the Steering Committee is tasked to create Working Group(s) on the entrepreneurial, technical, and commercial aspects of the planned joint exploration  The Company looks forward to the immediate creation of such working groups for the Company’s SC 72 Recto Bank and SC 75 NW Palawan blocks, which are both currently under FM. SC 75 NW Palawan (PXP 50%)  Under FM since December 27, 2015.  Sub-Phase 2 will have a term of 18 months upon lifting of FM with the acquisition of 1,000 sq. km of 3D seismic data as the minimum work commitment. SC 40 North Cebu (Forum 66.67%)  Gravity data modeling is underway using land gravity data acquired in 2018. 15 November 2019 11

Operations Update 2/3 SC 74 Linapacan Block (PXP 70%)  Completed the gravity modeling and seismic interpretation of MC2D data.  A pilot test biostratigraphic analysis is being conducted by Corelab Malaysia on select rock samples collected during the fieldwork in the Calamian Islands.  The SC 74 and SC 14C2 (West Linapacan) Consortia have completed the Rock Physics and pilot test Quantitative Interpretation (QI) studies over the Linapacan and West Linapacan areas with Ikon Science as contractor. Results of the test QI are being reviewed. SC 6A Octon Block (PXP 5.56% / Forum 5.56%)  Completed the attribute analysis.  Ongoing G&G studies to identify a final well location. SC 6B Bonita Block (Forum 2.4546%)  On 17 October 2019, the Farm-In Agreement (FIA), Deed of Assignment and transfer of operatorship from Philodrill to Manta Oil Company Ltd. (Manta) were approved conditionally by the DOE, requiring Manta to submit additional financial documents.  Under the FIA, Manta will carry the JV up to First Oil to earn 70% interest. Forum’s interest will be reduced to 2.4546% upon completion of the farm-in. 15 November 2019 12

Operations Update 3/3 SC 14C1 Galoc (Forum 2.27%)  Continued production in Galoc Field. Cumulative production from October 2008 to October 2019 stood at 21.97 million barrels of oil.  The Consortium led by Galoc Production Company (GPC) plans to install a Condensate Recovery Unit (CRU) onboard the FPSO Rubicon Intrepid in 1H 2019 to recover 15- 20 barrels of condensate for every 1 mmscf of gas produced.  Ongoing engineering studies are being undertaken to bring the Galoc-4 well back online. SC 14C2 West Linapacan (Forum 9.103%)  Ongoing QI studies with the SC 74 Consortium. Peru Block Z-38 (Pitkin 25%)  Karoon and Stena Forth entered into a Rig Assignment Agreement in preparation for drilling the Marina-1X exploration well planned for 1Q 2020. The Marina prospect has an unrisked best estimate prospective resource of 256 mmbbls (64 mmbbls net to Pitkin). This prospect will be the first well drilled in Block Z-38. Pitkin is carried in the cost of Marina-1X and a second future well under a Farm-in Agreement signed with Karoon in 2008.  The participating interest in Z-38 are as follows: Karoon Gas – 40%, Tullow Oil – 35%, and Pitkin Petroleum – 25% 15 November 2019 13