Investor Presentation February 2017 Forward-looking statements - - PowerPoint PPT Presentation
Investor Presentation February 2017 Forward-looking statements This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events and are subject
February 2017 | P1
2016 2017E 91% >90% 2015 2016 2016 Q4 58 kboepd 71.kboepd >80 kboepd E.ON acquisition case 2016 2H 15 kboepd 17 kboepd 2014 opex 2016 opex $18.5/boe $15.7/boe Drawn Debt Total Facilities (incl LCs) $3.4 bn $4 bn
Undrawn February 2017 | P2
Indonesia
GSA 2 delivery)
– Quick payback, high return projects – Bison, Iguana, Gajah Puteri
– Tuna, 3rd party business
Vietnam
– Renegotiation of vessel and helicopter contracts – Revised terms for FPSO agreed
infill drilling in 2017
Low cost, high return
maintain / grow production
February 2017 | P3
Wytch Farm (30.1%)
Solan (100% op)
10-13 kbopd
secured UK overview
Babbage (47%)
Elgin-Franklin (5.2%)
intervention programme Huntington (100% op)
above budget Catcher (50% op)
Tolmount (50% op)
February 2017 | P4
2015A 2016A 2017E 2018E
UK production
arches and gas export pipeline installed
below budget
performance
quality and flow rates at
below budget
Burgman BP3 producer well Tay reservoir
February 2017| P5
February 2017 | P6
BP3 & BP 5 completed Drilling at Varadero (4 wells) Installation
and Mooring System Module Lifts Installation
Hull mated Onshore pre-comm and comm Drilling at Burgman (2 wells) FPSO transit to Catcher field FPSO buoy and hook-up
First oil
February 2017 | P7
Drilling at Catcher (4 wells)
* Assumes $1.25/£ to end 2017, then $1.3/£ and 20 wells drilled
Topsides integration
Capex - 29% reduction in costs secured * $mm
50 100 150 200 250 300 350 2014 2015 2016 2017
Sanctioned budget Actual/current forecast
Indicative metrics (gross)
High return project in a low gas price environment
Timetable to sanction
– Standalone, normally unmanned or subsea tie-back to nearby facilities
– Capex reducing – Potential 3rd party funding
2018
February 2017 | P8
Babbage (47% op)
Ravenspurn Deep (5% carried interest)
for late 2016 Newton (50% op) Cobra (50% op)
30km radii
Portfolio of opportunities which are economic at <30p/therm
February 2017 | P9
Minerva
Tolmount (50% op)
February 2017 | P10
– Facilities capex and opex cost estimate reductions from FEED contractors’ collaboration – Logistics and drilling cost estimate reductions following extensive market engagement – $45/bbl current estimated breakeven price
streams & securing a financing solution for the development
Estimated capex to first oil now $1.5bn
hydrocarbon province (62 bn bbls of proven oil)
25% in Block 7 − Shallow water (<150m) − Same salt flanks and sub- salt plays as the US Gulf of Mexico − Large Zama well to spud early Q2
Delivery of reprocessed 3D seismic across 2 blocks Confirm final drilling candidates Tender for a moored, semi- sub rig for Block 7 First exploration well on Block 7 First exploration well on Block 2 February 2017 | P11
Flat Spot
Zama Prospect
February 2017 | P12
Debt type Description Facility size Maturity Bank debt RCF & LC US$2.5bn 2019 Bank debt Term Loan US$300m
US Bonds Private Placement US$380m No maturity before 2018 German Bonds Schuldschein US$130m 2018 & 2020 UK Bonds Convertible US$245m 2018 UK Bonds Retail bond GBP150m 2020
Private lenders Publically traded debt
− Preservation of the full amount of existing facilities including undrawn amounts − Alignment of all maturities to 2021 or later − Amendment of the group’s financial covenants − Provision of a comprehensive security package to lenders − Enhanced economics to lenders − Certain governance controls
Net debt of $2.8bn, marginally down from Q3 Cash and undrawn facilities of
2016 2018 Infills Tolmount Sea Lion $2.25bn $1.6bn Sanctioned budget Forecast
20% >50% 30% 2016 Solan Catcher $15.7/boe 5.2x 3x $12/boe $20/boe
February 2017 | P13
2016 2017 2018 IRR Net debt/ EBITDAX