[PPT] - RESILIENCE AND STRENGTH 2020 H1 RESULTS 29 JULY 2020 PowerPoint Presentation

SLIDE 1

www.seplatpetroleum.com

2020

H1 RESULTS

29 JULY 2020

RESILIENCE AND STRENGTH

SLIDE 2

www.seplatpetroleum.com

INTRODUCTION

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC

2

Austin Avuru

Chief Executive Officer

SLIDE 3

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

3

H1 2020 KEY MACROECONOMIC EVENTS

› Oil price recovering after twin shocks of COVID-19

demand drop and KSA-Russia price war

› OPEC+ cuts will reduce Seplat’s W.I. quotas in

July/August but little impact expected on full-year result

› Nigeria is relatively lightly affected by COVID-19 with

<39,000 cases reported and <900 deaths as at 25/7/20

› Lockdown enforced in key centres, but oil operations

allowed to continue owing to strategic and economic importance

› Very little direct impact of COVID-19 on Seplat and its

perations at fields or offices, but continuing to monitor

developments

An unprecedented period of volatility as twin shocks hit the oil market

10 20 30 40 50 60 70 80

1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020

BRENT FUTURES IN H1 2020 ($) EVOLUTION OF BRENT FORWARD CURVE ($)

20 30 40 50 60 M a r

2

S e p

2

M a r

2

1 S e p

2

1 M a r

2

2 S e p

2

2 M a r

2

3 S e p

2

3 M a r

2

4 S e p

2

4 M a r

2

5 S e p

2

5 M a r

2

6 S e p

2

6 M a r

2

7 S e p

2

7 M a r

2

8 S e p

2

8 M a r

2

9 Live 26/06/2020 27/04/2020 27/01/2020

SLIDE 4

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

4

H1 2020 HIGHLIGHTS

› 51,177 boepd total › Liquids 34,117 bopd › Gas 99 MMscfd

(17,060 boepd)

Seplat delivered production well within guidance and maintained a healthy cash balance despite low oil prices

VOLUMES WITHIN GUIDANCE KEY FIGURES

51,177 boepd

(Q1 2020: 48,491 boepd)

LOW COST PRODUCER

US$7.60/boe

STRONG CASH BALANCE

US$343m

A STRONG PERFORMANCE DESPITE CHALLENGING MARKET › $34.94/bbl realised

across H1 2020

› Hedged put options at

$45/bbl for Q2/Q3 and $30/bbl in Q4

Production well within guidance Oil price recovering

› Negotiating at least 30%

savings from suppliers, per Government request

› Reducing barging costs

at OML40, plus Group central costs

Focus on cost reduction and efficiency

› $86m invested H1 to

underpin future revenues

› H2 focus on gas projects › Non-essential capex

under review

Capex increased

› ANOH remains on schedule

for Q4 2021 first gas

› Amukpe-Escravos Pipeline

expected in H2, subject to COVID-19 delayed works being completed

Update on major projects

› Balance sheet strong

even after capex and dividend payments

› All debt lines well

within headroom

Balance sheet

SLIDE 5

www.seplatpetroleum.com

OPERATIONS UPDATE

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC

5

Effiong Okon

Operations Director

SLIDE 6

6

H1 2020 WORKING INTEREST PRODUCTION

› Average W.I. production in H1 2020:

51,177 boepd (Q1 2020: 48,491)

› Eland achieved 10,861 bopd, c32% of

Group oil volumes

› Pipeline issues affected exports from

OML 4, 38, 41

› Gas production recovering after Q1

maintenance and 3rd party downtime

Volumes are well within guidance for 2020 despite severe market challenges in second quarter

14,794 23,474 24,252 29,003 10,091 17,853 25,669 23,935 33,388 34,117 5,226 4,867 6,571 14,369 15,786 19,070 24,198 22,563 15,103 17,060

20,020 28,341 30,823 43,372 25,877 36,924 49,867 46,498 48,491 51,177 10,000 20,000 30,000 40,000 50,000 60,000 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Q1 2020 H1 2020

boepd

Oil production Gas production

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

PERFORMANCE

› No impact in H1 2020 › Seplat July production within revised

quota, August quota similar to H1 average

› No change to previous FY guidance

IMPACT OF OPEC+ CUTS

FY 2020 guidance unchanged at 47-57kboepd

SLIDE 7

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

7

UPDATE ON OPERATIONS IN H1 2020

Focus on well development and reducing costs

OIL BUSINESS

› OML40 and Ubima production now included, contributing

nearly a third of oil production

› 76% uptime as infrastructure outages affected OML 4,38, 41

exports; 8.6% reconciliation losses

› Six oil wells completed across Sapele, Ovhor, Ohaji South

and Gbetiokun

› Cost saving initiatives underway include negotiating savings

from suppliers per Government request, larger barges at Gbetiokun to reduce shipping costs, savings already driving costs down from $14 to $9 per bbl

› Amukpe-Escravos Pipeline expected H2 2020 due to delays

in accessing the terminal; expected to significantly reduce reconciliation and other losses, thereby enhancing revenue assurance

GAS BUSINESS

› 99 Mscfd achieved across six-month period was

significant increase on 88Mscfd achieved Jan-March

› Oben scheduled maintenance and 3rd party

infrastructure problems restricted Q1 gas sales

› Oben-48 gas well completed and onstream › ANOH project still on target to produce first gas in

late 2021, despite COVID-19 impact

› ANOH equity and debt financing expected to

complete in H2 2020

› Sapele Gas Plant decommissioning in advanced

stage but timetable affected by COVID-19

› Two gas wells on track to be drilled in H2

SLIDE 8

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

8

ACCIDENT AT BENIN RIVER VALVE STATION ON OML40

Investigation has commenced into explosion on maintenance barge

SUMMARY

› Seven fatalities amongst third-party contractors; our thoughts

and prayers are with the families and friends of all those who lost their lives

› No other casualties reported, no environmental damage › Investigation is underway, combined NPDC / Elcrest team, led

by NPDC as the operator

› Accident occurred on mooring dolphin at Benin River Valve

Station, which is Gbetiokun crude injection point into TEP for export to Forcados Terminal

› The mooring dolphin was being modified to receive a larger

self-propelled barge

› The BRVS is 30km away from the Gbetiokun upstream

perations

SLIDE 9

www.seplatpetroleum.com

FINANCIAL PERFORMANCE

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC

9

Roger Brown

Chief Financial Officer & CEO Designate

SLIDE 10

US$145 million

10

H1 2020 FINANCIAL HIGHLIGHTS

Cash balance increases, NPDC receivables fall, capex increased and 2019 final dividend paid.

REVENUES

H1 2019: $355 million

US$234 million

H1 2019: $120 million profit

221%

CASH AT BANK

FY 2019: $333 million

US$343 million

3%

OPERATING COSTS

H1 2019: $5.41 / boe

US$7.60 / boe

40%

EBITDA

H1 2019: $223 million

US$115 million

NET DEBT

FY 2019: $456 million

US$457 million

GAS SALES REVENUE

H1 2019: $72 million

US$54 million

CAPITAL INVESTMENT

H1 2019: $28 million

US$86 million

206%

NPDC RECEIVABLES

FY 2019: $222 million

US$174 million

Impact of COVID-19 and oil price fall Loss results from IAS36 impairment Includes OML40/Ubima export cost Includes $799m gross debt 23% of Group revenues Increased despite market uncertainty Good management of receivables

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

LOSS BEFORE DEFERRED TAX

34% 26% 22% 48%

=

Cash balance strong and increasing After adjusting for impairment

SLIDE 11

› In cost of sales, royalties, crude handling and DDA now includes consolidated amounts

from Eland, including US$10.7m barging costs, but reduction in barging costs will be felt in H2

› Operating expenses include impact of Eland consolidation, IAS36 impairment on assets to reflect

the impact of oil price decline $146m in Q1 2020, and $14.8m impairment of financial assets

› H1 2020 finance cost is made up of interest repayments impacted by interest on additional

$350m RCF in December and consolidation of Eland finance cost compared to H1 2019

› Hedging: FV gain on hedge due to significantly low oil prices › Tax expense: H1 2020 contains a deferred tax credit of $39m and a tax charge of $3.9m › Capex for H1 2020 includes mainly costs for ramped up activities on Ovhor wells, Sapele and

Gbetiokun oil wells, Oben-48 gas well, Sapele gas plant project and other projects

› Good relationship with NPDC drives fall in receivables › H1 2020 results reflect contribution of Eland, acquired at the end of Q4 2019 › Lower

il

revenues reflect price falls in Q2; average price

f

$34.94 achieved across H1 with a low of $17.50

› H1 2020 gas sales did not include tolling (H1 2019: $67m); $2.88/Mscf achieved

11

H1 2020 FINANCIAL RESULTS

A profitable business with strong cash flow generation and a robust balance sheet

$ million H1 2020 H1 2019 Change Total revenue 233.6 355.1 (34.2%) Cost of sales (195.9) (148.0) 32.9% Gross profit 37.7 207.0 (81.8%) G&A (47.6) (42.1) 13.2% Other income 51.4 8.6 496% Impairments (160.9) (40.1) 301% Operating profit / (loss) (112.9) 139.1 (181.2%) Net finance costs (34.8) (18.9) 84.2% (Loss)/Profit before tax (145.3) 120.4 (220.7%) Tax credit / (expense) 35.1 (1.4) (2565%) (Loss)/Profit after tax (110.2) 119.0 (193%) Capital investment 86.0 28.1 206% Cash flow from operations 176.2 255.2 (31%) NPDC receivables (vs. 31/12/19) 174.4 222.3 21.6%

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

SLIDE 12

326.3 176.2 10.0 4.7 2.0 1.8

86.0
30.0
38.3
26.5
10.4

329.8 100 200 300 400 500 600 12

CASH GENERATION STRENGTHENS BALANCE SHEET

Strong cash generation and diligent management of Group liquidity

Cash at 31/12/19 (excl. restricted cash) Cash from

perations

Proceeds from loans OML55 receipts FX gains Interest received Capex AGPC investment Interest, finance charges Dividend paid Income tax Cash at 30/6/20 (excl. restricted cash)

Hedging strategy of put options to provide cash flow assurance

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

Hedge Q3 2020 Q4 2020 Q1 2021 Amount 1.5 MMbbl 1.5 MMbbl 1.0 MMbbl Price

$45 $30 $30

SLIDE 13

350 350 100

50 100 150 200 250 300 350 400 Senior notes Revolving credit facility Reserve-based loan 13

ROBUST CAPITAL STRUCTURE

› Capital structure amended following acquisition of Eland Oil & Gas PLC › $100m Eland reserve-based loan now part of structure. › $300m Seplat revolving credit facility upsized to $350m

and extended to 2022/23

Seplat is in a position of financial strength to capitalise on profitable opportunities

NET DEBT POSITION REFLECTS STRONG CASH BALANCE CURRENT DEBT MATURITY PROFILE (US$ MILLION)

50 100 150 200 250 300 350 400 2020 2021 2022 2023 Senior notes RCF RBL

KEY TERMS

Pricing Tenor

Notes

9.25%

2023

RCF

LIBOR+6% falling to LIBOR+5% after Amukpe-Escravos opens

2022/23

RBL

LIBOR+8% / LIBOR+7.5% if <50% drawn down

2023

DIVERSE CAPITAL STRUCTURE

Debt facilities US$ million

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

588
900
664
570
446
789
799

285 326 160 437 585 333 343

457
1000
800
600
400
200

200 400 600 2014 2015 2016 2017 2018 2019 H1 2020 Gross debt US$ million Cash balance US$ million Net position $m

SLIDE 14

GAS BUSINESS

› Invest in growing the gas business

to fuel Nigeria’s increasing demand

› Develop ANOH for long-term growth › Drill gas wells to serve demand

OIL BUSINESS

› Offset expected decline by

developing low-risk wells / prospects

› Sustain and optimise production › Maintain core dividend

f $0.05 per share

› Top up when considered

appropriate

› Commitment to dividend payments

evidenced by protection of FY2019 payment in May 2020 despite COVID-19 crisis

› Pay down $350m

Revolving Credit Facility

› Refinance Eland’s

Reserve-Based Loan

› Maintain optimal balance

f cash and debt

› $400m+ cash flows expected from

Westport loan repayments

› Seek low-risk opportunities for

growth that enhance NAV and FCF

› Opportunity to consolidate

Nigerian market though OMLs, divested assets from IOCs and distressed small-scale operators

› Other value-enhancing M&A LOW-RISK CAPITAL INVESTMENT PROGRAM REDUCTION OF NET DEBT DIVIDEND PAYMENTS M&A POTENTIAL

CLEARLY FOCUSED CAPITAL ALLOCATION PRIORITIES

We are focused on low-risk strategies to generate and deploying cash to grow the business and improve stakeholder returns

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

14

SLIDE 15

www.seplatpetroleum.com

OUTLOOK

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC

15

Austin Avuru

Chief Executive Officer

SLIDE 16

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

16

APPOINTMENT OF EMEKA ONWUKA AS NEW CFO

Brings substantial financial and board-level experience

CAREER HIGHLIGHTS

› Joins Seplat’s Board as CFO and Executive Director on

3 August 2020

› More than 30 years’ experience in financial services in Africa › Most recently Partner & Head, Private Clients & Family

Wealth, Andersen Tax, Nigeria

› Serves on Boards of Ecobank Nigeria, Bharti Airtel Nigeria › Previously on Boards of First Atlantic Bank Ghana, FMDQ

OTC Plc

› Former Group Managing Director of Diamond Bank Plc,

Chairman of Enterprise Bank

› Officer of the Order of the Niger (OON)

SLIDE 17

17

OUTLOOK FOR 2020 AND DRIVERS OF FUTURE VALUE

Short term focus on efficiency, cash generation, longer term significant growth prospects

VOLUME GUIDANCE UNCHANGED GUIDANCE FOR 2020

47 – 57 kboepd

(Includes impact of OPEC+ quota cuts in July/August)

HEDGING (PUT OPTIONS) CAPEX SHORT TERM VALUE DRIVERS (0-2 YEARS)

1. Increase in production from Eland’s OML40/Ubima fields, with exports not dependent on

Seplat’s existing export routes

2. Greater and more reliable output expected from OMLs 4,38, and 41 as Amukpe-Escravos

pipeline assures more secure flow, reduces losses through shut-ins and vandalism

3. Potential for dedicated export route to support OML 40 and OML 4,38,41, reducing handling

costs and reconciliation losses

4. Improved uptime from increased focus on operational improvements in 2020; increased field

development

5. Prioritise prolific swamp wells to increase production
6. Significant reserve upgrade potential from Eland’s Amobe prospect at OML40, benefiting from

Eland expertise

$120m for full year

$86 million spent in H1 2020

LONGER TERM VALUE DRIVERS (2+ YEARS)

1. Significant opportunity from gas displacement of diesel generators as government

prioritises gas-fired electricity

2. ANOH significantly boosts potential income from gas from 2022, further decoupling value

from oil price volatility; expansion potential beyond 300MMscfd to serve increasing demand

3. Opportunity to increase scale of oil and gas businesses through M&A as IOCs divest

Nigerian assets

4. $400m+ cash flows expected from Westport loan repayments

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

Hedge Q3 2020 Q4 2020 Q1 2021 Amount 1.5 MMbbl 1.5 MMbbl 1.0 MMbbl Price

$45 $30 $30

SLIDE 18

www.seplatpetroleum.com

APPENDIX

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC

18

SLIDE 19

OML 4 OPL 283 OML 53 OML 55 OML 41 OML 38 Ubima OML 40

A RICH PORTFOLIO OF OIL & GAS ASSETS

Eight oil and gas blocks in the prolific Niger Delta, ideally located for export or internal demand centres

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

19 W.I. 2P reserves * MMboe W.I. production H1 2020 boepd Block Share Partner Oil Gas Total Oil Gas Total

OML 4, 38, 41 45% NPDC 164 118 282 19,592 17,060 36,652 OML 40 ** 45% NPDC Starcrest 29

29

9,814

9,814

OML 53 40% NNPC 45 127 172 2,801

2,801

OML 55 Revenue interest AMT 2

2
OPL 283

40% Pillar Oil 5 12 17 863

863

Ubima *** 88% All Grace Energy 7

7

1,047

1,047

TOTAL 252 257 509 34,117 17,060 51,177

* Reserve volumes stated at 1/1/20 are based on independent estimates from Ryder Scott (Seplat) and NSIA (Eland) ** Reverts to 20.25% after Westport loan is fully repaid, see slide 43 *** Reverts to 40% after Carry has been reached

SLIDE 20

$310 $588 $900 $664 $570 $446 $789 $169 $285 $326 $160 $437 $585 $333 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900

2013 ($108.6) 2014 ($99.0) 2015 ($53.0) 2016 ($45.1) 2017 ($54.7) 2018 ($71.3) 2019 ($64.0)

Gross debt ($m) Cash ($m)

20

PROVEN RESILIENCE THROUGH PRUDENT MANAGEMENT

Financial discipline and a robust business model have protected Seplat through difficult times

INCREASING GAS VOLUMES FOR GROWING MARKET NEEDS FOCUSED CASH MANAGEMENT STRATEGY GAS DIVERSIFICATION REDUCES EXPOSURE TO OIL PRICE FLEXIBILITY WITH CAPITAL INVESTMENT

23,474 24,252 29,003 10,091 17,853 25,669 23,935 4,867 6,571 14,369 15,786 19,070 24,198 22,563 28,341 30,823 43,372 25,877 36,923 49,867 46,498

10,000

20,000 30,000 40,000 50,000

2013 2014 2015 2016 2017 2018 2019

Oil Gas

$862.1 $747.6 $493.5 $148.8 $318.2 $590.5 $495.1 $18.1 $27.4 $77.0 $105.5 $124.0 $155.6 $202.4

$0 $200 $400 $600 $800 $1,000

2013 2014 2015 2016 2017 2018 2019

Oil Gas $0 $50 $100 $150 $200 $250 $300 $350

2013 2014 2015 2016 2017 2018 2019

$451m Eland acquisition $259m OML 53 acquisition Higher level than 2014-16 $120m capex planned for 2020 ($86m spent in H1) 2% 4% 13% 41% 28% 21% 29%

Oil price crisis (Jul 14 – Jan 16) Trans Forcados force majeure (Feb 16 – Jun 17)

SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

SLIDE 21

21

WESTPORT LOAN REPAYMENTS UNDERPIN FUTURE CASH FLOW

When Seplat paid EV $450m for Eland it acquired:

› Eland’s 20.25% share of OML40 › The right to be repaid $410m by Westport › The right to consolidate 100% of Elcrest’s share until loan is repaid › The loan will be repaid between 2022-24 Seplat has acquired the right to be repaid more than $414m between 2021-24

Loan agreement guarantees cash flows from Elcrest to Westport

f up to $150m in 2022 and 2023 and up to $175m in 2024

$416.8 $475.0 $325.0 $175.0 $0.0 $0 $100 $200 $300 $400 $500

30/11/2019 31/12/2020 31/12/2021 31/12/2022 31/12/2023 31/12/2024

Moratorium $500m limit Amount outstanding as at 30/11/2019 ($m) Maximum permissible amounts outstanding as per revised loan agreement of 23/12/19 ($m)

OML40

Westport Starcrest

Owns 55% of Elcrest Owns 100%

f Westport

$90m reserve- based loan

Owns 100%

f Eland

Owns 45%

f Elcrest

Owns 45% of OML40

Westport repays $90m RBL Westport repays $414M to Seplat via Eland Elcrest repays $504m loan to Westport Westport loan to Elcrest ($504m) SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC | H1 2020 RESULTS

NPDC

Owns 55% of OML 40

SLIDE 22

London Office

Seplat UK Ltd. 4th Floor, 50 Pall Mall, London SW1Y 5JH +44 (0)20 3725 6500

Head Office

Seplat Plc 16A, Temple Road, Ikoyi, Lagos, Nigeria. +234 (0)1 277 0400 info@seplatpetroleum.com www.seplatpetroleum.com

Investor Relations

CFranklin@seplatpetroleum.com AAliyu@seplatpetroleum.com