The Middle East’s Leading Private Sector Natural Gas Company First Quarter 2011 Results Presentation – 12 th May 2011 1
Disclaimer Forward-looking statements are based on certain This presentation contains forward-looking assumptions and expectations of future events. The statements which may be identified by their use of Company, its subsidiaries and its affiliates (the words like “plans,” “expects,” “will,” “anticipates,” “Companies”) referred to in this presentation cannot “believes,” “intends,” “projects,” “estimates” or guarantee that these assumptions and expectations other words of similar meaning. All statements that are accurate or will be realised. The actual results, address expectations or projections about the performance or achievements of the Companies, future, including, but not limited to, statements could thus differ materially from those projected in about the strategy for growth, product any such forward-looking statements. The development, market position, expenditures, and Companies assume no responsibility to publicly financial results, are forward looking statements. amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise. 2
Today’s Speakers Ahmed Al Arbeed Donald Dorn-Lopez Azfar Aboobakar Chief Executive Officer Technical Director Financial Controller 3
Presentation Outline – First Quarter 2011 CEO Overview Technical Director Operational update Production Financial Controller Financial Results - Average Realized Prices - Net Profit - Capital Expenditure - Trade Receivables Analysis - Cash Flow - Key Financial Metrics Q & A session 4
CEO Overview – 1Q 2011 Highlights 1Q 2011 Profit After Tax: $25MM, compared to $9MM in 1Q 2010 1Q 2011 Production: Increase of 34% compared to 1Q 2010 Target overall production increase of 25% in 2011 compared to 2010 Egypt exploration – South East Abu El Naga – at least 60Bcf estimated reserves Kurdistan Region of Iraq – delivering 250MMscfpd of gas, plus condensate and LPG Receivables issue in Iraq and Egypt focus of management attention Reviewing capex plans for 2011 in light of receivables 5
Technical Director Operational Update 6
Egypt: Year to Date 2011 Results El Wastani 2011 RESULTS & PLANS Plant 2011 discoveries: South Abu El Naga – 2 (El Wastani formation) East Nile 2011 new fields on stream Orchid Plant Ward Delta West Ward Delta Current prod rate 48kboepd S El Manzala Plant 7
Kurdistan Region of Iraq: Year to Date 2011 Results Pearl Petroleum Company Ltd ownership: Dana Gas 40% 2011 RESULTS & PLANS Crescent Petroleum 40% OMV 10% MOL 10% Production via Early Production Facility LPG Train 1 LPG Train 2 Available capacity circa 400 MMscfpd 1Q11 gas production 224 MMscfpd (gross)plus 15,500 bpd condensate (gross) plus LPG production at about 300 tonnes/day Currently meeting needs of power stations with capacity to deliver further volumes 8
Production – First Quarter 2011 Vs First Quarter 2010 Rounded to nearest hundred Production (Boepd) 80,000 66,800 70,000 34% 60,000 50,000 21% 47,300 50,000 39,200 40,000 30,000 19,500 80% 20,000 10,800 10,000 0 T otal Egypt Kurdistan (40% WI) Nile Delta 100% Includes Gas production: 1Q10 1Q11 Komombo (50% WI) 14,900 boepd 1Q11 (8,200 boepd 1Q10) 9
Production – First Quarter 2011 Vs Fourth Quarter 2010 Rounded to nearest hundred Production (Boepd) 80,000 66,800 70,000 61,800 60,000 47,300 45,700 50,000 40,000 30,000 19,500 16,100 20,000 10,000 0 T otal Egypt Kurdistan (40% WI) Nile Delta 100% Includes Gas production: 4Q10 4Q11 Komombo (50% WI) 14,900 boepd 1Q11 (12,300 boepd 4Q10) 10
Financial Controller Financial Results 11
Average Prices - First Quarter 2011 Vs First Quarter 2010 120 3.0 2.7 2.7 102 101 100 80 75 2.0 80 71 61 60 1.0 40 20 0.0 0 Gas (USD/Mscf) Condensate LPG Crude Oil (USD/boe) (USD/boe) (USD/bbl) Q1 -2010 Q1 - 2011 12
Average Prices - First Quarter 2011 Vs Fourth Quarter 2010 120 102 101 3.0 100 2.7 2.7 85 82 80 80 72 2.0 60 40 1.0 20 0 0.0 Condensate LPG Crude Oil Gas (USD/Mscf) (USD/boe) (USD/boe) (USD/bbl) Q4 -2010 Q1- 2011 13
Profit After Tax Bridge – First Quarter 2011 Vs First Quarter 2010 US$ Million 35 70 60 50 (14) 40 (5) (3) 21 25 30 (7) (2) (9) 20 9 10 0 Q1 2010 Increase in Increase in Increase in Increase in Higher G&A Higher Higher Lower Q1 2011 Profit Revenue - Revenue - Royalty & Tax DDA & COS Finance cost Exploration Investment / Profit Price Effect Quantity expenditure Other Income Effect 14
CAPEX - First Quarter 2011 Vs First Quarter 2010 US$ million 30 27 24 21 20 10 4 4 1 0 Dana Gas Egypt Kurdistan Others Q1 - 2010 Q1 - 2011 15
Trade Receivables - First Quarter 2011 Vs Fourth Quarter 2010 US$ million 350 310 Collections in April 300 $ million 250 218 200 Egypt 20 150 Kurdistan 4 100 50 Total 24 0 Dana Gas Group Q4 2010 Q1 2011 Q4 2010 Q1 2011 2% 2% USD 6 Million USD 5 Million 45% USD 115 Million USD 98 Million USD 156 Million USD 148 Million 48% 50% 53% 16 Dana Gas Egypt Kurdistan Others Dana Gas Egypt Kurdistan Others
Cash Flow – First Quarter 2011 US$ Million 100 84 80 60 (29) 40 (17) 20 0 -20 1 -40 4 (47) (90) -60 Operating cash Capital Finance cost Working capital Proceeds from Others Net cash flow flow before expenditure movement borrowings working capital 17
Key Financial Metrics – First Quarter 2011 SALES REVENUES ( ): 50% increase is due to higher realized hydrocarbon prices and higher production in Kurdistan compared to 1Q 2010. GROSS PROFIT ( ): 108% increase reflects the higher sales revenue, partially offset by higher royalty charges and increased DD&A as a result of increased production. Profit After Tax ( ) : See “Bridge” Chart. An improvement of $16m compared to 1Q 2010. Capital Expenditure ( ): Lower by 52% compared to same period last year mainly due to reduced activity in Kurdistan following completion of the LPG plant. 18
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