March 20, 2018 Neptune Energy A New Beginning

Transcription

1 March 20, 2018 Neptune Energy A New Beginning

2 Disclaimer This confidential presentation (the Presentation ) has been prepared and is issued by, and is the sole responsibility of, Neptune Energy Group Holdings Limited ( Neptune ). The information contained in this Presentation which is not already in the public domain must be kept strictly confidential and may not be reproduced (in whole or in part) or redistributed in any format without the express written approval of Neptune. Certain information contained in this Presentation has been obtained from published and non-published sources prepared by other parties, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for the purpose used in this Presentation, Neptune does not assume any responsibility for the accuracy or completeness of such information and such information has not been independently verified by Neptune. Except where otherwise indicated herein, the information provided in this Presentation is based on matters as they exist as of the date of preparation and not as of any future date, and might not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date hereof. Certain information, including but not limited to, the strategy and intentions of Neptune contained in this presentation are based on current expectations, estimates and projects about global economic conditions, the economic conditions of the regions and industries that are major markets for Neptune's line of business. These expectations, estimates and projects are generally identifiable by statements containing words such as, but not limited to, expects, believes, estimates, forecasts or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Neptune s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Neptune believes that its expectations and the Presentation are based on reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Carlyle, CIC, CVC and Neptune and their respective directors, officers, employees, partners, shareholders, advisers and agents expressly disclaim, to the maximum extent permitted by law, any and all liability and shall have no liability whatsoever for any direct, indirect or consequential loss or damage suffered or incurred by any person or entity however caused (including but not limited to negligence) in any way in connection with this Presentation or any other written or oral information made available to such other person or entity regarding this Presentation, any errors or omissions however caused, any person or entity placing any reliance on this Presentation or such other information, or the reasonableness, authenticity, validity, adequacy, accuracy, completeness or reliability of this Presentation or such other information. 2

3 Brent Oil Price ($/bbl) E&P Market From then to now Jim leaves Aberdeen O&G UK BB Talk $65/bbl O&G UK BB Talk $116/bbl Source: Bloomberg, Youtube 3

4 Brent Oil Price ($/bbl) UKCS Performance 2018 Business Outlook 140 HSE Production Capex/boe Opex/boe E&A Count Production 80 Costs Growth 20 Fiscal Support Source: Bloomberg, Oil and Gas UK 2018 Business Outlook 4

5 Neptune Energy A New Beginning Leading International Independent E&P company in safety production cost control returns One Team across geographies across cultures collaborating standalone accountable to ourselves flat, agile organisation innovative E&P upstream focus maximise returns 5

6 Neptune at a glance Leading International Independent E&P Company Highlights Completed acquisition of ENGIE E&P International S.A. ( EPI ), the E&P subsidiary of ENGIE SA, on February 15 th 2018 Geographic Footprint One of the largest independent E&Ps in Europe (1) with production of 154,000 boepd, 56% operated, 92% OECD Gross operated production of ~225kboepd Mix of oil and gas exposure into European, North Africa and Asian markets Industry proven management team Over 1800 employees Focused Investors 2017 production split 2 Indonesia 5% Germany 8% Egypt 3% UK 12% Norway 51% Source: Company information 1 By production and reserves; A net entitlement production Netherlands 21% 6

7 Neptune s Strategy Performance-driven business with highest HSE standards Performance culture focused on clear accountabilities with incentives to tie reward to asset efficiency and value creation Encourage an agile, entrepreneurial way of working Sustainable development of business via highest standards in health, safety, security, environmental performance Asset performance and superior return through production and cost efficiency Strong balance sheet, robust level of liquidity and active risk management Optimize well productivity, production reliability and reservoir management of operated producing assets Focus on maximizing the recovery of in-place hydrocarbons and extending production profiles Non-operated assets: work together with the operator to continually assess opportunities for targeted intervention Achieve efficiency gains and cost savings from standardization of systems, investment in new technology as well as organization design, process simplifications, rigorous cost management and disciplined capital allocation Maintain a strong balance sheet Sustain liquidity to allow the necessary flexibility required by operational needs and investment activity Hedge oil and gas price exposures and protect significant portion of post-tax production revenues on a rolling two to three year basis Balanced inorganic and organic growth with focus on short-cycle projects Focus on near-field opportunities that require relatively short development periods and are located close to existing hubs Strategic bolt-on and other tactical acquisition opportunities as and when value accretive opportunities arise M&A focus on reinforcing profile to add longer term growth portfolio 7

8 Neptune Differentiators Low risk, operated, productive international independent E&P company 1 Conventional, diversified OECD-focused portfolio 2 Large-scale, robust and low-cost production profile with favourable gas price environment providing additional stability 3 Proven operational capability 4 Well invested asset base with future capital expenditures flexibility and low decommissioning commitments 5 Significant cash flow generation, strong balance sheet and conservative risk management 6 Experienced management and leadership team with supportive shareholders 8

9 kboepd Leading E&P One of the largest European independent E&P companies by production and reserves Net entitlement production 2017A Source: Company information 1 Pro forma Hess Norge acquisition 2 Working interest production 3 Based on Wood Mackenzie 2017 production 4 Based on Wood Mackenzie 2017 commercial reserves 5 Based on Neptune price deck 9

10 Proven Operator Extensive experience across the E&P life cycle ) ) 10

11 Neptune in the UKCS SNS is a core hub for Neptune Highlights Location Maps Presence in the UK since early 1990s 2 operated fields, Cygnus (38.75% WI) and Juliet (81% WI) and 11 late-life non-operated fields Accounts for 8% of our 2P reserves and 12% of our 2017 production Offices in Aberdeen (Drilling Centre of Excellence for Neptune) and London (Corporate Head Office) Management experience in the UKCS Jim House Apache Sam Laidlaw Centrica, Chevron, Hess, Enterprise Peter Thomas TAQA, Enterprise 11

12 Avg Gorss Production (mmscf/d) Dec '16 - Nov' 17 Cygnus Largest dry gas producer in the UKCS Dry gas Associated Gas Source: UK Government 12

13 Cygnus Complex SNS is a core hub for Neptune Highlights SNS non-operated fields Ownership: Neptune E&P UK (38.75%, operator), Spirit Energy (61.25%) Project Milestones Project sanctioned August 2012 Alpha First Gas 2016 Bravo First Gas 2017 Production 10 wells (7 drilled to date) Original design capacity 250 mmscf/d Debottlenecking project in 2017, production increased to 300 MMscf/d Export via ETS to Perenco-operated Bacton terminal 96% uptime, 90% production efficiency, 20% above nameplate capacity Future Activity Remaining development wells B1z spud March 2018, A1 in Q4 2018, AD deferred depending on A1 results Potential infill wells Blocks 2b East, 4, 5, 8 (Cepheus) Near field exploration FB9 spud in August 2018 Third-party tie-back HoT under negotiation Well Key Ketch Leman Target Producer FDP Undrilled Wells 13

14 Gross Production (mmscf/d) Cygnus Performance Blending constraints limiting indigenous gas supplies 350 Reaches 300 mmscf/d Alpha first gas Start of blending issues Bravo first gas Sept. shutdown FPS shutdown Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 14

15 2018 Business Outlook Recovery mode Market Oil market Gas market M&A Supply Chain Performance Outlook Employment E&P Production Expenditure Profitability Drilling Activity Source: Bloomberg, Oil and Gas UK 2018 Business Outlook 15

16 UKCS 2018 Business Outlook Messages Recovering 16

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