2015 HALF YEAR RESULTS 29 July 2015

Transcription

1 2015 HALF YEAR RESULTS 29 July 2015

2 BUSINESS DELIVERY TEAMS WEST AFRICA (inc. UK & Netherlands) 1 Congo (Brazzaville) DP Côte d'ivoire DP Equatorial Guinea DP Gabon E 2 DP Ghana DP Mauritania EP 3 Netherlands EP UK EP EAST AFRICA Kenya ED Uganda D NEW VENTURES Ethiopia E French Guiana E Guinea E Gabon E 2 DP Greenland E Guyana E Jamaica E Madagascar E Mauritania EP 3 Namibia E Norway E Pakistan E Suriname E Uruguay E Key: E Exploration D Development P Production Note 1: Production operations in the UK and exploration and production activities in the Netherlands are managed by the West Africa Bsuiness Delivery Tean (BDT), despite falling outside this geographic region. Exploration activities in the UK are managed by the New Ventures BDT. Note 2: Exploration activities in Arouwe licence (Gabon) are managed by the New Ventures BDT Note 3: Mauritanian production activity is managed by the West Africa BDT 2015 HALF YEAR SUMMARY Group working interest production Group reserves and resources Group revenue Oil 89% Oil 87% Gas 7% 74,600 BOEPD Gas 11% 1,191 MMBOE Gas 13% $820 MILLION Hedging 18% Other 1% Oil 74% 74,600 BOEPD West Africa 66,500 bopd Europe 8,100 boepd 1,191 MMBOE East Africa 45% New Ventures 2% West Africa (inc. Europe) 53% $820 MILLION West Africa (inc. Europe) 100% Page 2

3 SUMMARY OF 2015 HALF YEAR RESULTS 1H H 2014 Variance Sales revenue ($m) 820 1,265-35% Gross profit ($m) % Operating profit ($m) % Loss before tax ($m) (10) (29) 66% Loss after tax ($m) (68) (95) 28% Basic earnings per share (cents) (7.5) (8.3) 10% Dividend per share (pence) % Operating cash flow before working capital ($m) % Operating cash flow before working capital per boe ($) % Net debt ($m) 1 3,610 2,802 29% West Africa working interest production (bopd) 2 66,500 63,900 4% Europe working interest production (boepd) 8,100 14,500-44% Sales volume (boepd) 66,500 73,200-9% Cash operating costs per boe ($/bbl) % Gearing (%) EBITDA interest cover times Realised post hedge oil price per bbl ($) % Realised post hedge gas price (pence per therm) % Pre-tax exploration write-off ($m) % Post-tax exploration write-off ($m) % Corporate Bonds ($m) 1,300 1,300 - Committed Bank Facilities ($m) 5 5,000 4,750 5% Unutilised facility headroom and free cash ($m) 2,348 2,507-6% Net debt/ebitdax ratio n/a 1. Net debt is cash and cash equivalents less financial liabilities 2. Booked West Africa working interest production in 1H15 does not include an estimated 2,000 bopd of underlying production due to an ongoing Gabon licence dispute 3. Cash operating costs are cost of sales excluding depletion, depreciation, amortisation, impairment loss and under/over lift movements. 4. Gearing is net debt divided by net assets 5. On 19 March 2015 Tullow arranged a $0.2bn increase in commitments on its Reserves Based Lending Facility and a $0.25bn increase in commitments on its Revolving Corporate Facility. Committed bank facilities include an Exploration Finance Facility of c.$280, a working capital facility relating to exploration expenditure on our Norwegian exploration licences Page 3

4 CAPEX 2015 CAPITAL EXPENDITURE STRATEGY In 2015, the Group will focus the majority of its capital expenditure on high-quality, low-cost oil production in West Africa which generate important cash flows for the business. Our capital will be allocated as follows: Ghana: Jubilee & TEN developments - $1,210m Other West Africa: Maintaining mature production - $190m Europe: Maintaining mature production - $25m Uganda and Kenya: Pre-development activities supporting FID - $225m Kenya: Exploration & appraisal drilling - $100m New Ventures Exploration activity - $150m 1H 2015 Actual ($m) 2015 Forecast ($m) Business Delivery Teams Exploration & Appraisal Development 1H 2015 Total Exploration & Appraisal Development 2015 Total West Africa (inc. Europe) ,420 1,440 East Africa New Ventures TOTAL ($m) ,650 1, CAPITAL EXPENDITURE SPLITS - $1,900M West Africa (inc Europe) $1,425m $1,900m East Africa $325m New Ventures $150m Development & Production $1,650m $1,900m Exploration & Appraisal $250m 2016 CAPEX GUIDANCE: $1,200M $1,400M Page 4

5 COSTS AND DEPRECIATION OPERATING DATA OPERATING COSTS 1 1H15 $/boe 2015 $/boe Equatorial Guinea, Congo (Brazzaville), Côte d lvoire Gabon Ghana Mauritania Chinguetti Netherlands UK SNS DEPRECIATION 1 Equatorial Guinea, Congo (Brazzaville), Côte d lvoire Gabon Ghana Mauritania - Chinguetti - - Netherlands UK SNS OTHER INFORMATION TAX AND NUMBER OF SHARES Weighted Tax Rate 32% 35-40% Number of shares (million) Data on a working interest basis 2. Includes royalties 3. Including fair value allocation and deferred tax gross up for business combination 4. After add back of Exploration costs Page 5

6 DEBT AND HEDGING LIQUIDITY POSITION The Group has a strong liquidity position through TEN first-oil. The Group has ~$6.0bn of currently committed debt facilities; unutilised facility headroom and free cash of $2.3bn as at 30 June KEY METRICS DEBT MATURITY PROFILE $m 30 June Dec 2014 Cash and cash equivalents Debt outstanding RBL Facilities 2,634 1,987 $m 4,000 3,000 RBL 2 3,700 Facility headroom Drawings EFF Corporate Facility - - 2,000 Senior Notes 1,300 1,300 Total debt 4,098 3,422 Net debt 3,610 3,103 Facility headroom plus free cash 2,348 2,381 HEDGING PROGRAMME 1,000 0 Corporate Facility 1,000 EFF ,634 Senior Notes Senior Notes (1) Norwegian Exploration Finance Facility, NOK2.25bn (2) Final maturity; RBL amortises linearly from October The Group s ongoing hedging programme has provided revenue protection during the first half of 2015 resulting in a realised post hedge oil price of $70.6 per barrel and a realised post hedge gas price of $46.4. Approximately 60% of Tullow s 2015 entitlement oil sales are hedged with an average floor price of around $86 per barrel with further hedges already in place for 2016, 2017 and The positive mark-to-market value of the oil commodity hedging programme as at 30 June 2015 is approximately ~$0.3 billion. HEDGE POSITION (as of 30 June 2015) Oil hedges Volume bopd 34,500 31,257 19,500 5,000 Average Floor price protected ($/bbl) Gas hedges Volume mmscfd Average Floor price protected p/therm Page 6

7 DEVELOPMENT OPPORTUNITIES WEST AFRICA Country Developments Sanction decision First production No. of wells Status Congo (Brazzaville) M Boundi Field re-development Producing 8 Three infill wells completed, five further wells in 2H Côte d Ivoire Espoir infill drilling Q Phase 3 infill programme ongoing. Three wells completed and in production. Equatorial Guinea Deep water Okume-Ceiba Complex infill drilling Q Infill wells; Ceiba and Akom North to be drilled by a semi-sub unit while Okume will be drilled by a Tender Assist Unit; quantity to be determined from 4D seismic data. Ceiba workovers also to be completed in Q Shallow water Okume-Ceiba Complex infill drilling Q Infill wells; Elon & Oveng scheduled for 2017 to be drilled by a Jack-up and Tender Assist Unit, respectively; quantity to be determined from 4D seismic data. Gabon Igongo-1 Test In progress - - Etame expansion project and SEENT field development Limande infill Producing 3 complete, 5 further Late 2015 Q Turnix Q Jubilee Phase 1a Q Extended well test is in progress to appraise the field SEENT Field Development Project and Etame Expansion Project on track. Crude Sweetening Project (CSP) studies ongoing. Three producers plus one gas injector completed in 1H 2015 as planned. Final well postponed pending analysis of new well performance. Infill campaign commenced Q Both producers being drilled from new open-water locations. Infill wells using existing and additional subsea infrastructure. Designed to raise recovery and extend plateau with a mix of up to eight producer and injector wells. Six are on-line at YE 2014 whilst the two others will be completed in 2H 2015 to add additional well capacity. Ghana Greater Jubilee Full Field Development (including MTA) 1H Incremental development consisting of additional infill wells and subsea infrastructure to further raise recovery and maintain plateau production levels. A Greater Jubilee Full Field Development plan incorporating MTA is being discussed with the Government and due for submission by YE Additional subsea tree equipment (long lead items) has already been ordered. Tweneboa/ Enyenra/ Ntomme (TEN) Mid first oil, 24 in total Plan of Development (PoD) approved by Government of Ghana in May First oil expected mid Page 7

8 DEVELOPMENT OPPORTUNITIES WEST AFRICA cont EUROPE Country Developments Sanction decision First production No. of wells Status K18 G2 Q Drilling Netherlands K15-FG-SE-B (4D seismic pilot) K15-FI-N (Exploration well) K15-FH (Infill well) J09-Alpha North (Exploration well) Q Drilling Q Drilling Q Approved Q Approved UK CMS Area CMS Area - Kelvin In planning. Tullow asset sales process continues. EAST AFRICA Country Developments Sanction decision First production No. of wells Status Kenya Initial South Lokichar Basin Development (other basins pending exploration success) End 2016 Approx 3 1/2 years post project sanction Initial in phases Appraisal programme on South Lokichar discoveries nearing completion. Extended Well Test completed on Amosing demonstrating good connectivity. Ngamia EWT to begin in early August Work on a draft FDP for submission by YE 2015 ongoing and engagement with Government of Kenya under way. Uganda Basin-wide Development End 2016 Approx 3 1/2 years post project sanction ~500 in total Basin-wide development continues with route selection for a crude export pipeline expected in Q3 15 from Governments of Kenya and Uganda. Government of Uganda indicate Production Licence issuance in 2H Other fiscal issues resolved between Tullow and Government of Uganda inc. CGT and VAT. Page 8

9 2H 2015 EXPLORATION AND APPRAISAL PROGRAMME EAST AFRICA mmboe Country Block Prospect/Well Interest Gross Mean Net Mean Spud Date 12A Cheptuket (ex-lekep) 65% (op) Potential basin opener Q Kenya 10BB Amosing-5 appraisal 50% (op) South Lokichar Appraisal Q T Twiga-3 appraisal 50% (op) Programme In progress NEW VENTURES mmboe Country Block Prospect/Well Interest Gross Mean Net Mean Spud Date Norway PL642 Hagar 10% Q PL650 Salander 25% In progress Suriname Block 31 Spari 30% In progress Pakistan Kalchas Kup 30% In progress Page 9

10 MID 2015 RESERVES AND RESOURCES SUMMARY WEST AFRICA EAST AFRICA NEW VENTURES TOTAL Oil mmbbl Gas bcf Oil mmbbl Gas bcf Oil mmbbl Gas bcf Oil mmbbl Gas bcf Petroleum mmboe COMMERCIAL RESERVES 1 January Revisions (0.9) (0.9) - (0.9) Disposals - (9.9) (9.9) (1.7) Production (11.9) (9.5) (11.9) (9.5) (13.5) 30 June CONTINGENT RESOURCES 1 January , Revisions (0.3) - (0.8) (1.1) - (1.1) Additions Disposals - (283.0) (283.0) (47.2) 30 June TOTAL 30 June , ,190.9 Proven and Probable Reserves and Resources on a working interest basis 1. Proven and Probable Commercial Reserves are based on a Group reserves report produced by an independent engineer. Reserves estimates for each field are reviewed by the independent engineer based on significant new data or a material change with a review of each field undertaken at least every two years. 2. Proven and Probable Contingent Resources are based on both Tullow s estimates and the Group reserves report produced by an independent engineer. The Group provides for depletion and amortisation of tangible fixed assets on a net entitlements basis, which reflects the terms of the Production Sharing Contracts related to each field. Total net entitlement reserves were mmboe at 30 June 2015 (30 June 2014: mmboe). Contingent Resources relate to resources in respect of which development plans are in the course of preparation or further evaluation is under way with a view to development within the foreseeable future. Page 10

11 WORKING INTEREST PRODUCTION 1 Country Asset Interest 1H 2015 Actual (kboepd) 2015 Full Year Forecast (kboepd) Fiscal Regime Ghana Jubilee 35.48% PSC Tchatamba 25% PSC Gabon Limande 40% Corp Tax Etame Complex % PSC Others Various Total Gabon Equatorial Guinea Ceiba 14.25% PSC Okume 14.25% PSC Total Equatorial Guinea Côte d Ivoire Espoir 21.3% PSC Congo (Brazz) M Boundi 11% PSC Mauritania Chinguetti 22.26% PSC West Africa sub-total UK CMS Area % Tax Netherlands Various % Tax Europe sub-total TOTAL Includes condensate 2. Etame / Avouma / Ebouri 3. Booked West Africa working interest production in 2015 does not include an estimated 2,000 bopd of underlying production due to an ongoing Gabon licence dispute 4. Assumes ongoing Gabon licence dispute is resolved in the second half of CMS Area production includes UK condensate production Page 11

12 NET DAILY ENTITLEMENT AS % PRODUCTION WEST AFRICA Contract Type CONGO (Brazzaville) M Boundi PSC CÔTE D IVOIRE Espoir PSC EQUATORIAL GUINEA Ceiba PSC Okume Complex PSC GABON Echira Corp Tax Etame PSC Limande Corp Tax Niungo Corp Tax Oba Corp Tax Onal PSC Tchatamba PSC Turnix Corp Tax Middle Oba Corp Tax Igongo Corp Tax GHANA Jubilee PA MAURITANIA Chinguetti PSC Page 12

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