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SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest

Enquest · Mar 27, 2013 · 46 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 1
    EnQuest 2012 Results Sustained Strong Cash Flow Generation Major Project Execution On Track Presentation Title 0
  2. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 2
    Agenda Overview CEO, Amjad Bseisu Financials CFO, Jonathan Swinney Business performance CEO, Amjad Bseisu & major projects Co-founder & Strategy Adviser, Nigel Hares Operations General Manager, Technical Andrew Thomson…
  3. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 3
    Repeatable strategy delivering success 2012 production above guidance mid-point, due to successful execution of operations programme Sustained strong cash flow and balance sheet Excellent reserves record 300% replacement since…
  4. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 4
    Growth through the realisation of untapped potential Technical leadership in integrated development Creating development value via: Heather/Broom Upgrading existing facilities Thistle/Deveron Newer technology, new seismic Field…
  5. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 5
    2012: Sustained strong cash flow generation Major project execution on track Production of 22,802 Boepd in 2012 Production 14 wells successfully drilled, 367m capital investment in producing fields & Reserves Good drilling and…
  6. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 6
    Financials
  7. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 7
    Results summary Year to 31 December Unless otherwise stated all figures are before exceptional items and depletion of fair value uplift and are in US dollars US dollars 2012 2011 Change % Export production (Boepd) 22,802 23,698…
  8. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 8
    Summary income statement Year to 31 December 2012 2012 2012 2011 US dollars Business Exceptional Reported Reported performance items ms ms ms ms Revenue 889.5 - 889.5 936.0 Cost of sales (448.2) (10.2) (458.4) (508.8) Gross profit…
  9. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 9
    Capital expenditure 803m Year to 31 December 2012 USm 421* * Net of 35% disposed via farm out ** 87m is the carry element 8
  10. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 10
    Reconciliation of capital expenditure 1000 20 950 128 900 87 125 143 850 800 US million 750 967 700 842 650 803 600 550 500 Tangible Oil & Add back farm Less: Carry E&E additions Other Cash outflow on…
  11. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 11
    Cash flow Year to 31 December 2012 Strong financial position, 900m credit facility and 145m retail bond USm Financing & other Cash & equivalents less Cash & equivalents less Cash flow Capex (excludes borrowings) borrowings at…
  12. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 12
    Finance outlook Full Year 2013 Current capex expectations of around 750m Production and transportation costs expected to be in the range 310m to 340m Depletion anticipated to be approximately 28 per bbl, dependent upon production…
  13. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 13
    Business performance and major projects
  14. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 14
    Three years of strong cash flow generation 300% reserve replacement ratio Reserves 2010 - 2012 Cash flow 2010 - 2012 72.0 128.5 1.5bn MMboe MMboe (0.1)bn 80.5 (24.0) MMboe MMboe Additions to Tax, 90m Production…
  15. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 15
    Expanding our asset base in 2012 and 2013 With a rich discovery hopper West Don Increased to 63.5% Kraken (60%) Appraisal well 2013 SW Heather (55%) Ongoing evaluation Kraken From zero to 60% Cairngorm Cairngorm (100% )…
  16. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 16
    Business development Acquisition of 8% of Alba & Entry into Malaysia Adding reserves and producing barrels and further diversifying EnQuests asset base Base consideration is 18.75m, plus a deferred 0.5m Net 2P reserves of 5.9 MMboe…
  17. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 17
    Thistle Late Life Dons Area Extension projects Power & Electricity Upgrade Project Required to provide reliable power and remove electrical equipment obsolescence Jacket Integrity Project Modifications required to ensure jacket…
  18. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 18
    Alma/Galia On track for first oil in Q4 2013 2012 Field Development Plan approvals Successful batch drilling of six wells The three that had reached the reservoir all met or exceeded expectations Purchase and re-fit of EnQuest…
  19. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 19
    Kraken on track for FDP submission in Q2 2013 Reserves, resources, appraisal well EnQuest acquired a 60% W.I. in 2012 A conventional rather than a heavy oil development EnQuest formally assumed operatorship in September 2012 and…
  20. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 20
    Operations
  21. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 21
    2012 Production results by hub Above mid-point of guidance Net production (Boepd) 2011 2012 23,698 22,802 12,770 10,992 8,058 5,436 5,492 3,752 Thistle/Deveron The Dons Heather/Broom Total New wells A58 & A59 Natural…
  22. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 22
    Thistle / Deveron 2012 Area6 I1 A58 (Dev-P1) well completed and on production, productivity at the higher end of pre-drill estimates A59 150,000 bwpd water injection 10 day pipeline outage A56 Area 6-P1 (ESP) production well A22…
  23. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 23
    Dons/Conrie 2012 Don South West S10 drilled, on production as expected S11 drilled, continues to perform well S2Z workover successful W1 West Don Conrie S7 W2 abandoned ahead of plan W5 (sidetrack of W2) drilled & on W2…
  24. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 24
    Heather/Broom Heather / Broom 2012 Anticipated natural decline in BR2 Increase in Heather production, as a result of well work activity including 3 conversions to 2/0 Else injection 5- 15 H42 H33 Lost 20 days production due to…
  25. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 25
    2013 EnQuest outline programme Three drilling strings (two platform rigs, one mobile rig) Q1 Q2 Q3 Q4 Thistle Drilling (1 well) Heather Producer workover Dons Drilling (3 wells) Alma/Galia 3 production well completions, 1…
  26. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 26
    Summary
  27. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 27
    2012 Results summary Production and project execution on track Operations & 14 well drilling programme, 803m capital investment developments Production of 22,802 Boepd Alma/Galia development on track for first oil in Q4 2013 Kraken…
  28. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 28
    Outlook Demonstrating the sustainability of EnQuests growth 2013 guidance range between 22,000 Boepd and 27,000 Boepd 12 wells being delivered in 2013 including three production wells on existing fields and three on Alma/Galia…
  29. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 29
    Q&A Thistle/Deveron Dons Northern Producer Heather/Broom Alma/Galia EnQuest Producer 28
  30. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 30
    EnQuests North Sea assets - end 2012 Includes Alba acquisition announced in 2013 and UK 27th round offers Licence Block / Sub area Name P902 2/4a Broom P242 2/5 Broom/Heather P1077 9/2b & 9/2c Kraken P213 16/26 Alba P1200 211/13b…
  31. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 31
    On Track To Deliver Approximately 20% CAGR1 Between 2009 and 2014, based only on net 2P profiles Average net production (Boepd) Over 33,0002 5,000 22,000 23,698 22,802 21,074 13,613 10,150 2008 2009 2010 2011 2012…
  32. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 32
    Income Statement Year to 31 December 2012 2011 US dollars Exceptionals, Business Depletion of performance fair value uplift 000s 000s 000s 000s Revenue 889.5 - 889.5 936.0 Cost of sales (448.2) (10.2) (458.4) (508.8) Gross profit…
  33. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 33
    Balance Sheet As at 31 December 2012 2011 US dollars 000s 000s ASSETS Property, plant and equipment 1,816.6 1,274.0 Non-current assets Goodwill 107.8 107.8 Intangible oil and gas assets 97.5 24.3 Asset held for sale - 1.3…
  34. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 34
    Group taxation position ETR % ms UK tax losses ms Profit before tax 403 Recognised at 31 December 2011 180 2012 net taxable losses 198 UK corporation tax rate 62 250 RFES 42 PRT 5 19 North Sea Tax Reliefs (8) (30) Acquisitions…
  35. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 35
    Track Record of Sustainable Delivery and Growth Reserve replacement ratio of 300% over three years MMboe Full year 2010 Full year 2011 Full year 2012 21.5 128.51 115.2 35.1 88.5 (8.2) 15.4 80.5 (8.4) (7.4) Net 2P…
  36. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 36
    Largest UK Independent Producer in the UK North Sea Government data (DECC) for UK North sea independent producers Total Production for the year ending November 2012 1,100,000 1,000,000 Total Production in Mass units (tonnes)…
  37. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 37
    Thistle, Conrie and The Dons Infrastructure 36
  38. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 38
    Heather / Broom Infrastructure 37
  39. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 39
    Kraken on track for FDP submission in Q2 2013 Development Scheme Option Prior To EnQuests Operatorship 3838
  40. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 40
    Cairngorm Well Block 16/3d Flank Well 1 2 16/3d 16/2b NW SE 39
  41. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 41
    Alma/Galia Project on schedule for Q4 2013 start up 40
  42. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 42
    Alma Subsurface -10 -105 52 00 5 -1047 -104 5 -1 50 04 25 -1 -10400 -100375 -1 3 -10032550 300 -10 -10-1 -10 2202275 5 50 500205 17 -102 5 -9878-59-999 00 -101 50 -9 5 0 12 0 -1 00 5 80 -10 1…
  43. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 43
    Alma Seismic SW 30/24-2 30/24-1 3 0/24-5 30/24-3 30/25a-2 NE 42
  44. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 44
    Alma Extensive In-House Subsurface Work Reinterpretation of Seismic Petrophysics Layering Re Build of models Static Simulation Integrated Team ESP design Well Trajectories 43
  45. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 45
    0 0 0 -9 -985 45 -94 -9 -9300 -9 6229200 0 00 -925 -98 0 Alma Development -980 0 -9 -9 75 70 0 Wells Trajectory Schematic -8 50 6228800 60 7 -8 0 30/25a-02 -9 4 50 00 -9 4…
  46. SUSTAINED STRONG CASH FLOW GENERATION CONFERENCE – Enquest – slide 46
    Galia STOIIP & Reserves Only 50% Water Cut Galia Main 2 Well Sampled 30/24-15 Galia 1 Bubble Point Pressure 1900 psia Main 1 Differential Gas-Oil Ratio 631 scf/stb outline 9 29 Galia East 3 30Z outline Formation Volume Factor…

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