Skip to main content 2014 HALF YEAR EARNINGS CALL – Enquest Investor Presentation | Shale Experts
Loading...
Database
Slide Database

2014 HALF YEAR EARNINGS CALL – Enquest

Enquest · Aug 13, 2014 · 54 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. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 1
    EnQuest 2014 Half Year Results Kraken FPSO host vessel 0
  2. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 2
    Agenda Overview Amjad Bseisu, CEO Financials Jonathan Swinney, CFO Operations Neil McCulloch, North Sea President Major projects Amjad Bseisu & summary 1
  3. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 3
    EnQuest Strategy Sustainable growth model continuing to deliver Production from 1 January to 30 June 2014 averaged 25,292 Boepd, up 18% on the same period last year 2014 production guidance maintained at an average of between…
  4. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 4
    Realising value through capability Technical leadership in integrated development Upgrading existing facilities Thistle/Deveron Newer technology, new seismic Heather/Broom Field life Greater Kittiwake Area extensions Simplifying…
  5. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 5
    Top quartile results for production efficiency UK North Sea production efficiency task force (O&G UK), 2013 operator rankings EnQuest Top quartile UKCS task force target of 80% production efficiency 4
  6. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 6
    EnQuests growing North Sea asset base, at 30 June 2014 Now four UK hubs with GKA, with Alma/Galia five UK hubs 5 5
  7. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 7
    Malaysia: PM8/Seligi acquisition now completed 5,000 Boepd net production, 11.0 MMboe net 2P reserves Seligi EnQuests third Malaysian project: In June 2014, EnQuest completed the third acquisition of ExxonMobils interest in the…
  8. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 8
    Greater Kittiwake Area opportunity 50 km tie-back radius & competitor infrastructure 7
  9. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 9
    Financials 8
  10. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 10
    Results summary Half year to 30 June Unless otherwise stated all figures are before exceptional items and depletion of fair value uplift and are in US dollars US dollars H1 2014 H1 2013 Change % Export production (Boepd) 25,292…
  11. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 11
    Focus on cost efficiency EnQuest historical operating costs Vs doubling in UKCS costs over last 5 yrs /bbl 40.0 Cost of operations Unit production costs 35.0 5.4 Impact of GKA acquisition, 5.4/bbl 30.0 : exchange rate also added…
  12. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 12
    Group taxation position No material UK cash tax on operational activities expected before 2020 ETR % ms UK tax allowances ms PBT 79 Recognised at 31 Dec 2013 1,088 1H 2014 net additions plus RFES 340 UK CT Rate 62 49 Prior year…
  13. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 13
    482 million cash capital expenditure Six months to 30 June 2014 USm 208 102 53 38 37 27 17 Alma/Galia Kraken Thistle/Deveron Dons Heather/Broom E&E Other 12
  14. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 14
    Cash flow Six months to 30 June 2014 USm Strong financial position, 1.7bn credit facility, 155m retail bond, 650m high yield bond 318 (64) (381) (482) (58) (590) (50) (64) (717) Cash & equivalents less Cash flow…
  15. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 15
    Finance outlook Full Year 2014 Capex expectations of around 1.2bn Production and transportation costs expected to be in the range 535m to 555m Including c.50m for PM8/Seligi and reflecting the increased SVT costs Depletion…
  16. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 16
    Operations 15
  17. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 17
    2014 Production results by hub Year to date Net production (Boepd) 2013 2014 25,292 21,455 11,349 9,281 9,789 5,046 4,246 4,041 814 1,276 0 905 Thistle/Deveron The Dons Heather/Broom Alba Kittiwake Total 16
  18. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 18
    Thistle / Deveron Delivering production levels not seen since the 90s 2014 Production in H1 2014 almost double H1 2013. Strong production efficiency Ongoing interventions campaign Additional perforations of A55/02 Integrity work to…
  19. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 19
    0 17 -1 -11750 0 -1150 The Don fields 2 00 -11 -11 80 0 -11450 30 0 -11250 -1 -11 14 00 -1 -1 13 13 00 Continuing very strong production efficiency -1 50 12 0 50 85 -11 -1120…
  20. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 20
    Heather / Broom Highest production efficiency for over 5 years 2014 & beyond Production broadly in line with H1 2013 Following commencement of rig operations in Q1 2014, the workover of the H56 well was successfully completed in Q2…
  21. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 21
    Greater Kittiwake Area Now integrated into EnQuest operations Mallard tree before and after cleaning Completed GKA acquisition on 1 March 2014 Benefits from improvements should start to come through later in H2 2014 Mallard…
  22. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 22
    2014 EnQuest outline programme Planning delivery of over 15 wells Development Q1 Q2 Q3 Q4 Drilling Thistle Ongoing interventions campaign Heather 2 sidetracks & 2 workovers Dons 1 producer (TJ) GKA 1 workover (Mallard)…
  23. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 23
    Major projects & summary 22
  24. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 24
    Alma/Galia Sailaway in spring 2015, first oil mid-year The FPSO is now substantially complete and commissioning has begun Three wells have been completed and a fourth is in the process of being completed for production Subsea work…
  25. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 25
    Kraken proceeding on time and on budget A conventional development programme High level of capex confidence Good progress on evaluation of drilling rig options The Kraken FPSO host vessel is at the yard in Singapore (c110th such…
  26. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 26
    Delivering strong compound annual growth rates 25% for reserves & 15% for production Net 2P reserves (MMboe) 194.8 115.2 128.5 80.5 88.5 2009 2010 2011 2012 2013 Average net production (Boepd) 5,000 Guidance Range…
  27. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 27
    EnQuests producing hubs From 3 to 6 in approx. one year, a growing & increasingly diversified portfolio Thistle/Deveron The Don fields Heather/Broom Greater Kittiwake Area PM8/Seligi (Malaysia) Alma/Galia 26
  28. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 28
    Delivering sustainable growth On course for six hubs and 50,000 Boepd in UKCS Exploiting our existing reserves Dons, Thistle/Deveron, Heather/Broom, Alba Making selective acquisitions Commercialising & developing discoveries…
  29. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 29
    Q&A Thistle/Deveron Dons Northern Producer Heather/Broom Alma/Galia EnQuest Producer 28
  30. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 30
    Largest UK Independent Producer in the UK North Sea Government data (DECC) for UK North sea independent producers Total Production for the year ending April 2014 1,400,000 1,200,000 1,000,000 800,000 600,000…
  31. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 31
    Summary income statement Half year to 30 June 2014 2014 2014 2013 US dollars Business Exceptional Reported Reported performance items ms ms ms ms Revenue 503,844 - 503,844 455,863 Cost of sales (339,507) (35,625) (375,132) (287,223)…
  32. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 32
    Balance sheet 30 June 2014 31 December 2013 US dollars ms ms ASSETS Property, plant and equipment 3,334.4 2,871.2 Non-current assets Goodwill 166.6 107.8 Intangible oil and gas assets 197.5 130.9 Investments 2.4 2.4 Deferred tax…
  33. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 33
    Expanding our UK asset base in 2013 and 2014 Delivering sustainable growth Don North East 60% Don NE/Ythan Out of round licence FDP submission ongoing Kraken Appraisal well 2014 Cairngorm Appraisal well Cairngorm Farmed…
  34. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 34
    Kraken overview Field summary 2 fields located in Block 9/2b 350km NE of Aberdeen Field area 12 x 3.5 km Water Depth of 110m Heavy Oil (14 Deg API) but good flow properties Low sulphur content and not waxy FDP approved by DECC…
  35. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 35
    Kraken subsurface STOIIP, reserves & recovery factor FDP STOIIP Produced RF% North 68 20 30% Central 85 38 45% South 268 89 33% Kraken Area 421 147 35% Conservative Recovery Factor Viscosity in cP Kraken Ultimate…
  36. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 36
    Kraken subsurface Gross production profile & reserves FDP MMstb South Central North Total Produced 89 38 20 147 Fuel 10 Sales 137 Gross Produced Oil stb/d 35
  37. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 37
    Alba 8% non-operated, 1,276 Boepd H1 2014 2014 Drill two new producers One well online One currently being completed Acquisition of new 4D seismic survey Key input for maturing future drilling targets Replacement of subsea…
  38. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 38
    Alma / Galia ALMA GALIA N-Dev W2 W1 GA K3 GB K1 K4 GE EQ Development wells 2015 Planned producer K5 Future producer Potential future producer K2 K6 Alma abandoned at low water cut of 70% EQ Development wells…
  39. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 39
    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…
  40. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 40
    Alma New Seismic SW 30/24-2 30/24-1 3 0/24-5 30/24-3 30/25a-2 NE 39
  41. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 41
    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 -94 50 00 -940…
  42. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 42
    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…
  43. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 43
    Cairngorm appraisal well Further evaluation of results ongoing 42
  44. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 44
    Avalon Discovery EnQuest operated discovery well (21/6b-8) encountered 85 ft gross oil column EnQuest (50%) Core acquired confirming Darcy sands 21/6b-8 Samples indicate 23 API oil Development options being progressed…
  45. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 45
    International South East Asia & North Africa EnQuests first steps outside the UKCS International production acquisition, providing an operating platform in Tunisia a low cost entry point 100 MMboe of gross contingent resources…
  46. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 46
    Thistle life extension projects Power & Electricity Upgrade Project New D turbine commissioned Topsides Structural Interim Projects New PC2 crane commissioned and operating as of Q2 2014. New PC1 destruct underway Topsides…
  47. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 47
    The Don fields Drilling map W1 Conrie S7 W2 W5 W3Z S6 S13 S9 S12Z S10Y S11 S8Z W4 Legend S2Z TJ Producing Water Injector Drilled in 2013 W6 2014 Development S4 Legend West Don Drilling Plan Don…
  48. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 48
    Thistle, Conrie and The Dons Infrastructure 47
  49. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 49
    Heather / Broom Infrastructure Unless otherwise specified all details as per 2013 results, as updated by H1 IMS 4848
  50. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 50
    Alma/Galia infrastructure Proven fields Alma abandoned at low water cut of 70% Prudent base case with upside The right facilities for the fields Dedicated completions for Devonian/Rotliegend/Zechstein Variable speed drive…
  51. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 51
    Greater Kittiwake Area Opportunity Avalon Scolty Crathes Kittiwake Eagle Production Platform (or FPSO) 50
  52. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 52
    GKA Infrastructure 51
  53. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 53
    Kraken Infrastructure 52
  54. 2014 HALF YEAR EARNINGS CALL – Enquest – slide 54
    Tanjong Baram Infrastructure 53

From the store

Browse maps, data & reports in the Shale Experts store