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HARNESSING THE ENERGY OF THE FAR NORTH – Novatek

Novatek · Jun 11, 2013 · 32 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. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 1
    Russias Natural Gas Frontiers: Harnessing the Energy of the Far North Mark Gyetvay, Chief Financial Officer and Member of the Board BoAML 2013 CalGEMs One-on-One Conference Laguna Niguel, CA, USA 11-12 June 2013
  2. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 2
    Main Operational Highlights 2012 SEC proved reserves increased by 32% to 12.4 billion boe (Ranked 4 Globally amongst publicly traded companies) Increased Gross Production: Natural gas production increased by 7.1% to 57.3 bcm…
  3. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 3
    SEC Reserve Growth Reserve replacement ratio from 2004 to 2012 486% mmboe (98) (2,127) 12,394 12,394 12,394 12,394 2010 Termo- 6,416 karstovoye Liquids field Others 2012 West Zapolyarnoye PU Khancheyskoye Nortgas…
  4. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 4
    Hydrocarbon Production Natural Gas Sales Liquids Sales Total Hydrocarbon Production, bcm Production, mmt Production, mmboe CAGR 13% CAGR 9% CAGR 13% Absolute increase 169% 56.5 Absolute increase 105% 4.3 Absolute increase 161%…
  5. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 5
    Increasing Natural Gas Production (mmcm per day) Feb Feb Feb May May May Jun Jun Jun Nov Nov Sep Nov Sep Sep Jul Oct Jul Oct Jul Oct Aug Aug Aug…
  6. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 6
    Natural Gas Sales Gas Sales Breakdown 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1Q 2013 2009 2010 2008 2011 2012 Others Significant increase in natural gas sales volumes to Moscow,…
  7. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 7
    Liquids Sales Liquids Sales Volumes, mmt 4.1 4.2 3.4 3.1 3.5 3.4 2.6 2.8 1.6 1.3 0.5 0.6 0.6 0.8 0.3 2009 2010 2011 2012 1Q 2013 Domestic Export 8
  8. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 8
    Yamal LNG Project Project for construction of an LNG plant on the Yamal Peninsula The onshore South-Tambeyskoye field holds 900 bcm of conventional 2P gas reserves 16.5 mmt of LNG per annum (3 trains) 1 mmt of marketable gas…
  9. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 9
    Facts About The Yamal Peninsula The Yamal Peninsula is located in the north of Western Siberia and is bordered by the Kara Sea to the west and by the Gulf of Ob to the east The administrative center is Yar-Sale and the peninsula…
  10. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 10
    Arctic Climatic Conditions Subarctic and arctic climate Average annual temperature - minus 9 Absolute minimum temperature - minus 57 Strong winds and blizzards with wind speeds of up to 32 meters/second Permafrost with depths of…
  11. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 11
    South-Tambeyskoye Field Natural gas production1, bcm 30 New plateau 118 Northern 27 (28 bcm) Dome 3391 115 Old plateau 24 3392 8394 3393 4392 87 2391-2 86 4391 8392 6391 5392 83933394 8391 (25 bcm) 3221…
  12. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 12
    Field Development Optimized drilling and surface facilities Current development parameters Initial Current Max. No. of drilling rigs 8 5 208 production wells to be drilled from 19 well pads: No. of well pads 35 19 58 wells to feed…
  13. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 13
    Port of Sabetta Seaway and approach channels Port facilities, berths and harbor Government facilities 6 3 Administrative Yamal 1 facilities peninsula Ice protection 3 construction 4 2 4 Port harbor Approach 5 channel 1 2…
  14. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 14
    On-Site Activity Berth piling construction Arctic drilling rig assembled Materials offloading (4.5 km offshore the Gulf of Ob) Living quarters 15
  15. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 15
    Yamal LNG Carrier Concept Based on existing operational experience and extensive studies and model tests at ice model basin by Aker Arctic Main concept - Double Acting Ship (DAS): Bow forward movement in open water and thin ice…
  16. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 16
    Northern Sea Route Ice conditions at the Northern Sea Route significantly softened during the last decade 18 condensate cargoes (1.2 mmt) successfully delivered to the Asian-Pacific countries during navigational windows in…
  17. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 17
    LNG Marketing Logistics 10.6 Natural gas spot price1, /mmbtu Summer transportation route to target markets, liquids & LNG All season transportation route to target markets, liquids & LNG Transportation routes to other markets…
  18. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 18
    Yamal LNG - Key Project Advantages Low-cost, long-lived feedstock Large onshore conventional reserve base with high concentration of reserves Well known geology and proven development technologies Very low F&D and lifting costs…
  19. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 19
    Financial Results
  20. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 20
    Another Record Year (RR million) 2012 2011 +/(-) +/(-)% Oil and gas sales 210,246 174,811 35,435 20.3% Total revenues 210,973 175,273 35,700 20.4% Operating expenses (125,775) (96,820) (28,955) 29.9% EBITDA (1 ) 95,106 148,349…
  21. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 21
    And a Record Quarter (RR million) 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 Q-o-Q +/- % Y-o-Y +/- % Oil and gas sales 53,876 44,763 52,345 59,262 80,448 35.7% 49.3% Total revenues 54,097 44,924 52,514 59,438 80,565 35.5% 48.9% Operating expenses…
  22. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 22
    1Q13 Financials Y-o-Y Revenue EBITDA Net income (Profit) NOVATEK NOVATEK 49% NOVATEK NOVATEK 35% BP 192% CHESAPEAKE 33% EOG 35% EOG 53% EOG 27% CHESAPEAKE 23% NOVATEK adjusted for FX effect NOVATEK adj. 41% SWN 12% SWN 14%…
  23. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 23
    Natural Gas Sales Volume Mix 100% 75% 51% 55% 57% 57% 62% 65% 73% 76% 89% 50% 25% 49% 45% 43% 43% 38% 35% 27% 24% 11% 0% 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 Ex-field End-customers 24
  24. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 24
    Market Distribution Gas Sales Volumes mmcm 18,739 16,050 15,876 13,447 13,507 88.8% 12,172 75.8% 62.2% 64.6% 11,554 72.8% 16,632 8,361 8,719 5,086 37.8% 4,788 35.4% 4,322 3,878 24.2% 27.2% 2,107 11.2% 1Q 12 2Q 12 3Q…
  25. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 25
    Market Distribution Liquids Sales Volumes mt 1,614 1,121 1,065 1,069 948 1,351 83.7% 938 83.7% 878 859 774 81.6% 82.4% 80.4% 0 0 0 0 0 174 18.4% 183 16.3% 187 17.6% 210 19.6% 263 16.3% 1Q 12 2Q 12 3Q 12 4Q 12 1Q…
  26. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 26
    Realized Hydrocarbon Prices (net of VAT, excise and export duties) 1Q 12 1Q 13 +/(-) +/(-)% 4Q 12 1Q 13 +/(-) +/(-)% Domestic prices 2,616 3,120 504 19.3% Natural gas end-customers, RR/mcm 2,993 3,120 127 4.2% 1,409 1,708 299…
  27. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 27
    Operating Expenses (RR million and % of Total Revenues) 1Q 12 % of TR 1Q 13 % of TR 4Q 12 % of TR 1Q 13 % of TR 16,379 30.3% 29,230 36.2% Transportation expenses 17,199 28.9% 29,230 36.2% 4,337 8.0% 4,717 5.9% Taxes other than…
  28. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 28
    Condensed Balance Sheet (RR million) 31 March 2013 31 December 2012 +/(-) +/(-)% Total current assets 59,049 58,243 806 1.4% Incl. Cash and cash equivalents 16,907 18,420 (1,513) -8.2% Total non-current assets 423,180 404,890 18,290…
  29. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 29
    Debt Composition as at 31 March 2013 Total Debt Maturity Profile (RR million) Debt Structure (Total Debt = RR 126.1 billion) 51,028 38,550 Fixed/floating 90% 10% USD/RUB 57% 43% 12,786 13,892 9,835 Long-term/short-term 90%…
  30. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 30
    Internally Funded Investment Program 30,000 5.0 22,500 4.0 Operating CF / CAPEX 15,000 3.0 RR millions 7,500 2.0 - 1.0 (7,500) 0.0 (15,000) (1.0) 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2010 2010 2010 2011 2011…
  31. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 31
    Appendix: High Gas Pricing Assumptions Corporate Strategy Day Revised Previous Revised 9 December 2011 Year European gas domestic gas domestic gas Looking forward, we believe the Russian domestic market will price, /mcm price,…
  32. HARNESSING THE ENERGY OF THE FAR NORTH – Novatek – slide 32
    Questions and Answers Contact details: NOVATEKs Investor Relations Mark Gyetvay, Chief Financial Officer Alexander Palivoda, Head of IR Tel: +7 (495) 730-6013 Email: irnovatek.ru Website: www.novatek.ru

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