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2014 FULL YEAR RESULTS – Oil Search Limited

Oil Search Limited · Feb 10, 2015 · 42 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 FULL YEAR RESULTS – Oil Search Limited – slide 1
    2014 Full Year Results February 2015 Oil Search Limited ASX: OSH POMSoX: OSH US ADR: OISHY ARBN 055 079 868 www.oilsearch.com
  2. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 2
    2014 Results Agenda 2014 Highlights Peter Botten Financial Overview Stephen Gardiner PNG Production Paul Cholakos Gas Development Ian Munro Exploration/Appraisal Julian Fowles Outlook & Summary Peter Botten 2014 Full Year…
  3. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 3
    Safety performance Total Recordable Injury Rate of 1.97 for 2014 5.0 4.7 OSH 3.9 4.0 IOGP TRI/1,000,000 Hours 3.1 2.9 3.0 2.7 2.6 2.5 2.1 2.4 2.0 2.0 2.3 1.8 1.8 1.7 2.1 1.6 2.0 2.0 1.7 1.9 1.0 1.2 0.0 2004…
  4. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 4
    TSR Performance Relative TSR to 31 December 2014 440 404.1 Median TSR ASX200 390 Median TSR ASX200 Energy 340 OSH TSR 290 240 % TSR 190 146.7 140 90 61.9 36.6 28.2 32.4 40 6.9 4.1 -10 -2.2 -9.0 -26.7 -60 -52.4…
  5. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 5
    2014 - transformational year for Oil Search Successful delivery of landmark PNG LNG Project: Smooth Project start-up and ramp-up ahead of expectations Significant progress on positioning for next phase of gas development in PNG:…
  6. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 6
    2014 Financial Highlights Production up 186%, from 6.7 mmboe to 19.3 mmboe: All time high for OSH, reflecting PNG LNG Project start-up plus solid performance from oil fields Reported NPAT (including impairments) up 72% to US353.2…
  7. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 7
    Response to new oil price environment Oil Search in good shape to manage low oil and gas price environment, but prudent to reduce discretionary spend and focus on support for high returning LNG expansion and development and PNG…
  8. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 8
    2014 Results Agenda 2014 Highlights Peter Botten Financial Overview Stephen Gardiner PNG Production Paul Cholakos Gas Development Ian Munro Exploration/Appraisal Julian Fowles Outlook & Summary Peter Botten 2014 Full Year…
  9. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 9
    2014 Financial Highlights Sales and earnings growth reflect 2014 2013 start-up of PNG LNG and strong Sales volume (mmboe) 17.76 6.73 contribution from PNG oil operations Sales revenue (USm) 1,610.4 766.3 1 Net profit up 72% to…
  10. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 10
    Operating Margins EBITDAX Margin Cash Margin by Asset 117 100 114 111 120 120 98 95 100 100 8.06 90 80 80 18.59 4.46 US/BOE 8.49 76 US/boe 85 60 60 % 80 40 40 72.09 69.55 80 80 75 78 20 20 72 72 70 0 0 2010…
  11. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 11
    2014 Financial Performance USm 2014 2013 Revenue up 110%, driven by LNG and Revenue 1,610.4 766.3 condensate sales from PNG LNG Project Costs of production (267.9) (179.2) Higher costs of production, other costs and DD&A Other costs…
  12. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 12
    Costs of Production USm 2014 2013 Slightly higher PNG Oil and Gas production costs, mainly due to asset integrity and risk reduction programmes Production costs: undertaken on crude facilities and pipelines - PNG LNG 103.6 - PNG oil…
  13. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 13
    Cash Flows USm Strong operating cash flows reflect first year of 1,499 receipts from PNG LNG 2,500 Financing includes US1.1bn share placement to PNG Government and share purchase plan proceeds of US169.5m 2,000 US283.5m drawn…
  14. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 14
    Treasury Update Robust liquidity position at 31 December 2014 of Cash (USm) 1.56 billion: 1500 1,264 US960m cash (incl. US804m PNG LNG 1,047 escrowed cash) 960 1000 US100m available under US250m bilateral facilities 488 US500m…
  15. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 15
    Revisions to 2015 Operating Plans Operating margins still healthy under low price environment 2015 operating plans revised from initial plans given sharp downturn in oil prices 2015 Spending Cuts Focus on economically robust LNG…
  16. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 16
    2015 Investment Outlook 2,000 1,861 1,877 1,800 1,672 1,600 1,568 1,363 1,400 US918m PRL 15 acquisition 1,200 costs USm 1,000 GUIDANCE RANGE (US555 685m)…
  17. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 17
    2015 Guidance Summary Production Oil Search operated (PNG Oil and Gas) 6 7 mmboe1,2 PNG LNG Project LNG 88 91 bcf Liquids 2.8 3.0 mmbbl Total PNG LNG Project 20 21 mmboe1 Total Production 26 28 mmboe Operating Costs Production…
  18. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 18
    2014 Results Agenda 2014 Highlights Peter Botten Financial Overview Stephen Gardiner PNG Production Paul Cholakos Gas Development Ian Munro Exploration/Appraisal Julian Fowles Outlook & Summary Peter Botten 2014 Full Year…
  19. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 19
    2014 production nearly triple 2013 levels, driven by PNG LNG Project Total production for 2014 of 19.3 Net Production (mmboe) mmboe: 25 PNG LNG (T1 + T2) Hides GTE Within 18 20 mmboe guidance range Oil 19.27 20 PNG LNG Project…
  20. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 20
    PNG LNG Project delivered on time and within revised budget PNG LNG Project condensate production commenced late March, with LNG production from Train 1 in April and Train 2 in May Sales of new Kutubu Blend, comprising Hides liquids…
  21. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 21
    PNG LNG development drilling ongoing Solid production being achieved from Hides development PDL 1/7 Hides Field wells 8 New Production Wells Hides GTE Plant Hides F1 (Hides Deep) development/exploration well spudded 4Q14: Hides…
  22. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 22
    Strong performance from operated oil fields Juha North Papua New Guinea 2014 oil and Hides GTE Juha Hides production of 7.1 mmboe Hides Kutubu Angore Port Moresby Continued strong contributions from Kutubu and Moran fields…
  23. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 23
    Reserves and Resources at 31 December 2014 Key changes: Oil and At end % Gas % 2P oil and condensate reserves 2%: Dec 2014 condensate change (bscf) change (mmbbl) +10.7 mmbbl at Kutubu, Agogo and Moran following NSAI audit 2P…
  24. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 24
    Action plan for 2015 Safe, reliable production of oil and gas remains key priority PNG LNG Project and oil fields remain profitable at current oil prices Revision of 2015 capital and operating cost budgets in light of lower oil…
  25. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 25
    2015 production outlook Production from operated oil fields and Net Production (mmboe) Hides GTE: 6 7 mmboe 30 PNG LNG (T1 + T2) 26 - 28 PNG LNG (first full year of production): Hides GTE 25 20 21 mmboe SE Mananda 18 mmboe LNG…
  26. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 26
    2014 Results Agenda Introduction Peter Botten Financial Overview Stephen Gardiner PNG Production Paul Cholakos Gas Development Ian Munro Exploration/Appraisal Julian Fowles Outlook & Summary Peter Botten 2014 Full Year…
  27. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 27
    Commercialising PNGs undeveloped gas remains key focus for OSH PNG LNG Project has delivered strong platform for growth PNG can deliver at least two more LNG trains underpinned by existing undeveloped resources and third train with…
  28. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 28
    Gas resource evaluation ongoing in NW Highlands and Gulf Key resource evaluation activities currently Hides F1 Deep underway: Evaluation of Hides Antelope 4 Structural remapping and reservoir modelling based development wells Antelope…
  29. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 29
    LNG expansion and power MoU signed ExxonMobil PNG Limited (as operator of PNG LNG and PRL 3) and PNG Government signed MoU in January 2015: Pnyang to provide long term gas resources to support domestic power and potential PNG LNG…
  30. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 30
    PRL 15 appraisal and exploration Arbitration outcome: Papua New Guinea Hides Complex, non-unanimous decision Kutubu Finalising joint venture management issues Port Moresby Antelope 4 spudded in September: Located 1 km south of…
  31. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 31
    Gas development summary Gas expansion remains key focus for OSH. Potential developments are attractive, even under revised oil price scenario 2015 budget restructured to ensure gas growth activities fully supported Undeveloped gas…
  32. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 32
    2014 Results Agenda Introduction Peter Botten Financial Overview Stephen Gardiner PNG Production Paul Cholakos Gas Development Ian Munro Exploration/Appraisal Julian Fowles Outlook & Summary Peter Botten 2014 Full Year…
  33. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 33
    PNG exploration activities in 2015 Pnyang reserve evaluation Juha/Hides area 2015 PNG exploration and evaluation capital Further seismic/drilling* 102km seismic. PPL 402 farm in complete expenditure expected to be US180 210m Antelope 4…
  34. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 34
    Appraisal of Taza ongoing Taza remains attractive at current oil price. Continued focus TURKEY Caspian on defining field size and maximising value KURDISTAN Sea REGION Appraisal programme fine-tuned: OF IRAQ Erbil Sulaimaniyah…
  35. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 35
    Summary Total exploration and appraisal budget for 2015 of US300-360m (25% lower than original 2015 budget) Spend focus is in PNG, with clear short and medium term programme Significant exploration upside remains in PNG, only half of…
  36. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 36
    2014 Results Agenda Introduction Peter Botten Financial Overview Stephen Gardiner PNG Production Paul Cholakos Gas Development Ian Munro Exploration/Appraisal Julian Fowles Outlook & Summary Peter Botten 2014 Full Year…
  37. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 37
    Reassessment of Strategic Review complete focus on LNG growth unchanged Review conclusions: OSH in strong position to manage lower oil price environment Proposed LNG growth projects remain attractive based on current assumptions…
  38. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 38
    Organisational and leadership changes Creation of two new EGM positions: EGM, PNG Business Unit (based in PNG). Responsible for managing operated and non-operated producing assets in PNG and broadening PNG relationship base Julian…
  39. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 39
    Contributing to long-term sustainability in PNG Government cash flows also impacted by oil price fall However, landowners and community expectations have not changed Partnership between State and private sector vitally important, to…
  40. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 40
    Summary PNG LNG Project delivered ahead of schedule and within revised budget: Major impact on production and cash flows, even in lower oil price environment 2014 Strategic Review has been updated. OSH in excellent position to…
  41. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 41
    Appendix: Key metrics Production (mmboe) Net Profit After Tax (USM) 25 400 353.2 19.3 20 300 15 185.6 202.5 205.7 200 175.8 10 7.7 6.7 6.4 6.7 5 100 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Oil Price (US/bbl) DPS…
  42. 2014 FULL YEAR RESULTS – Oil Search Limited – slide 42
    Oil Search Limited ARBN 055 079 868

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