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BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek

Novatek · Apr 16, 2015 · 26 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. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 1
    Harnessing the Energy of the Far North Mark Gyetvay, Deputy Chairman of the Management Board Bank of America Merrill Lynch, Oil & Gas Conference 2015 The Grove, UK 15-16 April 2015
  2. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 2
    Fields and License Areas Producing fields: 1. Yurkharovskoye field 2. East-Tarkosalinskoye field 3. Khancheyskoye field 4. Olimpiyskiy license area 5. Yumantilskiy license area 6. Samburgskiy license area 7. North-Urengoyskoye field 8.…
  3. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 3
    Leveraging Our Core Business Strengths Organic growth platform based on ample reserves Simple and transparent Compelling business case, group structure robust model, clear strategy High standards of corporate Strong…
  4. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 4
    Positions in the World Proved gas reserves as at 31.12.10 (SEC), bcm Proved gas reserves as at 31.12.14 (SEC), bcm Gazprom 18,992 Gazprom 18,941 ExxonMobil 2,232 ExxonMobil 1,963 Petrochina 1,855 Petrochina 1,963 Shell 1,335…
  5. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 5
    SEC Proved Reserves Reserve replacement ratio in 2014 109% (152% on the organic basis) mmboe 694 12,537 12,578 12,578 12,578 12,578 (196) (457) Liquids Arcticgas (-4.9%) 9% 26% Others North-Khancheyskoye+ Khadyryakhinskoye,…
  6. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 6
    Hydrocarbon Production Natural Gas Sales Liquids Sales Total Hydrocarbon Production, bcm Production, mmt Sales Production, mmboe CAGR 14% CAGR 15% CAGR 14% Absolute increase 94% Absolute increase 93% Absolute increase 92% 6.0…
  7. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 7
    Development of Production Capacities in 2014 Planned Actual completion Annual capacity timing First stage launched in April 2014, Launching two stages Q2 2014 production restarted at limited capacity in of the Urengoyskoye first…
  8. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 8
    Monetizing Our Resource Base 12M 2014 PRODUCING FIELDS Natural gas by pipeline 100% TO DOMESTIC MARKET 67.2 bcm Separation and treatment Unstable gas condensate by pipeline Crude oil by PUROVSKY PLANT (11 mmtpa) UST- LUGA…
  9. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 9
    Financial Results Normalized EBITDA 200% Internally Funded Investment Program of subsidiaries1,RR bln 2, 140,4 180% 2,3 121,9 160% 110,3 2, 140% 1,7 1,7 95,2 88,5 120% 1,7 85,4 100% 75,8 1, 71,9 1,5 80% 44,9 56,2 60%…
  10. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 10
    Yamal LNG
  11. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 11
    Yamal LNG Project Project for construction of an LNG plant on the Yamal Peninsula: Shareholders 2P PRMS gas reserves of the South-Tambeyskoye onshore conventional field at 31.12.14 - 926 bcm Total 20% Liquefaction capacity - 16.5…
  12. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 12
    Unrivalled Resource Potential of the Yamal Peninsula 13
  13. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 13
    Drilling Program Onshore Conventional Gas Five out of 19 well pads prepared for drilling Three rigs on-site 27 production wells drilled out of 58 wells required for the first train, of which 24 wells tested and confirmed…
  14. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 14
    Selected Contractors Contract Equipment Contractor signed EPC Technip/JGC/Chiyoda 1. Cryogenic Heat Exchangers APCI 2. Turbine Cryogenic Compressors General Electric 3. Boil-Off Gas Compressors Siemens 4. Integrated Control &…
  15. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 15
    Construction Works Sea port First landing at the airport Well pad LNG tanks 16
  16. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 16
    LNG Transportation Routes from the Yamal Peninsula All year round to Europe and Latin America During Summer to Asia During Winter to Asia Average number of days 8 Trans- 8 shipment 12 14 25 18 26 32 36 17
  17. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 17
    ARC7 Ice-Class LNG Carriers 15-16 ice-class tankers required for the project Slot reservation agreement concluded Shipping tender finalized Orders for the first 10 tankers placed by the shipping companies Steel cut for the…
  18. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 18
    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 Convenient…
  19. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 19
    Appendix
  20. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 20
    Financial Summary 12M 2014 (RR million) 2014 2013 +/(-) +/(-)% Oil and gas sales 355,673 297,499 58,174 19,6% Total revenues 357,643 298,158 59,485 20,0% Operating expenses (236,512) (192,761) (43,751) 22,7% EBITDA of subsidiaries…
  21. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 21
    Natural Gas Sales Gas Sales Breakdown 100% 90% 80% ST.PETERSBURG 2013 2014 70% 1,293 1,180 VOLOGDA REGION YAMAL-NENETS AUTONOMOUS REGION 60% 2013 2014 2013 2014 2,248 2,395 7,882 4,765 50% PERM REGION…
  22. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 22
    Increase in End-Customer Sales 100% 6% 6% 6% 6% 11% 11% 10% 12% 27% 75% 50% 94% 94% 94% 94% 89% 89% 90% 88% 73% 25% 0% 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 End-customers Ex-field 23
  23. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 23
    Liquids Sales Liquids sales volumes, mmt 7.1 2014 Liquids sales 5.4 Naphtha 4.1 4.2 5.3 Jet fuel 3.4 Gasoil and fuel oil 4.4 LPG 3.5 3.4 2.8 Crude oil 1.8 0.6 0.6 0.8 1.0 Stable gas condensate 2010 2011 2012 2013 2014…
  24. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 24
    Debt Composition as at 31 December 2014 Total Debt Maturity Profile (RR million) Debt Structure (Total Debt = RR 245.7 billion) 92,468 82,543 Fixed/floating 66% 34% 59,534 40,980 USD/RUB 86% 14% 39,783 12,914…
  25. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 25
    Long-Term Debt Maturity Profile Total Currency amount, mln 2015 2016 2017 2018 2019 2020 2021 2022 2022 USD 1,000 1,000 Eurobonds 2021 USD 650 650 Eurobonds 2016 USD 600 600 Eurobonds 2017 RUB 14,000 14,000 Eurobonds…
  26. BANK OF AMERICA MERRILL LYNCH OIL & GAS CONFERENCE – Novatek – slide 26
    Questions and Answers Contact details: NOVATEKs Investor Relations Mark Gyetvay, Deputy Chairman of the Management Board Alexander Palivoda, Head of IR Tel: +7 (495) 730-6013 Email: irnovatek.ru Website: www.novatek.ru

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