2015 HALF YEAR RESULTS Tullow Oil plc 29 July 2015
2015 HALF YEAR RESULTS Business re-set for 50 oil price environment 1H 2015 financials in line with expectations Major cost cutting completed Funding in place with significant liquidity & headroom Growing high margin cash…
2015 HALF YEAR RESULTS Good progress in 1H 2015 Delivery of high margin production / capital allocation Bbl West African Strong performance 120 Production 67 kbopd 1H15 vs 63 kbopd in 1H14 109/bbl Oil hedging Delivered 146m revenue…
2015 HALF YEAR RESULTS 2015 Half Year Results summary 1H 2015 1H 2014 Sales revenue 820m 1,265m Gross profit 342m 681m Administrative expenses (100m) (120m) Restructuring costs (25m) - Loss on disposal (44m) (115m) Exploration…
2015 HALF YEAR RESULTS Net income 1H 2015 v 1H 2014 100 116 65 133 m 0 18* 41 68 95 -100 315 -200 -300 573 90 -400 70 48 103 -500 171 -600 -700 Net income Price Hedging Oil Volume/ Gas Volume/ Operating…
2015 HALF YEAR RESULTS Sources and uses of funds Cash inflow 1,191m 1H 2015 Net cash inflow 167m m Operating cash flow 450m* (1H 2014:726m*) Sources Uses 1,200 Disposals 57m (1H 2014:nil) 57m 389m Net loan draw down 684m (1H…
2015 HALF YEAR RESULTS 2015 capital expenditure 1.9 billion capex for full year 2015 Ghana: Jubilee & TEN developments - 1,210m 2015 250m 1,650m 1,900m Other West Africa: Non-op production - 190m Europe: Maintaining mature…
2015 HALF YEAR RESULTS Strong liquidity position through TEN first oil Debt maturity profile Key metrics m Commitment size Maturity m 30 June 2015 31 Dec 2014 RBL 3,700 Oct 2019 Cash and cash equivalents 488 319 Corporate Facility…
2015 HALF YEAR RESULTS Oil Hedging Hedge strategy Hedge strategy is approved by the Board and reviewed quarterly Hedges are executed rateably on a three year forward rolling basis Hedge by purchasing a mix of Dated Brent options…
2015 HALF YEAR RESULTS Financing Strategy Proactive measures already taken to manage business in a low oil price environment Quality assets and hedging programmes have allowed us financial flexibility and headroom; Financial…
2015 HALF YEAR RESULTS TULLOW OIL PLC 2015 HALF YEAR RESULTS Paul McDade
2015 HALF YEAR RESULTS Strong delivery across West Africa production portfolio Strong 1H 2015 West Africa oil production: 66,500 bopd FY 2015 West Africa oil production guidance: 66-70,000 bopd 2017 West Africa oil production…
2015 HALF YEAR RESULTS Future project pipeline making significant progress Future Development Projects Countries with ongoing operations Key oil producing countries TEN Development East Africa Development 65% project…
2015 HALF YEAR RESULTS Stable low-cost portfolio of non-operated oil production Portfolio of 24 non operated fields across 5 countries Low operating cost c.15/bbl and cash break-even c.30-40/bbl Increased focus on efficient…
2015 HALF YEAR RESULTS Jubilee development options present growth opportunities Strong Jubilee performance year-to-date 1H15 average gross production: 105 kbopd FY15 guidance: 100 kbopd; impacted by short term gas compression issue…
2015 HALF YEAR RESULTS TEN project on schedule and on budget for first oil mid-2016 Project c.65% complete FPSO Conversion (92%) - All major installation work complete - On track for sailaway around year-end - Field installation…
2015 HALF YEAR RESULTS Kenya appraisal progressing well in 2015 Extensive appraisal program nearing completion 6 wells successfully drilled year to date All wells have met or exceeded expectations 2 wells remaining for 2015; Twiga 3…
2015 HALF YEAR RESULTS Adding value through regional integration & capex deflation Integrated regional pipeline Conceptual studies completed on Northern and Southern Route Governments working with technical advisor to select route…
2015 HALF YEAR RESULTS TULLOW OIL PLC 2015 HALF YEAR RESULTS ANGUS McCOSS
2015 HALF YEAR RESULTS Adapting our E&A strategy to current environment Adapted to mitigate risks & expense Reduce cost exposure: Farm-out early to spread risk & earn carries Revised risk screening: High-grade exploration programmes…
2015 HALF YEAR RESULTS New venture campaigns focused on long term value Commercial Screening Off-limits Exploration Tested at 50/bbl Low cost of supply Ultra-deepwater Value accretive Deepwater gas High Margin Oil Shale oil…
2015 HALF YEAR RESULTS Finding oil onshore East Africa Location Activity Uganda Lake Albert 17+ oil fields discovered (90% success) Basin 1.7 billion barrels of oil discovered Kenya South 9/11 wildcat oil discoveries Lokichar +…
2015 HALF YEAR RESULTS Upside in Kenya: Basin testing wildcats & new play testers Northern Area Central Core Area Southernmost Area Multiple opportunities to build upon South Lokichar Basin success Slide 26
2015 HALF YEAR RESULTS Caribbean-Guyanas Atlantic Margin: shift to shelf Three major basins with proven oil systems Shelf edge plays lower cost to develop Spari (non-op) drilling Q3 2015 Seismic evaluation ongoing to high-grade…
2015 HALF YEAR RESULTS Re-setting the business for lower oil price COMPLETED ONGOING Reduce costs Cut near term annual exploration budget to c.200m Target opex and capex reductions across group Restructured and simplified the…
2015 HALF YEAR RESULTS Proactive steps taken in 4Q 2014 Allocated capital to high-margin cash generating West Africa assets Prioritised future production and development activities in West Africa; low breakeven prices Significant…
2015 HALF YEAR RESULTS Oil Hedging Hedge strategy Hedge strategy is approved by the Board and reviewed quarterly Hedges are executed rateably on a three year forward rolling basis Hedge by purchasing a mix of Dated Brent options…
2015 HALF YEAR RESULTS Appraising & testing oil wells onshore East Africa Location Activity Uganda Lake Albert 80+ exploratory appraisal wells drilled Basin Excellent porosities & permeabilities Anticipated production rates…
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