2017 Half Year Results A NEW MANAGEMENT TEAM THE FIRST 90 DAYS Management change Listening & reflecting Planning & actions New CEO & CFO Gauging perceptions Objectives set for the from our investors short to medium-term…
2017 Half Year Results A BALANCED E&P BUSINESS FOCUSED ON RETURNS Business foundations Disciplined approach Future value generation Highly experienced Monetisation team Maximising revenue Proven operating from production…
2017 Half Year Results KEY SHORT TO MEDIUM-TERM OBJECTIVES Continued strengthening of Balance Sheet Free cash flow Funding Portfolio Management Maximise free cash flow Progress monetisation options through increased…
2017 Half Year Results
2017 Half Year Results FINANCIAL STRATEGY BUILT ON FIRM FOUNDATIONS Financial foundations Disciplined approach Future value generation Strong team with key relationships Minimum 0.5bn Re-set business with liquidity headroom…
2017 Half Year Results 2017 HALF YEAR RESULTS SUMMARY Underlying cash Revenue Adjusted EBITDAX Profit/(Loss) after tax operating costs 788 million 11.9/boe 544 million (309)million (1) 1H 2016: 541 million 1H 2016: 13.4/boe…
2017 Half Year Results A STEP CHANGE IN GEARING 1H 2017 gearing reduced to 3.3x Good progress in the first half 5.1x Net debt reduced by 1bn to 3.8bn Reduced gearing achieved through: - Equity proceeds of 0.7bn 3.3x - Free…
2017 Half Year Results RIGOROUS FOCUS ON COSTS Underlying 1H 2017 cash operating costs compared to production A leaner, more efficient business 60,000 60 Exit/Decom Core 415m delivered of targeted 500m cash cost savings 50,000…
2017 Half Year Results CONSIDERABLE CAPEX FLEXIBILITY Disciplined capital allocation Capital allocated to strike the right balance between deleveraging and growth All investment screened against strict commercial and technical…
2017 Half Year Results FOUNDATIONS FOR GROWTH Actual and forecast future oil production Good progress made in the first half Ghana On a pathway…
2017 Half Year Results
2017 Half Year Results WEST AFRICA CASH GENERATING PRODUCTION BUSINESS Business fundamentals Material production base from Ghana Low operating costs, targeting c.8/bbl Significant resource base underpins future production…
2017 Half Year Results EAST AFRICA DISCOVERIES LEADING TO MATERIAL PRODUCTION Business fundamentals Over 2 billion bbls of resources discovered Low-cost material resource developments Track record of monetisation Progressing…
2017 Half Year Results NEW VENTURES- VALUE GENERATING EXPLORATION PORTFOLIO Business fundamentals Approach focused on building value Oil-focused acreage in known geology & geographies Strict commercial and technical screening of…
2017 Half Year Results
2017 Half Year Results CONCLUSION WELL POSITIONED FOR THE FUTURE Strong business foundations Delivering shareholder returns Experienced, broader Disciplined investment focused management team on returns High-quality, low-cost…
2017 Half Year Results
2017 Half Year Results A LEADING GLOBAL INDEPENDENT EXPLORATION & PRODUCTION COMPANY Established record of delivering successes The business has developed organically and through acquisitions since 1985 Diversified world-class…
2017 Half Year Results PRODUCTION & DEVELOPMENT ASSET BASE TEN field East Africa Development First oil achieved in August 2016 Estimated 750m bbls of discovered FPSO gross capacity of 80,000 bopd resources in Kenya; targeting…
2017 Half Year Results GHANA MATERIAL, LONG-LIFE AND LOW-COST FIELDS Operating cost reductions Ghana underlying cash operating costs/bbl 15.0 Underlying cash opex of 8.7/bbl in 1H 2017 Opex/bbl Targeting underlying cash opex in…
2017 Half Year Results JUBILEE FIELD UPDATE Turret remediation project Interim Temporary heading completed spread moor All equipment installed Tugs removed Stabilise turret Turret modifications for long-term bearing…
2017 Half Year Results TEN FIELD UPDATE Successful project execution and completion Project delivered on time and on budget FPSO tested in excess of design capacity (80,000 bopd) Production data supports oil in place and reserves…
2017 Half Year Results UGANDA DEVELOPMENT Farm-down to Total announced 900m consideration: - 200m cash - 100m on completion, 50m at FID, 50m at first oil - 700m in deferred consideration Deferred consideration exceeds Tullows…
2017 Half Year Results KENYA DEVELOPMENT Continuing to de-risk and build on resources South Lokichar E&A programme ongoing Successful water injection tests support water flood & recovery Progressing Full Field Development…
2017 Half Year Results SOUTH LOKICHAR BASIN EXPLORATION & APPRAISAL Proven oil basin 14 exploration prospects drilled 11 oil accumulations discovered Over 20 appraisal wells drilled for delineation & testing Tullow estimates…
2017 Half Year Results EAST AFRICA: EXPLORING REGIONAL OIL PLAY Location Activity Uganda Lake Albert Basin 17+ oil fields discovered (90% success) Estimated 1.7 billion barrels of oil discovered Kenya North Turkana Basin Basin…
2017 Half Year Results EXPLORATION: CENTRAL TO LONG-TERM GROWTH STRATEGY Focus on low-cost, high-margin, light oil plays Portfolio of high-impact prospects suited to current environment Working on our seismic and geological assets…
2017 Half Year Results NEW VENTURES: CAMPAIGNS FOCUSED ON LONG-TERM VALUE Commercial screening Off-limits Exploration Tested at 50/bbl Ultra-deepwater Low cost of supply Value accretive Deepwater gas High margin oil Shale…
2017 Half Year Results EXPLORATION & APPRAISAL ACTIVITY IN 2017 JAMAICA MAURITANIA KENYA Walton Morant (100%) C3 (90%), C-10 (76.5%) Block 12A (50%) 2D Seismic 3D Seismic 2D Seismic Block 10BB/13T (50%) 3D Seismic SURINAME…
2017 Half Year Results SOUTH AMERICA: HIGH-IMPACT PROSPECTS Jamaica: early stage of frontier exploration, interpreting new 2D seismic data Guyana: attractive acreage up-dip of Liza-1 oil discovery; acquiring 3D seismic in 2017…
2017 Half Year Results GUYANA-SURINAME: EXCELLENT POSITION IN NEW OIL PROVINCE Liza-1 deepwater oil discovery significantly de-risks the basin & Tullows regional acreage Araku: Estimated 500mmbo prospect in four-way structural…
2017 Half Year Results GUYANA: PROSPECTS UP-DIP OF LIZA-1 DISCOVERY Exploration activity commenced 3D seismic programme under way Jubilee-like setting up-dip of Liza oil discovery in shallow water Estimated well cost of c.14…
2017 Half Year Results AFRICA: HIGH-IMPACT LEADS AND PROSPECTS Mauritania: exploration focus shifted to low-cost shelf-edge oil plays, 3D seismic acquisition in 2017 Zambia: extension of East African Rift Basin Play; High Gravity…
2017 Half Year Results CAPITAL ALLOCATION 1800 Ghana 2017 Capex of c.0.4bn 1600 West Africa non-op (incl Europe) FY 2017 capex forecast lowered from Exploration 0.5bn to 0.4bn East Africa 1400 Uganda (offset by farm-down) Low…
2017 Half Year Results HEDGING STRATEGY Prudent approach provides significant benefits to the business Tullow has proactively hedged production to protect revenues over the last 10 years Significant liquidity benefit through…
2017 Half Year Results BALANCE SHEET, DEBT PROFILE AND LIQUIDITY bn Liquidity c.1.2bn facility headroom and free cash at 30 Committed Debt Facilities Drawings June 2017 6 Minimum 0.5bn headroom going forward 5 RBL Successful…
2017 Half Year Results Tullow Oil plc 9 Chiswick Park 566 Chiswick High Road London, W4 5XT Follow Tullow on: United Kingdom Tel: +44 (0)20 3249 9000 Fax: +44 (0)20 3249 8801 Email: irtullowoil.com Web: www.tullowoil.com…
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