2017 FULL YEAR RESULTS 20 February 2018 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
AGENDA PRESENTATION PETER BOTTEN MANAGING DIRECTOR STEPHEN GARDINER CHIEF FINANCIAL OFFICER JOINING FOR Q & A JULIAN FOWLES EGM, PNG BUSINESS UNIT IAN MUNRO EGM, GAS AND MARKETING BETH WHITE EGM, GAS PROJECT DELIVERY KEIRAN…
2017 FINANCIAL HIGHLIGHTS Net profit after tax of US302.1 million, YEAR END DEC 2017 2016 more than three times 2016 NPAT Net profit after tax (USm) 302.1 89.8 Materially higher realised liquids and LNG/gas prices Operating cash flow…
2017 OPERATIONAL HIGHLIGHTS Total production of 30.3 mmboe highest in Oil Searchs history Encouraging exploration results at Muruk, with appraisal well scheduled to spud 2Q18 Broad alignment reached on development concept for next…
RE-FOCUS ON SAFETY BASICS TOTAL RECORDABLE INCIDENT RATE TRIR increased to 1.93 per 3 million hours worked not 2.6 satisfactory Per million hours 2.5 OSH IOGP 2.0 worked 2 1.9 1.9 2018 initiative - going back to 1.7 1.5…
2017 FINANCIAL PERFORMANCE Revenue up 17%: NET PROFIT AFTER TAX (USM) Reflects higher realised oil and gas 400 prices 17.3 1.3 350 56.1 Production costs steady, other operating 210.1 302.1 costs up 7%: 300 (43.6) (5.7) (13.8)…
STABLE UNIT PRODUCTION COST OF US8.67/BOE USM 2017 2016 UNIT PRODUCTION COST (US/BOE) Production costs: 14 12.21 PNG LNG 142.2 150.6 12 PNG Oil and Gas 120.6 106.5 10 10.08 262.8 257.1 8.50 8.67 8 Royalties and levies 10.5 5.4 Gas…
ROBUST BALANCE SHEET CASH FLOW WATERFALL (USM) 844 (267) (424) Operating cash flow of US844 million, 52% 1500 higher than 2016 1,015 1000 863 Competitive cash flow breakeven of Non US29.40/boe Non 500 Escrow Escrow Liquidity of…
2018 FULL YEAR GUIDANCE Capital costs 2018 Guidance1 Production 2018 Guidance2 Exploration & Evaluation US250 310m Oil Search operated 4.5 5.5 mmboe3 Development US50 65m PNG LNG Project 24.0 25.0 mmboe3 Production US80 85m Total…
STEADY GROWTH IN 2P AND 2C RESERVES AND RESOURCES Oil and OIL SEARCH 2P + 2C GROWTH At end % Gas % condensate Dec 2017 Change (bscf) change (mmbbl) 1,500 +3% 1P Reserves 59.1 5% 2,041 5% +20% +4% -3% 1,250 2P Reserves 73.0 3%…
PARTIES BROADLY ALIGNED ON LNG EXPANSION Broad alignment between key parties on preferred development concept, following engineering Hides studies to evaluate downstream Juha development options: Kutubu Elk-Antelope 8 MTPA of new…
PNYANG SOUTH 2 ST1 CONFIRMS EXTENSION OF FIELD TO SOUTH-EAST Pnyang South 2 ST1 appraisal reached total depth of 2,725 metres in early 2018 Well encountered good-quality, gas-bearing Toro and Digimu sands: Confirmed extension…
TARGETING LNG EXPANSION FEED ENTRY IN 2018 2018 Complete Pnyang South-2 Present LNG Expansion to appraisal well Government Complete integration studies Complete gas agreement and commencement of discussions with Government…
OIL SEARCH TO EQUITY MARKET LNG FROM EXPANSION TRAINS EXPERIENCED OIL SEARCH MARKETING TEAM BEING FORMED Gas from Papua LNG likely to be equity marketed. In preparation, OSH recently established Japanese office, with North East Asia…
PNG LNG PROJECT MARKETING UPDATE Up to an additional 1.3 MTPA LNG volumes PNG LNG Contractual Commitments being marketed by PNG LNG Project Current market conditions have tightened for Up to spot/strip sales, stronger terms…
STRONG GLOBAL LNG DEMAND GROWTH EXPECTED TO CONTINUE GLOBAL LNG SUPPLY DEMAND BALANCE Global LNG demand grew 11% in 2017, Under Construction expected to grow by more than 6% pa over 600 Operational Supply next five years LNG…
KEY PNG EXPLORATION ACTIVITIES IN 2018 Muruk Multiple material exploration prospects in PNG to support ongoing LNG growth: Major focus on commercialisation routes, optimising capital efficiency NW Foldbelt and value Elk- Antelope…
COMPLETION OF ACQUISITION OF WORLD CLASS ALASKAN ASSETS Nikaitchuq US400m acquisition completed Feb (229 mmbbbl) Milne Point 2018 (416 mmbbl) Option provides significant additional Alpine Kuparuk River Prudhoe Bay value…
MULTIPLE OPPORTUNITIES TO ADD VALUE DEVELOPMENT, APPRAISAL, EXPLORATION Material oil upside potential: Acquisition based on 500 mmbbl JV partners suggest 1 bnbbl ConocoPhillips drilling two wells on trend and adjacent to…
OTHER FOCUS AREAS Payments of royalties and equity entitlements to PNG LNG Project landowners: Government has paid benefits to landowners around PNG LNG plant site and Hides Still significant payments outstanding matter of urgency…
KEY PRIORITIES FOR 2018 Achieve critical milestones for PNG LNG expansion and Papua LNG: Negotiate gas agreements with PNG Government FEED decisions for both projects Marketing of OSH Papua LNG equity volumes to support FEED…
APPENDICES 2017 FULL YEAR RESULTS 20 FEBRUARY 2018 PAGE 23
2017 FINANCIAL PERFORMANCE USm 2017 2016 Sales volume (mmboe) 30.04 30.59 Revenue 1,446.0 1,235.9 Production costs (262.8) (257.1) Other operating costs (141.1) (131.7) Other income 10.0 5.1 1 EBITDAX 1,052.1 852.2…
FINANCIAL METRICS REMAIN SOLID CASH FLOW BREAK-EVEN ANALYSIS (US/BOE) INDICATIVE PNG LNG REPAYMENT PROFILE (NET, USM) 60 Average realised oil price US55.68 800 Principal Repayment Total Principal & Interest 50 600 40 10.4 29.4 30…
RECORD PRODUCTION IN 2017 Total 2017 production of 30.31 mmboe NET PRODUCTION (MMBOE) PNG LNG Project contributed 24.44 18 mmboe (106.3 bcf LNG, 3.47 mmboe PNG LNG liquids), highest production since start-up OSH-operated 15.35…
2018 PRODUCTION OUTLOOK 2018 FY production guidance1: OIL SEARCH NET PRODUCTION (MMBOE)1,2 Production 2018 Guidance 2,3 35 Oil Search operated 4.5 5.5 mmboe OSH-operated PNG LNG 30.25 30.31 28.5-30.5 PNG LNG Project Lower oil…
PNG ACREAGE REBUILD PLUS ALASKA DELIVERS WORLD CLASS PORTFOLIO PNG OSH Production & Exploration Acreage OSH Operated World class gas portfolio OSH Non Operated Acreage focused on LNG hubs 29700km 53000km 52,000km Exploration…
ALASKA BRINGS SUSTAINED DEVELOPMENT, PREDICTABILITY AND CONTROL Underpinned by: Quality Tier 1 oil resource with significant upside in development and exploration Compelling entry price at right time in development and oil price…
2017 FULL YEAR RESULTS OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
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