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July 2019 Investor Meetings – Enquest

Enquest · Jul 15, 2019 · 32 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. July 2019 Investor Meetings – Enquest – slide 1
    Investor meetings July 2019
  2. July 2019 Investor Meetings – Enquest – slide 2
    EnQuest A clear strategy with a focused business model Strategic vision To be the operator of choice for maturing and underdeveloped hydrocarbon assets Focused business model A production and development led E&P business…
  3. July 2019 Investor Meetings – Enquest – slide 3
    EnQuest priorities Deliver, de-lever, grow Production Deliver Cost control Capital discipline Scheduled bank amortisation De-lever Targeting net debt:EBITDA ratio of 1-2x Develop asset base Grow Consider selective,…
  4. July 2019 Investor Meetings – Enquest – slide 4
    EnQuest 2018 performance Operational and financial targets met; debt reduction on track Net production (Boepd) Unit opex (/boe) Cash capex (m) 60,000 55,447 26 26 400 368 Deliver 50,000 300 24 220 37,405 23 40,000 200…
  5. July 2019 Investor Meetings – Enquest – slide 5
    EnQuest 2018 performance Magnus acquisition provides growth and portfolio balance Grow Material increase in production Significant 2P and 2C resource additions Net production (Boepd) Reserves and resources (MMboe) 60,000…
  6. July 2019 Investor Meetings – Enquest – slide 6
    Results summary Strong 2018 performance Unless otherwise stated all figures are before exceptional items and depletion of fair value uplift and are in US Dollars Production Revenue1 Unit opex EBITDA2 55,447 Boepd 1,201 million…
  7. July 2019 Investor Meetings – Enquest – slide 7
    Cash flow Strong cash generation m Net cash flow from operating activities Improved cash generation: 900 Delivered 50 800 50 794 Favourable prices (20) 203 Material increase in volumes 700 Improved asset mix 600 Thistle…
  8. July 2019 Investor Meetings – Enquest – slide 8
    Capital discipline Materially lower capex requirement post Kraken development m m 300 2018 vs 2017 cash 1,200 Cash capex trend 2018 cash capex: capex 1,058 252 Delivered 1,000 Focused on drilling at Kraken, 250 Magnus, Heather…
  9. July 2019 Investor Meetings – Enquest – slide 9
    Net debt and cash flow Improved cash generation facilitating debt reduction m Movement in net debt 2,200 Debt reduction: 2,100 Delivered 2,000 1,991 794 Strong cash flow from 1,900 operations 1,800 37 1,774 Offset by 320…
  10. July 2019 Investor Meetings – Enquest – slide 10
    Debt structure Long-dated, manageable repayment structure m Debt structure1 m 5-year repayment profile1 2,500 2,000 72 72 2,000 179 1,500 179 1,500 965 965 1,000 1,000 32 500 965 500 874 799 25 439 205 155 0…
  11. July 2019 Investor Meetings – Enquest – slide 11
    Debt structure EnQuest capitalisation and enterprise value m 31-Dec-18 30-Apr-19 Interest / Available Drawn CHANGE Drawn Coupon Maturity Rating 1 Tranche A Loan 799 799 (105) 694 USD L+475 Oct-21 Tranche B Loan 75 0 USD L+475…
  12. July 2019 Investor Meetings – Enquest – slide 12
    Magnus generates strong cash flow 75% interest cash waterfall1 Cash flow waterfall pre repayment of Cash flow waterfall post repayment of EnQuests 100m consideration EnQuest cash consideration 50% 50% 50% 50% Free…
  13. July 2019 Investor Meetings – Enquest – slide 13
    EnQuest 2019 performance and outlook Year to date April: Continued delivery and de-leveraging Production up c.25% at 69,973 Boepd Magnus and PM8/Seligi ahead of expectations Deliver Recent Kraken performance materially improved;…
  14. July 2019 Investor Meetings – Enquest – slide 14
    2019 operational delivery to end April Strong performance at Magnus; pipeline projects on schedule Strong performance at Magnus Net production (Boepd) high production efficiency through reservoir 34,766 Northern North Sea…
  15. July 2019 Investor Meetings – Enquest – slide 15
    2019 operational delivery to end April Kraken improving; PM8/Seligi programmes underway Significant improvement in production in Mar/Apr Net production (Boepd) vs. Jan/Feb Higher production efficiency: power engine 21,43…
  16. July 2019 Investor Meetings – Enquest – slide 16
    2019 outlook On track to meet targets; debt reduction remains the priority GroupProduction production (net) KrakenCash production capex(gross) Net debt:EBITDA 63,000-70,000 Boepd 30,000-35,000 Bopd Below 2x1 c.20%…
  17. July 2019 Investor Meetings – Enquest – slide 17
    Longer-term development options Three world-class assets: Magnus, Kraken and PM8/Seligi 2P reserves of 245 MMbbls, an increase of 17% over 2017 Significant resource base in existing fields; delivered largely through drilling Magnus:…
  18. July 2019 Investor Meetings – Enquest – slide 18
    Magnus A giant field Magnus is one of 3 giant oil-fields in NNS; c.2bn boe HIIP c.50% RF; large volume of remaining mobile oil Secured early wins: plant de-bottlenecking, drilled 2 wells; barrel-adding well interventions…
  19. July 2019 Investor Meetings – Enquest – slide 19
    Magnus opportunity Significant 2P reserves and 2C resources 2P reserves 2 low-cost, platform drilled infill wells planned in late 2019 Continuation of successful well interventions Plant debottlenecking and improved water handling…
  20. July 2019 Investor Meetings – Enquest – slide 20
    Kraken FDP drilling complete; upside opportunity in the Western Flank 2P reserves NW Area - Drilling and subsea infrastructure complete Barra DC3 Central West Focus on Production Efficiency and cost management 2C resources…
  21. July 2019 Investor Meetings – Enquest – slide 21
    PM8/Seligi A giant field with significant upside potential J18/20 Reservoir Outline with Initial Fluid Contacts Hotel c.2bn boe STOIIP; 12 stacked reservoirs; c.35% RF 0 Targets Alpha 9 Targets Historically strong production…
  22. July 2019 Investor Meetings – Enquest – slide 22
    Sub-sea tie-back opportunities Eagle discovery 2C resources EnQuest 100% High quality Fulmar reservoir discovered in 2016 through a single exploration well Analysis shows reservoir with a vertical thickness of 67ft excellent…
  23. July 2019 Investor Meetings – Enquest – slide 23
    Sub-sea tie-back opportunities Don NE and Ythan near field Don NE - 2C resources 14-1 100% EnQuest Development concept and economics under evaluation Dons P2137 - Accumulations and Top Brent Depth Contours June 2018 single…
  24. July 2019 Investor Meetings – Enquest – slide 24
    Appendices
  25. July 2019 Investor Meetings – Enquest – slide 25
    Strong reserves growth in first nine years Reserve life c. 13 years MMboe Net 2P Reserves 400 350 263 300 250 245 (99) 200 150 100 81 50 0 Net 2P reserves Reserve additions Production Net 2P reserves start…
  26. July 2019 Investor Meetings – Enquest – slide 26
    Well set for substantial growth Q&A Strong CAGR (c.17.2% to 2019 mid-point) Average net production (Boepd) 70000 63,000 - 70,000* 60000 50000 40000 30000 20000 10000 0 2009 2010 2011 2012 2013 2014 2015 2016 2017…
  27. July 2019 Investor Meetings – Enquest – slide 27
    EnQuest: 8 Hubs A strong platform for growth Heather/Broom Kraken Thistle/Deveron The Dons Magnus Alma/Galia Greater Kittiwake Area PM8/Seligi 27
  28. July 2019 Investor Meetings – Enquest – slide 28
    Operational growth beyond 2019 Selected portfolio opportunities Deliver 2P Reserves Late-life asset / Platform Well Plant Sub-sea Infill drilling life extension drilling intervention improvements tie-back Magnus Kraken…
  29. July 2019 Investor Meetings – Enquest – slide 29
    Group tax position No material UK cash CT/SCT on operational activities expected UK Tax Allowances m Tax losses at 31 December 2017 3,121.3 2018 net additions plus RFES 42.8 Prior year true up (38.8) Tax losses at 31 December 2018…
  30. July 2019 Investor Meetings – Enquest – slide 30
    Kraken subsurface
  31. July 2019 Investor Meetings – Enquest – slide 31
    Kraken field water cut evolution Field data indicates effective reservoir sweep Voidage recovery through water flood provides Water cut trend the primary approach to maximising reserves 80% of the field volumes are now at voidage…
  32. July 2019 Investor Meetings – Enquest – slide 32
    Kraken reserves Life of field reserves substantially unchanged Kraken well locations Field-wide STOIIP and reservoir properties remain largely unchanged since FDP High-quality seismic Extensive drilling completed Confirmed…

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