Differential capabilities Deliver to deliver portfolio value De-lever Grow 2019 Capital Markets Day
Differential capabilities to deliver portfolio value Contents EnQuest at a glance - Operator of choice for maturing hydrocarbon assets Amjad Bseisu Chief Executive Investment proposition - Proven track record, improving balance sheet…
EnQuest at a glance
Operator of choice for maturing hydrocarbon assets Production breakdown1 Production CAGR expected to be c.17% since IPO 80,000 Malaysia 8.4 kboepd 12% 60,000 40,000 20,000 UK 60.1 kboepd 88% 0 2009 2010 2011 2012 2013 2014 2015…
Safety is at the heart of our performance Safe Results through continuous improvement EnQuest LTIF1 0.8 Lost Time Incident performance remains strong 0.7 across all assets 0.6 Proactive safety driven shutdowns carried out at Thistle…
Focused on emissions Regulation EnQuest actions UK - 80% reduction planned at SVT - EU Emissions Trading System - Invested in gas supply for power at Thistle and Northern Producer installations - Flaring limits - Invested in…
Proven track record Investment proposition Improving strategic position Differential capability Significant value creation opportunities Tax advantage 7 EnQuest PLC Capital Markets Day 2019
Driving efficiencies and asset life extension Improving operational efficiencies Asset life extension - Targeting production efficiency of 80%+ Dons 16 years - Strong track record Thistle 16 years Driving costs down - Reduced unit…
Significant growth in reserves North Sea operation breakdown Malaysia operation breakdown c.89 c.12 7 Operated MMboe produced (net) 14 operated MMboe Produced (net) production offshore hubs platforms 63 c.235 wells…
Progress on our strategic priorities Annual net production1 - Production guidance unchanged (Boepd) - Kraken performance improving 80,000 70,000 - Industry leading drilling performance 60,000 68,501 63,000 40,000 55,447 Deliver -…
An industry leader in drilling: 46 of 104 wells in UKNS1 UKNS well costs1 ( million) Per well 50 45 40 35 30 25 20 15 10 5 0 46 EnQuest wells drilled Industry median EnQuest 1 Between January 2015 to March 2019…
An industry leader in drilling: 46 of 104 wells in UKNS1 UKNS well costs1 ( million) Cumulative 2,000 Bottom quartile 1,600 Industry median 46 wells drilled 1,200 saving c.450 Top Quartile million 800 EnQuest compared to industry…
In-house drilling capability Technical and Low-cost Culture of commercial drilling continuous Focus capability improvement Full project Standardise responsibility and simplify design to completion 13 EnQuest PLC Capital…
Best-in-class sub-sea project performance EnQuest in-house capability Oil and Gas UK Efficiency Task Force study (2015-2018) - Greater scope - Schedule efficiency - Lower cost TIME in comparison to optimum performance Upper…
Unlocking the future High-grade value - High-grade and develop resources enhancing activity In-house (MMboe) Existing resources focused in 3 major assets capability 80 70 60 50 68 40 50 Wide 30 42 38 opportunity Repeatable…
Proven track record Investment proposition Improving strategic position Differential capability Significant value creation opportunities Tax advantage 16 EnQuest PLC Capital Markets Day 2019
Magnus: value improvement Assets performance Driving down unit costs - Simplify - Lean operating model - Control systems; produced water debottlenecking - Right-sized workforce - Effective supply chain and contractor management -…
Magnus: maximising the opportunities TR1/TR2 Prospect A material asset with a long life NW Magnus - c.2 billion boe HIIP1 - Current CoP2 date 2035 Maximising the asset value - Material well programme over 4-5 years - 2019 2P…
Magnus: increasing reserves and resources Oil production profile NPV driven upwards 450 million (Bopd) ( million) 1000 25,000 800 700 600 20,000 400 503 200 15,000 254 0 1 Acquisition case CPR1 case Latest forecast NPV(10)…
PM8/Seligi: strong, consistent performance Asset performance Driving down unit costs - Gas compression reliability 97% - Effective supply chain management - Process simplification - Low cost well interventions increasing production -…
PM8/Seligi: idle well intervention success - Integrated programme planning and execution Boepd1 Before EnQuest operatorship After EnQuest Operatorship 40,000 - Low-cost production enhancement and reservoir surveillance activities…
PM8/Seligi: prioritising high value activities A material asset that adds diversity to our portfolio Serudon Lawang - 2 billion boe HIIP Langat - PSC terms ends 2033 Yong Targeted development plans to unlock full potential North…
PM8/Seligi: increasing resources, production and value Oil production profile NPV driven upwards 200 million (Bopd) ( million) 30,000 250 200 25,000 150 200 100 20,000 50 0 67 0 Acquisition case Acquisition case Latest forecast…
Kraken: strong performance and pricing - Improving production efficiency Average production (Bopd)1 - last 2 months at 90% 50,000 - Steady water cut evolution 40,000 30,000 - Cargo pricing improved 20,000 - Heavy oil demand 10,000…
Kraken: material upside Barra Western Flank - Worcester approved - Targeting c.6 MMbbls1 at c.15/bbl Maureen - Payback c.13 months - NPV(10) at 60/bbl: c.100 million - IRR 50% - Pembroke appraisal Antrim - Antrim and Barra…
Significant offshore opportunities Magnus - Multi-year drilling programme - c.250 MMbbls of movable oil PM8/Seligi - Multi-year drilling and intervention programme - 3tcf of gas in Seligi - Requires commercial agreements Kraken -…
SVT: strategically located oil and gas midstream hub One of Europes largest oil and gas terminals - Constructed 1975 1981 - 1,000 acre site; c.8 mbbls crude storage - Self sufficient power generation - EnQuest operate 340km gas…
SVT: services required for decades to come 40-year exemplary track record (Bopd) 80 - Safe and environmentally sensitive service - 30 offshore fields crude delivered via 70 Brent, Ninian, SGP & Clair pipelines 60 - c.100 mmscfd per…
Sustainable reduction in unit opex 2014 2015 2016 2017 2018 2019 42/boe Spread rate C.3 million C.1 million C.3 million Software licence reduction Manpower Kraken Engineering services optimisation Wells C.2 million C.1 million C.3…
Capital discipline: investment targeting high-value activities Delivery of past projects Cash capex million - Kraken c.2.1 billion vs c.3.2 billion budget 1,200 - Pipeline projects on budget and ahead of schedule 1,000 1,058 Future…
Rapid deleveraging through significant cash generation 2019 FCF1 yield of over 65% LTM net debt: EBITDA 1.7x FCF1 Net debt million million 250 2,000 c.22% 1,991 200 215 210 150 1,774 100 50 1,500 1,561 0 (50) (100) (116)…
Significant value creation through acquisitions million PM8 Seligi 200 - Acquired in 2014 for 27 million cash; paid back in 12 months 0 67 Acquisition case Acquisition case Latest forecast NPV(10) NPV(10) NPV(10) 1.1.20 60/bbl…
Delivering shareholder value Production Cost control Free cash flow1 generation Deliver Capital discipline Strengthen the balance sheet Continued net debt reduction De-lever Cash flow focus Develop asset base NPV…
Concluding remarks
A strategy that will deliver shareholder returns Drilling and Mature assets sub-sea projects Low cost 2C UK tax asset resources 37 EnQuest PLC Capital Markets Day 2019
Proven track record Investment proposition Improving strategic position Differential capability Significant value creation opportunities Tax advantage 39 EnQuest PLC Capital Markets Day 2019
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