EnQuest 2019 Full Year Results Deliver De-lever Grow
EnQuest 2019 full year results Introduction Amjad Bseisu Chief Executive 2 EnQuest PLC Full Year Results 2019
Key 2020 messages Well placed to manage a low oil price Full year production guidance is c.57,000 to c.63,000 Additional cost reductions identified to lower breakeven: - 2020: Savings of c.190 million opex / c.110 million capex;…
2020 Outlook Decisive action taken Opex reduction plans Capex reduction plans - Decision not to re-start at Heather and Thistle/Deveron fields - Continue drilling activity at Kraken in 2020 - Remove discretionary spend - Remove…
Key 2019 messages Strong 2019 performance 2019 highlights Delivered production within guidance Unit opex reduced by c.10% Deliver Cash capex below guidance Voluntarily accelerated bank amortisations Net debt lowered by c.20%…
EnQuest FY 2019 performance Operational and financial targets met Net production1 Production increased c.24% to (Boepd) 68,606 Boepd1 70,000 68,606 50,000 55,447 Deliver Unit opex decreased by c.10% to 21/Boe 30,000 2018 2019…
EnQuest FY 2019 performance Operational and financial targets met (continued) Net debt:EBITDA ratio1 Group net debt is 1,413 million; 8 20% lower vs year end 2018 7 6.6 De-lever Net debt:EBITDA ratio1 at 1.4x, below target of 2.0x…
EnQuest FY 2019 performance Operational and financial targets met (continued) Annual net production1 Material increase in production to (Boepd) 68,606 Boepd1 80,000 68,606 - Kraken outperformed expectations 70,000 Grow 8,653 -…
EnQuest FY 2019 performance Year end 2019 2P reserves and 2C resources 2P reserves Year end 2019 2C resources of 173 MMboe MMboe MMboe 100 400 80 254 122 300 76 60 11 200 202 40 37 38 100 11 20 81 12 0 0 Net 2P…
Environment, social and governance Committed to a sustainable future - Actions underway - Kraken cargoes sold directly to shippers as component of IMO 2020 compliant fuel reducing carbon footprint - Flaring reduced by 45% in Malaysia…
EnQuest FY 2019 performance Operations overview Bob Davenport Managing Director North Sea 11 EnQuest PLC Full Year Results 2019
Production performance Growth of c.24%; towards the top of the guidance range Production growth: 2019: 68,606 Boepd1 2018: 55,447 Boepd1 - Strong production efficiency, particularly at our three key/world-class assets Delivered -…
2019 operational delivery Strong Magnus performance; improved uptime and pricing on Kraken Northern North Sea Kraken Magnus Thistle/Deveron The Dons Heather/Broom - Strong Magnus performance - Significant improvement in FPSO uptime;…
2019 operational delivery Successful pipeline replacement; PM8/Seligi IWR success Central North Sea Malaysia Scolty/Crathes Kittiwake Alma/Galia Alba PM8/Seligi Tanjong Baram PM409 - Strong production performance at Scolty/Crathes…
Maintaining safe operations A proactive approach to COVID-19 Onshore and Offshore Prevent Detect Control Mitigate - Reduce site POB to create - Share details on signs and - Regular cleaning - Clear plans on patient isolation bed…
EnQuest FY 2019 performance Financial review Jonathan Swinney Chief Financial Officer 16 EnQuest PLC Full Year Results 2019
Results summary Strong FY 2019 performance Unless otherwise stated all figures are on a Business performance basis and are in US Dollars Comparative figures for the income statement relate to the period ended 31 December 2018 and the…
Operating cash flow Strong cash generation Improved cash generation: Net cash flow from operations m - Slightly higher realised oil prices 1,200 - Reflecting the positive impact of the Groups commodity hedge programme - Material…
Cash capital expenditure Disciplined and focused investment programme 2019 capex underpins production: FY 2019: 238 million FY 2018: 220 million - Kraken DC4 drilling programme concluded in Q1 - Scolty/Crathes and Dunlin bypass sub-sea…
Net debt Strong cash generation driving debt reduction Debt reduction: Movement in net debt m - Delivered 1,800 - Net debt down by 20% 1,774 962 - Net debt:EBITDA 1,600 - Achieved 1.4x1 7 1,400 - Magnus contingent consideration 282…
Debt structure Long-dated, manageable repayment structure Debt structure (end Dec 2018)1 Debt structure (end Dec 2019)2 Future expected repayment profile (balances at end Feb 2020)3 million million million 2,500 2,500 1,200 72 72 1,000…
EnQuest 2019 full year results Summary Amjad Bseisu Chief Executive 22 EnQuest PLC Full Year Results 2019
Key 2019 messages Strong 2019 performance 2019 highlights Delivered production within guidance Unit opex reduced by 10% Deliver Cash capex below guidance Voluntarily accelerated bank amortisations Net debt lowered by 20% De-lever…
Key 2020 messages Well placed to manage a low oil price Full year production guidance is c.57,000 to c.63,000 Additional cost reductions identified to lower breakeven: - 2020: Savings of c.190 million opex / c.110 million capex;…
Q&A
Appendix A clear purpose and strategy with a focused business model Purpose - With hydrocarbons expected to remain a key element of the global energy mix for many years, EnQuest is focused on enhancing hydrocarbon recovery and…
Appendix Operator of choice for maturing hydrocarbon assets Production breakdown1 Production CAGR of c.17% since IPO 80,000 Malaysia 8.6 kboepd 13% 60,000 40,000 UK 60.0 kboepd 87% 20,000 0 2009 2010 2011 2012 2013 2014 2015…
Appendix Post-tax non-cash impairments of 562.3 million Impairment Driven by 397.5 million tangible oil and gas assets Change in long-term oil price assumptions - Mainly Heather/Broom, Thistle, the Dons Revision in production profiles…
Appendix No material UK cash CT/SCT on operational activities expected UK Tax allowances m Tax losses at 31 December 2018 3,125.3 2019 net utilisation (219.3) Prior year adjustment (2.6) Tax losses at 31 December 2019 2,903.4 Tax…
Appendix Effective tax rate reconciliation UK Tax allowances % m Loss Before Tax (729.1). Notional UK Corporation Tax 40.0 (291.6) 2019 RFES (84.3) UK and overseas tax rate differences 22.5 Permanent items 89.7 Other (16.1)…
Appendix IFRS 16 Leases minimal impact on financial statements - Immaterial increase in EBITDA / decrease in PBT EBITDA PBT - Operating cost is replaced with DD&A and finance 8.6 million 5.1 million interest charge - At 1 January…
Appendix Significant growth in reserves North Sea operation breakdown Malaysia operation breakdown c.110 c.14 7 Operated MMboe produced (net) 13 operated MMboe Produced (net) production offshore hubs platforms 68…
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