FOCUSED EXECUTION IN A CHALLENGING ENVIRONMENT 1H20 ACTIVITIES DELIVER STRONG RESULTS 55% Operational efficiency and dynamic hedging strategy Adj. EBITDA Low cash OpEx and G&A costs of 7.05/boe (1.17/Mcfe) Cash Margin(a) Average…
CREATING DIFFERENTIATED VALUE June 2020 exit rate net production 109 Mboepd; Update Map Legacy assets 70 Mboepd during 1H20 2Q20 interim dividend of 3.75/shr (+7% vs 1Q20) Completed transition to Premium Segment of the London Stock…
WHAT WE DO: AN INTEGRATED BUSINESS MODEL ACQUIRE, OPTIMISE, PRODUCE AND TRANSPORT utilise owned midstream to maximise efficiencies Optimise, Produce, Transport Acquire Target low-cost, long-life, low-decline production Deploy…
OPERATIONS OVERVIEW
ACQUIRE, OPTIMISE, PRODUCE MODEL DELIVERS RECORD PRODUCTION EXCEEDS 100 MBOEPD Net Production (Mboepd) 109.0 D A Steady Contribution from Legacy Assets 93.7 95.1 C 18.7 Legacy asset production maintained at 70 Mboepd 3.9 for 8th…
VERTICAL INTEGRATION MODEL MIDSTREAM ASSETS ENHANCE UPSTREAM ASSET VALUES & RAISE CASH MARGINS BY PROVIDING: Flow Assurance Pricing Optionality Revenue Generation Allows control of owned Generates increased realised Provides…
CORPORATE RESPONSIBILITY UPDATE CONTINUING TO SERVE ALL OUR STAKEHOLDERS ENVIRONMENTAL SOCIAL GOVERNANCE Well Retirement Education Assistance Programme Risk Management DGO helped craft and financially DGO recently added a college…
2020 ACQUISITION UPDATE INTEGRATED BUSINESS MODEL MAXIMISING CONSOLIDATED VALUE Workforce Synergies Reduce Immediate, Ongoing Operating Expenses 25% 600K UPSTREAM decreased payroll expense(a) in annual savings (b)…
ENHANCING ACQUISITION ECONOMICS APPLICATION OF SMARTER ASSET MANAGEMENT GENERATES CONTINUING VALUE Asset portfolio fully aligns with DGOs historically stated objective to: Acquire highquality assets with synergistic…
SMARTER ASSET MANAGEMENT CONTINUOUS OPPORTUNITIES MAXIMISE PRODUCTION, MINIMISE COSTS Tank Replacement Line Loss Repair Well Hookup Asset Consolidation Improve control of gas fluid ratio to Repair 10 steel line to prevent line loss,…
FINANCIAL OVERVIEW
DGO STANDS OUT AMONG E&PS AND MAJORS STRATEGY REMAINS FOCUSED ON GENERATION OF CASH AND RETURNS Free Cash Flow Yield(a) Dividend Yield North American E&Ps and Majors(b) North American E&Ps and Majors(b) 67 Appalachian Producer 67…
ROBUST HEDGING PROTECTS ACQUISITIVE GROWTH DYNAMIC HEDGE PROGRAMME PROVIDES STABILITY IN VOLATILE COMMODITY MARKET Historical Hedge Book Provided Forward Price Recovery Presents Significant Downside Protection Further Opportunity for…
UNIT COST PROFILE GENERATES SIGNIFICANT MARGINS LEVERAGING SCALE TO PROVIDE FOUNDATION FOR CASH FLOW AND RETURNS Adj. EBITDA Unhedged Unhedged Unhedged 54% 53% 55% Margin 52% 44% 34% 9.58/Boe (1.60/Mcfe) 8.23/Boe (1.37/Mcfe)…
BUILT TO OPERATE IN ANY PRICE ENVIRONMENT DECREASING UNIT COSTS, EFFECTIVE HEDGE PROGRAMME PROVIDE MARGIN STABILITY Lower Costs Drive Stable Margins 2.20 53% 53% 55% 43% Total Cash Costs (/Mcfe) Protecting Shareholder Returns…
COMMODITY DERIVATIVES PORTFOLIO - CONSOLIDATED AS OF 31 JULY 2020 Philosophy: Gas 91% of Total Production(a) Floor Price Percent of Aggressively hedge production to protect cash Period MMBtu/Day (per MMBtu) Production(b) flows and…
FINANCIAL DISCIPLINE AND RETURN OF CAPITAL FOCUS ON LOW FINANCING COST AND ALIGNMENT WITH CORPORATE STRATEGY Highlights Capital Structure Aligning capital structure with business model (in Millions) 30 Jun 2020 Debt Structure…
RESULTS OF SPRING BORROWING BASE REAFFIRMED AT 425 MILLION WITH NO CHANGES TO PRICING OR TERMS Spring Borrowing Base Redetermination Key Takeaways Borrowing Base Reduction from Prior(a) DGO Borrowing Base reaffirmed at 425 0% 0% 0%…
OUTLOOK AND INVESTMENT THESIS
STRATEGIC NEAR-TERM PRIORITIES Integration Protection Discipline Focus Exposure Complete Monitor commodity Maintain disciplined Identify and Target September integration of EQT & markets, hedging approach to maximise entry into…
DGO: A COMPELLING INVESTMENT A SIMPLE STRATEGY DELIVERING TANGIBLE RESULTS 55% Adj. EBITDA Cash Margin Operational efficiency and dynamic hedge strategy support strong margins 32% Free Cash Flow Yield Result of lowdecline…
DIVERSIFIED BROKERS Corporate Mirabaud Stifel PO BOX 381087 MIRABAUD SECURITIES LIMITED STIFEL NICOLAUS EUROPE LTD BIRMINGHAM, ALABAMA 10 BRESSENDEN PLACE 150 CHEAPSIDE 35238-1087 (USA) LONDON SW1E 5DH LONDON EC2V 6ET WWW.DGOC.COM…
APPENDIX
MAIN MARKET AND GOVERNANCE UPDATE RECENT CHANGES IMPROVE DGO INVESTMENT CASE EQUITY MARKET PLATFORMS RECENT GOVERNANCE HIGHLIGHTS Appointed Independent, NonExecutive Board Chair Provides enlarged funding platform to support longterm…
ABS VS. RBL COMPARISON OF KEY ATTRIBUTES OF DGO DEBT STRUCTURE Mortgage Credit Card ABS RBL 70% of Debt Outstanding 30% of Debt Outstanding Fixed rate at closing Typically LIBOR plus spread based on credit quality, market Interest…
BUILT TO DELIVER STRONG MARGINS AT LOW PRICES EFFICIENT OPERATIONS, LOW FIXED COSTS PRIME DGO FOR SUCCESS IN CURRENT MARKET Illustrative AllIn DGO Cash Costs(a) Net Realised Operating FullyLoaded Free Cash (/Mcfe) Price per Mcfe…
NATURAL GAS PORTFOLIO AS OF 31 JULY 2020 Natural Gas Financial Hedges Natural Gas (MMBtu, /MMBtu) 3Q20 4Q20 1Q21 2Q21 3Q21 FY20 FY21 FY22 FY23 FY24 NYMEX NG Swaps(a) 41,566,872 42,517,326 42,786,549 42,241,000 39,852,000 153,431,733…
DELIVERING CASH FLOW CAPITAL ALLOCATION CONTINUES HISTORY OF STRONG SHAREHOLDER RETURNS Historical Distributions 43% Dividend 40% FCF Dividend Payout Ratio Capital Allocation Strategy Distributions(a) distinguishes DGO in the…
VALUING THE ASSET RETIREMENT PROGRAMME OVERVIEW OF DGOS ASSET RETIREMENT OBLIGATIONS (ARO) PV Analysis Bridging to the Balance Sheet ARO Rollforward (0.6) Net Cash Flow (Field Level) Asset Retirement Obligation (1.3) 4:1…
SAFELY, SYSTEMATICALLY RETIRE WELLS UPDATE OF DGOS ASSET RETIREMENT PROGRAMME Environmental Stewardship Remains Paramount Near Term StateLevel Plugging Requirements All plugging activities require an environmental safeguard plan and…
FOCUSED ON VALUE CREATION FROM THE BEGINNING COMMITMENT TO DIFFERENTIATED STRATEGY AND RETURN ON EQUITY UNDERPIN GROWTH LSE Uplist Legend Asset Acquisition Net Corporate Acquisition Financing Transaction 109,000 (a)Boepd…
SIGNIFICANT ACQUISITIONS SINCE FEB 2017 IPO ESTABLISH DGO AS A TOP PRODUCER IN APPALACHIA Acquisition Metrics(a) 1.7B Total Acquisitions 2020 Acquired Assets: EQT, Carbon Grow platform for shareholder returns Purchase Price: 235…
THE DGO DIFFERENCE: DELIVERING REAL VALUE SOME COMPANIES ARE BUILT TO DRILL, AND SOME TO OPERATE. DIVERSIFIED IS BUILT TO OPERATE VERY EFFICIENTLY DGO INVESTOR PERCEPTION REALITY Cash wise Cash deficient Cash used to paydown LIBOR+…
UNDERSTANDING OUR UNCONVENTIONAL ASSETS IMPLEMENTING THE DGO STRATEGY ACROSS WELL TYPES Developer / Seller Produces DGO Purchases + Efficiently Produces Hyperbolic (Steep) Declines Exponential (Terminal) Declines = Volatile…
APPENDIX Supplemental Schedules
AUDITED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Unaudited Audited Six Months Ended Year Ended 30 June 2020 30 June 2019 31 December 2019 Revenue 184,878 237,458 462,256…
AUDITED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ASSETS Unaudited Audited 30 June 2020 31 December 2019 ASSETS Non-current assets: Oil and gas properties, net 1,679,150 1,490,905 Intangile assets 13,163…
AUDITED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF FINANCIAL POSITION EQUITY AND LIABILITIES Amounts in thousands, unless otherwise noted;. 43
AUDITED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF CASH FLOW Unaudited Audited Six Months Ended Year Ended 30 June 2020 30 June 2019 31 December 2019 Cash flows from operating activities: Income after tax ation 18,485 62,166…
NON-IFRS & OTHER RECONCILIATIONS REVENUE RECONCILIATION Amounts in thousands, unless otherwise noted. 45
NON-IFRS & OTHER RECONCILIATIONS EXPENSE RECONCILIATION Amounts in thousands, unless otherwise noted; (a) Certain expense reclassifications were made to conform previously reported results to current presentation 46
NON-IFRS & OTHER RECONCILIATIONS ADJUSTED EBITDA RECONCILIATION Amounts in thousands, unless otherwise noted. 47
NON-IFRS & OTHER RECONCILIATIONS Adjusted EBITDA Cash Margin As used herein, Adjusted EBITDA Cash Margin is measured as Adjusted EBITDA as a percentage of total revenue (including natural gas, natural liquids and crude oil commodity…
NON-IFRS & OTHER RECONCILIATIONS Net Debt and As used herein, Net Debt represents total debt as recognised on the balance sheet less unrestricted cash and cash Net Debt-to-Adjusted EBITDA equivalents. Total debt includes the Groups…
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