Oil Search 2020 interim result presentation 2 5 A u g u s t 2 0 2 0
First half overview Keiran Wulff Oil Search 2020 Half Year Results 25 August 2020 3
First half 2020 operational and financial performance Operational Performance Financial Results Key Actions Production of 14.7 mmboe Core profit after tax1 of US25 Proactive COVID-19 response million to ensure business continuity…
Strong first half safety record Continuous improvement in Total Recordable Incident Rate (TRIR) No Tier 1 or Tier 2 process safety events (Per million hours worked) (Total incident rate) 2.6 2.5 2.0 1.9 1.9 1.7 1.6 1.5 9…
Proactive COVID response Business Continuity Plans Early implementation of COVID-safe protocols, using existing expertise in managing infectious diseases Well-being Alaska IMT Decisive response to ensure business continuity…
Continued strong PNG LNG production and sales PNG LNG Project annualised production rate (MTPA) PNG Earthquake Unit production cost 1H20 LNG spot cargo exposure US6.6 per…
Improving performance from operated oil assets Net OSH-operated production (kboe) 2,000 Focus on core capabilities, driving efficiencies and 1,800 PNG Highlands facilities uptime earthquake 1,600 Highest operated oil production since…
2020 first half financials Stephen Gardiner Oil Search 2020 Half Year Results 25 August 2020 9
Financial summary 1H 2020 1H 2019 (%) Production (mmboe) 14.66 14.13 +4% Sales (mmboe) 13.66 13.39 +2% Average realised oil price (US/boe) 35.91 65.26 (45%) Average realised LNG & gas price (US/mmBtu) 8.22 9.71 (15%) Revenue…
Core profit after tax1 (US million) Revenue down US151 million, reflecting 45% fall in average realised oil price, 15% fall in realised gas and LNG prices, offset by 2% increase in sales Production costs down 17% due to lower…
Sustainable reduction in unit production costs Cost-out program will result in sustainable reduction in unit production costs (US/boe) 14.97 14.66 14.04 14.13 13.81 12.97 Lower unit production costs reflect: 2.26 11.98 0.66 1.76…
Net debt1 Equity raise reduced net debt to US2.33 billion (US million) 50% Net debt1 of US2.33 billion, comprising: US2.80 billion relating to PNG LNG project 40% finance US0.36 billion in drawn corporate facilities 30% US0.83…
2020 full year guidance Costs Low High Production (mmboe) Low High Unit production costs (US/boe) 9.50 10.50 Oil Search-operated 3 4 Other operating costs1 (USm) 110 130 PNG LNG Project 24.5 25.5 Depreciation and amortisation2…
Status of growth projects Keiran Wulff Oil Search 2020 Half Year Results 25 August 2020 16
COVID-19 impacts demand, delays new project sanctions LNG supply gap delayed, however North Asian energy policies continue to drive transition to gas COVID-19 has created weaker economic conditions, (MTPA) driving: 700 Lower medium…
Progressing optimisation of Alaskan development Successful 2019/20 drilling season with three discoveries, two tests: Mitquq 1 ST1 flowed at 1,730 bopd Stirrup 1 flowed at 3,520 bopd1 Well results provide options for further…
Importance of Mitquq and Stirrup discoveries Discoveries have potential to create substantial additional long term value for shareholders Mitquq discoveries in same Increases chances for a Stirrup discovery has reservoir east of the…
Strategy and outlook Keiran Wulff Oil Search 2020 Half Year Results 25 August 2020 20
Clear roadmap focused on resilience and disciplined capital allocation What we set out to do What weve done Whats to come (1Q20) (2Q-3Q20) (4Q20) Commencement of a company-wide Decisive action in a uniquely Resetting our strategy to…
Committed to sustainability New role of EVP Sustainability and Technology: Expanding our commitment to excellence in sustainability and governance Committed to firm, transparent sustainable development initiatives and building local…
Organisation structured to drive streamlined business WAYNE KASOU KEIRAN WULFF SVP Government Affairs & Office of Managing Director the Managing Director LEON BRUCE MICHAEL DIEGO STEPHEN BART BETH WHITE BUSKENS DINGEMAN DREW…
Resilient, safe, capable, disciplined and prepared Decisive steps taken to enhance resilience to prolonged lower oil prices Systematic review delivers sustainable cost reductions with continuous improvement program Re-focus on core…
Appendix Oil Search 2020 Half Year Results 25 August 2020 25
Financial summary1 (US million) 1H 2020 1H 2019 (%) Production (mmboe) 14.7 14.1 +4% Sales (mmboe) 13.7 13.4 +2% Average realised oil & condensate price (US/boe) 35.9 65.3 (45%) Average realised LNG & gas price (US/mmBtu) 8.2 9.7…
2020 production guidance (mmboe) 30.2 30.3 27.5-29.5 28.0 25.2 PNG LNG production rate of 8.7 MTPA1 15.4 15.5 13.8 12.8-14.8 Second highest half on record 15.0 14.9 14.8 14.1 14.7 10.2 Operated production of 1.9 mmboe…
Oil Search 2020 Half Year Results 25 August 2020 28
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