Tullow Oil – 2019 Annual General Meeting Tullow Oil plc ANNUAL GENERAL MEETING 25 April 2019
Tullow Oil – 2019 Annual General Meeting DISCLAIMER This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Tullow believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Group’s control or within the Group’s control where, for example, the Group decides on a change of plan or strategy. The Group undertakes no obligation to revise any such forward-looking statements to reflect any changes in the Group’s expectations or any change in circumstances, events or the Group’s plans and strategy. Accordingly no reliance may be placed on the figures contained in such forward looking statements. Slide 2
Tullow Oil – 2019 Annual General Meeting 2018 – GOOD PROGRESS ACROSS THE BUSINESS DRILLING PROGRESSED DRIVING resumed in Uganda & Kenya production Ghana developments BUILT PROFIT GENERATING exploration after tax free cash flow portfolio REDUCED PAYING gearing a sustainable dividend A year of solid financial and operational delivery Slide 3
Tullow Oil – 2019 Annual General Meeting TULLOW’S 2030 VISION The pillars of our growth ambitions Positioning Tullow for the challenges and opportunities ahead Slide 4
Tullow Oil – 2019 Annual General Meeting CREATING A PROGRESSIVE AND SUSTAINABLE ORGANISATION Driving the Business Transforming the Business Subsurface Kenya New Business & Ghana Corporate Operations Sustainability & Digital Uganda Ventures Non-op Implement Implement Functional & Transform & Transform Excellence Deliver Transformation & Learn Slide 5
Tullow Oil – 2019 Annual General Meeting Tullow Oil plc - 2019 Annual General Meeting OUR PERFORMANCE
Tullow Oil – 2019 Annual General Meeting 2018 FULL YEAR RESULTS SUMMARY Underlying cash Revenue 1 Adjusted EBITDAX Profit after tax 2 operating costs $10.0 /boe $1,600 million $1,859 million $85 million FY 2017: $1,723 million FY 2017: $11.1/boe FY 2017: $1,346 million FY 2017: $(189) million Capital investment 3 Free cash flow 4 Net debt Gearing $423 million $411 million $3.1 billion 1.9 times FY 2017: $225 million FY 2017: $543 million YE 2017: $3.5 billion YE 2017: 2.6 times 1. Revenue excludes $188 million additional revenue from Corporate Business Interruption insurance (2017: $162 million) 2. Profit/(loss) includes non-cash exploration write-offs of $295 million (pre-tax) 3. Capital investment excludes Uganda capex expected to be recovered on completion of the farm down 4. Free cash flow impacted by one-off litigation payment of $208 million Strong financial performance despite oil price volatility Slide 7
Tullow Oil – 2019 Annual General Meeting FOLLOWING OUR CAPITAL ALLOCATION FRAMEWORK DEBT AND LIQUIDITY INVESTING IN OUR BUSINESS SHAREHOLDER RETURNS Apply strict criteria to allocate Balance sheet robust to Demonstrating financial capital across the portfolio: future oil price volatility discipline and business progress Maximising production: Driving net debt below Immediate cashflow $2 billion in near term Capital Returns High returns, short payback Policy established Retain flexibility Growth from with longer term Sustainable annual discovered resources: gearing of 1x-2x ordinary dividend Future cash flow Medium-term payback Additional returns Ensuring headroom for in periods of strong FCF future opportunities Finding new oil: Significant value 2018 final dividend New resources, capital growth ¢4.8/share ( $67m) Other opportunities Balanced capital allocation focused on maximising shareholder returns Slide 8
Tullow Oil – 2019 Annual General Meeting MAXIMISING PRODUCTION IN WEST AFRICA Growing & sustaining our production business • Ramping up net production in 2019 West Africa oil production • Infill, near-field & exploration opportunities to 2019 guidance: 90,000 - 98,000 bopd 1 sustain & grow production • Low-cost production $10 opex/bbl • Significant scope for ‘just -in- time’ reserves & resources growth 120,000 No additional Upside capex 100,000 Annual capital investment $50-$100m Non-operated 80,000 bopd 60,000 40,000 $200-$300m Ghana 20,000 0 2017 2018 2019 2020 2021 2022 1 Includes 1,000 bopd of Jubilee Field Insurance Production-Equivalent Slide 9
Tullow Oil – 2019 Annual General Meeting DEVELOPING OUR DISCOVERIES: EAST AFRICA PRODUCTION HUB Group net oil production growth 150 KENYA UGANDA 560mmbo 1.7bbo 125 MATERIAL OIL DISCOVERIES Gross 2C resource Gross 2C resource 100 60 100,000 230,000 PRODUCTION SCALE kbopd bopd gross production bopd gross production 75 Ghana Targeting FID end 2019 Targeting FID 2H 2019 50 • FEED & Upstream ESIA complete • EOPS increasing to 2,000 bopd • Ready to award major contracts • Foundation stage well defined DEVELOPMENT • FEED & ESIAs ongoing • Finalisation of commercial, UPDATE 25 technical & land agreements • Awaiting finalisation of key ongoing commercial agreements • Infrastructure improvements • Land & water agreements under way progressing 0 2018 2019f Future growth Inc. East Africa Tullow continues to target 2019 FIDs in Uganda and Kenya Slide 10
Tullow Oil – 2019 Annual General Meeting FINDING NEW OIL – EXECUTING OUR EXPLORATION PROGRAMME MAURITANIA JAMAICA GUYANA 2019 FOCUS SURNAME CÔTE D’IVOIRE COMOROS NAMIBIA PERU ZAMBIA URUGUAY 2019 drilling 2020 drilling options Drilling 3-5 high-impact wildcats per year, within $150m exploration budget Peru & Comoros licences remain subject to final Government approval Slide 11
Tullow Oil – 2019 Annual General Meeting 2019 DRILLING FOCUS ON GUYANA Shelf-edge acreage in industry hot-spot >4BBO Multiple prospects Gross mean up-dip of giant oil un-risked resources discoveries High-quality 3D seismic processed ORINDUIK ORINDUIK KANUKU JETHRO JOE CARAPA prospect selected for 2Q 2019 drilling prospect selected for 3Q 2019 drilling prospect selected for 3Q 2019 drilling >100 mmbo 1,350m >100 mmbo 650m >200 mmbo 70m Tertiary target water depth Tertiary target water depth Cretaceous target water depth Jack-up ~$30m Drillship ~$11m Drillship ~$20m rig to be contracted net well cost contracted net well cost net well cost contracted Slide 12
Tullow Oil – 2019 Annual General Meeting Tullow Oil plc - 2019 Annual General Meeting OUR FUTURE
Tullow Oil – 2019 Annual General Meeting TRANSFORMING TULLOW • Excellence in delivering • Delivering our our 2-3 year work 2030 Vision programme • Delivering new value • Growing business over through transformation short-medium term • Ensuring we meet the • Continuous challenges of the improvement transition to low carbon economy Creating value from delivering the Vision Slide 14
Tullow Oil – 2019 Annual General Meeting A STRONG COMMITMENT TO SUSTAINABILITY Local content Developing Social and capacity local skills Investment Climate resilience Ecosystems Safety and wellness Responsible production Good governance Promoting equality Slide 15
Tullow Oil – 2019 Annual General Meeting 2019 OUTLOOK GENERATE DISCOVER significant free cash flow oil in Guyana RETURN COMPLETE MAINTAIN $100m Uganda minimum cost discipline farm-down dividend TARGET DELIVER Uganda & our Vision Kenya FIDs A strong foundation for growth in the years ahead Slide 16
Tullow Oil – 2019 Annual General Meeting Tullow Oil plc 9 Chiswick Park 566 Chiswick High Road London, W4 5XT United Kingdom Follow Tullow on: Tel: +44 (0)20 3249 9000 Fax: +44 (0)20 3249 8801 Email: ir@tullowoil.com Web: www.tullowoil.com Slide 17
Recommend
More recommend
