Clean Energy for the Future Q2 2017 Financial Results 16 August - PowerPoint PPT Presentation

Clean Energy for the Future Q2 2017 – Financial Results 16 August 2017

Disclaimer This presentation contains forward-looking statements which may be identified by their use of words like “ plans, ” “ expects, ” “ will, ” “ anticipates, ” “ believes, ” “ intends, ” “ projects, ” “ estimates ” or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company, its subsidiaries and its affiliates (the “ Companies ” ) referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements of the Companies, could thus differ materially from those projected in any such forward-looking statements. The Companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise.

Contents 1 Headlines 2 Financial Update 3 Country Performance 4 Summary

1. Headlines

Highlights Operations Financials H1 Group production 6% higher at 67,550 boepd  H1 - $23m net profit on $222m revenue – up 77% and 25%  H1 Egypt production up 13%  Higher profits due to increase in Company ’ s entitlement in  Successful completion of El Wastani gas plant shut-down Kurdistan Region of Iraq ( KRI), higher oil prices, cost  management, finance costs reduction Second export of condensate sale (July)  OPEX in H1 reduced by a further 7% Zora Gas Field well interventions uneconomic at current   Positive free cash flow of $142m gas price  Liquidity Arbitration & Sukuk Collected $198m in H1 Initiated Sukuk restructuring process. Injunctions obtained   from Sharjah, London and BVI courts Industry payment of $110m in Egypt – of which $60m is  earmarked for accounts payable and balance for further KRG quantum hearing in Q3 2017  investments NIOC Arbitration damages due before mid 2018  Total trade receivables lowered to $900m  $337m of cash in hand at period end  Continued focus on short term cash preservation  5

2. Financial Update

Financial Highlights Gross Revenue (million USD) EBITDA (million USD) 250 222 150 2016 2017 200 178 122 150 100 89 104 96 100 53 42 50 50 0 0 H1 Q2 H1 Q2 2016 2017 Gross Profit (million USD) Net Profit (million USD) 30 75 2016 2017 2016 2017 59 23 20 50 42 13 12 21 10 20 25 7 0 0 H1 Q1 H1 Q2 7

Production (boepd) & Realized Prices ( USD/boe) Average production H1 2017 Vs H1 2016 Average production Q2 2017 Vs Q2 2016 66,650 65,400 Q2 2016 67,550 63,700 H1 2016 Q2 2017 H1 2017 37,650 36,550 39,300 34,850 26,100 25,400 25,800 25,900 3,250 1,650 750 700 2,300* 1,700 750 650 Group Egypt KRI UAE EBGDCO Group Egypt KRI UAE EBGDCO * Normalized FY15 VS FY 16 Average Realized Prices (USD/boe) Average Realized Prices (USD/boe) $98 $42 $38 $38 $86 $32 $31 $45 $40 $33 2013 2014 2015 2016 H1 2017 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 8

CAPEX & OPEX G&A / OPEX (million USD) CAPEX (million USD) G&A OPEX 56 52 234 27 25 122 80 23 13 13 7 7 2015 2016 H1 2016 H1 2017 2015 2016 H1 2016 H1 2017 G&A / OPEX CAPEX Company continues to optimise costs  Capex at $13m – minimal outlay  Operating cost reduced by a further 7%  Continue to balance capex with available sources of cash   Planning to drill 3 wells in Egypt in Q4 9

Cash Flow and Liquidity Positive free cash flow due to improved  Free Cash Flow (million USD) collections, higher revenues, lower capital expenditure Collected $198m in H1 2017  203 $337m cash in hand end of H1 2017  181 169 142 Payment of Zora Loan ($60m)  112 Cash preservation – matching investments 82  against collections 27 22 Large part of collections, $60m, will be used  2015 2016 H1 2017 to pay down payables accumulated over last -30 18 months in Egypt Net Cash In (Operating) Net Cash Out (Capital expenditure) FCF Sukuk reclassified from borrowings to  Capital received on issuance of Sukuk to reflect the Company ’ s legal positon 10

Receivables & Collections 30 June 2017, total trade receivables is $900 million Egypt KRI 300 250% 300 140% Billing Billing 129% Collection Collection 229% % % 115% 120% 200% 225 225 100% Millions ($) Millions ($) 150% 80% 121% 150 150 111% 60% 100% 64% 40% 30% 75 75 50% 14% 20% 173 210 113 125 123 79 59 135 247 34 142 43 78 101 48 55 0 0% 0 0% 2014 2015 2016 H1 2017 2014 2015 2016 H1 2017 Total Trade Receivable Total Trade Receivable $233m $221m $265m $189m $746m $727m $713m $707m Note: % calculated as collection divided by net revenue Note: % calculated as collection divided by net revenue 11

3. Country Performance

Egypt: Strong production El Wastani Successfully completed planned shut-  down of El Wastani plant in June South Abu El Naga 5 days complete shutdown and 4 days • partial shut-down Work conducted by WASCO • Excellent HSSE performance • Faraskur Compression nearing  completion Sustain production at maximum plant  capacity – c. 40,000 boepd until year- end Second shipment of international  condensate sold in July 13

Egypt: Growth potential North El Salhiya (Block 1)  100% owned concession • Drilling to commence Q4 2017 • 3 onshore wells: North El Basant, • ESAEN-1 and Bahy-2 North El Arish (Block 6)  Substantial and material prospect • inventory North El Arish Plans underway to drill the 1 st • offshore well in the block in 2018

Kurdistan Region of Iraq Dana Gas share of production averaged  25,900 boepd in 1H of 2017 302 MMscfd of natural gas • 13,063 bbl/d of condensate • 898 MT/d of LPG • Direct condensate sales to the KRG  through the Jambour pipeline A planned shutdown is due in H2 2017 for  essential repair works 15

UAE Producing gas since February 2016  H1 2017 production was 1,700 boepd,  26% decline Preliminary results of FDP indicates  further well intervention uneconomic at current gas prices Result will need to be taken into  consideration during annual reserves audit Any final decision on the plant to be  taken towards year-end 16

Arbitration & Sukuk Update Kurdistan Region of Iraq Quantum hearing in September 2017  Continue to pursue money owed from 2 and 3  Partial Final Award UAE Gas Project Judgement expected before mid 2018  Sukuk No offer currently on the table and DG is  pursuing litigation-driven outcomes 17

4. Summary

Summary Solid second quarter – operations, financials and cost 1 efficiencies 2 Strong collections from Egypt and KRI Potential for exciting medium-term opportunities in Egypt 3 and development of world class assets in KRI Short-to-mid term priorities are maximizing production for 4 minimal costs and balancing capex to collections 5 Initiated Sukuk restructuring process Positive arbitration outcome in KRG and in NIOC arbitration 6 judgement on damages claim expected by mid 2018

Reach Us: Dana Gas PJSC P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : mohammed.mubaideen@danagas.com Direct : +971 6 519 4401