Clean Energy For the MENA Region’s Tomorrow Dana Gas Equity Investors Presentation June 2014 www.danagas.com 1
Forward Looking Statement This presentation contains forward-looking Forward-looking statements are based on certain statements which may be identified by their use of assumptions and expectations of future events. The words like “plans,” “expects,” “will,” “anticipates,” Company, its subsidiaries and its affiliates (the “believes,” “intends,” “projects,” “estimates” or other “Companies”) referred to in this presentation cannot words of similar meaning. All statements that guarantee that these assumptions and expectations address expectations or projections about the are accurate or will be realised. The actual results, future, including, but not limited to, statements performance or achievements of the Companies, about the strategy for growth, product could thus differ materially from those projected in development, market position, expenditures, and any such forward-looking statements. The financial results, are forward looking statements. 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. www.danagas.com 2
Presentation Outline MENA Opportunities Dana Gas – Introduction and Profile Recent Performance Country Operations Valuations Summary www.danagas.com 3
MENA region holds ca. 50% of global oil & gas reserves but with limited access. Dana Gas has presence in the large markets with open access Oil & Gas Proved Reserves (Source: BP Statistical Review 2013) 1669 6614 MENA Reserve Ranking bln bbl Tcf MENA RoW 100% 90% developments may lead to improved access in future 55% 49% 80% Recent political 70% 60% 50% 40% Open access (incl. 30% 45% 51% licensing round) 20% 10% 0% Partially open Oil Gas Restricted access (no open/direct access for independent oil companies) www.danagas.com 4 1. KRI reserves as estimated by Ministry of Natural Resources of KRG: Oil at 45bln bbls & Gas at 100tcf
MENA oil & gas production has grown steadily since mid-80s. From 1990, gas production has grown 4x while oil production has grown 1.5x MENA Oil & Gas Production (Source: EIA) www.danagas.com 5
Natural gas has become the dominant energy source for primary energy demand in the MENA region MENA GDP vs Population Primary Energy Demand Growth (Source: IMF) (Source: EIA) MENA Gas Consumption Pattern (Source: BP Statistics ) Nearly 70% of region’s gas production is consumed within the region Domestic gas use CAGR 6.7% www.danagas.com 6
Given strong gas demand fundamentals and resource potential, Dana Gas is uniquely positioned to grow across the region Reserve & Resources Dana Gas is operating at the heart of the world’s largest hydrocarbon bearing region Production Profile Business Model across the gas value chain Mid Stream and Downstream asset EBGDCo – Liquid Extraction plant (LPG) UGTC & SajGas - Gas Transportation and Processing 35% in Crescent Natural Gas Corporation Limited (CNGCL) – Gas marketing www.danagas.com 7
Dana Gas: Independent E&P company listed on the ADX Dana Gas is operating at the heart of the Dana Gas is a MENASA focused gas World’s Largest Hydrocarbon region independent headquartered in the UAE Dana Gas is quoted in the UAE stock exchange (Abu Dhabi Securities Exchange). Bloomberg: DANA:UH Shares outstanding: 6,816 million Market capitalisation: approx. $1.5 billion Enterprise value: $2.2 billion Net Debt/(Cash) 1: $618 million (2014 Q1) Current Production: 68.8 kboed (2014 Q1) 2P Reserves 2 : 150 mmboe Strong Corporate Governance structure and a unique pan-MENA Board of Directors access to business opportunities in the world’s largest hydrocarbon region www.danagas.com 1.Total interest bearing debt less cash 8 2.Includes Egypt & UAE reserves only at end of 2013
Board of Directors consisting of luminaries from the MENA region providing unparalleled access to key markets Dr. Adel Al Sabeeh Sheikh Sultan Bin Ahmed Dr. Tawfeeq Al Moayed Ahmed Al Arbeed Chairman Al Qasimi Deputy Chairman Hamid Jafar KUWAIT KUWAIT UAE UAE BAHRAIN Former Chairman of Board Former Oil Minister of Deputy Chairman of Sharjah Chairman of Crescent of Directors of Kuwait Oil Chairman of T.A. Almoayed Kuwait, Chairman & MD of Petroleum Council & Group of Companies Co. (KOC), GM of Seven & Sons W.L.L. and Chairman National Industries Company Chairman of Sharjah Pipeline of Almoayed Wilhelmsen Sisters Company (NIC) Co Rashid Al Jarwan Majid Jafar Executive Director Ziad Galadari Managing Director of the Abdulaziz Al Jomaih Saeed Arrata UAE UAE SAUDI ARABIA Board - UAE EGYPT Former GM of ADGAS, Board Founder & Chairman of MD of International CEO of Crescent Petroleum, Chairman of Sea Dragon Director of Emirates General Galadari Advocates & Legal Investments of Aljomaih and Vice-Chairman of the Energy Company Petroleum Corporation , Consultants Crescent Group of Group Oman Insurance Company Companies and DIFC Investments www.danagas.com 9
Board of Directors consisting of luminaries from the MENA region providing unparalleled access to key markets Ahmed Al Midfaa Abdullah Al Majdouie Varouj Nerguizian Nasser Al Nowais Salah Al Qahtani UAE SAUDI ARABIA UAE UAE SAUDI ARABIA Chairman of Sharjah Group President and Vice Chamber of Commerce & ED & GM of Bank of Sharjah, Chairman of Rotana Hotels, Vice Chairman of Abdel Hadi Chairman of the Almajdouie Industry, Expo Centre Chairman and GM of MD of Abu Dhabi Trade Abdullah Al-Qahtani & Sons Group Sharjah and Ruwad Emirates Lebanon Bank SAL Centre Group of Companies Establishment in Sharjah Khalid Al Rajhi Rashad Al Zubair Patrick Allman-Ward SAUDI ARABIA OMAN UK CEO of Al-Rajhi Partners & Chairman of The Zubair Chief Executive Officer Al- Rajhi Holdings Corporation Dana Gas www.danagas.com 10
International and Experienced Management Team Patrick Allman-Ward Mark Fenton Robinder Singh CEO Duncan Maclean GM - Egypt IR Director Commercial and Bus. Dev. Over 30 years in the Oil & Gas Director Over 28 years of experience in business. Held senior roles at Over 27 years of international operating oil and gas companies, Over 20 years of experience in Shell as VP Exploration Asia- experience in Investor Relations, 17 years of which working with Oil & Gas. He has a commercial Pacific, CEO and Board Director marketing and corporate Shell International. He has and legal background, was of the South Rub Al Khali communications, product experience in both offshore and formerly the Global Head of Oil & Company (JV between Shell, management and business onshore oil field developments, Gas at a Top 10 global Law Total & Saudi Aramco). Width of development with Reliance particularly in the Middle East. He Firm. He has been a commercial experience spanning the entire Industries, HSBC and Bank of has held a range of technical, and legal adviser to multi- upstream value chain from America. Experienced in multiple management and executive national companies in the exploration to project billion dollar financial transactions; positions in oil companies. He is structuring and commercial management to delivering developing investor support for Member of the Society of arrangements for many of the sustainable returns across large scale capital raising Petroleum Engineers (SPE) iconic oil, gas and LNG projects multiple geographies in the Far programmes and a range of globally East, Middle East, Europe and mergers and acquisitions Africa www.danagas.com 11
Consistent growth and delivery since 2007 Revenue EBITDAX Profit After Tax www.danagas.com 12
Dana Gas: Recent Performance Highlights www.danagas.com 13
Strong performance trend (Q1 2014 vs Q1 2013) driven by sustainable volume growth and improving realisation Gross Profit: +16% YoY Revenue: Up 18% Y-o-Y Sharp increase in gross profit of $ 87 million, achieved Significant growth in revenue due to higher production mainly due to higher production in Egypt and higher sales and increase in sale of LPG (1Q 2013 impacted by of LPG in Kurdistan shutdown in KRI) despite the impact of planned shutdown in Egypt (9 days for El Wastani Operating profit higher by 67% due to higher production debottlenecking and upgrade) and lower costs Net profit declined (lower by 32%) due to one-off gain of $39 million in Q1 2013, following the partial sale of MOL shares. However, on a trailing quarter basis, Net profit was higher by 29% due to increased production in Egypt and higher sales of LPG in Kurdistan www.danagas.com 14
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