First Half 2019 Financial and Operating Results 02 August 2019 - PowerPoint PPT Presentation

First Half 2019 Financial and Operating Results 02 August 2019

First Half 2019 Highlights  Completed definitive feasibility study for the first phase of the Silangan Project: • Mineral resource estimates up 43% to 571 million tonnes compared to 398 million tonnes as previously declared in 2011 for the Boyongan, Bayugo and Kalayaan ore deposits • First phase expected to yield 81 million tonnes of mineable reserves out of 279 million tonnes of mineral resource estimates for the Boyongan deposit, carrying high-quality ore grades of 0.63% for copper and 1.20 grams per tonne for gold  Appointed reputable and top-notch professional advisers for equity raising, project financing and legal advisory  Launch search process for possible strategic partners  Reported net income of P391 million for the first semester of 2019  Core net income of P93 million for the second quarter of 2019 2 2

Operating Statistics Q1 2019 Q2 2019 +/- 1H 2019 1H 2018 +/- Tonnes Milled (‘000) 1,832 1,973 8% 3,805 4,388 -13% Production: Gold – ozs 10,493 13,182 26% 23,675 34,583 -32% Copper – lbs (‘000) 5,727 6,280 10% 12,007 14,149 -15% Recovery: Gold 74% 78% 4% 77% 76% 1% Copper 81% 82% 1% 82% 79% 3% Ore Grade: Gold – gms/dmt 0.239 0.266 11% 0.253 0.321 -21% Copper - % 0.175 0.176 - 0.175 0.186 -6% Average Realized Prices: Gold – (US$/oz) 1,304 1,329 19% 1,316 1,314 - Copper – (US$/lb) 2.96 2.66 -10% 2.75 3.11 -12% • Mining Operations: Strong recovery in metal production for Q2 2019 due to improved operational efficiencies and higher ore grades 3

Financial Summary (in Php mn) Q1 2019 Q2 2019 +/- 1H 2019 1H 2018 +/- Gross Revenues 1,613 1,752 9% 3,365 4,646 -28% Smelting Charges 137 139 -1% 276 377 -27% Net Revenues 1,476 1,613 9% 3,089 4,269 -28% Costs and Expenses 1,566 1,567 - 3,133 3,361 -7% Other Income (Charges) 294 143 -51% 437 (129) - Net Income 206 185 -10% 391 552 -29% Core Net Income (Loss) (112) 93 - (19) 646 - EBITDA 217 443 104% 660 1,734 -62% Margins: EBITDA Margin (%) 13% 25% 12% 20% 37% -17% Net Income Margin (%) 13% 11% -2% 12% 12% - • Core Net Income: Sharp sequential quarter rebound in Q2 2019 due to improved metal production • Costs and Expenses: Impact of continuous cost containment programs • Other Income (Charges): Reversal of previously written-off receivables 4

Balance Sheet June 2019 December 2018 (in Php mn) Cash & Cash Equivalents 101 871 Receivables & Others 3,588 3,582 • Total Assets: Silangan Project Total Current Assets 3,689 4,453 accounts for more than 60% of Property, Plant & Equipment 4,916 5,404 total assets Deferred Exploration Costs 26,050 25,448 • Short-Term Debt: Additional loan availments for working capital Others 5,408 5,406 purposes Total Assets 40,064 40,712 Short-Term Debt 2,511 2,156 Others 2,531 4,104 Total Current Liabilities 5,042 6,260 Bonds Payable 7,520 7,333 Deferred Tax Liabilities & Others 2,780 2,790 Total Liabilities 15,973 17,012 Total Equity 24,091 23,699 5

Capital Expenditure CAPEX Distribution (in Php Mn) 923 898 18 71 112 347 715 558 1H 2019 1H 2018 Padcal Silangan Other Mine Exploration 6 6

PXP Energy Corporation Financial Highlights and Operational Updates

Financial Highlights – Profit and Loss % Inc (in PhP millions) 1H 2019 1H 2018 (Dec) Gross revenue ₱ 51 ₱ 67 -23% Cost and expenses 86 110 -22% Loss from operations (35) (44) -21% Other income - net 17 11 55% Reported net income (loss) ₱ (18) ₱ (33) -46% • 23% decrease in gross revenue due to:  Lower average crude price; shut-in of SC14 Matinloc wells • 22% decrease in cost and expenses due to:  Plug and Abandonment costs in SC14 Matinloc  Accrual of expenses • 46 % lower net loss due to:  Higher other income, lower cost and expenses offset by lower revenue from petroleum 2

Financial Highlights – Financial Position ASSETS (in PHP millions) As of Jun 30, As of Dec 31, 2019 2019 2018 2018 % Inc (Unaudited) (Audited) (Dec) Cash & cash equivalents ₱ 280 ₱ 342 -18.3% Receivables and other CA 95 86 9.3% Current assets 374 429 -12.7% Deferred exploration costs & other NCA 6,765 6,818 -0.8% Total assets ₱ 7,139 ₱ 7,247 -1.5% LIABILITIES AND STOCKHOLDERS’ EQUITY (in PHP millions) As of Jun 30, As of Dec 31, 2019 2019 2018 2018 % Inc (Unaudited) (Audited) (Dec) Due to affiliate ₱ 739 ₱ 2,125 -65.2% Accounts payable & others 28 34 -18.7% Current liabilities 767 2,160 -64.5% Deferred income tax liability 1,114 1,113 0.1% Others 200 192 4.3% Non-current liabilities 1,314 1,305 0.7% Total liabilities 2 2,082 3,465 3 -39.9% Capital stock 1,960 1,960 0.0% Additional Paid-in Capital 2,816 2,821 - Subscription receivable (924) (2,311) - Deficit (1,379) (1,374) 0.4% Others 211 276 -23.5% Non-controlling interest 2,374 2,410 -1.5% Total equity 5,058 3,782 33.7% Total Liabilities and SHE ₱ 7,139 ₱ 7,247 -1.5% 3

Operations Update SC 6A SC 14C1 SC 14C2 SC 6B SC 14B Cadlao SC 14A TUMBES BASIN, OFFSHORE PERU 4 4 4

Operations Update 1/2 SC 72 Recto Bank (Forum 70%)  Under Force Majeure (FM) since December 15, 2014.  Forum will have 20 months upon lifting of the FM to drill the two (2) commitment wells.  Completed the broadband PSDM reprocessing of 565 sq. km 3D seismic data. Started the interpretation of the said reprocessed data.  The acceptance by the Philippines of China’s version of the Terms of Reference on joint oil and gas exploration in the West Philippine Sea, which was reported in early July 2019, another step towards the lifting of the FM in SC 72. SC 74 Linapacan Block (PXP 70%)  The gravity modeling and seismic interpretation of MC2D data are underway.  Ongoing paleodating of rock samples collected during the fieldwork in the Calamian Islands last June 2018 by the UP National Institute of Geological Sciences.  The SC 74 and SC 14C2 (West Linapacan) Consortia are conducting Rock Physics and Quantitative Interpretation (QI) studies over the Linapacan and West Linapacan areas with Ikon Science as contractor. SC 75 NW Palawan (PXP 50%)  Under FM since December 27, 2015.  Sub-Phase 2 will have a term of 18 months upon lifting of FM with the acquisition of 1,000 sq km of 3D seismic data as the minimum work commitment. 1 August 2019 CONFIDENTIAL 5

Operations Update 2/2 SC 40 North Cebu (Forum 66.67%)  Gravity data modeling is underway using land gravity data acquired in 2018. SC 14C1 Galoc (Forum 2.27%)  Continued production in Galoc Field. Cumulative production from October 2008 to June 2019 stood at 21.73 million barrels of oil.  The Consortium led by Galoc Production Company (GPC) plans to install a Condensate Recovery Unit (CRU) onboard the FPSO Rubicon Intrepid starting August 2019 to recover condensate from the gas stream for an additional liquid production of about 250- 300 barrels per day. The CRU will be fully operational by October 2019. Peru Block Z-38 (Pitkin 25%)  Karoon entered into rig negotiations during the second quarter to secure a drillship in preparation for drilling the Marina-1X exploration well planned for late calendar year 2019/early 2020. The Marina prospect has an unrisked best estimate prospective resource of 256 mmbbls of oil at 100% (64 mmbbls net to Pitkin). This prospect will be the first well drilled in Block Z-38. Pitkin is carried in the cost of Marina-1X and a second future well under a Farm-in Agreement signed with Karoon in 2008.  The participating interest in Z-38 are as follows: Karoon Gas – 40%, Tullow Oil – 35%, and Pitkin Petroleum – 25% 1 August 2019 CONFIDENTIAL 6