Ithaca Energy Plc · LSE:ITH

Ithaca Energy — Q1 2016 Earnings Presentation

13 slides from Ithaca Energy's earnings presentation, May 16, 2016

  1. Slide 1: Q1-2016 Financial Results

    Q1-2016 Financial Results 16 May 2016

  2. Slide 2: Disclaimer

    Disclaimer This proprietary presentation (including any accompanying oral presentation, question and answer session and any other document or materials distributed at or in connection with this presentation) (collectively, the “Presentation”) has been prepared by Ithaca Energy Inc. (“Ithaca” or the

  3. Slide 3: Highlights… Q1-2016

    Highlights… Q1-2016 Production 9kboe/d Unit Operating Expenditure $25/boe Cashflow from Operations $44M Net Drawn Debt – 31 March 2016 $630M Funding Headroom $100M+ Stella First Hydrocarbons September 2016 Photo: FPF-1 main deck oil and gas processing infrastructure ITHACA ENERGY Corporate Presentat

  4. Slide 4: Solid Q1-2016 performance

    Solid Q1-2016 performance Realised Hydrocarbon Price ($/boe)1 Unit Operating Expenditure ($/boe) Cashflow from Operations ($/boe) 82 $/boe2,3 81 $/boe $54/boe $47/boe3 31 $/boe2 25 $/boe 1% 19% 15% 2015 Q1-2016 2015 Q1-2016 2015 Q1-2016 Oil Hedging Gain Realised price held constant despite Downward

  5. Slide 5: Q1-2016 financial results

    Q1-2016 financial results Financial Summary Q1-2016 Q1-20152 Revenue1 – incl. Hedging Cash Gain $M 65.7 73.2  Hedging gains partially offsetting lower volumes Opex $M (20.2) (28.1)  Opex down 28% - improved asset mix and cost saving measures G&A $M (1.6) (3.4)  G&A cut 53% - overhead reduction in

  6. Slide 6: Cashflows underpinned by solid hedging position

    Cashflows underpinned by solid hedging position Oil & Gas Hedging Strong protection remains in place against continued commodity price weakness  Average 8.8kboe/d hedged (~50% oil) until mid-2017 at ~$61/boe 9.9kboe/d $94M mark-to-market of future hedges at end Q1-2016 7.0kboe/d Hedging strategy ha

  7. Slide 7: Sustainable business in “lower for longer” oil price environment

    Sustainable business in “lower for longer” oil price environment Unit Operating Expenditure ($/boe) Lower operating cost structure established  Improved production mix / operating cost base re-set $55/boe Continuation of reducing unit operating expenditure trend driven by Stella start-up $31/boe1 

  8. Slide 8: Flexible future investment programme tailored to commodity price outlook

    Flexible future investment programme tailored to commodity price outlook Exited significant capital expenditure phase driven by GSA hub infrastructure investment programme Capital Expenditure (M$) Flexibility and control over future capital commitments $370M Scale and balance of investment activitie

  9. Slide 9: Deleveraging of the business underway

    Deleveraging of the business underway Material reduction in net debt delivered in 2015 Net Debt & Finance Facilities (M$)  Disciplined financial management – non-core Norwegian business sale and premium equity placing Peak $730M Net debt down by further $35M over Q1-2016 to $630M >$800M Debt Availa

  10. Slide 10: Greater Stella Area… on track for first hydrocarbons in Q3-2016

    Greater Stella Area… on track for first hydrocarbons in Q3-2016 Development status Remaining key milestones  Five Stella wells drilled, tested and  Complete FPF-1 yard commissioning ready to flow  FPF-1 sail-away – June 2016  All subsea infrastructure in place  FPF-1 sail-away to first oil – 3

  11. Slide 11: FPF-1 work programme… sail-away planned for June 2016

    FPF-1 work programme… sail-away planned for June 2016 Onshore commissioning nearing completion 3 month programme from sail-away to first oil  Close out of punch-list activities underway  Tow and FPF-1 / subsea infrastructure hook-up  Marine certification works progressing to plan  Hydrocarbon co

  12. Slide 12: Flexible, high quality infrastructure hub… driving long term growth

    Flexible, high quality infrastructure hub… driving long term growth Highly attractive tie-back economics  Central hub infrastructure in place for Stella  Low incremental expenditure on satellite field developments – subsea tie-backs  Flexibility – new facilities, spare capacity, long life develop

  13. Slide 13: Summary… building momentum

    Summary… building momentum Solid cashflow generation  Production in line with guidance, further reduction in unit operating costs, material hedging gains FPF-1 sail-away on track  Vessel scheduled to sail to Stella in June 2016, with production start-up in September Robust liquidity and deleveragi

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