Jadestone Energy Plc · LSE:JSE
Jadestone Energy — Q3 2017 Earnings Presentation
23 slides from Jadestone Energy's earnings presentation, Nov 28, 2017
Slide 1: Results for Qtr Ending Sep 30, 2017, and Corporate Outlook
Results for Qtr Ending Sep 30, 2017, and Corporate Outlook November 28, 2017
Slide 2: Disclaimer & advisories
Disclaimer & advisories Disclaimer You must read the following before continuing. The following applies to this document, the presentation of the information in this document, and any question‐and‐answer session that may follow (collectively, the "Presentation"). In viewing the Presentation, you agr
Slide 3: Advisories
Advisories Forward Looking Statements Information Certain statements in this Presentation are forward looking statements and information (collectively “forward looking statements”), within the meaning of the applicable Canadian securities legislation, as well as other applicable international securi
Slide 4: Advisories
Advisories ⚫ "Operating netback" is a common non-GAAP metric used in the oil and gas industry. This measure assists management and investors to evaluate the specific operating performance by product at the oil and gas lease level. Operating netback is calculated as realised price less royalties, ope
Slide 5: Agenda
Agenda Webcast presentation: quarter ended September 30, 2017 1 Paul 1 Blakeley ⚫ Quarter highlights, corporate update, developments 2 Dan Young ⚫ Financial review Paul 3 Blakeley ⚫ Outlook, conclusions Robin 4 Martin ⚫ Questions 5
Slide 6: Strategy is working; several major and near-term catalysts
Corporate update Strategy is working; several major and near-term catalysts The strategy is Major near- working term catalysts Current snapshot—quarter ending Select achievements Near term outlook September 2017 ⚫ New management team & new strategy ⚫ Average Sep quarter production embedded ⚫ Ogan Ko
Slide 7: Corporate development—AIM listing & raise
Corporate development—AIM listing & raise Jadestone is exploring the option to list and raise funds on the AIM Market Overview Rationale ⚫ Pursuing several organic and inorganic growth options ⚫ Existing core shareholders are — Inorganic growth options must meet strict threshold criteria, committed
Slide 8: Financial review—key headlines
Financial review—key headlines Jadestone reports profit, positive net cash flow and further operating efficiency Overview Average production (net WI) and hydrocarbon prices ⚫ 5.6% increase in production in the quarter versus Jun qtr Sep 30, Jun 30, Quarter ending 2017 2017 ⚫ Revenue of US$21.4mm for
Slide 9: Financial results—quarterly cash bridge
Financial results—quarterly cash bridge First quarter of positive free cash flow generation from operations US$’000s Stag: US$4.5mm positive operating Cash balance 35,000 cash generation before non-recurring costs, US$3.1mm positive FCF Qtly ordinary cashflow generation after capex and non- Qtly non
Slide 10: Financial results—EBITDAX
Financial results—EBITDAX Jadestone reports positive EBITDAX for the September quarter 3 months ended Sept 30, 2017 3 months Depletion, ended depreciation, Sept 30, US$’000s Reported Non-recurring exploration Adjusted 2016 Revenue 21,383 - - 21,383 - Cost of sales (15,216) (588) - (14,628) - Depleti
Slide 11: 2017 calendar guidance is unchanged
2017 calendar guidance is unchanged Key focus on H2 2017—post transfer of Stag operatorship on July 10, 2017 Key metrics for remainder of the calendar year Other significant potential future events ⚫ Stag performance ⚫ 4,300—4,800boe/d (net working interest) for the remainder Production of calendar
Slide 12: Embedded value in the current asset base
Embedded value in the current asset base Downside de-risked with cash-flowing assets and more than C$5 NAV/share upside 8 NAV bridge, US$mm NAV bridge, C$/share US$mm Existing JSE asset Subject to PVN pre-emption3 C$/share Existing JSE asset Subject to PVN pre-emption3 1,200 7 1,051 6.07 6 1,000 53
Slide 13: Stag update
Stag update Jadestone has already implemented several initiatives to boost production and lower costs at Stag, while having completed its firstquarterly Stag NOPSEMA productionaudit and operating costs, 2017 Milestones in a tier 1 regulatory environment bbl/d US$mm Prior Operator ⚫ Digital asset liv
Slide 14: Ogan Komering outlook
Ogan Komering outlook Maximising returns on investment prior to the new PSC ⚫ Adhering to highest HSE standards: 2.845 million manhours without LTI ⚫ Stable, reliable production ⚫ Process modifications at Mandala increasing sales gas by 8% with further potential to increase sales gas by re- perforat
Slide 15: Ogan Komering outlook: Value delivery under the new PSC
Ogan Komering outlook Value delivery under the new PSC Existing discoveries ready to be developed Value delivery post new PSC ⚫ Progress early development of existing gas discoveries — Jantung Baru, North Meraksa, Bandar Agung ~100 bcf (gross) ⚫ Exploration upside N Meraksa — P50 prospective resourc
Slide 16: Jadestone's Southwest Vietnam gas
Jadestone’s Southwest Vietnam gas Nam Du & U Minh gas will be commercialised via the same route as TLM’s PM- 03 Vietnam gas Malay Basin detail of Jadestone’s Southwest Vietnam gas Select comments ⚫ Nam Du and U Minh discoveries are ~23km apart in adjacent Jadestone blocks Planned pipeline ⚫ Immediat
Slide 17: Efforts to commercialise Nam Du and U Minh continue
Efforts to commercialise Nam Du and U Minh continue Jadestone is now accelerating our preferred standalone development solution Field development plan (FDP) Outline Reserve EPC, development FEED, assessment drilling, plan EPCI bid conditioning report (RAR) installation (ODP) Gas sale agreement (GSA)
Slide 18: Future Asia-Pacific opportunities
Future Asia-Pacific opportunities Focus on basins where we can deploy our skills to unlock trapped value Jadestone Energy core focus area Select comments ⚫ Potential M&A opportunities must meet Near sanction project providing Jadestone’s strict threshold acquisition infrastructure hub combined crite
Slide 19: Management alignment with shareholder value
Management alignment with shareholder value Attract and retain the best talent, align compensation to shareholder value Target weighting of compensation elements Short-term incentive assessment criteria 100% Value People/ 39% 37% 63% accretive organisation 75% 66% growth pay pay 62% 61% 78% 61% 78%
Slide 20: Jadestone Energy investment case
Jadestone Energy investment case A strategy that works, a high value portfolio, and a plan for value accretive growth ⚫ Management team with proven abilities to add value and world class second phase specialisation A strategy that ⚫ Objectives aligned with shareholders works ⚫ One year into the stra
Slide 21: Appendix
Appendix Additional Materials
Slide 22: Jadestone Energy, portfolio overview and NAV
Jadestone Energy, portfolio overview and NAV Snapshot Select blocks, ordered by expected commercialisation1 2P 2C Target production Block W.I. (%) (mm boe) (mm boe) Operator (net WI) / status 17.8 Stag 100% N/A Jadestone 3,000-3,500bbl/d (100%) 1 Ogan Reserves estimated JOB with 50% ~1,300 boe/d SC5
Slide 23: Jadestone Energy strategic focus
Jadestone Energy strategic focus Asia Pacific strategic focus with a proven business model and resilient Balance Sheet Value creation Balanced portfolio Focused approach Prioritise margin Balanced portfolio of Focus on select core areas in improvement and accretive production and APAC, a region with