Dana Gas PJSC · ADX:DANA

Dana Gas PJSC — Investor Presentation (March 2017)

21 slides from Dana Gas PJSC's investor presentation, March 2017

  1. Slide 1: Corporate Presentation: Clean Energy For the Future

    Corporate Presentation Clean Energy For the Future March 2017

  2. Slide 2: Disclaimer

    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 abo

  3. Slide 3: Update

    Update Operations Financials  Group production up 5% to 67,050 boepd  One-off interest rate adjustment led us to a net loss of $88  Q4 Egypt production up 31% million  2P reserves increased to 132 Mmboe - 115% 2P reserve  Continued successful cost reduction with G&A and opex down 43% & 7% to pr

  4. Slide 4: Where are we today

    Where are we today MENA’s largest independently listed, natural gas-focused E&P company 67.1 $982m 2016 group Receivables end of Production (boepd) 2016 129% 43% KRI KRI collections 2016 G&A reduction 2016 1.14bn 92% EGYPT UAE 2P total mmboe Egypt drill success reserves 2016 4

  5. Slide 5: Asset Portfolio

    Asset Portfolio Kurdistan Region of Iraq  26.0 mboed (2016)  Two world class fields – largest gas reserves in KRI  7+ years of historical production  Supplies two major power- stations UAE Egypt  2,700 boepd (2016)  37.6 mboed (2016)  Zora – offshore gas field  Top 5 producer in-country proj

  6. Slide 6: Egypt: Identifying Upside

    Egypt: Identifying Upside  First entered Egypt in 2007  ⧣5 largest E&P in-country  Nile Delta acreage – 14 leases; 100% ownership; 2 processing plants  Onshore and offshore blocks Aug 2014 – Gas Production Enhancement Agreement with government to add production and pay down historical receivable

  7. Slide 7: Egypt: Identifying Upside

    Egypt: Identifying Upside Continue to deliver to the GPEA with 19 wells successfully drilled  5 exploration, 9 development and 5 recompletions in addition to 2 workovers  A further 11 exploration wells in the next 2 years Block 1 (100% WI)  Reprocessing 2D and 3D seismic  Plan drill 4 exploratio

  8. Slide 8: Egypt: Gas Market Fundamentals are Intact

    Egypt: Gas Market Fundamentals are Intact EGYPT - Gas Supply & Demand Balance (tcf) (Q1 2017 estimates) 4.0 Demand Delta (New Discoveries/Imports Needed // Export potential) Contracted/Planned LNG & other Imports Future Dev.: Zohr 3.5 Future Dev.: West Nile Delta Project Future Dev.: North Damietta

  9. Slide 9: Kurdistan: World Class Asset

    Kurdistan: World Class Asset Pearl Petroleum Company Ltd  DG holding 35% (Dec 2015) Chemchemal fields  Crescent (35%), OMW, MOL, RWE (10%)  2 major fields: 75 Tcf GIIP, 7 bln bbls STOIIP Khor Mor Khor Mor and Chemchemal fields  Producing 75,000 boepd on average  Operations maintained despite se

  10. Slide 10: Two of the largest gas fields in MENA

    Two of the largest gas fields in MENA Large Gas Developments in MENA Kurdistan MENA 120 (Source: Company Disclosure) Gas Initially in place resources (TCF) 80 40 0 Khor Mor & Miran Bina Bawi Khazzan Leviathan & Zohr (Egypt) Al Hosn (UAE) Atoll (Egypt) Chemchemal ** (Oman) * Tamer (E. Med) Notes: Vol

  11. Slide 11: UAE: Delivering first gas

    UAE: Delivering first gas First offshore gas production for Dana Gas  100% operator of Sharjah Western Offshore Concession  First gas delivered in Feb 2016  Plant capacity of 40 MMcfd (6,650 boepd)  Gas transported to onshore processing facility; sold to domestic market  Delivering clean source

  12. Slide 12: Production & Realized Prices (boepd)

    Production & Realized Prices (boepd) Q4 2016 Vs Q4 2015 FY 2016 Vs FY 2015 67,050 63,900 69,500 FY 2015 60,300 Q4 2015 FY 2016 Q4 2016 37,600 40,500 33,900 29,300 30,900 26,000 28,800 26,200 2,700 700 750 0 0 2,100 600 700 Group Egypt KRI UAE EBGDCO Group Egypt KRI UAE EBGDCO Average Realized FY15 V

  13. Slide 13: Substantial Reserves

    Substantial Reserves Total Reserves Comparison Reserves Comparison / 2P (MMboe) Total 1,140 1,140 mmboe KRI 990 mmboe Egypt 120 mmboe 555 UAE 30 mmboe 332 322 242 216 Dana Gas MOL Premier Oil Tullow Genel Enquest Source: Company Annual Reports 13

  14. Slide 14: Financial Performance

    Financial Performance Gross Revenue (million USD) EBITDA (million USD) 500 417 250 232 392 207 400 200 300 150 200 89 100 112 64 93 100 50 0 0 Q4 2015 2016 FY Q4 FY 2015 2016 Gross Profit (million USD) Net Profit* (million USD) 150 134 144 126 130 103 80 100 30 50 40 -20 Q4 FY 29 -70 0 -120 -88 -114

  15. Slide 15: CAPEX & OPEX

    CAPEX & OPEX G&A / OPEX (million USD) CAPEX (million USD) G&A OPEX 55 56 52 234 122 122 28 23 13 2014 2015 2016 2014 2015 2016 G&A / OPEX CAPEX Reduced operating expense and G&A  Capex reduced by 48% in 2016  G&A 43% lower  All non-critical capex deferred in Egypt  OPEX 7% lower GPEA – all annua

  16. Slide 16: Receivables & Collections

    Receivables & Collections 31 December 2016, total trade receivables is $982 million Egypt Kurdistan 300 Billing 140% 300 Billing 140% 129% Collection Collection 121% % % 120% 120% 225 111% 225 100% 100% Millions ($) Millions ($) 80% 80% 150 64% 150 60% 60% 40% 40% 75 75 30% 20% 14% 20% 173 210 113 1

  17. Slide 17: Liquidity & Debt

    Liquidity & Debt Free Cash Flow (million $) 39 22 17 2013 2014 2015 9M 2016 -26 Gross Debt & Cash Balance (million $) 470 304 322 235 850 546 777 542 884 414 811 489 2013 2014 2015 9M 2016 Gross Debt Net Debt Cash and Cash equivalents 17

  18. Slide 18: Sukuk

    Sukuk History - Sukuk ($/million) $1bn, 5-yr Ordinary Sukuk Sukuk Converted $73m issued @ 7.5% (millions) Bought back $80m $1,000 Bought back $27m $920 $920 $920 $920 $850 $850 $777 $750 Refinancing - redeemed $70m; $700 Issued $850m; dual tranche 5-yr Sukuk $425m Convertible @ 7% $425m Ordinary @ 9

  19. Slide 19: Arbitration Update

    Arbitration Update Kurdistan Region of Iraq  First Award of 2 July 2015 confirming the Claimants’ long-term contractual rights  Second Award of 29 November 2015 awarding the Claimants US$1.96 billion for outstanding unpaid invoices for the produced condensate and LPG  KRG withdrew claims to chall

  20. Slide 20: Key Focus / Strategy: 2016 - 2018

    Key Focus / Strategy: 2016 - 2018 1. 2. 1 2 Delivering full asset value through Managing for margin – balancing operational efficiencies and cost capex with cash from receivables reductions 3. 3 4. 4 Improving collections and reducing Realising material growth potential receivables through high impa

  21. Slide 21: Reach Us: Dana Gas PJSC

    Reach Us: Dana Gas PJSC P. O. Box 2011, Sharjah, UAE www.danagas.com E-mail : [email protected] Direct : +971 6 519 4401

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