Ithaca Energy Plc · LSE:ITH
Ithaca Energy — FY2013 Earnings Presentation
19 slides from Ithaca Energy's earnings presentation, Mar 31, 2014
Slide 1: 2013 Financial Results
2013 Financial Results 31 March 2014
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
Slide 3: 2013 highlights
2013 highlights Valiant acquisition – broadening of the portfolio and further strengthening of the business Post-acquisition portfolio restructuring – significant value secured through farm-out programme Record financial results – step change in operating cashflow and earnings Greater Stella
Slide 4: 2013 Results
2013 Results ITHACA ENERGY Corporate Presentation | 4
Slide 5: Step change in operating cashflows and earnings delivered in 2013
Step change in operating cashflows and earnings delivered in 2013 Production driven revenue growth Profit & Loss Account Summary 2013 2012 % Av. Realised Oil Price $/bbl 107 110 -3% Step change in cashflow from operations - up 170% to $244M Total Production Kboe/d 10.4 4.7 122% Strong cash net
Slide 6: Capital investment programme underpinned by operating cashflows
Capital investment programme underpinned by operating cashflows 2013 Cashflow Evolution (M$) M$ Efficient financial gearing to maximise shareholder value Norwegian Tax 700 34 Refund Facility 151 Future cashflows underpinned by hedging 2.7MMbbl @ $100/bbl – 2014-15 500 ~25% puts / ~75% swaps RB
Slide 7: Fully funded business plan with robust balance sheet
Fully funded business plan with robust balance sheet Funding & Peak Debt (M$)1 $710M senior bank debt facilities and $70M oil sales pre-payment option in place M$ $780M 800 Oil sales pre-payment option with Shell provides 70 Oil Sales Facility additional low cost finance – 3% per annum $180M Cor
Slide 8: Balanced production and development asset portfolio
Balanced production and development asset portfolio 58MMboe1 2P reserves – Sproule independent reserves assessment 2P Reserves1 2P Reserves Replacement Rate Over 12-years 2P reserves life Balanced production / development assets reserves base MMboe 60 298% 300% 280% $1,665M post-tax net asse
Slide 9: Strong production growth profile from diverse asset base
Strong production growth profile from diverse asset base 2014 production guidance 11-13kboe/d, 95% oil Production (kboe/d)1 Timing of production enhancement activities weight volumes towards H2-2014 30 kboe/d Diverse production base – multiple fields 25 Next step in production growth driven
Slide 10: 2014 investment programme focused on delivering production growth
2014 investment programme focused on delivering production growth Dons Causeway $350M Total forecast 2014 capital expenditure / Fionn $200M GSA - delivering next production step-up Broom SW Heather $140M Targeting high return production Beatrice /Jacky enhancements on existing asset base Athena Fi
Slide 11: Greater Stella Area Development
Greater Stella Area Development ITHACA ENERGY Corporate Presentation | 11
Slide 12: Greater Stella Area development… next major value step
54.67% Working Greater Stella Area development… next major value step Interest PHASE 1 INFRASTRUCTURE >30MMboe net 2P1 reserves – delivering ~16kboe/d forecast net initial annualised production 4 initial Stella field start-up wells – 3 horizontal oil rim wells / 1 crestal gas-condensate producer
Slide 13: Development status… solid progress on delivery of major milestones
Development status… solid progress on delivery of major milestones Drilling Campaign Subsea Infrastructure FPF-1 Modifications First two Stella development wells ~65% overall subsea programme Good progress on key milestones completed completed, ~220 vessel days - Dry dock marine system works - Stron
Slide 14: Forward work programme… start-up of hub scheduled for end-2014
Forward work programme… start-up of hub scheduled for end-2014 Drilling Campaign Subsea Infrastructure FPF-1 Modifications Stella development wells #3 and #4 Installation activities to be Topsides processing plant works - Well #3 spudded March 2014 completed - Installation of processing plant and -
Slide 15: Outlook
Outlook ITHACA ENERGY Corporate Presentation | 15
Slide 16: Building a highly profitable 25kboe/d North Sea oil and gas company
Building a highly profitable 25kboe/d North Sea oil and gas company Maximise cashflow and production from existing assets Clear Grow via lower risk undeveloped discoveries and production acquisitions Strategy Deliver first hydrocarbons from the Greater Stella Area Find and monetise Norwegian
Slide 17: North Sea outlook
North Sea outlook UK North Sea Reserves & Resources1 Robust commodity price environment Northern North Sea 2.9 Bnboe Further improving landscape for mid-cap oil and gas operators Government implementation of “Wood Report” Fiscal and licence incentives to encourage development activity Centra
Slide 18: Summary
Summary ITHACA ENERGY Corporate Presentation | 18
Slide 19: Key messages
Key messages Lower risk North Sea production and development growth Focused strategy Disciplined financial management Driving value from Executing high return production enhancement activities existing portfolio Delivery of first production from Stella field Delivering longer Expansion of core Great