Dana Gas PJSC · ADX:DANA

Dana Gas PJSC — Dana Gas — JP Morgan Credit & Equities Emerging Markets Conference 2016

22 slides from Dana Gas PJSC's conference presentation, September 2016

  1. Slide 1: Clean Energy For the Future

    Clean Energy For the Future JP Morgan Credit & Equities Emerging Markets Conference September 2016 London, UK 1

  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: Content

    Content • Dana Gas Today • Financial Overview • Receivables Overview • Debt Overview • Valuation Analysis • Sukuk • Capex / Opex • Production • Reserves • Asset Portfolio • Arbitration • Key Focus – Strategy 3

  4. Slide 4: Dana Gas Today

    Dana Gas Today MENA’s largest independently listed, Total Production (kboepd) HY natural gas-focused E&P company 66.2 68.9 FY 64.7 63.9 63.7 59.8 Significant premier assets 55.5  63,000+ boepd production  1bn+ 2P reserves Listed on ADX 2010 2011 2012 2013 2014 2015 2016 Market capitalisation over

  5. Slide 5: Financial Overview

    Financial Overview Revenue (million $) • Revenue and net profit impacted in 2014 and 2015 due to low oil prices FY $120 HY $90 Oil $60 • $13m net profit H1 2016 despite: $30  Revenue loss 652 683 417 231 178 $0  Lower production - 5% PPCL sale 2013 2014 2015 2016 • Cost optimization achieved throu

  6. Slide 6: Receivables Overview

    Receivables Overview As of 30 June 2016, total KRI: $726m Egypt: $230m Total: $956m receivables overdue Egypt Kurdistan 300 140% 300 140% Billing Billing Collection Collection 121% % % 117% 120% 120% 111% 225 225 94% 95% 100% 100% Millions ($) Millions ($) 84% 80% 80% 150 78% 150 60% 55% 60% 45% 40%

  7. Slide 7: Debt Overview

    Debt Overview Free Cash Flow (million $) FY HY 39 22 17 -32 2013 2014 2015 2016 Net Debt (million $) FY HY 511 513 391 462 2013 2014 2015 2016 Net Debt / Equity (FY 2015) 301% 300% 229% 126% 100% 23% 13% 9% -21% -100% Premier Enquest Tullow DNO Dana Genel Ophir Source: Bloomberg Market Data 7

  8. Slide 8: Valuation Competitor Analysis

    Valuation Competitor Analysis 10 EV (2016) / Reserves 2P (2016) 10 1.4 1.2 1.15 7.5 7.3 1 Enterprise Value ($/bn) Reserves / 2P (MMboe) 0.8 5 0.72 0.6 3 0.39 0.4 2.5 0.33 0.32 1.5 0.24 1.1 0.2 0.57 0.46 0.06 0 0 Lundin Tullow Premier Dana Gas DNO Genel Ophir Source: Bloomberg Market Data

  9. Slide 9: Sukuk: Financials and Policies

    Sukuk: Financials and Policies History - Sukuk ($/million) $1,100 $1,000 $1,000 $920 $920 $920 $920 Converted $73m $900 $850 $850 $1bn, 5-yr Ordinary Sukuk Bought back $27m issued @ 7.5% $800 $777 Bought back $80m Refinancing - redeemed $750 $70m; $700 Issued $850m; dual $700 tranche 5-yr Sukuk $425

  10. Slide 10: CAPEX & OPEX: Mitigating low oil prices

    CAPEX & OPEX: Mitigating low oil prices G&A (millions/$) FY HY • Driving efficiencies across the 40 32 portfolio 28 30 23 20 • Disciplined approach to G&A and 10 7 other expenses 0 2013 2014 2015 2016 • Operating cost savings down 15% over 3 years ≈ $10 million CAPEX / OPEX (millions/$) 2013 250 234

  11. Slide 11: Production Profile

    Production Profile Egypt (kboepd) HY FY HY Total * (kboepd) 42.3 42.5 32.2 36.7 39.9 33.9 36.5 2010 2011 2012 2013 2014 2015 2016 HY KRI (kboepd) FY 55.5 66.2 59.8 64.7 68.9 63.9 63.7 2010 2011 2012 2013 2014 2015 2016 * Include Zora Gas Field – H1 2016 13.2 23.7 27.5 27.6 28.5 29.3 25.8 2010 2011 2

  12. Slide 12: Reserves – 2P

    Reserves – 2P KRI Total Egypt UAE 990 1,151 mmboe mmboe 130 mmboe 31 mmboe Reserves Comparison / 2P (MMboe) 1,400 1,200 1,151 1,000 800 600 555 400 332 322 242 216 200 0 Dana Gas MOL Premier Oil Tullow Genel Enquest Source: Company Annual Reports 12

  13. Slide 13: Asset Portfolio

    Asset Portfolio Egypt 36,500 boepd (Q2 2016) Top 5 producer in-country Kurdistan Region of Iraq 14 Development Leases and 3 26,000 boepd (Q2 2016) exploration concessions Two world class fields – largest gas Significant exploration upside reserves in KRI 7+ years of historical production Supplies tw

  14. Slide 14: Egypt: Identifying Upside and Maximising Production

    Egypt: Identifying Upside and Maximising Production First entered Egypt in 2007 • ⧣5 largest E&P in-country • Nile Delta acreage – 14 leases; 100% ownership; 2 processing plants • Awarded 3 new blocks in 2013-14 including 1st offshore block in Egypt Signed historic GPEA with government, Aug 2014, to

  15. Slide 15: Egypt: Identifying Upside and Maximising Production

    Egypt: Identifying Upside and Maximising Production • Nile Delta:  4 wells have been tied into existing system  Contract awarded for standalone processing unit  Balsam 4,5,6 planned for completion and tie-back in H2 2016 • Block 1 (100% WI)  Reprocessing 2D and 3D seismic  Plan drill 4 explorat

  16. Slide 16: Egypt: Gas Market Fundamental are Intact

    Egypt: Gas Market Fundamental are Intact EGYPT - Gas Supply & Demand Balance (bcm) (Q3 2016 estimates) Demand Delta (New Discoveries/Imports Needed // Export potential) Contracted LNG Imports Future Dev.: Mocha 1 Success Case 100 Future Dev.: Zohr Dabaa Nuclear Future Dev.: West Nile Delta Project F

  17. Slide 17: Kurdistan: World Class Asset

    Kurdistan: World Class Asset Pearl Petroleum Company Ltd • Holding 35% (Dec 2015) • Crescent (35%), OMW, MOL, RWE (10%) • 2 major fields Khor Mor and Chemchemal fields • Producing 75,000 boepd on average • Operations maintained despite Chemchemal security situation Khor Mor • Largest gas reserves in

  18. Slide 18: Two of the largest gas fields in MENA

    Two of the largest gas fields in MENA Large gas Developments in MENA (Source: Company Disclosure) 100 90 Gas Initially in place resources (TCF) 80 70 60 50 40 30 20 10 0 Khor Mor & Miran Bina Bawi Khazzan Leviathan & Zohr (Egypt) Al Hosn (UAE) Atoll (Egypt) Chemchemal ** (Oman) * Tamer (Israel) Note

  19. Slide 19: 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 sour

  20. Slide 20: Arbitration Update

    Arbitration Update • Kurdistan Region of Iraq  Sept 2016 LCIA heard remaining contractual issues  In limine issues concerning Consortium damage claims and KRG counterclaims  Quantum hearing scheduled for H1 2017 • UAE Gas Project  2014 Arbitration Award was found in favour of Crescent Petroleum

  21. Slide 21: Key Focus / Strategy: 2016 - 2018

    Key Focus / Strategy: 2016 - 2018 Delivering full asset value through operational efficiencies and cost reductions Turning growth potential to production through focused capital expenditure Improving collections and reducing receivables Realising material growth potential through high impact drillin

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