Dana Gas PJSC · ADX:DANA

Dana Gas PJSC — Investor Presentation (November 2017)

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

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

    Corporate Presentation Clean Energy For the Future November 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: Where are we today

    Where are we today MENA’s largest independently listed, natural gas-focused E&P company $125m $562m 9M 2017 net profit Cash – 31 Sept 2017 158% $49m KRI Egypt collections 9M 9M 2017 G&A and 2017 OPEX – lowest ever 67.6 1.14bn EGYPT UAE 9M 2017 group 2P total mmboe Production (boepd) reserves 3

  4. Slide 4: Asset Portfolio

    Asset Portfolio Kurdistan Region of Iraq  25.0 mboed (9M 2017)  Two world class fields – largest gas reserves in KRI  8+ years of historical production  Supplies two major power- stations UAE Egypt  1,550 boepd (9M 2017)  39.6 mboed (9M 2017)  Zora – offshore gas field  Top 5 gas producer in

  5. Slide 5: Egypt: Identifying Upside

    Egypt: Identifying Upside  First entered Egypt in 2007  Nile Delta acreage – 14 leases; 100% ownership; 2 processing plants  Onshore and offshore blocks  Production capacity at maximum output Aug 2014 – Gas Production Enhancement Agreement with government to add production and pay down historica

  6. Slide 6: Egypt: Growth potential

    Egypt: Growth potential Continue to deliver to the GPEA with 19 wells successfully drilled  5 exploration, 9 development and 5 recompletions in addition to 2 workovers in 2016 North El Salhiya (Block 1 – 100% WI)  Drilling two wells in Q4 2017 - ESAEN-1 and Bahy-2 North El Arish (Block 6 - 100% WI

  7. Slide 7: Egypt: Gas Market Fundamentals are Intact

    Egypt: Gas Market Fundamentals are Intact EGYPT - Gas Supply & Demand Balance (tcf) (Q3 2017 estimates) 4.0 Demand Delta (New Discoveries/Imports Needed // Export potential) Contracted/Planned LNG & other Imports Recent Dev.: Zohr 3.5 Recent Dev.: West Nile Delta Project Recent Dev.: North Damietta

  8. Slide 8: KRI: World Class Asset

    KRI: World Class Asset Pearl Petroleum Company Ltd  DG holding 35% (Dec 2015)  Crescent (35%), OMW, MOL, RWE (10%)  2 major fields: 75 Tcf GIIP, 7 bln bbls STOIIP Khor Mor and Chemchemal fields  Producing 75,000 boepd on average  307 MMscf of gas  13,269 bbls condensate  828 MT LPG  Operatio

  9. Slide 9: Gas Initially in place resources (TCF)

    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

  10. Slide 10: Sept 2017: KRG & Pearl Reach Final Settlement

    Sept 2017: KRG & Pearl Reach Final Settlement “The Parties have mutually agreed to fully and finally settle all their differences amicably by terminating the Arbitration and related court proceedings… implementing a mechanism for settlement of $2,239 million…” Settlement Highlights: Settlement – in

  11. Slide 11: UAE: Zora Gas Field

    UAE: Zora Gas Field  Producing gas since February 2016  9M 2017 production was 1,550 boepd  Preliminary results of FDP indicates further well intervention uneconomic at current gas prices  Result will need to be taken into consideration during annual reserves audit 11

  12. Slide 12: Substantial Reserves

    Substantial Reserves Total Reserves Comparison Reserves Comparison / 2P (MMboe) Total 1,140 1,155 mmboe KRI 990 mmboe Egypt 132 mmboe UAE 33 460 mmboe 353 304 215 161 Dana Gas MOL Premier Oil Tullow Enquest Genel Source: Company Annual Reports 2016 12

  13. Slide 13: Production (boepd) & Realized Prices (USD/boe)

    Production (boepd) & Realized Prices ( USD/boe) Average production 9M 2017 Vs 9M 2016 Average production Q3 2017 Vs Q3 2016 69,400 67,600 65,600 67,600 Q3 2016 9M 2016 Q3 2017 9M 2017 40,000 40,300 39,600 36,600 26,100 25,000 25,900 25,600 2,560 1,550 740 750 2,375* 1,700 725 700 Group Egypt KRI UAE

  14. Slide 14: Financial Highlights

    Financial Highlights Gross Revenue (million USD) EBITDA (million USD) 350 330 300 275 2016 2017 2016 2017 300 280 250 250 200 200 143 153 150 150 102 108 100 100 53 50 50 0 0 9M Q3 9M Q3 Gross Profit (million USD) Net Profit (million USD) 100 150 2016 2017 86 2016 2017 125 125 75 102 63 100 50 75 27

  15. Slide 15: CAPEX & OPEX

    CAPEX & OPEX G&A / OPEX (million USD) CAPEX (million USD) G&A OPEX 49 36 44 234 40 38 122 109 23 21 28 16 10 11 9M 2013 9M 2014 9M 2015 9M 2016 9M 2017 2015 2016 9M 2016 9M 2017 G&A / OPEX CAPEX  Company continues to optimise costs  Capex at $28m – minimal outlay  Disciplined, low spending approa

  16. Slide 16: Cash Flow, Liquidity & Receivables

    Cash Flow, Liquidity & Receivables Free Cash Flow (million USD)  Positive free cash flow as a result of Settlement Agreement with Kurdistan; as 407 well as higher revenues and low capital 366 expenditure 203 181  $562m cash in hand end of Q3 2017* 112 82 41  Kurdistan receivables paid and balance

  17. Slide 17: Sukuk

    Sukuk History - Sukuk ($/million) $1bn, 5-yr Ordinary Sukuk Sukuk issued @ 7.5% (millions) Converted $73m $1,000 Bought back $27m Pursuing $920 $920 $920 $920 litigation in UAE/UK $850 $850 courts Bought back $80m $777 $750 Refinancing - redeemed $70m; $700 $700 $700 Issued $850m; dual tranche 5-yr

  18. Slide 18: Arbitration & Sukuk Update

    Arbitration & Sukuk Update MOL (Pearl Petroleum shareholder)  MOL expressing dissatisfaction with outcome – wanted to renegotiate terms with Dana Gas and Crescent Petroleum (namely certain contingent payments)  Obtain formal declaration to resolve the matter UAE Gas Project (NIOC)  Oral hearings

  19. Slide 19: Summary as of Q3 2017

    Summary as of Q3 2017 Operations Financials  9M Group production 3% higher at 67,600 boepd  9M - $330m revenue and $86m gross profit – up 18% and  9M Egypt production 8% higher at 39,600 boepd 37% respectively vis-à-vis 9M 2016  9M KRI production steady at 25,600 boepd  9M - $125m net profit pr

  20. Slide 20: Key Focus / Strategy: 2017 - 2018

    Key Focus / Strategy: 2017 - 2018 1. 2. 1 2 Resolve Sukuk restructuring Invest to double production of gas and condensate and further develop our world-class fields in the KRI 3. 3 4. 4 Deliver full asset value through Improve collections and reducing operational efficiencies and receivables in Egyp

  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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