Dana Gas PJSC · ADX:DANA
Dana Gas PJSC — Dana Gas — EFG Hermes 3rd London MENA Conference 2013
41 slides from Dana Gas PJSC's conference presentation, September 2013
Slide 1: Clean Energy For MENA Region's Tomorrow
Clean Energy For MENA Region’s Tomorrow Dana Gas Investor Presentation September 2013 www.danagas.com 1
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking Forward-looking statements are based on certain statements which may be identified by their use of assumptions and expectations of future events. The words like “plans,” “expects,” “will,” “anticipates,” Company, its subsidiaries a
Slide 3: Presentation Outline
Presentation Outline MENA Region and its relevance Dana Gas: Brief Overview Recent Performance Country Operations Valuations Summary www.danagas.com 3
Slide 4: Region holds largest share of global conventional oil & gas reserves and production
Focused on a region that holds the largest share of global conventional oil & gas reserves and production Proved Gas Reserve (2012) Global Gas Production (2012) 6614 Tcf 118 Tcf p.a Proved Oil Reserve (2012) Global Oil Production (2012) 1669 Bln bbl 86.2 mln bopd Countries included: Iran, Iraq, Saud
Slide 5: Natural Gas as the Fuel of Choice for growing energy demand in MENA
Natural Gas has the potential to become the Fuel of Choice for the growing energy demand in MENA Increased demand for denuclearization Global Population Trends (Source: UN) 70% less CO2 than coal in power generation (old plants) Very limited particulate emissions Small physical footprint ver
Slide 6: Focused on growing domestic demand in MENA
Focused on growing domestic demand in MENA MENA Primary Energy Demand MENA Country Primary Energy Mixes3 (Source: EIA) (Source: BP Statistical Review 2013 & IEA Data) CAGR of gas consumption 7% Percentages represent gas consumption as 35% share of total primary energy consumption 27% 24% 41% 46% 50%
Slide 7: Dana Gas: A Brief Overview
Dana Gas: A Brief Overview www.danagas.com 7
Slide 8: Independent E&P company listed on the ADX
Independent E&P company listed on the ADX Dana Gas is a MENASA focused gas Dana Gas is operating at the heart of the World’s independent headquartered in the UAE Largest Hydrocarbon region Dana Gas is quoted in the UAE stock exchange (Abu Dhabi Securities Exchange). Bloomberg: DANA:UH Shares o
Slide 9: Board of Directors from the MENA region provide access to key markets
Board of Directors consisting of luminaries from the MENA region provide unparalleled access to key markets Sheikh Sultan Bin Ahmed Dr. Tawfeeq Al Moayed Dr. Adel Al Sabeeh Al Qasimi Deputy Chairman Hamid Jafar Ahmed Al Arbeed Chairman UAE BAHRAIN UAE KUWAIT KUWAIT Deputy Chairman of Sharjah Chairma
Slide 10: Board of Directors from the MENA region providing access to key markets
Board of Directors consisting of luminaries from the MENA region providing unparalleled access to key markets Ahmed Al Midfaa Abdullah Al Majdouie UAE Varouj Nerguizian Nasser Al Nowais Salah Al Qahtani SAUDI ARABIA Chairman of Sharjah UAE UAE SAUDI ARABIA Group President and Vice Chamber of Commerc
Slide 11: Portfolio with substantial upside
Portfolio with substantial upside www.danagas.com 11
Slide 12: Proven track record in exploration, accelerated development and inorganic opportunities
Proven track record based on top class exploration, accelerated development and inorganic opportunities Value Delivery Model Drill bits success – Nile delta exploration success – Reserve growth Exploration √ Nile Delta Exploration 2007-2012 M&A (47 exploratory wells with – Egypt entry: acquisiti
Slide 13: Top-class Management Team
Top-class Management Team Patrick Allman-Ward Rashid Al Jarwan CEO Robinder Singh Executive Director IR Director Over 30 years in Oil & Gas. Prior Over 35 years in Oil & Gas, held to joining Dana Gas, held senior Over 25 years of international the position of Acting CEO and roles at Shell as VP Expl
Slide 14: Largest independent gas producer amongst regionally owned peers
Largest independent gas producer amongst regionally owned peers Reserve Ranking of MENA region owned Independent E&P companies 1400 (Source: Woodmac) WI Commercial and Technical Reserves Technical 1200 Commercial 5 (mmboe) 1000 800 600 400 200 0 GKP Genel Dana Gas DNO Kuwait Pico Energy Corp 80 Prod
Slide 15: Doubled Reserves and Production in 5 years
Doubled Reserves and Production in 5 years Dana Gas Reserve Growth (Egypt + UAE) 200 2P Reserves (mmboe) 160 120 80 40 0 2007 2008 2009 2010 2011 2012 Dana Gas Production Profile 70 Iraq 60 WI Production (kbopd) Egypt 50 40 30 20 10 0 2007 2008 2009 2010 2011 2012 H1 2013 www.danagas.com 15
Slide 16: Key Financial Metrics have doubled in 5 years
Key Financial Metrics have doubled in 5 years Revenue: Profit After Tax: Operations Cash Flow: EBITDAX: www.danagas.com 16
Slide 17: Dana Gas: Recent Performance Highlights
Dana Gas: Recent Performance Highlights www.danagas.com 17
Slide 18: 1H 2013 Performance Highlights
1H 2013 Performance Highlights HSSE Strong focus continues across the group with improvements across all performance metrics Production Group production up at 61,500 BOEPD, marginally higher on a year-on-year basis In Egypt, average total production up 4% to 34,200 BOEPD and in August 2013 ach
Slide 19: 1H 2013 Financial Performance
1H 2013 Financial Performance Percentage (In $ million) 1H – 2013 1H - 2012 Change Gross Revenue 296 342 (13) Net Profit 93 105 (11) EBITDAX 168 220 (24) EPS (AED fils) 5.2 5.8 (10) Decline in revenue mainly due to lower hydrocarbon prices in second quarter of 1H 2013 and lack of LPG production in
Slide 20: Dana Gas: Country Business Highlights
Dana Gas: Country Business Highlights www.danagas.com 20
Slide 21: Egypt: Business Environment
Egypt: Business Environment Economic and political situation likely to stabilize with wider relations with the international investment community - over $ 12 billion in support by Saudi Arabia, UAE and other Gulf Arab states seen as a strong positive for economic development Foreign reserves up
Slide 22: Meaningful position in rich hydrocarbon zones in Egypt
Meaningful position in rich hydrocarbon zones in Egypt 20 Egypt Proved Oil and Gas 18 Gas Reserves History Oil and Gas Reserves, Bn boe 16 Egypt has managed c. Dana Gas focus area in Egypt 14 Oil 100% reserves 12 replacement of oil since 10 mid-1980s 8 6 Nile Delta / East 4 Mediterranean 2 0 Western
Slide 23: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations Discoveries: – Begonia -1 tested 1.6 kboed El Wastani – Reserves estimated at 15 bcf New Development Leases: – Sama Amendment (West Sama) – El Basant Amendment (Allium) – Balsam – Begonia Begonia – 1 New Fields on Stream: Discovery – South Abu El Naga (W. Manzala) Av. Pr
Slide 24: Largest gas producer in high-potential Kurdistan Region of Iraq
Largest gas producer in high-potential Kurdistan Region of Iraq Oil Resource Potential Gas Resource Potential (Source: ANP,MNR,USGS) (source: MNR, ANP, Songas) 70 Resource Potential 60 120 Gas Resource Potential 50 100 (Bln bbl) Mostly 40 80 associated 30 gas (Tcf) 60 20 10 40 0 20 Brazil (incl Pre
Slide 25: Kurdistan Operations
Kurdistan Operations • Total net production averaged at 27,300 BOEPD during 1H 2013: – 130 MMSCFD of natural gas – 5730 Bbl/D of condensate • Enhanced bench strength by placing key positions • Completed engineering, fabrication, installation and stress testing of the new LPG loading bay resulting in
Slide 26: UAE: Zora Project Update
UAE: Zora Project Update • Project scope includes the following: – Offshore platform – Offshore & Onshore Pipeline (35 km offshore & 2.5km onshore – Gas Treatment Onshore Plant (to receive 40 MMSCFD of gas and 300 bbl/day associated hydrocarbon condensate • Commercial and technical bids evaluated an
Slide 27: Dana Gas: Relative Valuations
Dana Gas: Relative Valuations www.danagas.com 27
Slide 28: Significantly undervalued relative to peers
Significantly undervalued relative to peers 12.0 45 P/E EV/EBITDA 40 10.0 EV/EBITDA 2013e (x) 35 P/EPS 2013e (x) 8.0 30 25 6.0 11.0 9.5 20 40.3 4.0 8.4 15 27.3 26.4 6.1 2.0 4.0 4.0 10 3.4 2.9 5 11.9 10.6 9.3 8.9 5.9 0.0 0 6.0 P/B 5.0 P/B 2013e (x) 4.0 3.0 5.2 2.0 2.8 2.6 1.0 1.4 1.4 1.0 0.7 0.4 0.0
Slide 29: EV and Production valuation relative to peers
EV and Production valuation relative to peers Enterprise Value vs. Production EV ($bn) H1 2013 Production (kboepd) 16.3 7.5 5 100 H1 2013 Production (kboepd) 90 Enterprise Value ($ bn) 4 80 70 3 60 50 2 1.6 40 30 1 20 10 0 0 www.danagas.com Source: Company Data, Bloomberg 29
Slide 30: Recent developments positively impacting stock performance
Recent developments positively impacting stock performance www.danagas.com 30
Slide 31: Summary
Summary www.danagas.com 31
Slide 32: Summary
Summary ● Strong operational track record of organic and inorganic growth across the natural gas value chain ● Unique composition of the Board of Directors provide unparalleled access to the resource-rich MENA region ● Track record of project delivery and HSSE performance across geographies ● Delive
Slide 33: 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 Fax : +971 6 556 6522 www.danagas.com
Slide 34: Back-up Information
Back-up Information www.danagas.com
Slide 35: HSSE: On Track to Outperform
HSSE: On Track to Outperform 2012 - a turning point for Dana Gas with several lessons learnt. We implemented new strategies that resulted in the following: – All three operating areas have shown improvements in HSE performance – On track to beat all the HSE metrics on our Group scorecard, but do n
Slide 36: Achieved significant success in Egypt following a successful acquisition
Achieved significant success in Egypt following a successful acquisition Dana Gas has added c.140 mmboe of reserves since acquisition in Exploration Success Ratio 2007 80% Exploration Success (%) 70% – Centurion 2P reserves were at c.67.9 mmboe at the time of acquisition 67% 67% 67% 60% 64% 57% –
Slide 37: Holder of meaningful resources in the prospective gas prone areas of KRI
Holder of meaningful resources in the prospective gas prone areas of KRI Gas Resource Holders in KRI (Source: Woodmac, Aug 2013) 14 Khor Mor & ChemChemal Gas Fields are located in the Gas Resources (in TCF) gas prone region of KRI 0 5 10 Pearl Petroleum Genel Energy Talisman GKP WesternZagros Gas pr
Slide 38: Rich gas producer focussed on domestic gas supply
Rich gas producer focussed on domestic gas supply and maximising yield through condensate and liquid extraction Pearl Petroleum Company Ltd ownership: Dana Gas Resources in KRI Dana Gas 40% (Source: Woodmac) Crescent Petroleum 40% 600 OMV 10% 500 Reserves, mmboe MOL 10% 400 73% - Gas 300 200
Slide 39: Established itself as a key onshore gas player in Egypt
Established itself as a key onshore gas player in Egypt Reserve holders in Egypt 3.6 2.1 (source: Woodmac) 2.0 WI Commercial & Technical 1.8 Technical Commercial 1.6 Reserves, bn boe 1.4 1.2 1.0 0.8 0.6 0.4 0.2 - Egypt gas production ranking (2013e) (source: Woodmac) WI Gas Production, mmcfd 1200 10
Slide 40: Significantly undervalued relative to listed peers in international markets
Significantly undervalued relative to listed peers in international markets P/E ranking of Dana Gas Peers (Source: Bloomberg Consensus 03rd Sep 2013) 45 40 2013e 35 2014e 30 25 P/E (X) 20 15 10 5 0 www.danagas.com Source: Bloomberg Consensus 40
Slide 41: The End
The End www.danagas.com
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