Jadestone Energy Plc · LSE:JSE
Jadestone Energy — H1 2020 Earnings Presentation
28 slides from Jadestone Energy's earnings presentation, Sep 10, 2020
Slide 1: H1 2020 Results Review
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level H1 2020 • Fifth level Results Review September 10, 2020 www.jadestone-energy.com 1
Slide 2: Disclaimer & advisories
Disclaimer & advisories Disclaimer You must read the following before continuing. The following applies to this document, the presentation of the information in this document any question‐and‐answer session that may follow, and any additional documents handed out at the presentation (collectively, t
Slide 3: Advisories
Advisories Certain of the information in this Presentation is “financial outlook” as approved by the Company’s Board of Directors as at September 9, 2020 within the meaning of applicable securities laws. The purpose of this financial outlook is to provide readers with disclosure regarding the Compan
Slide 4: Agenda
Agenda Overview 1 Paul Blakeley ⚫ Business update 2 Dan Young ⚫ H1 2020 results 3 Paul Blakeley ⚫ Concluding thoughts 4 Team ⚫ Q&A session 4
Slide 5: Jadestone Energy H1 2020 corporate overview
Jadestone Energy H1 2020 corporate overview Highlights Financial Statement extract, US$million ⚫ Maintaining focus on sustainability As at Jun-20 Jun-19 — Delivering business resiliency, managing COVID-19 Cash1 113.9 76.4 restrictions and maintaining Target Zero Total assets 735.5 803.5 ⚫ Doubled ne
Slide 6: Ensuring sustainability
Ensuring sustainability… …is not just about what we do, but how we do it Framework Scorecard and targets 0 0 10% reduction No harm to environment and zero No uncontrolled hydrocarbon Reducing our energy and GHG ‘reportable’ incidents releases to the environment emissions ENVIRONMENTAL EMISSIONS AND
Slide 7: COVID-19 response
COVID-19 response A methodical and comprehensive approach following the oil price collapse ⚫ Reduced crew levels and designed a new roster, including mandatory pre-shift isolation ⚫ Deferred non-critical offshore maintenance activities ⚫ Entered new partnerships for logistics (e.g. helis and supply
Slide 8: Project Clover
Project Clover Summary ⚫ Enhance business performance and efficiency ⚫ Specific focus on — Identifying and reducing cost and process inefficiency Project Clover — Reviewing and “right-sizing” the organisation initiated Apr 2020 — Optimising commercial terms and arrangements with vendors and/or with
Slide 9: Shuttle tanker operating model
Shuttle tanker operating model Cost savings & margin improvement with significant safety/environmental benefits Overview ⚫ FSO owner gave notice to retire Dampier Spirit this year, and elected not to provide a replacement vessel under the terms of their contract with Jadestone In response, Jadestone
Slide 10: 2020 Group production
2020 Group production Workover activity has been deferred, reducing near-term production Stag workovers ESP changeouts at Stag deferred during lower oil price and amidst COVID-19 restrictions Q1 maintenance at Montara Skua 10 well intervention Descaled and cleaned hydrocyclone. Reinjection Deferred
Slide 11: Operational performance
Operational performance Jadestone operatorship was a step change for both Stag and Montara Montara 1 US$/bbl Cost, US$/bbl Production, bbls/d bbls/d 30 15,000 ⚫ Logistics savings and reduced RLWI and compression recommissioned costs (Project Clover) 3 wells down & cyclones 25 ⚫ Reduced manning level
Slide 12: Southwest Vietnam gas development
Southwest Vietnam gas development Nam Du (Block 46/07) and U Minh (Block 51) gas fields Project overview ND/UM fields c. 30km from PM-03 CAA ⚫ 171bcf of 2C resources with a further circa 31bcf in Nam Du South fault block and resource upside ⚫ Provides domestic gas to existing Ca Mau industrial compl
Slide 13: Maari asset acquisition, 69% operated interest
Maari asset acquisition, 69% operated interest Strong acquisition metrics, operationally ready for transfer Transaction overview Shallow water Taranaki Basin ⚫ Economic effective date of January 1, 2019 ⚫ Headline cash consideration of US$50 million — 2P NPV of US$180 million1 and 2P reserves 13.9mm
Slide 14: Lemang, Indonesia asset acquisition
Lemang, Indonesia asset acquisition Low-cost resource add, near-term development in a core area for Jadestone Transaction overview ⚫ Asset acquisition of a 90% operated interest in the Lemang PSC1 ⚫ Headline initial consideration of US$12 million funded from cash ⚫ Key acquisition highlights, net to
Slide 15: Agenda
Agenda Overview 1 Paul Blakeley ⚫ Business update 2 Dan Young ⚫ H1 2020 results 3 Paul Blakeley ⚫ Concluding thoughts 4 Team ⚫ Q&A session 15
Slide 16: H1 2020 results—key headlines
H1 2020 results—key headlines Substantial cash generation Overview Average production, liftings and hydrocarbon prices ⚫ H1 2020 production of 12,116 bbls/d H1 2020 H1 2019 FY 2019 — Impacted by weather downtime, increased maintenance in Q1, and an intentional pull-back on well workovers and interve
Slide 17: Financial results—H1 2020 EBITDAX
Financial results—H1 2020 EBITDAX Half yearly 2020 adjusted EBITDAX reconciliation Income statement extract, US$ million EBITDAX, US$ million H1 2020 H1 2019 YE 2019 200 Reported 188 177 Adjusted Revenue 115.7 171.7 325.4 150 Production cost (44.5) (62.1) (119.9) 97 98 100 Staff costs (11.4) (10.3)
Slide 18: Financial results—H1 2020 cash bridge
Financial results—H1 2020 cash bridge Montara and Stag demonstrating strong positive cash generation US$ million Cash balance 250 Qtly ordinary cashflow Qtly non-recurring cashflow (3) (1) 200 (18) 21 (1) 34 (25) (36) 150 92 (7) (1) (6) (25) (10) 100 104 89 50 0 Opening Montara Montara Stag Stag Sta
Slide 19: Resilient cash flow generation in 2020
Resilient cash flow generation in 2020 Optionality through discretionary capex programme and Project Clover Reduced capex programme more than offsets reduced benchmark prices US$ million 300 200 100 0 Cash 2020 2020 2020 Reduced Vietnam Infill Tax 2 Lower Debt Cash Project Adjusted 3 4 Jan 2020 OCF
Slide 20: Maiden interim dividend, as promised
Maiden interim dividend, as promised US$2.5 million interim dividend to be paid October 30, 2020 Context Dividend policy Today’s interim dividend ⚫ A growth-oriented ⚫ Dividend policy adopted in ⚫ US$2.5 million maiden interim dividend business September 2019 declared ⚫ Increasing balance and — Inte
Slide 21: Revised 2020 guidance
Revised 2020 guidance Versus 2018 and 2019 actual 2018 actual1 2019 actual 2020 guidance Status Reduced investment by deferring Capex2, US$10 million US$78 million2 US$30 – 35 million Vietnam development and Australia US$ million infills Production deliberately reduced Production, 4,057 13,531 11,00
Slide 22: Agenda
Agenda Overview 1 Paul Blakeley ⚫ Business update 2 Dan Young ⚫ H1 2020 results 3 Paul Blakeley ⚫ Concluding thoughts 4 Team ⚫ Q&A session 22
Slide 23: Performance check-in
Performance check-in Current status on select 2020 performance measures Area of focus Measure Status ⚫ Zero serious incidents to date, maintaining “target zero” ✓ ⚫ No lapses in environmental stewardship ✓ ESG ⚫ No instances of COVID-19 among work force ✓ ⚫ Adoption of QCA code of governance ✓ ⚫ Pro
Slide 24: Commitments
Commitments Top of mind priorities Operations Liquidity Returns Growth Reduced well Record net cash Maari and Lemang Dividend announced workovers to ensure position of US$79 acquisitions on track to today wise spending million close Bolstering returns by Australia infill Prioritising ESG Now in fina
Slide 25: Agenda
Agenda Overview 1 Paul Blakeley ⚫ Overview, sustainability, COVID-19 response, project Clover 2 Dan Young ⚫ H1 2020 results 3 Paul Blakeley ⚫ Concluding thoughts 4 Team ⚫ Q&A session 25
Slide 26: Appendix
Click to add Slide Title Click to add sub head • Edit Master text styles • Second level • Third level • Fourth level Appendix • Fifth level www.jadestone-energy.com 26
Slide 27: Jadestone Energy—updated portfolio overview
Jadestone Energy—updated portfolio overview Building a balanced, low risk, full cycle portfolio Key assets location Key assets and reserves Gulf of 2P1 2C2 Thailand Asset Country W.I. (%) Production (net WI) / status (mm bbls) (mm boe) SC56 Maari 69% 12.2 -- 51 46/07 11,000—12,500 bbls/d 2020 Montar
Slide 28: Group work programme
Group work programme Medium term outlook of activity across the Jadestone portfolio Asset Activity 2020 2021 2022 + Montara Production optimisation & opex reductions Operations Stag Production optimisation & opex reductions Complete transition of operatorship, embed Maari Jadestone operating culture