Dana Gas PJSC · ADX:DANA
Dana Gas PJSC — FY2014 Earnings Presentation
29 slides from Dana Gas PJSC's earnings presentation, February 2015
Slide 1: Clean Energy For the MENA Region's Tomorrow
Clean Energy For the MENA Region’s Tomorrow Dana Gas Investor Presentation February 2015 www.danagas.com 1
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements Forward-looking statements are based on certain assumptions which may be identified by their use of words like “plans,” and expectations of future events. The Company, its “expects,” “will,” “anticipates,” “believes,” “i
Slide 3: Presentation Outline
Presentation Outline Increasing role of gas in MENA Dana Gas – Business Profile Country Operations – Egypt, KRI and UAE Relative Valuations Summary www.danagas.com 3
Slide 4: Gas is the growth fuel of the 21st Century
Gas is the growth fuel of the 21st Century. It has strong environmental credentials, is cost competitive , is accessible and available in abundance Current full lifecycle costs for new-build power generation including externalities (USD per boe) 300 250 Fall in oil price has brought its price below
Slide 5: Middle East gas demand is poised for continued growth
Middle East gas demand is poised for continued growth as the region’s population and economy grows in coming decades. GDP Growth of Middle East1 Regional Gas Demand Growth in Last Decade 3,500 CAGR: 8.2% 3,000 500% 162 2,500 2013 Gas GDP, USD bn 450% Demand 2,000 (bcm pa) 1,500 400% Total Gas Demand
Slide 6: MENA region holds ca. 50% of global oil & gas reserves
MENA region holds ca. 50% of global oil & gas reserves but with limited access. Dana Gas has established presence in both large resource plays and growth market with open access Oil & Gas Proved Reserves 400 (Source: BP Statistical Review 2014) 1688 6558 Gas 350 MENA Reserve Ranking bln bbl Tcf MENA
Slide 7: Dana Gas as regional gas integrated player matching resource with markets
Dana gas as regional gas integrated player focused on matching resource with markets Gas Resource Holders in Middle East (incl. Egypt) 40 (Total Reserves: c. 82 Tcm) Proved Gas Reserves, tcm 35 Access to Private Capital Based on IHS estimates Open 30 60-70% of Middle Eastern Potentially Open 25 Incl
Slide 8: Dana Gas – Business Profile
Dana Gas – Business Profile www.danagas.com 8
Slide 9: Dana Gas: Independent E&P company listed on the ADX
Dana Gas: Independent E&P company listed on the ADX Dana Gas is operating at the heart of the World’s Dana Gas is a MENASA focused gas Largest Hydrocarbon region independent headquartered in the UAE Dana Gas is quoted in the Abu Dhabi Securities Exchange. Bloomberg: DANA:UH Shares outstanding:
Slide 10: Dana Gas works across the gas value chain
Dana Gas works across the gas value chain addressing both domestic and export market needs in MENA region Dana Gas is operating at the heart of the Production Profile world’s largest hydrocarbon bearing region CAGR 13% Reserve & Resources Mid Stream and Business Model across the gas value (YE 2013)
Slide 11: Consistent growth, delivery and financial performance since 2007
Consistent growth, delivery and financial performance since 2007 Production Revenue 800 CAGR :13% CAGR: 14% 700 600 USD Million 500 400 690 652 683 300 636 487 200 349 282 311 100 0 2007 2008 2009 2010 2011 2012 2013 2014 Profit After Tax 180 CAGR : 23% 160 140 USD Million 120 100 80 165 156 138 60
Slide 12: Dana Gas: Country Business Highlights
Dana Gas: Country Business Highlights www.danagas.com 12
Slide 13: Egypt gas fundamentals are robust
Despite a challenging business environment; Egypt gas fundamentals are robust. Dana Gas continuous to play a key role in increasing gas production in the core Nile Delta region Egypt GDP (USD bln) Egypt Primary Energy Demand (mln toe pa) 100 Primary Energy Demand (mln toe pa) Other Renewables 90 Coa
Slide 14: Dana Gas is the 6th largest operator in Egypt
Dana Gas is the 6th largest operator and 4th largest onshore producer in Egypt 2014 Gas Production Ranking in Egypt 1,000 (* denotes company is an operator) 2014 WI Production, mmcfpd 800 Dana Gas Egypt Credentials: 600 9th largest producer 6th largest operator th 4 largest onshore producer 400 200
Slide 15: Egypt: Nile Delta Operations
Egypt: Nile Delta Operations Development Leases: El Onshore acreage consisting of 13 Development Leases in the prolific Nile Wastani Delta region. One additional DL (Begonia) is expected to be approved before end of Q1/2015. Production: Q4 2014 avg. 37.9 kboepd is lower than Q3 production neverthele
Slide 16: Gas Production Enhancement Agreement (GPEA)
Gas Production Enhancement Agreement (GPEA) helps Egypt increase production while delivering long term value to Dana Gas GPEA – Project Execution underway Highlights: • 3 rigs currently being secured for drilling start-up by end Q1/2015 • Current plan is to drill 10 wells and approximately 10 work-o
Slide 17: Block 6 – North El Arish Offshore Opportunity
Block 6 – North El Arish Offshore Opportunity G&G studies prior to commencing seismic acquisition in Q4-14 / Q2-15 Environmental Impact Assessment ahead of seismic operations Seismic reprocessing of vintage 2D seismic data across the block Q4-14 The initial seismic acquisition will consist o
Slide 18: Newly awarded exploration blocks in Nile Delta
Newly awarded exploration blocks in Nile Delta enables Dana Gas to build on its core area production and utilising existing infrastructure Blocks 1 & 3 located adjacent to Dana Gas’ prolific Nile Delta development leases Awarded the North El Salhiya (Block 1) and El Matariya (Block 3) onshore conc
Slide 19: Operations in Kurdistan Region of Iraq
Operations in Kurdistan Region of Iraq DG share of production (40%) averaged 28,400 boepd during 4Q 2014: 119 MMscfd of natural gas 5,346 bbl/d of condensate 275 MT/d of LPG The Mol sieve beds for both Kor Mor plant trains have been replaced. Production of LPG increased from 514 MT/D in
Slide 20: Rich gas and condensate producer with strong growth track record
Rich gas and condensate producer with strong growth track record Khor Mor Field Production, Dana Gas net share (40%) 30 Gas 3 25 Liquids(Condensate + LPG) Production (kboed) 20 15 10 5 0 www.danagas.com 3. Current Condensate Gas Ratio (CGR) on Khor Mor is c. 45 bbl/mmscf comparable to Qatar North Fi
Slide 21: Khor Mor and Chemchemal potentially largest gas fields in the KRI
Khor Mor and Chemchemal are potentially largest gas fields in the KRI and comparable to large scale gas developments in the region Large Gas Developments in MENA (Source: Company disclosure) 60 Gas in Place * (in TCF) 30 0 KhorMor + Miran Bina Bawi Khazzan Leviathan + Al Hosn (sour Chemchemal (Tight
Slide 22: UAE: Zora Project Update
UAE: Zora Project Update Overall project progress is in line with plans for first gas in 1H 2015 with a capacity of 40 mmscfd (6,650 boepd) Offshore Pipeline 90% complete Offshore platform jacket complete and installation is planned for February 2015. Topsides Construction Progress is 64%
Slide 23: Dana Gas: Relative Valuations
Dana Gas: Relative Valuations www.danagas.com 23
Slide 24: EV and Production valuation relative to peers
EV and Production valuation relative to peers Enterprise Value vs. Production (2014E) EV ($bn) 2014 Production (kboepd) 10 100 9 90 8 80 WI Production (kboepd) Enterprise Value ($ bn) 7 70 6 60 5 50 4 40 3 30 2 20 1 10 0 0 www.danagas.com Source: Company Data, Bloomberg 24
Slide 25: Significantly undervalued relative to peers
Significantly undervalued relative to peers EV/EBITDA P/E 14 120 12 100 EV/EBITDA 2015e (x) P/EPS 2015e (x) 10 80 8 11.6 60 6 Mean* ~5.9 109.7 4 8.1 40 Mean * ~30.5 6.7 2 5.1 4.1 4.0 20 40.3 2.1 20.0 17.0 3.5 13.5 9.2 0 0 P/B 5 4 P/B 2015e (x) 3 4.6 2 Mean* ~1.5 1 2.4 1.5 0.3 0.8 0.6 0.1 0 * Europea
Slide 26: Dana Gas has mostly outperformed peers since Jan 2013
Dana Gas has mostly outperformed International and Middle Eastern (ME) peers since Jan 2013 International Peers ME Peers 150% 150% Dana Gas +3% DNO International +35% Dana Gas +3% Lundin Petroleum -44% Petroceltic -15% Premier Oil -57% Genel Energy -19% 100% 100% Gulf Keystone -72% Tullow -70% Relat
Slide 27: Summary
Summary www.danagas.com 27
Slide 28: Summary
Summary It has been a difficult operating environment for all of the reasons that have been identified and yet Dana Gas has continued to deliver excellent operating and financial results This speaks to the quality of our assets, both geological, physical and our staff Production has significan
Slide 29: 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 29