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NewMed Energy
Investor Presentation • Nov 20, 2024
7125_rns_2024-11-20_a89c81cb-fc62-457f-b087-ab78e2ad25d1.pdf
Investor Presentation
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3Q 2024 Financial Results Presentation
November 2024
Disclaimer
This presentation was prepared by NewMed Partnership (the "Partnership") and is given to you only for the provision of che sake of convenience and may not be copied or diser person. The Data and information included in this presentation should not be interpreted as advice and should not be relied on for any participle the copied or used except as express w permitted in writing.
This presentation does not purport to be comprehension which might be relevant in comection with the making of a decision on an investment in securities of the Partnership.
No explicit or implicit representation or uny person regarding the accuracy or interny of any information included in this presentation in particular, no representation or undertaking is given reasonableness of any forecasts regarding the future chances of the Partnership.
To obtain a full picture of the Partnership and the risks entalled thereby see the full immediate and periodic reports filed by the Partnership with the Israel Securities Authority and the Tel. A including warnings regarding forward-looking information, as defined in the Securities Law, 572-1988, included therein. The forward-colining in the presentation in whole or in part, or may materialize differently than expected, or may oe affected by factors that cannot be assessed in advance.
For the avoidance of doubt, it is clarifers in do not under and or modify the information included in the presentation to rellect events and/or circumstances occurring after the date of preparation of the presentation.
This presentation is not an offer or invitation to buy or surities. This presentation and anything contained herein are nota basis for any contract or undertaking and are not to be relied upon in such on ovided in the presentation is not a basis for the making of any mestment decision, no a recommendation or an opinion, nor a substitute for the discretion of a potentialinvestor.
Key Highlights
- ロ 3rd quarter gas production c. 1,189 MMcf/d (209 Mboe/d), 3.10 BCM
- □ 3rd. quarter earnings \$221mm EBITDA / \$147mm net profit
- □ Leviathan Operational Update :
- 3rd GL project ■
- Leviathan Phase 1B FEED underway
- □ Financing : Deleveraging and preparing for a new investment cycle
- □ Dividend \$65mm Dividend distribution for the quarter.
Production Summary
| lsrael | Egypt | Jordan | Total | |
|---|---|---|---|---|
| 3Q / 2024 (BCM) | 0.5 | 1.8 | 0.8 | 3.1 |
| Average Price (\$/mmbtu) | 6.18 | |||
| 3Q / 2023 (BCM) | 0.4 | 1.7 | 0.8 | 2.9 |
| Average Price (\$/mmbtu) | 6.06 |
* Production Summary for Leviathan 100%
Price Environment
- ロ Non-material gas supply disruptions due the ongoing conflict
- □ 3rd Gathering Line project. First Gas expected End 2025 (originally Mid 2025)
- □ Phase 1B FEED Progressing on FEED and long lead procurement agreements
Key 3rd Quarter Financial Metrics (smm)
EBITDA calculated as Operating profit + Deprecation and Amortization
P&L Summary (\$mm)-
| For the period | 7-9/2024 | 7-9/2023 | 2023 |
|---|---|---|---|
| Revenues From natural gas and condensate sales | 313.6 | 285.8 | 1,094.4 |
| Net of royalties | 46.0 | 41.9 | 159.8 |
| Revenues, net | 267.6 | 243.9 | 934.6 |
| Expenses and costs: | |||
| Cost of production of natural gas and condensate | 40.5 | 37.0 | 148.6 |
| Depreciation, depletion and amortization expenses | 25.6 | 19.3 | 79.2 |
| Other direct expenses | 1.4 | 1.1 | 5.3 |
| G&A | 5.1 | 5.0 | 20.8 |
| Total expenses and costs | 72.6 | 62.4 | 253.9 |
| The Partnership's share in the losses / Profits of a company accounted for at equity | (0.7) | (1.3) | |
| Operating profit | 195.0 | 180.8 | 679.4 |
| Financial expenses | (27.4) | (30.5) | (133.8) |
| Financial income | 24.2 | 7.8 | 28.7 |
| Financial expenses, net | (3.2) | (22.7) | (105.1) |
| Profit before income taxes | 191.8 | 158.1 | 5/4.3 |
| Taxes on income | (44.5) | 147.3 | (142.8) |
| Profit from continued operation | 147.3 | 117.9 | 431.5 |
| Total profit from discontinued operations | (0.3) | 2.1 | |
| Net income | 147.0 | 117.9 | 433.6 |
3rd Quarter Change in Net Profit (\$mm)
Financial Debt (s'в)
- □ NewMed's Leviathan Bond buy back amounts to \$91mm. Board approved additional buyback plan of \$100mm Leviathan Bonds.
- □ Agreements for the provision of credit facilities totaling \$400mm
- □ \$433.1mm cash and deposits for the quarter
- □ Deleveraging ahead of a new investment cycle
Balance Sheet Summary (\$mm) ---
NNA
| For the Period Ending | 30.09.2024 | 30.09.2023 | 31.12.2023 |
|---|---|---|---|
| Assets: | |||
| Current assets: | |||
| Cash and cash equivalents | 157.4 | 17.3 | 29.1 |
| Short-term deposits | 275.7 | 38.7 | 157.6 |
| Trade receivables | 240.8 | 227.9 | 194 5 |
| Trade and other receivables | 108.9 | 140.9 | 187.1 |
| Current taxes receivable | 4.0 | ||
| 782.8 | 428.8 | 568.3 | |
| Non-current assets: | |||
| Investments in oil and qas assets | 2,689.5 | 2,604.0 | 2,647.3 |
| Investments in a company accounted for at equity | 60.7 | 57.6 | 58.4 |
| Long-term deposits | 0.5 | 100.7 | 101.9 |
| Other long-term assets | 516.2 | 536.6 | 470.3 |
| 3,266.9 | 3,298.9 | 3,277.9 | |
| 4,049.7 | 3,727.7 | 3,846.2 | |
| Liabilities and equity: | |||
| Current liabilities: | |||
| Current maturities of bonds | 552.9 | ||
| Short term banks Loan | 15.0 | 80.0 | |
| Income tax payable | 35.0 | 27.7 | |
| Trade and other payables | 155.8 | 115.9 | 101.1 |
| Other short-term liabilities | 2.9 | 2.5 | 2.2 |
| 746.6 | 133.4 | 211.0 | |
| Non-current liabilities: | |||
| Bonds | 1,139.3 | 1,734.1 | 1,735.1 |
| Deferred taxes | 353.3 | 330.5 | 313.9 |
| Other long-term liabilities | 77.6 | 69.3 | 73.7 |
| 1,570.2 | 2,133.9 | 2,122.7 | |
| Equity: | |||
| Partners' equity | 154.8 | 154.8 | 154.8 |
| Capital reserves | (28.1) | (28.8) | (28.6) |
| Retained earnings | 1,606.2 | 1,334.4 | 1,386.3 |
| 1,732.9 | 1,460.4 | 1,512.5 | |
| 4,049.7 | 3,727.7 | 3,846.2 |
Aphrodite
□ The Aphrodite JV Partners have submitted a Development Plan to MECI, which is currently under review and seeking approval
Morrocco-Boujdour License
□ Processing and analyzing the available data
Dividends
- ロ \$65mm profit distribution for the quarter
- ロ Approximately \$1bn returned to unitholders in profit distribution from Leviathan start up*
Dividend Distributions
* Including latest declared Dividend and tax balancing distribution
NN. Thank You NewMed Energy- IR Tel. +972 9 971 2421 [email protected]
Appendix
Leviathan Bond Sponsor Financial Data Report
| QUARTER ENDED | 30.09.2024 | |
|---|---|---|
| QUANTITY/ACTUAL | ||
| AMOUNT (IN USD\$ ,000) | ||
| Total Offtake (BCM) | 3.1 | |
| Leviathan Revenues (100%) | 691,700 | |
| Loss Proceeds, if any, paid to Revenue Account | ||
| Sponsor Deposits, if any, into Revenue Account | ||
| Gross Revenues (before Royalties) | 331,692 | |
| Overriding Royalties | ||
| Statutory Royalties | (35,994) | |
| (b) Third Party Royalties | (14,276) | |
| Net Revenues | 281,422 | |
| Costs and Expenses: | ||
| Fees Under the Financing Documents (Interest Income) | 1,215 | |
| Taxes | (21,960) | |
| Operation and Maintenance Expenses | (39,353) | |
| Capital Expenditures | (4,915) | |
| Insurance (income) | (11,210) | |
| Total Costs and Expenses (sum of Items H(a), (b), (c), (d) and (e)) | (76,223) | |
| Total Cash Flows Available for Debt Service (Item G minus Item H) | 205,199 | |
| Total Cash Flow from operation (Item G minus Items H(c) and H(e) | 230,859 | |
| Total Debt Service | 35,173 | |
| Total Distribution to the Sponsor | 74,500 |