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NewMed Energy
Investor Presentation • May 26, 2024
7125_rns_2024-05-26_88b4395c-10e9-4740-b25c-ff462ea45e1d.pdf
Investor Presentation
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1Q 2024 Financial Results Presentation - J
May 2024 4 1 1 1
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 distributed to any other person. The Data and information should not be interpreed as advice and should not be relief on for any purpose should not be copied or used except as express 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 entailed 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 Lau, 572-1988, included therein. The forward-oking internation may not materialize 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 of securities. This presentation and anything contained herein are not a basis for any contract or undertaking and are not to be relied. The information provided in the presentation is not abasis for the making of any investment desison, no a recommendation or an opinion, nor a substitute for the discretion of a potentialinvestor.
Key Highlights
□ 1st quarter production - c. 1019 MMcf/d (179 Mboe/d), 2.63 BCM
□ 1st quarter earnings - \$179mm EBITDA / \$121mm net profit
□ Leviathan Operational Update :
- Condensate Sales .
- Third Gathering Line -
- New Local Market GSPA Eshkol Energies
- □ Leviathan Expansion and Aphrodite Project Update
- □ Dividend \$60mm Dividend distribution for the quarter.
Production Summary
| Israel | Egypt | Jordan | Total | |
|---|---|---|---|---|
| 1Q / 2024 (BCM) | 0.2 | 1.87 | 0.6 | 2.6 |
| Average Price (\$/mmbtu) | 6.16 | |||
| 1Q / 2023 (BCM) | 0.6 | 1.57 | 0.7 | 2.8 |
| Average Price (\$/mmbtu) | 6.09 |
* Production Summary for Leviathan 100%
Source : BDO
- ロ Agreement with Eshkol Power Energies, to supply the Buyer, on a firm basis, with daily gas quantities in an aggregate annual volume of approx. 0.5 BCM, in additional quantities on an interruptible basis. Total estimated of Approx. \$650mm.
- □ Additional gas volumes expected to be contracted in next few years
Leviathan Operations
- □ Starting March 2024, Condensate is flowing south From Leviathan to Ashdod Refinery.
- = First \$ sales in the first quarter.
- □ 3rd Gathering pipeline from the Leviathan field to LPP, continues as planed on time on budget.
- ▪
Leviathan Expansion & Aphrodite Development
Leviathan Phase 1B
- " Upstream development planning is progressing- The pre-FEED phase has been completed, including the design of underwater infrastructures and required facilities on the production rig
- ▪ Phase 1B FEED Approved budget of \$32.2mm (100%) for the preparation of FEED, expected to commence 3Q 2024.
- " In parallel expanding the regional connectivity export pipelines also progressing.
- INGL Ashdod-Ashkelon pipeline currently expected during 2025.
- Preliminary budgets approval by Leviathan partners for a compressor station for the expansion of the regional transmission system, expected to commence 1H 26.
- total capacity subject to GTA signed with INGL.
Aphrodite
▪ Continued discussion with MECI regarding Aphrodite reservoir development plan
Regional Connectivity Update
Key 1st Quarter Financial Metrics (\$mm)
EBITDA calculated as Operating profit + Deprecation and Amortization
1st Quarter Change in Net Profit (\$mm)
P&L Summary (\$mm)-
| For the period | 1-3/2024 | 1-3/2023 | 2023 |
|---|---|---|---|
| Revenues From natural gas and condensate sales | 263.2 | 281.1 | 1,094.4 |
| Net of royalties | 37.1 | 41.1 | 159.8 |
| Revenues, net | 226.1 | 240.0 | 934.6 |
| Expenses and costs: | |||
| Cost of production of natural gas and condensate | 44.4 | 38.2 | 148.6 |
| Depreciation, depletion and amortization expenses | 19.0 | 19.9 | 79.2 |
| Other direct expenses | 0.8 | 0.8 | 5.3 |
| G&A | 3.2 | 5.6 | 20.8 |
| Total expenses and costs | 67.4 | 64.5 | 253.9 |
| The Partnership's share in the losses / Profits of a company accounted for at equity | 1.0 | (1.3) | (1.3) |
| Operating profit | 159.7 | 174.2 | 679.4 |
| Financial expenses | (29.6) | (37.2) | (133.8) |
| Financial income | 27.4 | 19.9 | 28.7 |
| Financial expenses, net | (2.2) | (17.3) | (105.1) |
| Profit before income taxes | 157.5 | 156.9 | 574.3 |
| Taxes on income | (36.4) | (36.2) | (142.8) |
| Profit from continued operation | 121.1 | 120.7 | 431.5 |
| Total profit from discontinued operations | 21 | ||
| Net income | 121.1 | 120.7 | 433.6 |
Financial Debt («в) —
* Bond Debt
Balance Sheet Summary (\$mm)
NNA
| For the Period Ending | 31.03.2024 | 31.03.2023 | 31.12.2023 |
|---|---|---|---|
| Assets: | |||
| Current assets: | |||
| Cash and cash equivalents | 152.3 | 83.9 | 29.1 |
| Short-term investments and deposits | 895 | 398.8 | 157.6 |
| Trade receivables | 226.1 | 216.2 | 194.5 |
| Trade and other receivables | 146.3 | 120.4 | 187 1 |
| Current taxes receivable | 73 | ||
| 614 2 | 826.6 | 568.3 | |
| Non-current assets: | |||
| Investments in oil and gas assets | 2,645.5 | 2,563.7 | 2,647.3 |
| Investments in a company accounted for at equity | 59.3 | 58.4 | 58.4 |
| Long-term deposits | 103.1 | 0.5 | 101.9 |
| Other long-term assets | 481.9 | 579.8 | 470.3 |
| 3,289.8 | 3,202.4 | 3,277.9 | |
| 3,904.0 | 4,029.0 | 3,846.2 | |
| Liabilities and equity: | |||
| Current liabilities: | |||
| Current maturities of bonds | 391.2 | ||
| Short term banks Loan | 80.0 | ||
| Declared profits for distribution | 60.0 | 60.0 | |
| Income tax payable | 17.9 | 27.7 | |
| Trade and other payables | 121.2 | 122.6 | 101.1 |
| Other short-term liabilities | 2.3 | 10.6 | 2.2 |
| 201.4 | 584.4 | 211.0 | |
| Non-current liabilities: | |||
| Bonds | 1,728.1 | 1,732.0 | 1,735.1 |
| Deferred taxes | 330.6 | 292.9 | 313.9 |
| Other long-term liabilities | 70.1 | 70.7 | 73.7 |
| 2,128.8 | 2,095.6 | 2,122.7 | |
| Equity: | |||
| Partners' equity | 154.8 | 154.8 | 154.8 |
| Capital reserves | (28.4) | (29.5) | (28.6) |
| Retained earnings | 1,447.4 | 1,223.7 | 1,386.3 |
| 1,573.8 | 1,349.0 | 1,512.5 | |
| 3,904.0 | 4,029.0 | 3,846.2 | |
Dividends
* Including latest declared Dividend
- □ \$60mm distribution for the quarter
- ロ \$845mm returned to unitholders in Dividend from Leviathan start up
Dividend Distributions (\$mm)
NN. Thank You NewMed Energy- IR Tel. +972 9 971 2421
Appendix
Leviathan Bond Sponsor Financial Data Report
| QUARTER ENDED | 31.03.2024 | |
|---|---|---|
| ITEM | QUANTITY/ACTUAL | |
| AMOUNT (IN USD\$ ,000) | ||
| Total Offtake (BCM) | 2.6 | |
| Leviathan Revenues (100%) | 580,501 | |
| Loss Proceeds, if any, paid to Revenue Account | ||
| Sponsor Deposits, if any, into Revenue Account | ||
| Gross Revenues (before Royalties) | 234,382 | |
| Overriding Royalties | ||
| Statutory Royalties | (29,442) | |
| (b) Third Party Royalties | (11,677) | |
| Net Revenues | 193,263 | |
| Costs and Expenses: | ||
| Fees Under the Financing Documents (Interest Income) | 813 | |
| Taxes | (28,864) | |
| Operation and Maintenance Expenses | (39,931) | |
| Capital Expenditures | (25,856) | |
| Insurance (income) | (774) | |
| Total Costs and Expenses (sum of Items H(a), (b), (c), (d) and (e)) | (94,612) | |
| Total Cash Flows Available for Debt Service (Item G minus Item H) | 98,651 | |
| Total Cash Flow from operation (Item G minus Items H(c) and H(e) | 152,558 | |
| Total Debt Service | (7,714) | |
| Total Distribution to the Sponsor | (159,000) |