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NewMed Energy
Investor Presentation • May 11, 2023
7125_rns_2023-05-11_44b34def-8391-49da-a09e-831ec8fc40e8.pdf
Investor Presentation
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1Q 2023 Financial Results Presentation
May 2023 - 1 - 1
Disclaimer
This presentation was prepared by NewMed Energy (the "Partnership") and is given to you only for the provision of or the 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 relief on for any participle the copied or used except as express w permitted in writing.
This presentation does not purport to be comain any and allinformation which might be relevant in comestion 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 the dry the Partnership with the Israel Securities Authority and the Tel. Anchuding warnings regarding forward-looking information, as defined in the Securities Law, 572-1968, 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 clarifed that the end of 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 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
- □ Non-Biding Acquisition Offer for 12.05 NIS per Unit Deal update
- □ 1st quarter average production c. 1,121 MMcf/d (207.5 Mboe/d), 2.86 BCM
- □ Record 1st quarter earnings \$194mm EBITDA / \$121mm net profit
- □ Leviathan Expansion & Aphrodite A-3 appraisal well drilling
- □ Leviathan Bond \$280mm pre-payment out of \$500mm Leviathan bond June 30, 2023 series.
- □ Dividend \$50mm Dividend distribution for the quarter
BP - ADNOC Non-biding offer Transaction Update
- മ Due Diligence process well under way and progressing
- മ Independent Committee work ongoing including selection of legal, economic and financial advisers
- മ Preliminary discussions with relevant regulators
Production Summary_
| Israel | Egypt | Jordan | Total | |
|---|---|---|---|---|
| 1Q / 2023 (BCM) | 0.6 | 1.5 | 0.7 | 2.8 |
| Average Price (\$/mmbtu) | 6.1 | |||
| 1Q / 2022 (BCM) | 0.9 | 1.1 | 0.7 | 2.7 |
| Average Price (\$/mmbtu) | 5.8 |
* Production Summary for Leviathan 100%
Stable and Favorable Price Environment
Regional Connectivity Update
Leviathan Expansion & Aphrodite Development
- □ The Third gathering line investments estimated at approx. \$562 million (100% Leviathan), subject to FID expected in the second quarter of 2023. The new gathering line will enable an increase in production capacity from 1.2 BCF/d to 1.4 BCF/d (14 BCM/y) by mid 2025.
- □ For the promotion of FLNG solution for Phase 1B, the Leviathan partners approved budgets of approx. \$96.4 million (100%), for the performance of Pre-FEED.
- □ Aphrodite A3 appraisal well spudded in May 2023 with the Stena Forth drilling ship:
- =
- =
- Will serve as a future production well once the field is developed
- The partners approved an additional amount of approximately \$62mm (100%) for Pre-FEED works for the purpose of promoting the development of the field
Key 1st Quarter Financial Metrics (smm)
Including 22% WI in Tamar
excluding Tamar Wi
1st Quarter Change in Net Profit (\$mm) -
Net profit 1Q 2022 change in quantities Net Financeial Expense Tax expense Net profit 1Q 2023 price per mmbtu operating expense
| Balance Sheet | |
|---|---|
| Summary (\$mm) |
NN
| 31.03.2023 | 31.12.2022 | |
|---|---|---|
| Assets: | ||
| Current assets: | ||
| Cash and cash equivalents | 83.9 | 22.4 |
| Short-term investments and deposits | 398.8 | 395.9 |
| Trade receivables | 216.2 | 199.0 |
| Trade and other receivables | 120.4 | 134.1 |
| Current taxes receivable | 7.3 | 19.9 |
| 826.6 | 771.3 | |
| Non-current assets: | ||
| Investments in oil and gas assets | 2,563.7 | 2,547.2 |
| Investments in a company accounted for at equity | 58.4 | 59.7 |
| Long-term deposits | 0.5 | 0.5 |
| Other long-term assets | 579.8 | 560.3 |
| 3,202.4 | 3,167.7 | |
| 4,029.0 | 3,939.0 | |
| Liabilities and equity: | ||
| Current liabilities: | ||
| Current maturities of bonds | 391.2 | 424.8 |
| Declared profits for distribution | 60.0 | 50.0 |
| Income taxes payable | ||
| Trade and other payables | 122.6 | 96.9 |
| Other short-term liabilities | 10.6 | 0.9 |
| 584.4 | 581.6 | |
| Non-current liabilities: | ||
| Bonds | 1,732.0 | 1,731.0 |
| Deferred taxes | 292.9 | 269.8 |
| Other long-term liabilities | 70.7 | 69.2 |
| 2,095.6 | 2,070.0 | |
| Equity: | ||
| Partners' equity | 154.8 | 154.8 |
| Capital reserves | (29.5) | (29.9) |
| Retained earnings | 1,223.7 | 1,162.5 |
| 1,349.0 | 1,287.4 | |
| 4,029.0 | 3,939.0 | |
התרגום ארוך מדי לשמירה
❑
P&L Summary (\$mm)-
| For the period ended | |||
|---|---|---|---|
| 31.03.2023 | 31.03.2022 | 31.12.2022 | |
| Revenues From natural gas and condensate sales | 281.1 | 246.8 | 1,143.9 |
| Net of royalties | 41.1 | 36.0 | 172.0 |
| Revenues, net | 240.0 | 210.8 | 971.9 |
| Expenses and costs: | |||
| Cost of production of natural gas and condensate | 38.2 | 33.7 | 134.1 |
| Depreciation, depletion and amortization expenses | 19.9 | 37.8 | 131.0 |
| Other direct expenses | 0.8 | 1.0 | 5.2 |
| G&A | 5.6 | 3.1 | 19.7 |
| Total expenses and costs | 64.5 | 75.6 | 290.0 |
| The Partnership's share in the losses of a company accounted for at equity | (1.3) | (1.1) | (3.1) |
| Operating profit | 174.2 | 134.1 | 678.8 |
| Financial expenses | (37.2) | (38.4) | (155.3) |
| Financial income | 19.9 | 20.0 | 71.1 |
| Financial expenses, net | (17.3) | (18.4) | (84.2) |
| Profit before income taxes | 156.9 | 115.7 | 594.6 |
| Taxes on income | (36.2) | (31.6) | (116.0) |
| Profit from continuing operations | 120.7 | 84.1 | 478.6 |
| Total loss from discontinued operations | (8.9) | ||
| Net income | 120.7 | 84.1 | 469.7 |
Dividends
* Including latest declared Dividend
NN. Thank You NewMed Energy- IR Tel. +972 9 971 2421
Appendix
Leviathan Bond Sponsor Financial Data Report
| PERIOD ENDED | 30.03.2022 | ||
|---|---|---|---|
| ITEM | QUANTITY/ACTUAL | ||
| AMOUNT (IN USD\$ ,000) | |||
| Total Offtake (BCM) | 2.8 | ||
| Leviathan Revenues (100%) | 619.966 | ||
| Loss Proceeds, if any, paid to Revenue Account | |||
| Sponsor Deposits, if any, into Revenue Account | |||
| Gross Revenues (before Royalties) | 267,705 | ||
| Overriding Royalties | |||
| Statutory Royalties | (32,537) | ||
| (b) Third Party Royalties | (12,905) | ||
| Net Revenues | 22,263 | ||
| Costs and Expenses: | |||
| Fees Under the Financing Documents (Interest Income) | 878 | ||
| Taxes | |||
| Operation and Maintenance Expenses | (33,978) | ||
| Capital Expenditures | (16,873) | ||
| Insurance (income) | (8,073) | ||
| Total Costs and Expenses (sum of Items H(a), (c), (d) and (e)) | (58,046) | ||
| Total Cash Flows Available for Debt Service (Item G minus Item H) | 164,217 | ||
| Total Cash Flow from operation (Item G minus Items H(c) and H(e) | 180,212 | ||
| Total Debt Service | (34,082) | ||
| Total Distribution to the Sponsor | 130,000 |