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Investor Presentation • Aug 18, 2022
7125_rns_2022-08-18_fddd1008-f35e-4a46-81b2-b794b90d9c3a.pdf
Investor Presentation
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2Q Financial Results Presentation
August 2022
Disclaimer
This presentation was prepared by Newled Partnership (the "Partnership") and is givento you only for the provision of che sake of convenience and may not be copied on any other person. The Data and information included in the interpreted as advice and should not be relief on for any purpose. Such and hot be copied or used except as expressly permitted in writing.
This presentation does not purport to be comprehensive in high might be relevant in comection with the making of a decision on an investment in securities of the Partnership.
No explicit or implicit representation is given by any person regarding the accuracy 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 flective in the Israe Securities Authority and the Tel Aviv Stock Exchange Ltd, including information, as defined in the Securities Lau, 5728-1988, included therein. The forward-looking inthe presentation may not mart, or may materializedifferently than expected, or may be affected by factors that cannot be assessed in advance.
For the aroidance of doubt, it s clarifed that to update and or modiy 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 underlaking and are not to be relied upon in such on or vided in the presentation is not a basis for the making of any investment decision, no a recommendation or an opinion, nor a substitute for the discretion of a potential investor.
Key Highlights
- D Record sales for 2nd quarter average production of c. 1,116,900 MMbtu/d
- D Record export from Leviathan 1.95 BCM (c. 70,235,000 MMbtu)
- Robust price environment Blended price of \$6.38 MMbtu 0
- □ Daily export via FAJR to Egyptian market Meanwhile Ongoing work at INGL for the increased capacity to Ashkelon
- □ Leviathan Phase 1B & Aphrodite Multiple workstreams progressing for concept select
- D Dividend & Buy Back \$50mm Dividend distribution for the quarter. \$33mm Leviathan Bond buyback to date
Key Second Quarter Financial Metrics (\$mm)
Including 22% WI in Tamar
1Q 22 excluding Tamar WI
Change in Net Profit (smm)
Production Summary_
| всм | Israel | Egypt | Jordan | Total |
|---|---|---|---|---|
| 2Q / 2022 | 0.8 | 1.4 | 0.6 | 2.8 |
| Average Price (\$/mmbtu) | 6.38 | |||
| 2Q / 2021 | 1.4 | 0.8 | 0.6 | 2.8 |
| Average Price (\$/mmbtu) | 4.94 |
Regional Connectivity Update
Leviathan Expansion & Aphrodite Development
Leviathan Expansion
□ Multiple workstreams progressing for concept select in 2023
Aphrodite Development
ロ The partners in the Aphrodite reservoir intend to bring to the Cypriot government's approval by the end of the year an update to the development and production plan for the reservoir. The development of the reservoir will be integrated with existing facilities and/or development plans for nearby properties.
Balance Sheet Summary (\$mm) ---
| 30.6.2022 | 30.6.2021 | 31.12.2021 | |
|---|---|---|---|
| Unaudited | Audited | ||
| Assets: | |||
| Current assets: | |||
| Cash and cash equivalents | 67,811 | 242,589 | 220,188 |
| Short-term investments | 203,748 | 192,353 | 120,657 |
| Trade receivables | 228,690 | 178,752 | 152,534 |
| Trade and other receivables | 121,610 | 32,591 | 87,387 |
| 621,859 | 646,285 | 580,766 | |
| Assets held for sale | 848,784 | ||
| 621,859 | 1,495,069 | 580,766 | |
| Non-current assets: | |||
| Investments in oil and gas assets | 2,556,674 | 2,576,854 | 2,570,453 |
| Investment in a company accounted for at equity | 60,623 | 64,853 | 62,796 |
| Long-term deposits | 500 | 100,609 | 100,667 |
| Other long-term assets | 546,250 | 543,570 | 535,454 |
| 3,164,047 | 3,285,886 | 3,269,370 | |
| Total Assets | 3,785,906 | 4,780,955 | 3,850,136 |
| Current liabilities: | |||
| Bonds | 485,649 | 1,030,494 | |
| Provision for tax and balancing payments | 86,178 | ||
| Trade and other payables | 118,267 | 92,388 | 270,726 |
| Other short-term liabilities | 13,202 | 69,681 | 27,649 |
| 617,118 | 1,192,563 | 384,553 | |
| Liabilities relating to assets held for sale (Note 1C4) | 35,930 | ||
| 617,118 | 1,228,493 | 384,553 | |
| Non-current liabilities: | |||
| Bonds | 1,728,901 | 2,222,077 | 2,224,813 |
| Deferred taxes | 274,750 | 207,837 | |
| Other long-term liabilities | 67,088 | 76,632 | 94,395 |
| 2,070,739 | 2,298,709 | 2,527,045 | |
| Equity: | |||
| Partners' equity | 154,791 | 154,791 | 154,791 |
| Capital reserves | (28,134) | (33,056) | (30,680) |
| Retained earnings | 971,392 | 1,132,018 | 814,427 |
| 1,098,049 | 1,253,753 | 938,538 | |
| Total Liabilities and Equity | 3,785,906 | 4,780,955 | 3,850,136 |
Financial Debt (\$'000)
Cash, Cash equivalent and short-term investment as of 30/06/2022 - \$272 mm
P&L Summary (\$mm)-
| Q2 ' 22 | Q2 "21 | 2021 | |
|---|---|---|---|
| Revenues | |||
| From natural gas and condensate sales | 290,818 | 221,578 | 882,537 |
| Net of royalties | 41,624 | 32,902 | 128,758 |
| Revenues, net | 249,194 | 188,676 | 753,779 |
| Expenses and costs: | |||
| Cost of natural gas and condensate production | 36,906 | 28,438 | 118,382 |
| Depreciation, depletion and amortization expenses | 21,926 | 27,776 | 113,083 |
| Other direct expenses | 708 | 1,143 | 4,206 |
| G&A expenses | 4,783 | 4,649 | 17,183 |
| Total expenses and costs | 64,323 | 62,006 | 252,854 |
| The Partnership's share in the losses of a company accounted for at equity | (1,035) | (1,220) | (4,497) |
| Operating income | 183,836 | 125,450 | 496,428 |
| Financial expenses | (37,920) | (51,173) | (211,306) |
| Financial income | 13,582 | 10,632 | 31,468 |
| Financial expenses, net | (24,338) | (40,541) | (179,838) |
| Profit before taxes on income | 159,498 | 84,909 | 316,590 |
| Taxes on income | (35,275) | (207,837) | |
| Income from continuing operations | 124,223 | 84,909 | 108,753 |
| Income / Loss from discontinued operations | (3,098) | 37,257 | 151,736 |
| Income from the sale of natural gas and oil assets | 144,583 | ||
| Net profit | 121,125 | 122,166 | 405,072 |
Dividend and Buy Back
- ロ According to the published Buy Back plan, the partnership has purchased Levithan Bond notes in an amount of c. \$33mm to date
- □ The partnership has declared a \$50mm profit distribution to unitholders
Dividend Distributions (\$'mm)
NN. Thank You NewMed Energy- IR Tel. +972 9 971 2421
Appendix
Leviathan Bond Sponsor Financial Data Report
| PERIOD ENDED | 30.06.2022 | |
|---|---|---|
| ITEM | QUANTITY/ACTUAL AMOUNT | |
| (IN USD\$ ,000) | ||
| Total Offtake (BCM) 1 | 5.5 | |
| Leviathan Revenues (100%) | 641,879 | |
| Loss Proceeds, if any, paid to Revenue Account | ||
| Sponsor Deposits, if any, into Revenue Account | ||
| Gross Revenues (before Royalties) | 237,453 | |
| Overriding Royalties | ||
| (a) Statutory Royalties | (31,210) | |
| (b) Third Party Royalties | (12,379) | |
| Net Revenues | 193,864 | |
| Costs and Expenses: | ||
| (a) Fees Under the Financing Documents (Interest Income) | 147 | |
| (b) Taxes | ||
| (c) Operation and Maintenance Expenses | (38,815) | |
| (d) Capital Expenditures | (38,586) | |
| (e) Insurance (income) | (6,455) | |
| Total Costs and Expenses (sum of Items H(a), (c), (d) and (e)) | (83,709) | |
| Total Cash Flows Available for Debt Service (Item G minus Item H) | 110,155 | |
| Total Cash Flow from operation (Item G minus Items H(c) and H(e) | 148,594 | |
| Total Debt Service | 73,677 | |
| Total Distribution to the Sponsor | 89.000 |