NewMed Energy

Investor Presentation • Jul 13, 2020

0

Leviathan Gas Field July 2020

Di s claime r

The following applies to the information following this slide, and you are therefore advised to carefully read the statements below before reading, accessing or making any other use of this presentation.

Disclaimer

The information in this presentation has been prepared by Delek Drilling Limited Partnership ("Delek") exclusively for use during the presentation. Delek does not assume liability for this presentation if it is used with a purpose other than the above. The information and opinions contained in this presentation have not been independently verified by Delek or third parties. Therefore, no representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, impartiality, completeness or correctness of the information or the opinions or statements contained herein. Delek does not assume liability of any kind, whether for negligence or any other reason, for any damage or loss arising from any use of this presentation or its contents. The information contained in this presentation should be considered in the context of the circumstances prevailing at that time and has not been, and will not be, updated to reflect material developments which may occur after the date of this presentation. Delek may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes.

Important Information

This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to purchase, subscribe for, underwrite or otherwise acquire, any securities of Delek or a successor entity or any existing or future subsidiary or affiliate of Delek, nor should it or any part of it form the basis of, or be relied on in connection with, any decision to purchase or subscribe for any securities of Delek or any of such subsidiaries or affiliates, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any securities of Delek or any of such subsidiaries or affiliates may not be sold in the United States except pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended. Any offering of securities by Delek or any of such subsidiaries or affiliates will be made by means of an offering memorandum (or equivalent), and any decision to purchase any offered securities should be made after reviewing, and on the basis of, such document.

Forward-Looking Statements

This presentation contains statements that express Delek's opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. Examples include discussion of Delek's strategies, financial forecasts, financing plans, growth opportunities and market growth. In some cases, such forward-looking statements can be identified by terminology such as "anticipate," "intend," "believe," "estimate," "plan," "seek," "project," "expect," "may," "will," "would," "could" or "should," the negative of these terms or similar expressions. While Delek always intends to express its best judgment when making statements about what it believes will occur in the future, and although Delek bases these statements on assumptions that it believes to be reasonable when made, these forward-looking statements are not a guarantee of Delek's performance or the performance of any of its existing or future subsidiaries or affiliates. You are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date they were made. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, such as negative worldwide economic conditions and ongoing instability and volatility in the worldwide financial markets and possible changes in current and proposed legislation, regulations and governmental policies. Such risks and uncertainties may cause actual outcomes and results to be materially different from those expressed or implied by such forward-looking statements and readers are cautioned not to place undue reliance on such forward-looking statements. Many of these risks are outside of Delek's control. Neither Delek nor any of its existing or future subsidiaries or affiliates undertakes, and specifically declines, any obligation to update any such forward-looking statements or to publicly announce the results of any revisions to any of such forward-looking statements to reflect future events or developments. All subsequent oral or written forwardlooking statements attributable to Delek or any of its existing or future subsidiaries or affiliates or any of its or their members, directors, officers, employees or any persons acting on its or their behalf are expressly qualified in their entirety by the cautionary statement above. The forward-looking information included in this presentation derived from the NSAI report as of June 2020 ("NSAI Report") is primarily based on the estimates of Netherland, Sewell & Associates, Inc. ("NSAI") with respect to the quantities of natural gas and condensate in the Leviathan gas field which are classified as reserves "On Production," and on certain other assumptions (the "NSAI Data"). The NSAI Data is also based on financial data representing Delek's 45.34% working interest in the Leviathan gas field (the "Leviathan Working Interest"). As such, the NSAI Data is not a projection or prediction, but simply illustrates hypothetical results that are mathematically derived from NSAI's reserves estimates and the specified assumptions. Accordingly, it will not readily allow comparisons of actual results against forecasts and does not facilitate ongoing budget comparisons. Reference to the NSAI Data derived from the NSAI Report should not be regarded as a representation by Delek or any other person that the results provided will be achieved. The NSAI Data has been prepared based on certain important assumptions. Actual production levels, sales volumes, gas and condensate sales prices, availability, operating expenses, maintenance costs, royalties, levies, capital costs and interest and inflation rates may differ from those assumed as a result of many risks and uncertainties, including those described in the preceding paragraph. Accordingly, the actual performance and cash flows of the Leviathan Working Interest for any future period may differ significantly from those shown by the NSAI Data. You are cautioned not to place undue reliance on the NSAI Data and should make your own independent assessment of the Leviathan Working Interest's future results of operations, cash flows and financial condition.

ANY PROJECTIONS AND OTHER FORWARD-LOOKING DATA INCLUDED IN THIS PRESENTATION ARE INCLUDED FOR THE SOLE PURPOSE OF ASSISTING YOU IN DEVELOPING YOUR OWN MODEL OF DELEK. ALL OF THE INFORMATION CONTAINED IN THIS PRESENTATION, AS OPPOSED TO THE MODEL YOU MAY DEVELOP ON YOUR OWN USING SOME OF THE INFORMATION INCLUDED IN THIS PRESENTATION, IS CONFIDENTIAL INFORMATION. ACCORDINGLY, THE INFORMATION INCLUDED IN THIS PRESENTATION MAY NOT BE REFERRED TO, QUOTED OR OTHERWISE DIRECTLY DISCLOSED BY YOU WITHOUT OBTAINING DELEK'S PRIOR APPROVAL. BY READING, ACCESSING OR MAKING ANY OTHER USE OF THIS PRESENTATION, YOU ARE ACKNOWLEDGING THE CONFIDENTIAL NATURE OF THIS INFORMATION AND ARE AGREEING TO ABIDE BY THE TERMS OF THIS LEGEND. THIS CONFIDENTIAL INFORMATION IS BEING MADE AVAILABLE TO EACH RECIPIENT SOLELY FOR ITS INFORMATION AND BACKGROUND AND IS SUBJECT TO AMENDMENT.

Non-IFRS Financial Information

This presentation contains certain performance measures that are not defined under IFRS or any generally accepted accounting principles, including EBITDA and free cash flow. A reconciliation of each of these performance measures to the most directly comparable measures calculated and presented in accordance with IFRS is set out in the Appendix.

Information Provided by Wood Mackenzie

The data and information in this presentation provided by Wood Mackenzie should not be interpreted as advice and you should not rely on it for any purpose. You may not copy or use this data and information except as expressly permitted by Wood Mackenzie in writing. To the fullest extent permitted by law, Wood Mackenzie accepts no responsibility for your use of this data and information except as specified in a written agreement entered into with Wood Mackenzie for the provision of such data and information.

Today's presenters

Yossi Abu Chief Executive Officer

Yossi Gvura Deputy Chief Executive Officer

Delek Drilling – The leading E&P partnership in the East Med

Source: Company information, TASE

1. As of 08 July, 2020

2. Reflects the sum of Tamar and Leviathan 2P forecasted EBITDA for 2020, based on Delek Drilling's working interest. EBITDA defined as Revenue – Royalties – Operating expenses. Figures as per latest NSAI reports for Tamar (December 2019) and Leviathan (June 2020). Leviathan EBITDA calculated as H1 2020 EBITDA (as outlined in page 6) plus forecasted H2 2020 EBITDA based on Bloomberg Brent Forward Curve as of 10-7-20. 2020: \$43.5

3. Reflects the sum of Delek Drilling's working interest in Tamar, Leviathan and Yam Tethys 2P reserves (c.3 TCF, c.6 TCF and 0.5TCF respectively)

Source: Company information; Note: Resources: Best Estimate Ultimate Recovery (2P + 2C), based on NSAI reports 1. Dolphin license has expired; following the sale of Karish and Tanin, Delek Drilling holds an entitlement to royalties

• 1. Recovered; Depleted
• 1. Estimated ultimate recoverable; excludes Tamar SW
• 1. Estimated ultimate recoverable

Delek Drilling – The leading E&P partnership in the East Med (cont'd)

Significant track record in the East Med with c.43 TCF of gross gas resources discovered

Leviathan Gas Field – Asset overview

/ \$587.8mm⁶

Source: Company information, NSAI report as of June 2020

1. Approximate percentages

2. Based on 2021 - 2034

3. Not including Leviathan Deep oil prospective resources; excludes 0.1TCF produced in 1H2020

4. Based on gross capacity of 12 BCM p.a.

5. NPV10s as of 30th June 2020 according to latest NSAI report from July 2020;

6. 2P Production Profile according to latest NSAI report from June 2020. Figures based on Bloomberg Brent Forward Curve as of 10-7-20. 2020: \$43.5; 2021: \$45; Thereafter: \$50 flat

6

Leviathan Gas Field – H1 2020 operational update

Source: Company information

Note: Q2' 20 numbers are unaudited

1. As per NSAI report as of December 2019

2. Source: Factset

³ Revenue calculated as Total net production per mcf * Average price per mcf

⁴ EBITDA calculated as Revenue – (Average royalties per mcf + Average production costs per mcf) * Total net production per mcf

1. Increased production costs per mcf due to lower production and fixed opex base

COVID-19 impact on results and expected performance Leviathan H1 performance (45.34% Delek Drilling WI)

• ⚫ Following commencement of production in December 2019, the Leviathan project has been operating at average uptime levels reaching above 97%
• ⚫ The Leviathan Partners have seen a temporary decrease in gas sales over the past few months as a result of the COVID-19 pandemic which has impacted demand for gas in the region
  • ⚫ During Q1'20 and Q2'20, gross sales from Leviathan were c.1.6 BCM and c.1.4 BCM
    • ⚫ Q2'20 production decrease is due to well management to match regional demand
  • ⚫ 2020 and 2021 gross sales expected to be c.7.0 BCM and c.8.9 BCM (vs. previously forecasted¹ gross sales of 9.3BCM and 10.8BCM, respectively) at an average price of c.\$5.00 per MMBTU
• ⚫ Subsequent to the decrease in production, the operator has been working to further streamline and reduce operating costs and planned investments
  • ⚫ 2020 updated budget includes a gross c.\$45mm reduction in operating costs and planned investments
  • ⚫ The operator is also examining potential reductions post 2020
• ⚫ While Brent prices were down more than 33% from Q1'20 to Q2'20, due to Leviathan's floor pricing, average realized price per mcf was only down 7%

Q1 2020	Q2 2020
26,058 mmcf (0.74 BCM)	22,831 mmcf (0.65 BCM)
\$5.43	\$5.04 : \$51	Avg. Q2 Brent price 2 : \$34
\$0.81	\$0.75
\$0.60	\$0.55
\$0.07	\$0.13
\$0.14	\$0.07
\$0.66	5 \$0.81
\$3.96	\$3.47
\$141	\$115
\$103	\$79
		Avg. Q1 Brent price2

7

Stellar uptime performance

Leviathan H1 2020 uptime

Leviathan Gas Field – H1 2020 operational update (cont'd)

Achieved exceptional uptime rates through commissioning and startup phases

Key credit highlights

World-class asset, 50+ year life, significant reserve upside potential

1

Strategically located in the East Med, well positioned to take advantage of the Israeli energy transition and increasing regional gas demand

2

Strong contracted long-term cash flow generation with protection against downside commodity price risk

3

Strategic, longstanding partnership with a best-in-class operator

4

Strong management with unmatched operational track record in the East Med

5

Leviathan Gas Field

Leviathan ranks as one of the world's most attractive gas fields

World-class asset, 50+ year life, significant reserve upside potential

Source: Company information, NSAI report as of June 2020

1. 2010 – 2019, Tamar for reference

2. Estimated total recoverable including Tamar SW as of December 2019

3. Average opex/mcf between 2021 and 2034 based on NSAI report as of June 2020

4. Excludes 0.1TCF produced in 1H2020

1

World -class asset, 50+ year life, significant reserve upside potential(cont'd)

Potential for significant reserve increases

1

Tamar gross (2P) gas reserve development¹

Leviathan gross (2P+2C) resource development

Delek's thorough understanding of the basin's subsurface enables leveraging knowledge from other fields in support of resource growth

Source: Company information (NSAI reports) 1. Includes Tamar SW 2. Gross mean resources

Strategically located in the East Med… 2

Source: Company information, NSAI report as of June 2020, Wood Mackenzie, BDO

• 1. Egyptian General Petroleum Corporation
• 1. Holds 10% stake in EMG
• 1. Jordanian National Electric Power Company

• Israel demand from BDO; Egyptian and Jordanian demand from Wood Mackenzie; Supply figures for Egypt include Onstream, under-development, probable development and technical reserves from Wood Mackenzie; Supply figures for Jordan from Wood Mackenzie, Supply figures for Israel from Delek Drilling estimates

• Agreement between Leviathan and Dolphinus Holdings; In June 2020, Dolphinus endorsed the Export to Egypt Agreement to an affiliate – Blue Ocean Energy

• ⚫ Israel's increasing demand for gas is driven by strong macroeconomic fundamentals and an its accelerated energy transition from coal-based, to gas-based power generation
  • ⚫ Israel gas demand expected to grow at c.6% CAGR '20E-'30E
• ⚫ Gas demand in Egypt and Jordan has also seen strong recovery on the back of available supply, increasing gas-fired generation and growing industrial sectors
  • ⚫ Egypt gas demand expected to grow at c.2% CAGR³ , while Jordan gas demand is expected to stay flat³

Country supply and demand dynamics (BCM)

Overview Key drivers of Israel's gas demand growth

… well positioned to take advantage of the Israeli energy transition and increasing regional gas demand 2

Source: Company information, Wood Mackenzie, BDO

1. Domestic demand from BDO, supply from Delek Drilling estimates

2. From Wood Mackenzie

3. Between 2020 and 2030

Source: Company information, NSAI report as of June 2020, Wood Mackenzie, BDO 1. Based on 2021 - 2034

1. Maximum Annual Contracted Quantity for FY2020 as of June 2020

2. 1. Average opex/mcf between 2021 and 2034 based on NSAI report as of June 2020
3. 1. Includes EnQuest, Cairn, Tullow, Premier Oil, Pharos, Energean, Nostrum; As of FY2019
4. 1. Leviathan was awarded IEC's tender for provision of short term spot supply estimated at 2BCM p.a.

5. EA Tariffs refers to tariffs set by the Electricity Authority for Electricity from time to time

3

Leviathan GSPAs overview

GSPAs provide protection from volume and price risk whilst allowing for operational flexibility

• ⚫ To date, the Leviathan Partners have entered into several GSPAs, representing a balanced composition of domestic and international offtakers
• ⚫ Contracts range in duration from 2 years¹ to 25 years
• ⚫ Majority "take or pay" type, USD denominated contracts with minimum annual offtake quantities and strong floor prices providing stability and visibility on cash flows
  • ⚫ Price risk is partly mitigated through floor prices price formulas vary by contract based notably on Brent crude oil and Israeli Electricity Authority Production Tariff ("EA")
  • ⚫ Volume risk is partly mitigated through take-or-pay commitments although the contracts with different offtakers vary in details such as term, indexation and level of service (firm or interruptible supply), vast majority of the contracts include a high level of take-or-pay commitment

Israeli offtakers

(S&P Rating: BBB-)

• ⚫ 13 Israeli offtakers: 2 investment grade corporations IEC (S&P Rating BBB), 8 IPPs Independent Power Providers (IPPs) and 4 Industrial customers, including ICL⁴
  • ⚫ Israel Electric Corporation (IEC), a 99.8% state-owned electricity company, is a vertically integrated electric utility company, operating in both generation and transmission & distribution
• ⚫ The IPPs are fuelled primarily by natural gas to generate and supply electricity to end-users. The IPPs have a total contracted quantity of 36.7 BCM with an average contract duration of c.14 years

Offtake agreements

• ⚫ IEC sales volume is expected to reach 2.0 BCM p.a. in 2020 and 2021
  • ⚫ Fixed price contract
• ⚫ Contracts signed with various IPPs and industrial customers
  • ⚫ Aggregate contracted volumes of c.1.52 BCM in 2020 and c.3.16 BCM p.a. based on 2021 2034 (not including IEC)
  • ⚫ Prices linked to EA tariff²
  • ⚫ Most GSPAs have floor prices of c.\$4.7MMBTU³

Source: Company information

4 Israel Chemical Ltd.

3

Sovereign Rating: A1 / AA-

Note: "ACQ" stands for Annual Contracted Quantities

^1. Includes IEC which has entered into a short-term spot GSPA for the difference between its ToP from Tamar and its annual take

^2. EA Tariffs refers to tariffs set by the Israel Electricity Authority for Electricity from time to time

^3. Based on Government Gas Framework; \$4.7MMBTU is the floor price in most GSPAs

15

Strong contracted long-term cash flow generation with protection against downside commodity price risk (cont'd)

Leviathan GSPAs overview

Egypt – Dolphinus

• ⚫ Dolphinus is a special purpose company incorporated to import natural gas from Israel to Egypt¹
  • ⚫ Dolphinus supplies gas ultimately to EGAS (The Egyptian Natural Gas Holding Company)
    • ⚫ EGAS is a 100% Egyptian state-owned holding company, which owns and manages state stakes in different gas projects
  • ⚫ Dolphinus was co-founded by senior Egyptian businessmen
• ⚫ Delek, Noble and East Gas Company (Egyptian governmental infrastructure company) acquired a 39% stake in Eastern Mediterranean Gas (EMG), owner of the EMG pipeline, and have secured full operational control over the EMG pipeline in order to ensure and fully effect export of gas from Leviathan for the entire of the Dolphinus agreement. The EMG pipeline is a 26-inch diameter, 89k (c. 85k subsea), from Ashkelon (Israel) to El-Arish (Egypt) with current capacity of up to 700 MMcf/d (c. 7 BCM p.a.). The acquisition of 39% of EMG for approx. \$530mm, \$150mm of which by East Gas represent a strategic alignment with a major regional infrastructure player

Offtake agreement

• ⚫ Total contracted quantity of c.60 BCM over 15 years, with 2-year potential extension
  • ⚫ ACQ of 3.6 BCM p.a. up to June 2022
• ⚫ ACQ of 4.7 BCM p.a. onwards
• ⚫ ACQ can be reduced by Dolphinus to 50% in a year in which the average daily Brent price is lower than \$50/bbl
• ⚫ Gas prices linked to Brent with floor price
• ⚫ The Export to Egypt Agreement includes a mechanism for updating the price at a rate of up to 10% (up or down) after the 5 th year and after the 10th year of the agreement upon fulfilment of certain conditions that are set forth in the agreement

Source: Company information Note: "ACQ" stands for Annual Contracted Quantities ¹In June 2020, the Dolphinus Export Agreement was novated to Blue Ocean Energy (a Cayman Islands company and an affiliate of Dolphinus)

3

Sovereign Rating: B2 / B

Jordan – NEPCO

• ⚫ NEPCO is the National Electric Power Company of the Kingdom of Jordan
  • ⚫ Wholly owned and guaranteed by the Jordanian Government; NEPCO GSPA is backed by the Jordanian government

Offtake agreement

• ⚫ Total contracted quantity of c.45 BCM over 15 years
• ⚫ ACQ of c.3.0 BCM p.a.

Sovereign Rating: B1 / B+

Delek Drilling purchased country risk mitigation solutions for various foreign exposures to off-take agreements and infrastructure facilities with regards to domestic and export GSPA's

Source: Company information, NSAI report as of June 2020

1. Based on gross 12 BCM p.a. production capacity; Additional wells not included, hence moderate reduction in production profile

1. Major well interventions included in Opex instead of Capex; Capex includes Abex

Net production profile (2P)¹

Production and cost profile (45.34% WI)

3

Net opex profile (2P)1,2

Cash flow profile sensitivity (45.34% WI) – 2P NSAI production profile @FWD curve until 2021, \$50 Brent thereafter

Net unlevered free cash flow profile (2P)¹

Source: Company information, NSAI report as of June 2020 @43.5 - \$50 Brent

1. Based on gross 12 BCM p.a. production capacity; Additional wells not included, hence moderate reduction in production profile

2. Figures based on Bloomberg Brent Forward Curve as of 10-7-20. 2020: \$43.5; 2021: \$45; Thereafter: \$50 flat. See scenario B in slide 18

3. Major well interventions included in Opex instead of Capex; Capex includes Abex

50	50	50	50
630	613	ਦੇ ਦੇ ਰੋ	57
(127)	(124)	(113)	(11)
(69)	(69)	(68)	(64)
433	420	378	(19)
			(61)
(203)	(197)	(177)
(53)	(51)	(46)
177	172	155	(80)
			I

3

50% Dolphinus Volumes @\$43.5 - \$45 Brent

⚫ 2P Production profile for Israeli and NEPCO volumes per June 2020 NSAI reserve report

⚫ Dolphinus sales at 50% of ACQ for the entire contract duration (2034)

⚫ Based on Brent forward curve until end of 2020 and \$45 Brent thereafter³

50% of Dolphinus ACQ @FWD curve until YE 2020, \$45 Brent thereafter

Capping Brent at \$45 while cutting Dolphinus by 50% bears a limited impact on Leviathan PV-10

Source: Based on NSAI reserve report as of June 2020

1 July 9 th 2020 Delek Drilling immediate report. 2020: \$37; 2021: \$47; 2022: \$55, 2023: \$60; 2025: \$71; 2027: \$79; 2029: \$88; Thereafter: \$88 flat

² Based on Bloomberg Brent Forward Curve as of 10-7-20. 2020: \$43.5; 2021: \$45; Thereafter: \$50 flat

³ Based on Bloomberg Brent Forward Curve as of 10-7-20. 2020: \$43.5; Thereafter: \$45 flat

¹. Recovered; Depleted

• 1. 2019 reported proved developed + undeveloped reserves
• 1. Approximate percentages
• 1. Karish (1.3 TCF), Tanin (0.8 TCF)

Strategic, longstanding partnership with a best in class operator 4

^2. Estimated total recoverable including Tamar SW as of December 2019

^3. Estimate Ultimate Recoverable

Strong management with unmatched operational track record in the East Med

Delek Drilling management: Instrumental in developing the East Med oil & gas industry

Delek Drilling: Unique track record in the East Med

Yossi Abu – CEO

• ⚫ Mr. Abu has been with Delek since 2009 and serves as CEO since 2011
• ⚫ Previously, served as Senior Professional Advisor to Israel's Minister of Finance
• ⚫ Key partner in the development of local regulatory framework
• ⚫ Key in establishing relationships with offtakers in Egypt and Jordan, signing c.\$18bn GSPAs for Tamar and Leviathan

Yossi Gvura – Deputy CEO, Finance

• ⚫ Mr. Gvura has been with Delek since 2007 and serves as Deputy CEO of Delek Drilling since 2012
• ⚫ Focused on strategy and financial affairs
• ⚫ Extensive experience in both local and international capital markets
• ⚫ Mr. Gvura has been instrumental in equity and debt capital issuances of over c.\$6bn for the Tamar, Leviathan and Yam Tethys gas fields

5

World-class asset, 50+ year life, significant reserve upside potential

1

Strategically located in the East Med, well positioned to take advantage of the Israeli energy transition and increasing regional gas demand

2

Strong contracted long-term cash flow generation with protection against downside commodity price risk

3

Strategic, longstanding partnership with a best-in-class operator

4

Strong management with unmatched operational track record in the East Med

5

Delek Drilling financial profile

Delek Drilling: Corporate structure

Karish / Tanin

Source: Company information, TASE

Delek Drilling is independent from Delek Group

• ⚫ Delek Drilling is the largest publically traded Israeli E&P partnership (Tel Aviv Stock Exchange: DEDR.L) owned 55% by Delek Group and 45% by the public
• ⚫ Delek Drilling has an independent management team, distinct and separate from Delek Group
• ⚫ Delek Drilling's Board of Directors consists of 8 directors, 4 of which are independent directors (bios below)
• ⚫ All directors' fiduciary obligation is to Delek Drilling, not Delek Group
• ⚫ Any transaction involving the Delek Group requires the majority approval of solely the independent directors
• ⚫ Fahn Kanne & Co., Accountants and Keidar Supervision & Management serve as Supervisors of the Partnership, which under Israeli law are authorized to take necessary steps to ensure the fulfillment of the General Partner's duties and obligations to the Partnership

Jacob Zack External Director

Amos Yaron External Director

Ronnie Bar-On Independent Director¹

Efraim Sadka External Director

• ⚫ Former CEO and later Chairman of the Board of Gadot Biochemical Industries
• ⚫ Previously served as CFO of Gadot
• ⚫ BA in economics and accounting and an MBA, both from Tel Aviv University
• ⚫ Maj. General in Israel Defense Forces (IDF) Reserves
• ⚫ Formerly Chief Officer of Infantry Corps, as well as Head of IDF Manpower Directorate
• ⚫ Served as Military attaché in Washington
• ⚫ BA in Middle East Studies from Tel Aviv University and is a graduate of the Israeli College for National Security

• ⚫ Former Minister of Finance, Minister of Interior, Minister of
• ⚫ Elected 3 times to the Israeli Parliament
• ⚫ Founder of the Bar-On, Axelrod & Co.
• ⚫ LLB from Tel Aviv University
• ⚫ Emeritus professor of Economics at Tel Aviv University
• ⚫ Former External Director of Bank Leumi and Paz Oil Co.
• ⚫ Served sporadically as external consultant and guest scholar in the IMF
• ⚫ BA in Economics and Statistics from Tel Aviv University and Ph.D. from M.I.T

National Infrastructure and Minister of Science and Technology

Overview of independent / external directors

Source: Company information

¹An independent director is not a controlling shareholder or his relative, is not Chairman of the board, is not employed by and does not regularly provide services to the Partnership or the controlling shareholder, and whose main livelihood does not depend on the controlling shareholder

	For the period
Sources	Apr – Dec 2020	Jan – Dec 2021	Jan – Mar 2022
Cash, cash equivalents and bank deposits, beginning of year	374	653	725
Revenues from the sale of gas and condensate, net of royalties	535	657	131
Revenues from royalties and repayment of a loan from Energean	-	14	22
Withdrawal of funds from a loan for financing the Leviathan project	42	-	-
Proceeds from the sale of oil and gas assets	-	1,114	-
Leviathan reservoir based debt raising (net of transactions costs)	2,475	-	-
Total sources	3,426	2,438	878

Expected uses for operating activities and investment:

Ordinary expenses	9	12	3
Production expenses and investments in gas and oil assets	184	180	57
Oil and gas levy, tax balancing payments	32	307	26
Total uses for operating activities and investment	225	499	86

Total expected uses for financing activity

Payments of principal and interest of loans from financial corporations	2,163	157	-
Series A bond principal and interest payments	18	409	-
Tamar Bond principal and interest payments	367	648	-
Total uses for financing activity	2,548	1,214	-
Closing balance	653	725	792

Projected cash flows (USD mm)

Delek Drilling cash inflows and outflows

Delek Drilling debt breakdown and key credit metrics

Key credit metrics (USD mm)

Leviathan 45.34% WI 2P EBITDA3	414	531	543
Tamar 22.0% WI 2P EBITDA4	313	-	-
Total EBITDA	727	531	543
Gross debt / EBITDA	4.9x	4.7x	4.6x
Net debt / EBITDA	4.0x	3.3x	3.1x

For the Twelve Months ended

Debt breakdown (USD mm)	Dec 2020	Dec 2021	Mar 2022
Leviathan reservoir based debt raising	2,500	2,500	2,500
Tamar Secured Bonds (Tamar project level)1	640	-	-
Series A bond2	400	-	-
Gross debt	3,540	2,500	2,500
Less: Closing cash balance	(653)	(725)	(792)
Net debt	2,887	1,775	1,708

¹ Tamar bond repaid in full upon sale of Tamar 22% working interest in 2021

² Series A bond repaid 50% upon the sale of Tamar 22% working interest and 50% at maturity (December 2021)

³ Leviathan EBITDA calculated as Revenues – Royalties – Operating expenses based on cash flows calculated on the basis of Bloomberg Brent Forward Curve as of 10-7-20. 2020: \$43.5; 2021: \$45; Thereafter: \$50 flat; 2020 EBITDA calculated as the expected H2 2020 EBITDA plus H1 2020 EBITDA (as detailed on page 6);

⁴ EBITDA calculated as Revenues – Royalties – Operating expenses, per the figures published by NSAI in its latest reports for Tamar (December 2019)

Appendix

¹ Based on 2P Production profile per June 2020 NSAI reserve report

⚫ Given all major offtake contracts have floor prices, Leviathan's asset value is downside protected and has very low sensitivity to falls in Brent price

• ⚫ Between \$25 and \$50 Brent, a \$1 decrease in Brent only results in ~\$3mm (0.1%) of PV-10 reduction, on average
• ⚫ Brent-linked contracts escalate with increases in Brent prices which retains upside for the asset to commodity price
  • ⚫ Between \$50 and \$75 Brent, a \$1 increase in Brent results in \$12mm (0.3%) of PV-10 value, on average

Overview of royalties, levy, depreciation and taxes applied to O&G assets in Israel

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- 1 ).

Overriding royalties (ORRI)	● The financial projections include statutory and contractual royalties that are required to be paid by Delek Drilling in connection with its Working Interest and Delek Drilling's contracted obligations ● The financial projections include the payment of the required levy payments pursuant to the Taxation of Profits from Natural Resources Law ● Overriding royalties (ORRI): ● A leaseholder is required to pay royalties of 12.5% of the volume of oil and gas produced and utilized to the Israeli government according to the market value of the royalties at the well head (effectively 11.5%1 ) ● Overriding royalties ("ORRI") paid to third parties and related parties 1 Delek Drilling pays ORRI at an aggregate rate of approximately 4.5% before recoupment of costs ("Payout") and 9.5% after Payout (effectively 4.1% and 8.7% respectively ). ● Calculation of the effective ORRI rate is made according to the principles under which the state's royalties are calculated In June 2020, The Ministry of Energy published general guidelines for calculating the effective royalty rate for the State and is expected to publish guideline for each project ● The rate here stated is based on 11.5%1 effective rate to the state ● ● Levy: ● Imposed on the JV level only after the investments in exploration, development and construction are fully returned plus an uplift that reflects the developer's risk and required financial expenses (R-factor), as allowed by law ● R-factor is calculated on a progressive basis and will increase over time as the project's profit grows ●
	Levy for Leviathan starts from R-Factor reaching 1.5X, meaning full investment return plus ● Tax deductible expense
	● Profit levy ranges between 0% - 50% (46.8% after certain adjustments from 2018)
	● Uplift on exploration expenses: 200% with a cap
Fixed asset depreciation	● Investments in fixed assets is depreciated (for tax purposes) at straight line over 10 years, for most capital investments
Taxes	● Israel Corporation Tax rate of 23%

Petroleum levy (Sheshinski)

Levy calculation R-factor mechanism

• ⚫ In 2011, the Israeli parliament enacted the Taxation of Profits from Natural Resources Law
• ⚫ The Law caused a change in the taxation principles for income of the oil and gas industry, including imposing a levy on oil and gas profits
• ⚫ The rate of the levy will be calculated according to an R-factor mechanism:
  • ⚫ According to the ratio between the net aggregate revenues from the project and the aggregate investments
  • ⚫ A minimum levy of 20% will be collected commencing from the point when the R-factor ratio reaches for Leviathan 1.5x, and as the ratio rises, the levy progressively increases up to a maximum rate of 50% when the ratio reaches 2.3x
  • ⚫ Additionally, it was determined that the rate of the levy will be reduced by multiplying 0.64 by the difference between the corporate tax rate in respect of each tax year and the 18% tax rate, therefore the maximum effective tax rate once the ratio reaches 2.3x is 46.8% and corporate tax is 23%
• ⚫ The Levy rate is applied to the Levy base which is defined as Working Interest Revenues less Royalties less Operating expenses less Capital expenditures less Abandonment expenditures

Maximum levy rate

R-factor

Key defined terms

Term	Definition
1P	Proved Reserves
2P	Proved + Probable Reserves
Bcf/d	Billion cubic feet per day
BCM	Billion cubic meters
BCM p.a.	Billion cubic meters per annum
Boe	Barrel of oil equivalent
EMG	Eastern Mediterranean Gas pipeline
IEC	Israeli Electric Corporation

Term	Definition
INGL	Israel Natural Gas Lines Ltd.
IPP	Independent Power Producer
JOA	Joint Operating Agreement
MMBTU	Million British thermal units
NEPCO	National Electric Power Company of Jordan
NSAI	Netherland, Sewell & Associates, Inc.
EA	Electricity Authority
TCF	Trillion cubic feet