Earnings Release • Feb 23, 2022
Earnings Release
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PANORO ENERGY ASA
23 FEBRUARY 2022
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This presentation does not constitute an offer to buy or sell shares or other financial instruments of Panoro Energy ASA ("Company"). This presentation contains certain statements that are, or may be deemed to be, "forward-looking statements", which include all statements other than statements of historical fact. Forward-looking statements involve making certain assumptions based on the Company's experience and perception of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. Although we believe that the expectations reflected in these forward-looking statements are reasonable, actual events or results may differ materially from those projected or implied in such forward-looking statements due to known or unknown risks, uncertainties and other factors.
These risks and uncertainties include, among others, uncertainties in the exploration for and development and production of oil and gas, uncertainties inherent in estimating oil and gas reserves and projecting future rates of production, uncertainties as to the amount and timing of future capital expenditures, unpredictable changes in general economic conditions, volatility of oil and gas prices, competitive risks, counterparty risks including partner funding, regulatory changes and other risks and uncertainties discussed in the Company's periodic reports.
Forward-looking statements are often identified by the words "believe", "budget", "potential", "expect", "anticipate", "intend", "plan" and other similar terms and phrases. We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation, and we undertake no obligation to update or revise any of this information.
* Non IFRS measure. Assumes assets acquired from Tullow Oil held from 1 January 2021
** Receivable at 31/12/21 from Gabon and Equatorial Guinea liftings made in December 2021
| GROSS REVENUE |
NUMBER OF LIFTINGS |
EBITDA | EBIT | CASH BALANCE AT 31 DEC 2021 |
RECEIVABLES FROM CRUDE OIL SALES |
GROSS DEBT | |
|---|---|---|---|---|---|---|---|
| IFRS Reporting basis |
USD 119.7 million |
9 int'l 7 domestic |
USD 71.9 million |
USD 82.1 million |
USD 24.5 million |
USD 39.8 million |
USD 96.8 million |
| Pro-forma basis |
USD 188.6 million |
10 int'l 7 domestic |
USD 134.3 million |
USD 115.5 million |
n/a | n/a | n/a |
| Includes over lift reversal to income of USD 25 million |
Received post period end | ||||||
| After DD&A on a historical basis. Following completion of acquisitions, DD&A will be higher due to depletion of sizeable fair value uplift adjustments made on the purchase price allocation of business combinations |
Note: 2021 production expresses on a pro-forma basis of assets acquired from Tullow Oil held from 1 January 2021
EQUATORIAL GUINEA (Panoro: 14.25%)
Operator: Trident Energy
Operator: BW Energy
Operator: TPS
Note: Production volumes stated are FY 2021 average working interest production (expressed on a pro-forma basis for Equatorial Guinea and Gabon)
USD 39.8 MILLION RECEIVABLES FROM DECEMBER 2021 LIFTINGS NOT REFLECTED IN REPORTED YEAR END CASH BALANCE
* Including cash balance of USD 10 million held for bank guarantee
| Facility | Maturity | Amount | Rate |
|---|---|---|---|
| Non recourse loan | n/a | USD 4.5 MM | 7.5% p.a |
| Senior secured loan |
2024 | USD 10.8 MM | LIBOR + 6% |
| RBL facility | 2026 | USD 84.6 MM | LIBOR + 7.5% |
| Advance payment facility | n/a | USD 20 MM | LIBOR + 4.0% |
~USD 6 million capex carried forward from 2021 guidance in relation to ongoing development of Dussafu (Gabon) and ~USD 6 million carried forward in relation to exploration drilling at Block 2B (South Africa)
Note: Cumulative external debt in the Balance Sheet as of 31 December 2021 was USD 96.8 million which includes effects of accrued interest to quarter end, offset by unamortised borrowing cost which is to be expensed over the life of the loan instruments.
› Crude liftings are based on entitlement volumes after respective PSC terms have been applied, and will differ from produced volumes expressed on a working interest basis
Note: Estimated 2022 annual free cash flow is a non IFRS measure based on guided 2022 lifting schedule and stated after tax, capex and corporate G&A overhead and excluding financing and hedging. Free cash flow yield referencing share price of NOK 25/sh as at 17/02/22
OUTLOOK OF ROBUST FREE CASH GENERATION AND YIELD EXPANSION
Important note: Refer to disclaimer on slide 3.
Estimated 2022 free cash flow generation is based on Panoro's mid point guidance and associated work programme and budget for the period. Estimated free cash flow generation for the 36 months 2023 to 2025 inclusive is based on Panoro's current business plan. Flat pricing of USD 65/bbl and USD 85/bbl from 2022 to 2025 inclusive is assumed
Free cash flow is a non IFRS measure based on guided 2022 lifting schedule and Panoro's 2022 to 2025 lifting schedule assumptions and stated after tax, capex and corporate G&A overhead and excluding financing and hedging. Free cash flow yield referencing share price of NOK 25/sh and corresponding market capitalisation as at 17/02/22
~33 MMbbls 2C resource maturation to reserves
Additional future development of Block G & Dussafu Marin
Value and cash flow accretive production acquisitions
~US\$ 17 /bbl 2022E average unit opex >8,500 bopd in Dec 2021 (W.I) R/P ratio ~13 years (2P), 22 years (2P+2C)
Hibiscus North discovery in 2021
78 Brook Street London W1K 5EF United Kingdom
Tel: +44 (0) 203 405 1060 Fax: +44 (0) 203 004 1130
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