View in browser - New Zealand Oil & Gas
Forsyth Barr conference 13 June 2016 Andrew Knight. Chief executive.
Today
01
Overview of our revenue and production
02
Strategy
03
Kupe growth
04
Costs
05
Cue & International
06
Our investment case
New Zealand’s oil and gas company NZO offers investors exposure to New Zealand’s oil and gas
Partner of choice for New Zealand. Balanced portfolio. Strong balance sheet. Returns from producing assets and exposure to New Zealand’s frontier potential
Overview
Strategy
Kupe
Costs
Cue & International
Investment case
Wellington-based, NZX-listed with 13,000 shareholders 215,000 shares traded daily Buyback of up to 64m shares underway
Annual Revenue from Kupe, Tui, Cue ~$120m
Six-monthly revenues
Cash balance
$93m*
Cue
28.5
Tui
12.9
Kupe
24.0 NZDm
Jul-Dec 15
* 31 March 16. Includes 100% of Cue
Annual production 2.5 million barrels of oil equivalent in 2015
242,000bbl -5.9%
15,400t (+7%)
3640TJ +4%
Kupe LPG
Kupe oil
Tui oil
Maari oil
Kupe gas
96,000bbl new
401,000bbl +34%
Sampang oil
Sampang gas
4501mmcf new
234,000bbl new
Sales revenue up 21% in 1H16
Cue $28.5m Jul-Dec 14 $54.1m
Kupe $7.4m
Jul-Dec 15 $65.4m
Tui $9.8m
Includes all of Cue
Operating cashflows positive despite lower oil price
Six-monthly operating cashflows
$36.3m
$31.7m
$22.7m
1H15
2H15
1H16 Includes all of Cue
Strategy Sustain and grow returns by investing in opportunities for extension in existing, producing assets and beyond. With producing assets contributing to our strong balance sheet, the company is positioned for ongoing development. The company is looking to extract more value from existing assets and continues to screen opportunities actively to grow through acquisition. The Board intends to manage capital carefully and retain only capital needed for the company’s strategy. Exploration costs have been minimised in the current oil price environment. The company’s operated Barque prospect is New Zealand’s largest announced hydrocarbon prospect. We have a full portfolio of interests in Indonesia.
Overview
Strategy
Kupe
Costs
Cue & International
Investment case
Strategy
Opportunities to grow shareholder value
Control costs
Opportunities to acquire at value
Corporate costs reduced
Market dislocation bringing distressed assets to market
Exploration minimised
Active screening
Portfolio remains attractive
More from existing assets Kupe Cue Indonesia
Strategy Timetable: 2 years
New Zealand exploration CAPEX down for foreseeable future, unless oil price recovers Reduced overheads Down 30% New run rate
Today
01
Overview of our revenue and production
02
Strategy
03
Kupe growth
04
Costs
05
Cue & International
06
Our investment case
New Zealand’s oil and gas company NZO offers investors exposure to New Zealand’s oil and gas
Partner of choice for New Zealand. Balanced portfolio. Strong balance sheet. Returns from producing assets and exposure to New Zealand’s frontier potential
Overview
Strategy
Kupe
Costs
Cue & International
Investment case
Wellington-based, NZX-listed with 13,000 shareholders 215,000 shares traded daily Buyback of up to 64m shares underway
Annual Revenue from Kupe, Tui, Cue ~$120m
Six-monthly revenues
Cash balance
$93m*
Cue
28.5
Tui
12.9
Kupe
24.0 NZDm
Jul-Dec 15
* 31 March 16. Includes 100% of Cue
Annual production 2.5 million barrels of oil equivalent in 2015
242,000bbl -5.9%
15,400t (+7%)
3640TJ +4%
Kupe LPG
Kupe oil
Tui oil
Maari oil
Kupe gas
96,000bbl new
401,000bbl +34%
Sampang oil
Sampang gas
4501mmcf new
234,000bbl new
Sales revenue up 21% in 1H16
Cue $28.5m Jul-Dec 14 $54.1m
Kupe $7.4m
Jul-Dec 15 $65.4m
Tui $9.8m
Includes all of Cue
Operating cashflows positive despite lower oil price
Six-monthly operating cashflows
$36.3m
$31.7m
$22.7m
1H15
2H15
1H16 Includes all of Cue
Strategy Sustain and grow returns by investing in opportunities for extension in existing, producing assets and beyond. With producing assets contributing to our strong balance sheet, the company is positioned for ongoing development. The company is looking to extract more value from existing assets and continues to screen opportunities actively to grow through acquisition. The Board intends to manage capital carefully and retain only capital needed for the company’s strategy. Exploration costs have been minimised in the current oil price environment. The company’s operated Barque prospect is New Zealand’s largest announced hydrocarbon prospect. We have a full portfolio of interests in Indonesia.
Overview
Strategy
Kupe
Costs
Cue & International
Investment case
Strategy
Opportunities to grow shareholder value
Control costs
Opportunities to acquire at value
Corporate costs reduced
Market dislocation bringing distressed assets to market
Exploration minimised
Active screening
Portfolio remains attractive
More from existing assets Kupe Cue Indonesia
Strategy Timetable: 2 years
New Zealand exploration CAPEX down for foreseeable future, unless oil price recovers Reduced overheads Down 30% New run rate
