2023 annual results

1 March 2024

Participants

Olivier de Langavant

Patrick Deygas

Matthieu Lefrancq

Chief Executive Officer

Chief Financial Officer

Head of Investor Relations

2

Key messages

  • Strong operating performance and increased profitability in a lower crude oil price environment
    • M&P working interest production up 10% at 28,057 boepd in 2023
    • Average sale price of oil down 19% at $79.3/bbl in 2023
    • Limited increase in operating and administrative expenses, related to the expansion of the Group's activities
    • Sales of $682 million, EBITDA of $359 million and recurring net income of $255 million
  • Significant liquidity and substantial decrease in net debt thanks to high cash flow generation
    • Operating cash flow of $270 million and free cash flow of $157 million
    • Net debt reduced to $120 million at end of 2023 from $200 million at end of 2022; net cash position expected in the first half of 2024
    • Available liquidity of $159 million at year-end 2023, of which $97 million in cash
  • Substantial reduction in greenhouse gas emissions and carbon intensity of production, ahead of the Group's targets
    • Scope 1 and 2 emissions: 11.3kg of CO2 equivalent per barrel of oil equivalent
  • Group development continues
    • Resumption of activity in Venezuela: two liftings in December and January, ongoing restart of interventions on the Urdaneta Oeste field
    • Acquisition of Wentworth Resources finalised in December 2023; after TPDC exercised its call option in January 2024, M&P now holds a 60% interest in the Mnazi Bay gas field
    • M&P is ready and ideally positioned for external growth transactions
  • Redistribution of value creation to shareholders
    • Dividend of €0.23 per share ($49 million) paid in July 2023 for fiscal year 2022
    • Dividend of €0.23 per share ($50 million) submitted to shareholders' vote for 2023

Production:

Operating cash flow:

Free cash flow:

Net debt:

28,057 boepd

$270 million

$157 million

$120 million

+10% vs. 2022

-$96 million vs. 2022

-$41 million vs. 2022

-$80 million vs. 2022

3

1

Review of operational performance

4

EHS-S performance

Key performance indicators

LTIR

TRIR

7

5.95

6

5

4.24

4.05

4

3

2.58

2.70

2.56

2.52

2.46

2

0.79

1.83

1.61

1.41

0.98

1

0.54

0.64

0.45

0.26

0.00

0.00

0.00

0

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Note: Data as of 1 March 2024; lost time injury rate (LTIR) and total recordable injury rate (TRIR) calculated per million hours worked

As of 1 March 2024:

Cumulated days without

significant environmental incident:

1,580

Cumulated days without LTI:

1,480

M&P certifications

ISO 45001 (health and safety)

ISO 14001 (environmental management)

Environmental commitment

M&P rank in 2023: B

5

ESG performance on operated assets in production

Greenhouse gas emissions and intensity per barrel of operated assets in production

Total scope 1+2 emissions (kt of CO2eq., LHS)

Scope 1+2 intensity (kg of CO2eq./boe, RHS)

400kt

30.3

35kg/boe

21.3

30kg/boe

300kt

18.1

-50% vs.

25kg/boe

2020

20kg/boe

200kt

11.3

356

15kg/boe

100kt

256

220

10kg/boe

154

5kg/boe

0kt

0kg/boe

2020

2021

2022

2023

2023 target

Venting

Flaring

200kt

150kt

100kt

50kt

0kt

Venting (kt of CO2eq.)

-70% vs.

184

2020

120

84

3

2020

2021

2022

2023

2024 target

140kt

120kt

100kt

80kt

60kt

40kt

20kt

0kt

Flaring

-25% vs.

2020

-50% vs.

2020

120

-90% vs.

2020

78

63

66

2020

2021

2022

2023

2023 target 2025 target 2030 target

Initiatives implemented as part of the decarbonisation policy put M&P ahead of its objectives

6

Review of production activities in 2023

Ezanga

Mnazi Bay

Blocks 3/05 and 3/05A

M&P WI production

bopd

+5%

16,896

15,540

14,646

15,354

2020

2021

2022

2023

mmcfd

+19%

43.2

51.6

39.2

31.5

2020

2021

2022

2023

bopd

+10%

3,933

3,416

3,732

4,103

2020

2021

2022

2023

Commentary

  • Average production up 5% in 2023 from 2022
  • 12 wells were drilled in 2023 on Ezanga
  • A small discovery was made on the Ezal structure during the year; it was immediately connected and put into production
  • A well stimulation campaign took place at the end of 2023 with positive results
  • New annual record for Mnazi Bay's production with 107.4 mmcfd (gross), 19% higher than the previous record in 2022 (9.0 mmcfd)
  • Increase of M&P's working interest in Mnazi Bay to 60% from January 2024, following the acquisition of Wentworth Resource sand the exercise by TPDC of its call option for 20%
  • Studies underway for the drilling of two development wells from the end of 2024; these drillings would undoubtedly make it possible to delay the need to implement compression
  • Average production up 10% in 2023 from 2022
  • Block 3/05 license extended until 2040 in fiscal year 2022, with new, more favourable tax terms

Urdaneta West

bopd, 40% interest in PRDL

-12%

6,512

5,700

4,782

3,440

2020

2021

2022

2023

  • Average gross production 14,251 bopdd in 2023 (compared to 16,281 bopd in 2022) for the Urdaneta Oeste field operated by Petreoregional del Lago ("PRDL") in which M&P Iberoamerica holds 40% (32% net to M&P)
  • General License 44 ("GL 44") issued by OFAC on 18 October 2023 temporarily suspended sanctions imposed since 2019 and allowed the resumption of all oil and gas activities in Venezuela
  • In November 2023, M&P signed agreements with PdVSA allowing the immediate restart of PRDL's activity; these agreements define the mechanisms for progressive repayment of sums owed to M&P, and provide for the terms of conduct of the operations of the mixed company, in which M&P plays a key role

7

Production and reserves

Production - Last 10 years

Working interest reserves as of 31 December 2023

Gabon

Tanzania

Angola Nigeria (equity stake)

40,000

35,000

30,000

96mmboe 2P reserves through 20.46% equity stake in Seplat

Reserves by country

Gabon

Tanzania

Angola

Nigeria (equity stake)

(boepd)

Production

25,000

20,000

15,000

10,000

5,000

0

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Note: Gas to oil conversion ratio of 6bcf/mmboe

182mmboe 2P reserves in consolidated assets

Total consolidated WI 2P reserves: 182 mmboe

(139 mmbbls of oil and 255 bcf of gas)

Reserves by type

Oil

Gas

2P reserves in consolidated assets: 139mmbbls of oil and 255bcf of gas

Source: DeGolyer and MacNaughton (Gabon, Angola) and RPS (Tanzania) reserves reports as of 31 December 2023; Seplat reserves based on 2023 results presentation on 29 February 2024

8

Actuals vs. guidance

Production

Guidance

Actual performance

Cash flows

Guidance Actuals

Gross

M&P WI

Gross

M&P WI

Gabon

19,500 bopd

15,600 bopd

19,193 bopd

15,534 bopd

-2%

Tanzania

90.0 mmcfd

43.2 mmcfd

107.4 mmcfd

51.6 mmcfd

+19%

Angola

Non operated

17,000 bopd

3,400 bopd

20,514 bopd

4,103 bopd

+21%

Total

26,200 boepd

28,057 boepd

+7%

Operating cash flow

Capex

Financing

$310 million

@ $80/bbl

Development:

$100 million

Exploration:$45 million, including $35 million contingent

Debt service:

$78 million

Dividends:$50 million

$270 million @ $79.3/bbl

$20 million negative working cap variance due to growth projects / $20 million exceptionals

Development:

$107 million

Exploration:

$17 million

Debt service:

$82 million

(excluding $62 million

voluntary RCF repayment)

Dividends:$49 million

9

Information on the restart of activities in Venezuela

  • The resumption of activity in the Urdaneta Oeste field continues
    • Implementation of the new organisation from November 2023
    • Initial well interventions and equipment orders in January2024
    • The effects of the associated production increase should be felt from Q2 2024
  • General License 44 ("GL 44") from the Office of Foreign Assets Control ("OFAC"), which governs the temporary lifting of US sanctions in
    Venezuela, is currently scheduled to expire on 18 April 2024
    • In the event that this is not extended, M&P is able to continue operating in the country under the agreements signed with PdVSA in November 2023, while remaining in strict compliance with the restrictions imposed by the US authorities

10

Attachments

Disclaimer

Établissements Maurel & Prom SA published this content on 01 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2024 11:12:13 UTC.