COBALT INTERNATIONAL ENERGY, INC. NYSE: CIE DECEMBER 2015 INVESTOR PRESENTATION 1
NYSE: CIE | www.cobaltintl.com
Investor Presentation
December 2015
Legal Disclosures
Neither the United States Securities and Exchange Commission nor any other state securities regulator nor any securities regulatory authority elsewhere has reviewed or made any determination as to the truthfulness or completeness of the disclosure in this presentation. Any representation to the contrary is an offense.
Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard.
Certain statements, estimates, reserve and resource data, production estimates, exploration, development and production schedules and financial information contained in this presentation (together, 'Estimates') constitute forward-looking statements or information. Such forward-looking statements or information involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from the Estimates or results implied or expressed in such forward-looking statements. While presented with numerical specificity, the Estimates are based (1) on certain assumptions that are inherently subject to significant business, geologic, economic, regulatory, environmental, seasonal, competitive uncertainties, contingencies and risks including, without limitation, ability to obtain debt and equity financings, capital costs, construction costs, exploration and development results, well production performance, operating costs, commodity pricing, differentials, royalty structures, field upgrading technology, regulatory and partner approvals, equipment availability and other known and unknown risks, all of which are difficult to predict and many of which are beyond Cobalt's control, and (2) upon assumptions with respect to future business decisions, including, without limitation, decisions concerning allocation of capital, drilling plans and schedules, strategic focus and viability of projects, all of which are subject to change. Unless otherwise stated herein, the Estimates contained herein are Cobalt's internal Estimates based on management assumptions and judgments, and have not been independently verified.
This presentation includes Estimates of projected financial information that is not presented in accordance with generally accepted accounting principles in the United States ('GAAP'), including EBITDA and PV-10. We believe these measures commonly used by analysts and investors to evaluate the performance of
companies in our industry. Our use of these measures may differ from that of others in our industry. EBITDA should not be considered as an alternative to net income (loss) or any other performance measure derived in accordance with GAAP as measures of operating performance or operating cash flows or as measures of liquidity. EBITDA has important limitations as an analytical tool and should be considered in conjunction with, and not as a substitute for, our results as reported under GAAP. As these measures are Estimates of future financial performance, they are unable to be reconciled to their most directly comparable financial measures calculated in accordance with GAAP. We believe our PV-10 for the projects presented herein will be equal to the Standardized Measure, the most directly comparable GAAP financial measure, for the foreseeable future as the tax basis in our interests in these projects and related net operating losses exceed the future net cash flows (after deducting future development and production costs) and accordingly there will be no tax effect on future cash flows. This presentation also includes Estimates in the form of resource information which include estimated quantities of oil and gas that are not yet classified as proved reserves under SEC definitions and are not intended to correspond to the SEC definitions of 'probable' or 'possible' reserves.' There can be no assurance that such estimated resources will result in proved reserves.
There can be no assurance that the Estimates or the underlying assumptions will be realized and that actual results of operations or future events will not be materially different from the Estimates. Under no circumstances should the inclusion of the Estimates be regarded as a representation, undertaking, warranty or prediction by Cobalt, or any other person with respect to the accuracy thereof or the accuracy of the underlying assumptions, or that Cobalt will achieve or is likely to achieve any particular results. The Estimates are made as of the date hereof and Cobalt disclaims any intent or obligation to update publicly or to revise any of the Estimates, whether as a result of new information, future events or otherwise. Recipients are cautioned that forward-looking statements or information are not guarantees of future performance and, accordingly, recipients are expressly cautioned not to put undue reliance on forward-looking statements or information due to the inherent uncertainty therein.
NYSE: CIE
DECEMBER 2015 INVESTOR PRESENTATION 2
Cobalt Today - Continued Execution of Our Strategy
Post Angola, our discovered asset portfolio is now primarily concentrated in the deepwater Gulf of Mexico, where we continue appraisal and development operations
Heidelberg first oil accelerated to 2Q 2016
Initial production from three subsea wells, two additional wells to follow at a later date
Active appraisal operations ongoing in Gulf of Mexico
North Platte - Encouraging results indicate ~550' net oil pay, evaluation of log and pressure data ongoing Anchor - Potential 'hub class scale' asset; appraisal well encountered 694' of net oil pay
Shenandoah - Appraisal well found over 600' net pay, extended oil column down dip
Upon closing of the Angolan transaction, Cobalt's strengthened balance sheet comes at an opportune time in the industry
Dramatic reductions in costs of goods and services allow us to do more with less Capital available to drill, appraise and develop our attractive existing GOM assets
Reduces the need to access the capital markets
Opportunity to acquire ground level working interests in newly marketed GOM prospects
Significant GOM lease turnover in 2016-2018
Proven technical team
Utilize Cobalt's technology and data
Evaluating high potential deepwater exploration opportunities, such as Mexico and Eastern Canada
NYSE: CIE
DECEMBER 2015 INVESTOR PRESENTATION 3
As Adjusted Balance Sheet and Use of Cash post Angola Transaction
($B)
1.6
0.25
1.35
3Q 2015(1)
Cash Balance
1.5
Remaining Transaction Proceeds
0.4
Reimbursements and Releases
0.1
Estimated Taxes and Transaction Costs
Restricted Unrestricted Proceeds Use of Cash
3.4
As Adjusted 3Q 2015E
Cobalt's as adjusted 3Q 2015 unrestricted cash (Liquidity) is estimated at ~$3.4 billion upon close of entire transaction
Initial $250 million payment is recorded as restricted cash
Upon approval of the transaction by the Angolan government, Cobalt will be paid $1.3 billion, less approximately $20 million in Angolan tax withholdings(2), plus approximately $0.4 billion(3) including all reimbursable expenditures from the 1/1/15 agreement effective date.
The remaining $200 million will be paid to Cobalt within 30 days of the execution of a Transfer of Operations Agreement, but no later than one year after signing
Cobalt continues to work closely with Sonangol to obtain the necessary Angola government approvals and close the transaction as soon as possible(4)
Since the PSA signing, Cobalt's Angola Transition Team has been actively preparing for the full transfer of operations to the new operator(s)
Anticipated 2016-2018 use of cash requirements
reduced by over 40%
Now estimated at $500-600 million per year, compared to previous estimate of $1 billion per year
3Q 2015 unrestricted cash balance excludes $150 mm available from the Heidelberg RBL facility
Minimal US taxes due to large NOL position
As of the end of 3Q 2015; Amount includes LOC release of approximately $83 million plus $58 million in receivables as of 9/30/2015; Cobalt will relinquish Block 9 upon closing
The Angola Transaction is subject to Angolan government approval, which may not be timely obtained and the closing of the Angola Transaction may therefore be delayed
NYSE: CIE
DECEMBER 2015 INVESTOR PRESENTATION 4
|
distributed by
|
