Analyst Briefing: Q3 2021 Results Highlights

PXP Energy Corporation

3rd Quarter Financial Highlights and

Operational Updates

05 November 2021

Financial Highlights - Profit and Loss

								% Inc
(in PhP millions)		9M 2021		9M 2020		(Dec)
Gross revenue		₱	43		₱	14	196%
Cost and expenses			65			53	22%
Loss from operations			(22)			(38)	-43%
Other income (charges) - net			(3,069)			(27)	11205%
Reported net loss		₱ (3,091)		₱	(66)	4610%
Attributable to:
PXP Equity holders			(1,682)			(52)
Minority interest			(1,410)			(14)

•

•

196% increase in gross revenue due to:

• 90% surge in average crude sale price offset by;
• 4% decline in output

22% increase in cost and expenses due to:

• Higher oil production cost in Galoc related to output;
• Containment of overhead

• Net Loss Attributable to Equity Holders of PXP at P1.682 billion largely as a result of a P1.655 billion full write-downof the carrying value of oil and gas assets related to Peru block Z-38,net of settlement sum of P488 million.

04 August 2021

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Financial Highlights - Financial Position

ASSETS (in PHP millions)
			As at Sep 30,		As at Dec 31,		% Inc
				2021				2020		(Dec)
Cash & cash equivalents		₱	136			₱	143	-4.7%
Receivables and other CA				530				52		913.5%
Current assets			667				195	241.3%
Deferred exploration costs & other NCA				2,449				6,560		-62.7%
Total assets			₱	3,115			₱	6,756		-53 .9%
LIABILITIES AND STOCKHOLDERS' EQUITY
(in PHP millions)
			As at Sep 30,		As at Dec 31,		% Inc
				2021				2020		(Dec)
Accounts payable & others				55				25		122.4%
Current liabilities				55				25		122.4%
Deferred income tax liability			85				1,069	-92.1%
Provision for decommission and losses				321				192		66.8%
Non-current liabilities				405				1,262		-67.9%
Total liabilities				461				1,287		-64 .2%
Capital stock			1,960				1,960	-
Additional Paid-in Capital			2,817				2,817	-
Subscription receivable			-				(121)	-100.0%
Deficit			(3,382)				(1,700)	98.9%
Others			314				197	59.3%
Non-controlling interest				946				2,316		-59.2%
Total equity				2,655				5,469		-51.5%
Total Liabilities and SHE			₱	3,115			₱	6,756		-53 .9%

Assets

• 4.7% decline in Cash and cash equivalents due to exploration and overhead expenditures; offset by collection of receivables from the sale of crude oil and subscription receivable from Philex.
• 913.5% upturn in Receivables & other CA resulting from the P448 million settlement with Karoon Gas Australia.
• 62.7% decline in Deferred exploration costs following the full write-down of Peru exploration assets and goodwill.

Liabilities and Equity

• 92.1% decline in deferred income tax liabilities resulting from the effect of CREATE Act and write- down of Peru-related deferred tax liability.
• 66.8% increase in provision for field decommissioning related to SC 14 Galoc and W. Linapacan blocks.
• Reduction in subscription receivable following full collection from Philex.

04 August 2021

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Operations Update

Block A

SC 74

SC 72	SC 75
SC 40

Area 7

SC 6A SC 14C1

SC 14C2

SC 6B

Cadlao (SC 6B)

05 November 2021

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Operations Update

SC 72 Recto Bank (Forum 70%)

• Ongoing preparations for the drilling of two (2) appraisal wells within the first half of 2022.

SC 75 NW Palawan (PXP 50%)

• Ongoing preparations for the acquisition of at least 1,100 sq. km of 3D seismic data within the first half of 2022.

SC 74 Linapacan (PXP 70%)

• Completed Geological and Geophysical (G&G) studies including the interpretation of 3D seismic data and resource estimation on Linapacan A and B fields.

SC 14 C-1 Galoc (Forum 3.2103%)

• Ongoing production. January to October 2021 average: 1,743 barrels of oil per day.
• Completed two liftings in April and July 2021. Last lifting for the year is scheduled in November.

Peru Block Z-38 (Pitkin 25%)

• On September 17, 2021, Pitkin Petroleum Limited ("PPL") and its wholly-owned subsidiary, Pitkin Petroleum Peru Z-38 SRL ("Pitkin Peru"), signed a Deed of Settlement and Release (the "Deed") with KEI (Peru Z-38) Pty Ltd ("KEI") and its wholly-owned branch KEI (Peru Z-38) Pty Ltd Sucursal del Peru ("KEI Peru"), wholly-owned by Karoon Energy Ltd, in respect of Pitkin Peru's dispute with KEI Peru in Block Z-38.
• Under the Deed, KEI has agreed to pay US$9.6 million in cash ("Settlement Sum") to PPL in full and final settlement of all claims by Pitkin Peru and its associates in connection with Block Z-38. The Deed became effective upon PPL's receipt of the Settlement Sum on October 4, 2021.

05 November 2021

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