Deutsche Rohstoff (DR0) CMD 2024 summary

Strategic direction and business model

• Focuses on profitable oil and gas production in the US, with operations in Wyoming and Colorado, producing around 15,000 BOEPD and generating all sales from the US market.

• Operates over 170 wells as both operator and in joint ventures, leveraging four US subsidiaries for competitive management.

• Maintains a diversified production base, with significant acreage (70,000 acres) and up to 200 potential drilling locations.

• Emphasizes efficiency gains, cost reductions, and technological advancements in drilling and completion processes.

• Pursues sustainability through gas infrastructure investments, flaring reduction, and water reuse initiatives.

Financial performance and guidance

• Achieved record revenue of EUR 171.6m (+29%) and EBITDA of EUR 122.2m (+20%) for 9M24, with production up 24% to 14,702 BOEPD.

• Net profit for 9M24 was EUR 36.2m, with an equity ratio rising to 41.4% and leverage ratio at 0.7x.

• 2024 guidance confirmed: revenue EUR 210–230m, EBITDA EUR 160–180m, investments EUR 175–180m, and production 14,700–15,700 BOEPD.

• 2025 guidance: revenue EUR 180–200m, EBITDA EUR 125–145m, investments EUR 100–110m, and 11 new wells planned in Wyoming.

• Maintains a strong hedge book with 1.4 million bbl hedged at USD 71.2 per bbl, supporting cash flow stability.

Operational efficiency and growth initiatives

• Drilling days per well reduced by ~25% in Niobrara formation, with costs per well down by USD ~800k and further savings in logistics and completion.

• Completion costs reduced by USD ~900k per well, with design optimizations and water cost reductions.

• 2024 drilling program in Wyoming delivered positive results, with production from new wells exceeding type curve forecasts by 8–14%.

• Over 100 additional potential well locations identified in Wyoming, with multi-target horizons in Niobrara, Teapot, and Mowry formations.

• Gas infrastructure expanded with a new compressor station, reducing operating costs and enabling flexible gas sales.