Seplat Energy (SEPL) Investor Update summary

Transaction overview and strategic rationale

• Completed acquisition of a 40% working interest in four prolific shallow water offshore blocks, adding 409 million barrels of oil equivalent at a cash consideration of $800 million, with a total deal value of $1.283 billion plus contingent consideration.

• The transaction is transformational, scaling up production, reserves, revenue, and cash generation, with production rising to over 120,000 boe/d and reserves per share nearly doubling.

• The acquired assets include world-class infrastructure, over 200 producing wells, 1,500 km of pipelines, and three export terminals, providing a closed-loop system and high operational resilience.

• The acquisition diversifies the portfolio into shallow water offshore, reducing reliance on onshore assets and increasing uptime and operational control.

• The deal positions the company as a leading independent energy player in Nigeria, with significant organic growth opportunities and a dominant gas resource base.

Acquisition completion and strategic impact

• Seplat Energy completed the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil, more than doubling its production capacity and significantly increasing reserves and resources.

• MPNU brings 409 MMboe 2P reserves, 670 MMboe 2P+2C reserves/resources, and 6M 2024 average daily production of 71.4 kboepd.

• The acquisition aligns with the strategy for sustainable, affordable, and reliable energy delivery in Nigeria.

Financial impact and funding

• The $800 million cash consideration is below the 2023 full-year EBITDA of $1.3 billion, reflecting a highly competitive acquisition multiple of $2 per boe.

• Financing included a $300 million advance payment facility, a $350 million RCF, and $22 million from cash reserves, with no new equity issued.

• Pro forma net debt to EBITDA remains low at 0.7x, well within bond covenants, and the balance sheet is considered conservative post-transaction.

• Deferred payments of $257 million are mainly JV costs, partially offset by government cash calls, with an estimated after-tax impact of $25–$35 million.

• The company is considering bond refinancing in 2025 to enhance capital flexibility.