PTT Exploration and Production Public Co. Ltd.

Overview Key strengths Key risks Critical importance to, and high operating integration with, parent PTT Public Co. Ltd. (PTT). Untested sustainability of recent improvement in proven reserve life. Low lifting costs and consistent operating margins. Large capital expenditure to replenish reserve base and develop new fields. Portfolio weighted toward gas, which provides some business diversity and more stable pricing than oil. Exposure to high-risk jurisdictions, including Myanmar, Mozambique, and Algeria. Solid and less volatile cash flows through a pricing cycle. Higher sales volumes and rising hydrocarbon prices have offset the sizable cash drain of US$2.3 billion for the acquisition of Block 61, a gas field in Oman in 2021. This resulted in PTTEP?s debt-to-EBITDA improving slightly to 0.9x in 2021

...PTT Exploration and Production Public Co. Ltd.'s (PTTEP) credit metrics will likely remain strong as the company rebuilds its cash balance amid robust oil prices and stronger sales volumes. Higher sales volumes and rising hydrocarbon prices have offset the sizable cash drain of US$2.3 billion for the acquisition of Block 61, a gas field in Oman in 2021. This resulted in PTTEP's debt-to- EBITDA improving slightly to 0.9x in 2021 (2020: 1.1x ). In addition to sales volume secured under PTTEP's existing long-term sales...

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