Why invest

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Why invest

Genel’s aims to be a world-class creator of shareholder value, with a strategy focused on building reliable and repeatable cash flows that support the re-establishment of a dividend programme.

As we await the re-opening of the Iraq-Turkey pipeline, we are minimising expenditure while seeking to maximise local sales proceeds, and our material cash position supports the acquisition of new cash-generative assets.

Genel is focused on increasing shareholder returns through using our financial strength to add the right assets, with the right return profiles.

Genel aims to achieve our goals in accordance with values that are inherently linked to our business model and strategic success. If we deliver our values, we will deliver our ambition: to become a world-class independent E&P creator of shareholder value.

As we do this, we aim to have a positive economic impact both by growing the production of the hydrocarbons that fuel economies and directly supporting the communities in which we operate by improving infrastructure and providing employment and development opportunities.

The investment case

Low-cost production

Genel is the only multi-licence producer in the Kurdistan Region of Iraq, with production of 32,100 bopd in H1 2020 from four fields – Tawke, Peshkabir, Sarta, and Taq Taq, with an asset level breakeven of $30/bbl.20.

operating cash cost per barrel

$ 0 /bbl

Strong balance sheet and resilient business model

Genel is resilient to a low oil price. Genel has significant capital allocation flexibility with limited commitments, is committed to retaining a strong balance sheet, and will ensure expenditure matches the external environment. Capital allocation is prioritised on those assets with near term cash generation, and our business model optimises capital exposure and payback.

unrestricted cash at end 2020

$ 0 million

Material opportunities for growth with multiple near-term catalysts

Genel has a balanced portfolio, with producing assets generating cash and material 2C resources with a clear and funded route to derisking. The resilience of our business also provides an opportunity, as more resilient businesses have more opportunities to grow, and there is cash available should the right opportunity arise.

dividends paid in 2020

$ 0 million

A material and sustainable dividend

Genel’s low-cost production, flexible capital structure, and strong balance sheet with a net cash position, allows the payment of a material dividend.

final dividend

$ 0 million

A socially responsible operator

We recognise our need to provide the world with high-margin, low-carbon barrels that fit into a world of fewer and more efficient natural resources projects, as we continue to build on our aim of creating shareholder value over the long-term as a socially responsible contributor to the global energy mix.