Nostrum Oil & Gas (NOG) H2 2024 earnings summary

Executive summary

• Achieved strong operational and financial results in 2024, advancing a mixed asset strategy and solidifying position as a major third-party gas processor in Kazakhstan.

• Stepnoy Leopard FID approved in April 2024, with a gross capital budget of $100m–$130m; 2P reserves increased over fivefold to 133 mmboe, with $220m after-tax NPV10 and 34% IRR.

• Significant milestones reached for the Stepnoy Leopard project, including a final investment decision and government approval for phased development through 2044.

• Ural Oil and Gas (UOG) processing agreement extended to May 2031 under a new fixed tolling fee structure, securing long-term processing volumes and enhancing cash flow predictability.

• Focused on operational excellence with 98% processing uptime and a 48% year-over-year increase in title production volumes.

Financial highlights

• Revenue increased 14.6% year-over-year to $137.1 million, driven by higher process volumes and title production.

• EBITDA rose 16.2% to $48.9 million, with EBITDA margin up to 35.7%.

• Operating expenses per barrel of process volume fell 41% to $5.80, and G&A expenses per barrel dropped 49% to $1.9.

• Net positive operating cash flow of $33.1 million and unrestricted cash balance of $150.4 million at year-end.

• Recorded an $87 million impairment reversal in non-current assets due to growth catalysts and improved forecast cash flows.

Outlook and guidance

• No major capital expenditures planned for 2025, except for $10–15 million in statutory sidetrack and drilling operations.

• Stepnoy Leopard field production startup targeted for late 2026 to early 2027, with efforts to minimize upfront capital outlays.

• Guidance for 2025 production between 5,500 and 6,500 barrels of oil equivalent per day, with product mix similar to 2024.

• Intends to seek extension of the UOG production sharing agreement beyond 2031.

• Continued focus on cost control, operational efficiency, and maximizing value from new and existing assets.