Conference Call Presentation 1Q11


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Conference Call Presentation 1Q11

  1. 1. 11-30-101Q11 Highlights
  2. 2. DisclaimerThe material that follows is a presentation of general background information about MPX Energia S.A. and its subsidiaries(collectively, “MPX” or the “Company”) as of the date of the presentation. It is information in summary form and does not purportto be complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, theaccuracy, fairness, or completeness of this information.This presentation may contain certain forward-looking statements and information relating to MPX that reflect the current viewsand/or expectations of the Company and its management with respect to its performance, business and future events. Forwardlooking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results,performance or achievements, and may contain words like “may”, “plan”, “believe”, “anticipate”, “expect”, “envisages”, “will likelyresult”, or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties andassumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans,objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company, any of itsaffiliates, directors, officers, agents or employees nor any of the placement agents shall be liable before any third party (includinginvestors) for any investment or business decision made or action taken in reliance on the information and statements containedin this presentation or for any consequential, special or similar damages.This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities.Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipientsshould consult their own advisors in this regard.The market and competitive position data, including market forecasts, used throughout this presentation were obtained frominternal surveys, market research, publicly available information and industry publications. Although we have no reason to believethat any of this information or these reports are inaccurate in any material respect, we have not independently verified thecompetitive position, market share, market size, market growth or other data provided by third parties or by industry or otherpublications. MPX, the placement agents and the underwriters do not make any representation as to the accuracy of suchinformation.This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole orin part without MPX’s prior written consent. 2
  3. 3. Agenda Highlights & Subsequent Events Natural Gas Mining MPX Ventures 3
  4. 4. 1Q11 MPX HighlightsEstimates by DeGolyer & MacNaughton indicated a total of 11.3 Tcf of risked gas resources inthe seven onshore blocks operated by OGX Maranhão in the Parnaíba BasinInstallation License for the MPX Parnaíba, a 1,863 MW gas-fired power plant granted andlicensing process for additional 1,859 MW initiated5 rigs secured for drilling in the area of San Juan in Colombia and 2 additional rigs beingcontractedEnvironmental Licensing process for infrastructure in Colombia advanced with DAA approvalfor the port and route of the 150 km railroad.MPX to raise up to R$ 1,3 billion to fund development of key ventures MPX Parnaíba andMPX Colombia.Environmental license to 2,100 MW coal-fired power plant in Chile and Preliminary Licenseto 3,300 MW gas-fired power plant at the Superporto do Açu .Energia Pecém and MPX Itaqui power plants progressing to start up in 2H11. MPX Pecém IIconstruction works are well-advanced. 4
  5. 5. Parnaíba Basin: Onshore Natural Gas Blocks with Risked Resources of 11.3 Tcf Estimates by DeGolyer and MacNaughton (April, 2011) NATURAL GAS (in billion cubic feet - Bcf) GROSS NET Contingent Resources 3C 3C Contingent Gas Resources 952 222 Total Prospective Resources (unconventional + conventional) Mean Mean Unrisked Prospective Gas Resources 56,127 13,096 Risked Prospective Gas Resources 10,978 2,561 OIL (in million barrels) GROSS NET Prospective Resources Mean Mean Unrisked Prospective Oil Resources 1,946 454 Risked Prospective Oil Resources 96 22 (i) 2C Contingent Gas Resources: Total– 334 Bcf ; Net – 78 Bcf (ii) Contingent Resources: 2 accumulations discovered (ii) Prospective Resources: 6 oil leads and 18 gas prospects 2 wells concluded with success + 2 wells in process 9 wells planned for 2011 5
  6. 6. Integrated 3.7 GW Power Generation Complex Installation License to develop 1,863 MW granted Licensing of additional 1,859 MW unerway Power plants strategically located on the PN-T- 68 block with easy access to gas supply Inexpensive connection to the grid Exploratory TPP Blocks .6
  7. 7. Colombia: 5 Drilling Rigs Already SecuredUnique geology: large and continuous coal deposit Over 100 coal seams 22 seams > 1.5m thick 8 sea,s > 3.0 m thickEngineering projects by Golder Associates/Marsten&Marsten and Worley Parsons5 drilling rigs secured + 2 rigs being PRODUCTION Ramp-upcontracted 40 35Fully integrated logistics with 30 25environmental pre-feasibility approved MTPY 20 15 150km Railroad: flat route, parallel 10 to existing roads 5 0 Port: best combination of deepest water & flatter area in La Guajira PHASE 1 PHASE 2 7
  8. 8. Raising R$ 1.3 billion to Fund MPX Parnaíba and MPX Colombia Structure Convertible Debentures R$ 1.0 Bi – R$ 1.3* Bi (R$ 600M BNDES + R$ 200M EB + R$ 200M Gávea + Minority Volume Shareholders) Tenure 3 years Rate IPC-A + 4.00% aa Conversion Price R$ 43.0/share Principal escalated by IPC-A + 4% spread payable annually* Considering 0% and 100%, respectively of free float subscription 8
  9. 9. Proven Track Record in the Development of Robust ProjectsChile: Environmental license for 2,100 MW Açu: Environmental License to 5,400 MW Integrated Project: Power Plant + Deep-Water 3,300 MW gas + 2,100 MW coalPort + Desalination Plant Strategic Location at the Açu Superport Strategic location Close to natural gas accumulations discovered in SIC: Central Interconnected System (90% of GDP the Campos Basin& 92% of population) Potential supplier for industries located within Large pent-up demand for energy and water the Açu Superport Port concession and environmental license Highly competitive energy supplier due togranted benefit from auto production sharing 9
  10. 10. Startup of Contracted Power Plants in 2H11 Energy sold in A-5 auction 2007 4Q11 2012 3Q12 2013 • Energia Pecém • MPX Itaqui Construction works at MPX Pecem II Spot¹ Fixed Gross Revenue: R$ 248.0 MM/y² 3Q08 Construction works at MPX Itaqui Spot¹ Fixed Gross Revenue: R$ 276.7 MM/y² Construction works at Energia Pecem Spot Fixed Gross Revenue: R$ 261.3 MM/y²4Q07 1Q09 2Q09 *Energia Pecém is a 50/50 partnership between MPX and EDP Energy sold in A-5 auction 2008: **PPA – Power Purchase Agreement • MPX Pecém II ¹ Energy sold in spot market before PPA start date ² As of Mar/2010 Energia Pecém e Pecém II Itaqui 10
  11. 11. All the rights reserved to MPX March/2011