Slide 1: Presentation of third quarter 2022
Presentation of third quarter 2022 OKEA ASA 26 October 2022
Slide 2: Cautionary statement
Cautionary statement • This presentation contains forward looking information • Forward looking information is based on management assumptions and analysis • Actual experience may differ, and those differences may be material • Forward looking information is subject to significant uncertainties and
Slide 3: OKEA third quarter 2022 results
OKEA third quarter 2022 results Highlights Operations • Production 16,064 boepd • Solid production performance from Draugen, Gjøa and Ivar Aasen in the quarter; planned well maintenance at Draugen reduces volume • Ramp up of Yme progressing slower than anticipated; six weeks of production outage in
Slide 4: Extreme volatility in European gas markets
Extreme volatility in European gas markets Still price differential between mainland Europe and UK Historical prices (Last 4 years) NBP vs TTF (Q3 2022 incl. October) • Relatively stable oil prices, but significant volatility in gas prices during the quarter • NBP (UK) still trading at substantial d
Slide 5: Production volumes and reliability
Production volumes and reliability Steady base performance at Draugen, Gjøa and Ivar Aasen Production (boepd) 20 000 Draugen 16 039 16 316 16 038 14 908 550 16 064 Gjøa 208 Ivar Aasen 15 000 Yme 6 735 7 231 7 060 6 338 6 877 10 000 Gas 30% 7 353 5 000 9 348 7 107 8 367 6 478 58% Oil 12% 1 019 NGL 21
Slide 6: Safety and emissions
Safety and emissions Serious incident frequency (SIF) – per million work-hours* Total recordable injury frequency (TRIF) – per million work-hours 6.2 5.3 5.3 4.8 4.7 4.8 4.5 4.3 3.4 3.6 3.5 3.3 1.8 1.8 1.6 1.6 1.6 1.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3
Slide 7: Draugen – WI 44.56%
Draugen – WI 44.56% Production Reserves* 6,338 boepd 27.9 mmboe • Net production 6,338 boepd and production reliability 94%; lower production due to planned well maintenance campaigns o Scale squeeze of subsea wells and wire line campaign successfully completed • Hasselmus gas project progressing ac
Slide 8: Gjøa – WI 12%
Gjøa – WI 12% Production Reserves* 7,353 boepd 7.5 mmboe • Net production 7,353 boepd and production reliability 100%; solid performance resulting in increased production • Production from tie-in project Nova commenced in July; Gjøa was compensated by 431 boepd in Q3 22 for the deferred production d
Slide 9: Yme – WI 15%
Yme – WI 15% Production Reserves* 1,354 boepd 8.7 mmboe • Net production 1,354 boepd; continued start-up challenges have resulted in slower than anticipated ramp up of production o Leakage in the piping system caused a production shutdown of six weeks in the quarter • Water-cut from producing wells
Slide 10: Ivar Aasen – WI 2.777%
Ivar Aasen – WI 2.777% Production Reserves* 1,019 boepd 2.1 mmboe • Net steady production of 1,019 boepd and production availability of 98% • An increased oil recovery (IOR) campaign to bring new wells on stream is ongoing and expected finalised in Q1 23 • OKEA WI to increase to 9.2385% following co
Slide 11: Acquisition of asset portfolio from Wintershall Dea close to completion
Acquisition of asset portfolio from Wintershall Dea close to completion Portfolio production YE-22* Portfolio reserves* ~7,000 boepd 13.2/10.6 mmboe 2P/2C • 35.2% operated working interest (WI) in Brage; Partner-operated 6.4615% WI in Ivar Aasen and 6.0% WI in Nova • Further diversifies OKEA’s portf
Slide 12: Financials
Financials
Slide 13: Oil and gas production, sales and revenues - per asset
Oil and gas production, sales and revenues - per asset Production (boepd) Sold volumes (boepd) 20 000 20 000 Draugen 18 102 Draugen 16 979 17 264 16 316 16 064 Gjøa Gjøa - tie ins 16 038 16 039 15 957 14 908 15 444 Ivar Aasen Gjøa 15 000 15 000 6 870 Yme 6 548 6 923 Ivar Aasen 6 735 7 231 7 060 6 33
Slide 14: Realised liquids prices
Realised liquids prices Volatile liquids prices at high levels Lifted volumes vs Dated Brent – Q3 2021/2022e Realised liquids prices vs Dated Brent – Q3 22 USD/bbl kbbl USD/bbl 110 106.6 106.6 140 950 0.1 Q3 Q4 Q1 Q2 Q3 105 2.9 900 100.7 0.8 135 2.2 100 850 130 95 800 90 125 750 85 120 700 80 652 75
Slide 15: Gas market prices and sold volumes
Gas market prices and sold volumes Continuing volatile gas prices Sold volumes vs average NBP gas market prices – Q3 2021/2022e USD/boe Q3 Q1 Q3 kboe 280 280 260 260 240 240 215 227 220 220 208 200 195 200 190 190 180 173 173 180 166 158 160 160 160 150 147 143 140 140 120 117 120 100 100 80 80 60 6
Slide 16: Income statement
Income statement Q3 22 comments Operating income: Figures in NOK million Q3 22 Q2 22 Q3 21 • Record high revenue mainly due to high realised gas prices in quarter Total operating income 2 143 1 332 1 026 Production expenses -425 -381 -181 Production expenses: Changes in over/underlift positions and
Slide 17: Statement of financial position
Statement of financial position Figures in NOK million Assets 30.09.2022 30.06.2022 31.12.2021 Q3 22 comments Goodwill 801 801 769 Oil and gas properties 4 718 5 129 4 685 • Goodwill of NOK 801 million Asset retirement reimbursement right 2 486 2 572 3 108 Trade and other receivables 1 347 1 060 1 0
Slide 18: Cash development Q3 22
Cash development Q3 22 NOK million 6 500 6 000 5 500 5 000 +916 4 500 509 3 884 4 000 201 1 692 10 24 7 91 9 317 3 500 1 103 2 968 -291 3 000 2 678 210 104 9 2 500 2 000 3 875 1 500 2 758 2 668 1 000 500 0 Total liquidity Operating Taxes paid Investment Payment of Interest paid Payments of FX effect
Slide 19: Cash development YTD 22
Cash development YTD 22 NOK million 6 500 +2 028 6 000 1 089 5 500 5 000 201 906 4 276 4 500 4 043 29 129 160 9 22 4 000 3 500 1 402 +429 3 000 2 678 197 9 2 500 2 249 210 4 267 2 000 1 500 2 668 1 000 2 039 500 0 -500 Total liquidity Operating Taxes paid Investment Payment of Interest paid Payments
Slide 20: Production guiding impacted by Yme challenges
Production guiding impacted by Yme challenges 2022 volume range revised down by 1 kboepd; Capex and 2023 guiding kept unchanged Production – thousand boepd Capex – NOK million 28 Gjøa accelerated compensation 1 200 950 – 1 150 26 25 – 27 24 1 100 22 1 000 20 0.9 – 1.2 900 18.5 - 20 0.9 - 1.2 18 0.9
Slide 21: Dividend payment of NOK 1.00 per share in Q4 2022
Dividend payment of NOK 1.00 per share in Q4 2022 Intention to continue distributing a quarterly dividend of NOK 1.00 per share in 2023 • The OKEA board has resolved to distribute a cash dividend of NOK 103.9 million (NOK 1.00 per share) NOK NOK NOK NOK NOK NOK NOK payable on or about 15 December 20
Slide 22: Summary and outlook
Summary and outlook
Slide 23: Summary
Summary Delivering on growth strategy by material acquisition from Wintershall Dea fully funded by existing cash resources Continued solid performance at Draugen, Ivar Aasen and Gjøa Organic projects progressing well; Hasselmus and Power from shore at Draugen according to plan Yme ramp up slower tha
Slide 24: Q&A
Q&A Growth Value creation Capital discipline
Slide 25: General and disclaimer
General and disclaimer This presentation is prepared solely for information purposes, and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities. Investors and p