Slide 1: Fourth Quarter 2021
Fourth Quarter 2021 10 February 2022
Slide 2: Disclaimer
Disclaimer This Document includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Document are based on current expectations, estimates and projections about g
Slide 3: 2021 in review
2021 in review Strong results driven by performance and high prices Stable operational performance Higher oil and gas prices Record cash flow and financial strength Organic growth on track Projects on time and cost – three PDOs submitted Concept selected for NOAKA and Valhall NCP/King Lear
Slide 4: Lundin transaction summary
Lundin transaction summary Key terms and conditions Post-transaction ownership structure Aker BP acquires Lundin Energy’s oil and gas activities Consideration per LUNE share: ~0.95 AKRBP shares and USD ~7.76 Lundin Energy retains renewable energy activities and remains listed Subject to appr
Slide 5: Key performance indicators 2021
Key performance indicators 2021 SAFETY PRODUCTION PRODUCTION PRODUCTION EMISSIONS FIRST VOLUME COST EFFICIENCY INTENSITY 1.9 209.4 $9.2 85% 4.8kg Total recordable thousand barrels of per boe Aker BP operated CO2 emissions injury frequency (TRIF) oil equivalents per day produced assets, gross per boe
Slide 6: Production performance
Production performance Oil and gas production 2021 production vs guidance mboepd mboepd 223 222 208 210 210 207 202 199 191 210- 209.4 220 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Alvheim Ivar Aasen Skarv Ula Valhall Johan Sverdrup Other 6
Slide 7: Delivering decarbonisation
Delivering decarbonisation Strong progress in 2021 Emissions intensity kg CO2/boe Scope 1 – reduced emissions by ~23,000 tonnes CO2e Aker BP 28.8 Energy efficiency improvements through upgraded 2019 (source: IOGP) 23.7 24.9 equipment and digital-enabled process optimisation 16.4 17.2 Rerouting o
Slide 8: Executing projects according to plans
Executing projects according to plans Three PDOs submitted in 2021 Ærfugl Phase II Kobra East & Gekko Subsea tieback to Skarv FPSO PDO submitted Q2 2021 First oil in Q4 2021 First oil scheduled in Q1 2024 51 mmboe gross reserves Hod Frosk Wellhead platform connected to Valhall PDO subm
Slide 9: Building the E&P company of the future
Building the E&P company of the future High Drive to Profitable Financial Focus quality High quality Norwegian improve Driving growth Strong strength portfolio asset base with Robust balance pure-play oil performance production low cost, sheet, strong and gas across the growth by industry cash flow
Slide 10: Disciplined approach to M&A
Disciplined approach to M&A FINANCIALLY OPERATED PREDOMINANTLY UPSIDE ACCRETIVE ASSETS LIQUIDS POTENTIAL 2014 2015 2016 2017 2018 2019 2020 2021* Logos represents acquisitions, mergers and asset transactions by Aker BP in Norway in the respective year (M&A: mergers & acquisitions) *Lundin transactio
Slide 11: Our digital vision
Our digital vision Fully transform core end-to-end processes Well Subsurface Production Field construction & interpretation & optimisation and Maintenance development intervention modelling energy efficiency 11
Slide 12: Alliances – the cornerstone of our execution model
Alliances – the cornerstone of our execution model ONE TEAM COMMON GOALS SHARED INCENTIVES 12
Slide 13: Leading the way on low carbon
Leading the way on low carbon Emissions intensity 2020 Aker BP’s scope 1 emissions targets: kg CO2/boe, equity share 50% reduction by 2030 21 20 20 20 in gross operated emissions through 17 electrification, energy efficiency and portfolio 14 12 12 11 11 11 ~100% reduction by 2050 8 in gross emission
Slide 14: Reserves and resources
Reserves and resources Resources of 1.8 billion boe1) 2021 reserves + resources Break-even for projects targeted for FID by 2022 (mmboe net) Preliminary figures, USD/boe2) 1 824 60 1 737 36 127 (76) 50 Oil price (USD/boe) 2C 2C 895 1,022 40 30 20 2P 2P 842 802 10 0 End Production 2P reserve 2C resou
Slide 15: NOAKA development concept selected
NOAKA development concept selected ~600 mmboe resources (gross) USD ~10 bn capex (gross, real) ~$30/bbl break-even 2027 first oil Aker BP interest NOA: 87.7% Fulla: 47.7% Krafla: 50% 15
Slide 16: Valhall NCP/King Lear development concept selected
Valhall NCP/King Lear development concept selected >200 mmboe resources (gross) USD 4-5 bn capex (gross, real) $25-30/bbl break-even 2027 first oil Aker BP interest Valhall: 90% King Lear: 77.8% 16
Slide 17: On track to sanction 700 mmboe by end-2022
On track to sanction 700 mmboe by end-2022 Area 2021 2022 2023 2024 2025 2026 2027 Kobra East & Gekko Alvheim Frosk Trell & Trine Ivar Aasen Hanz NOA Fulla NOAKA Krafla Ærfugl phase 2 Skarv Skarv satellites (Ørn, Shrek, Alve Nord, Idun Nord) Hod Valhall infill drilling Valhall Valhall NCP + King Lea
Slide 18: Production outlook
Production outlook Preliminary production profile mboepd 400 >80% production growth to 2028 300 200 210- 220 <30/bbl full-cycle break even on all projects1) 100 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 ~80% Sanctioned (2P) Non-sanctioned (2C) NOAKA (2C) of investments covered by
Slide 19: Our exploration strategy
Our exploration strategy An active explorer in an attractive basin Licences awarded in APA 2021 Maximize value of existing infrastructure announced 18 January 2022 80 % 26 Explore for new hub potential 15 20 % 10 10 10 7 7 4 4 4 4 3 3 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 Smart integration of data and techn
Slide 20: 2022 exploration program
2022 exploration program Targeting ~250 mmboe net unrisked Uer Barlindåsen Licences Prospect Operator Aker BP Pre-drill Status share mmboe Storjo East Newt PL685 Laushornet Aker BP 40% 17 - 147 Staurheia/ Peder PL873 Grefsenkollen & Øst Frigg Aker BP 40% 17 - 40 Drilling PL1085 Overly Aker BP 55% 38
Slide 21: Financial review
Financial review David Tønne, CFO 21
Slide 22: Financial highlights
Financial highlights Fourth quarter and full year 2021 Q4 production 2021 cash flow metrics Liquids: 167.3 mboepd CFFO: USD 4.3 billion Gas: 39.7 mboepd FCF: USD 2.6 billion Q4 realised commodity prices Key credit metrics Liquids: 78.8 USD/boe Net debt: USD 1.7 billion2) Gas: 169.5 USD/boe Leverage
Slide 23: 2021 financial review
2021 financial review Total spend 2021 USD billion Cost control remains a top priority in Aker BP 2.94 • Both in operations and project development 2.76 Prod. cost: 0.69 Prod. cost: 0.70 Total 2021 spend below guidance Abex: 0.20 Abex: 0.20 • Higher drilling efficiency and phasing Expex: 0.45 Expex:
Slide 24: Production cost
Production cost Production cost per unit produced 2021 actual vs guidance USD per boe USD per boe 12.1 12.4 10.1 9.2 9.0 9.0 9.2 8.6 8.5-9.0 8.3 2018 2019 2020 2021 Q1 Q2 Q3 Q4 24
Slide 25: Oil and gas sales
Oil and gas sales Volumes sold Total income Realised prices mmboe USD million USD/boe 1 849 19.7 20.1 20.7 Q4-2021 2021 18.9 1 563 17.8 3.8 3.5 3.6 618 3.6 346 2.9 Liquids Liquids 1 133 1 124 834 111 139 130 $78.8 $69.2 16.2 16.5 16.9 14.9 15.2 1 209 1 199 990 995 Natural gas Natural gas 715 Q4-20 Q
Slide 26: Oil lifted and realised prices
Oil lifted and realised prices 2021 crude oil liftings 2021 time effect and realised differentials mmbbl USD/bbl Realised 6.6 Differential 6.3 Timing 79.8 0.0 -0.1 5.6 79.6 Brent Dated 5.4 5.1 5.0 4.9 4.6 4.6 0.0 73.5 -0.4 -0.3 4.2 72.8 4.1 0.0 3.8 70.9 -0.4 70.5 69.0 -0.3 68.7 0.3 61.1 61.1 -0.3 Ja
Slide 27: Gas sales
Gas sales Gas volumes and realised prices 2021 18% of total production in 2021 Skarv 49% 169.5 Alvheim area 22% 41.2 40.2 39.7 Valhall 17% 31.6 Majority of volumes linked to spot (TTF/NBP) 91.3 Some volumes linked to oil price 45.1 38.5 Gas volumes to increase in the future Skarv satellite
Slide 28: Income statement
Income statement Fourth quarter 2021 USD million Q4 2021 Q3 2021 Change Comment Comments Total income 1 849 1 563 +18% 1 Production costs 202 209 1. Increased due to higher prices, Other operating expenses 6 7 in particular on gas EBITDAX 1 641 1 347 +22% Exploration expenses 83 97 -15% 2 2. Reduced
Slide 29: Cash flow
Cash flow Fourth quarter 2021 USD million 1 605 Q4-2021 2021 (235) Abex (160) Expex FCF per share FCF per share Capex $2.0 $6.9 (505) 706 (150) (8) 547 Dividend per share Dividend per share $0.4 $1.4 Operating Working Net taxes Invest- Free Dividends Interest Cash build cash flow capital paid ments
Slide 30: Tax payments
Tax payments USD million For fiscal year 2020 For fiscal year 2021 Sensitivity for fiscal year 20221) ~800 $100 $100 2) ~400 $100 $80 $100 2) $80 $80 $80 160 $60 $60 98 $60 $60 (109) (11) (23) (201) Q3-20 Q 4- 20 Q 1- 21 Q 2- 2 1 Q3-21 Q 4- 2 1 Q 1 - 22 Q 2 - 22 Q 3- 22 Q 4- 22 Q 1- 23 Q 2 - 23 1) E
Slide 31: Statement of financial position
Statement of financial position USD million Assets 31.12.21 30.09.21 31.12.20 Equity and liabilities 31.12.21 30.09.21 31.12.20 Goodwill 1 647 1 647 1 647 Equity 2 342 2 128 1 987 Other provisions for liabilities Other intangible assets 1 664 1 779 2 043 2 659 2 639 2 650 incl. P&A (long) Property,
Slide 32: Capital allocation priorities
Capital allocation priorities Growing capital distribution in line with value creation Aker BP investment plan 2022-2028 USD billion, accumulated 30 Maintain sufficient 25 $50 1 financial capacity Dividend capacity 20 Financing cost $30 Cash flow from Invest in 15 operations after tax 2 profitable g
Slide 33: Financial capacity
Capital allocation priority #1: Financial capacity 2) Net interest-bearing debt Liquidity available Bond maturities Excl. leases, USD billion USD billion USD million 5.4 3.4 1 000 4.8 3.1 4.5 4.4 4.4 865 2.6 750 1.51 2.2 1.23 1.6 500 500 1.125 % EUR 750m 0.85 2.0 3.000 % USD 2.875 % USD 3.750 % USD
Slide 34: Invest in profitable growth
Capital allocation priority #2: Invest in profitable growth Investment plan 2022-2028 Preliminary production profile USD billion mboepd 400 5 4 300 3 200 210- 220 2 ~1.6 100 1 0 0 2021 2022 2023 2024 2025 2026 2027 2028 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Sanctioned Non-sanct
Slide 35: Break even oil price hurdle of USD 30 per barrel
Capital allocation priority #2: Invest in profitable growth Break even oil price hurdle of USD 30 per barrel for sanctioning new projects (NPV10) Break-even for projects targeted for FID by 2022 IRR for projects targeted for FID by 2022 Preliminary figures, USD/boe Preliminary figures 100% 60 USD 40
Slide 36: Return value creation: USD 1.9/share
Capital allocation priority #3: Return value creation Aker BP dividends USD per share USD 1.9/share paid quarterly 40% 2.08 1.90 1.35 dividend growth from 2021 1.25 1.18 0.74 5% 0.19 minimum annual dividend growth at oil prices above USD 40/bbl 2016 2017 2018 2019 2020 2021 2022 36
Slide 37: Guidance for 2022
Guidance for 2022 Key project milestones 2021 2021 2022 Hod CMU Actuals Guidance First oil H1 2022 Johan Sverdrup Production (mboped) 210-220 209.4 210-220 First oil Q4 2022 Opex (USD/boe) 8.5-9.0 9.2 ~10 NOAKA FID in late 2022 Capex (USDbn) ~1.6 1.4 1.6 Valhall NCP & King Lear FID in late 2022 E&A
Slide 38: Concluding remarks
28 AkerBP Concluding remarks 38
Slide 39: Building the E&P company of the future
Building the E&P company of the future Pure play oil and gas company Quality assets with low cost and low emissions Driving improvement through the value chain Profitable growth from unique resource base Financial strength and growing dividends 39
Slide 40: www.akerbp.com
AkerBP www.akerbp.com