Slide 1: 2024 Capital Markets Update
2024 Capital Markets Update FEBRUARY 7TH, 2024 LONDON, UNITED KINGDOM
Slide 2: Forward-looking statements
Forward-looking statements As used in this presentation, the term “Equinor” and such terms as “the company,” “the corporation,” “our,” “we,” “us” oil/energy-producing countries; regulations on hydraulic fracturing and low-carbon value chains; liquidity, interest and “its” may refer to Equinor ASA, o
Slide 3: Profitable growth towards 2035
2024 Capital Markets Update Profitable growth towards 2035 Anders Opedal PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 4: Clear strategy for transition and growth
OUR EQUITY STORY Clear strategy for transition and growth FIRM STRATEGY COMPETITIVE ADVANTAGE STRONG 2035 OUTLOOK Always safe High value Stronger cash flow Low carbon ENERGY SECURITY & TRANSITION Broader energy STRATEGIC FOCUS AREAS Lower emissions High value Optimised New market growth in oil & gas
Slide 5: Always safe
2023 PERFORMANCE Always safe 1.2 1.1 0.9 Serious incident 0.7 0.7 0.6 0.6 0.6 frequency (SIF) 0.5 0.5 0.5 0.4 Serious incidents and near-misses 0.4 0.4 per million hours worked. 12-month average. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 4.2 4.4 3.8 3.8 3.0 2.8 2.8 Total
Slide 6: Solid progress on 2030 ambitions
2023 PERFORMANCE High value Low carbon Solid progress on 2030 ambitions • Strong earnings and capital discipline 36 6.7 • Delivering competitive capital distribution BN USD KG / BOE Adjusted earnings CO2 upstream intensity • Production growth and sanctioning of new projects Scope 1 CO2 emissions, Eq
Slide 7: Transition and growth to 2035
OUR AMBITIONS Transition and growth to 2035 Stronger cash flow Broader energy Lower emissions3 > 26 > 80 30-50 40 BN USD TWh MILLION TONNES / ANNUM PERCENT Cash flow from operations Renewables and CO2 transport and Reduction net after tax decarbonised energy2 storage capacity carbon intensity BN USD
Slide 8: Strong portfolio with long term cash flow
OIL AND GAS Strong portfolio with long term cash flow • Break even ~35 USD/bbl, projects coming on stream next 10 years • Above 5% production growth from 2023 to 2026 • Industry leading carbon efficiency and execution capabilities Key projects coming on stream4 2024 2025 2026 2027 ~2 50 MILLION BOE
Slide 9: E&P International E&P Norway
OIL AND GAS E&P International E&P Norway 50% cash flow growth to 2030 Long term value to 2035 10 >5 <7 ~ 40 ~ 1.2 <2 COUNTRIES USD PER BOE KG / BOE BCM MILLION BOE / DAY USD PER MMBTU Focus our presence Increased CFFO Decarbonise portfolio Gas from NCS Production level Gas supply cost Including anno
Slide 10: Profitable and disciplined growth
RENEWABLES Profitable and disciplined growth Installed capacity Equinor share, GW • Firm on strategy, flexible on execution Offshore growth • Solid project pipeline under maturation • Value uplift from flexible power offering Onshore growth Onshore rest RioEnergy 12-16 > 65 GW TWh BeGreen GR % CA In
Slide 11: Increasing CCS ambition
Industrial cluster Smeaheia LOW CARBON SOLUTIONS Northern Lights N O R W A Y Increasing CCS ambition CO2 Transport ship • Building the infrastructure of tomorrow T E X A S • Collaboration across the value chain Beaumont Port Arthur • 4-8% real base project returns, further value uplift potential Hou
Slide 12: USD 14 billion total expected capital distribution 2024
COMPETITIVE CAPITAL DISTRIBUTION USD 14 billion total expected capital distribution 20241 Growing, resilient ordinary cash dividend Increased share buy-back predictability • 17% increase in ordinary cash dividend to 35 cents per share • Two-year share buy-back programme of USD 10-12 billion • Ambiti
Slide 13: Profitable growth towards 2035
OUR AMBITIONS Profitable growth towards 2035 Stronger cash flow • CFFO after tax USD >26 bn by 2035 • Target RoACE ~15% in 2035 • USD 14 bn expected capital distribution in 2024 Broader energy • >80 TWh renewables and decarbonised energy by 2035 • >65 TWh renewables power generation by 2035 • 30-50
Slide 14: Delivering strong returns while transitioning
2024 Capital Markets Update, 4Q23 and full year results Delivering strong returns while transitioning Torgrim Reitan CHIEF FINANCIAL OFFICER
Slide 15: Fourth quarter and full year
DELIVERIES 2023 8.7 8.7 Fourth quarter and full year BN USD BN USD Adjusted earnings Net operating income 4Q23 4Q23 Financial and operational performance • Solid operational performance and strong production in 4Q • Strong adjusted earnings and cash flow from operations 2.6 19.7 BN USD BN USD Strate
Slide 16: Equity production
2023 Equity production Oil and gas Power • Solid full year operational performance, despite prolonged • Renewable power generation 17% higher than 2022, driven by turnarounds on the NCS onshore renewables in Poland and Brazil • International production growth from Brazil, UK, US • Lower quarterly ga
Slide 17: Financial results
4Q 2023 Financial results Highlights Realised prices 4Q23 4Q22 • Strong earnings, impacted by lower prices Liquids (USD/bbl) 75.7 80.4 • E&P Norway driven by increased production European gas 13.07 29.84 (USD/MMBtu) • Strong international results N. American gas 2.07 5.40 • Higher tax rate, mainly d
Slide 18: Cash flow
2023 Cash flow Cash Flow USD million 4Q23 FY 2023 • Strong cash flow from operations Cash flow from operations3 10,890 48,016 • Organic capex USD 10.2 billion for full year 2023 Total taxes paid (8,103) (28,276) • 4Q Highlights: Cash flow from operations after tax4 2,787 19,741 • NCS tax payment of
Slide 19: Building for the future
2030 FINANCIAL FRAMEWORK Building for the future Strong cash flow1 VALUE OVER > 15 RoACE 2024-301 ~ 20 ROBUST TO LOWER ~ 55 Cash flow neutral VOLUME PERCENT BN USD PRICES USD / BBL 2024-302 Average annual O&G CFFO After tax 2024-30 ~3 net zero ROBUST ENERGY CAPITAL 15-30 Long-term net debt ratio TRA
Slide 20: Strong cash flow driving future growth
OUTLOOK CFFO1 and capex2 BN USD, average per year 2035 Strong cash flow driving 2024 2025-27 2028-30 ambitions3 future growth ~ 20 • Significant cash flow growth BN USD O&G • REN & LCS material contribution in 2030 CFFO • Stable O&G capex while growing investments to transition • Significant capex f
Slide 21: Positioned for short and long term value creation
OIL AND GAS Upstream projects coming on stream within 10 years2 Positioned for short and long term value creation ~ 35 ~ 30 USD / BBL PERCENT Break-even Internal rate of return Volume weighted average Based on reference case 75 USD/bbl. • Stable investments through the decade Volume weighted average
Slide 22: Value driven growth
RENEWABLES AND LOW CARBON SOLUTIONS Indicative CFFO1 contribution in 2030 Value driven growth BN USD. List not exhaustive Northern Endurance Partnership Material cash flow contribution Smeaheia Bayou Bend • Creating value through cycles BeGreen Wento • Delivering cash flow from a broad project portf
Slide 23: USD 14 billion total expected capital distribution 2024
COMPETITIVE CAPITAL DISTRIBUTION USD 14 billion total expected capital distribution 20241 Growing, resilient ordinary cash dividend Increased share buy-back predictability • 17% increase in ordinary cash dividend to 35 cents per share • Two-year share buy-back programme of USD 10-12 billion • Ambiti
Slide 24: Outlook
DELIVERING ON OUR STRATEGY Outlook OUTLOOK2 Organic capex 1 ~ 13 BN USD 2024 Stable Doubling Production Oil & Gas production Renewables power generation 2024 2024 1. Based on USD/NOK of 10 2. See appendix for key assumptions and definitions 24 Capital Markets Update 2024 Open 07 February 2024
Slide 25: Profitable growth towards 2035
OUR AMBITIONS Profitable growth towards 2035 Stronger cash flow • CFFO after tax USD >26 bn by 2035 • Target RoACE ~15% in 2035 • USD 14 bn expected capital distribution in 2024 Broader energy • >80 TWh renewables and decarbonised energy by 2035 • >65 TWh renewables power generation by 2035 • 30-50
Slide 26: Investor Relations in Equinor
CONTACT INFORMATION Investor Relations in Equinor E-mail: irpost@equinor.com Norway/UK Bård Glad Pedersen Senior Vice President bgp@equinor.com +47 91 80 17 91 Lars Valdresbråten IR Manager lava@equinor.com +47 40 28 17 89 Erik Gonder IR Officer ergon@equinor.com +47 99 56 26 11 Amberley Doskey IR M