Bluenord Asa · OSL:BNOR
Bluenord Asa — Norwegian Energy Company — Q4 2020 Earnings Presentation
18 slides from Bluenord Asa's earnings presentation, Feb 18, 2021
Slide 1: Fourth Quarter 2021
Fourth Quarter 2021 Oslo, 18 February 2021
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION (THE “INFORMATION MATERIAL”) HAS BEEN PRODUCED AND PARTY SOURCES ARE SOLELY OPINIONS AND FORECASTS WHICH ARE SUBJECT DELIVERED BY NORWEGIAN ENERGY COMPANY ASA (THE “COMPANY”). THIS TO RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL INFORMATION MATERIAL DOES
Slide 3: Important Information
Important Information AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY THE COMPANY TO BE MATERIALL
Slide 4: Highlights for the Quarter
Highlights for the Quarter • Exiting 2020 with net production above 28 kboepd 28.5 Solid production for 2020 mboepd • Three current producing hubs with low decline rates provide stable outlook 63.6 Realised oil price • Successful hedging strategy delivers a realised oil price of USD 63.6/bbl USD 73
Slide 5: Operational Review
Operational Review
Slide 6: Strong 2020 Production with Low Forward Decline Rate
Strong 2020 Production with Low Forward Decline Rate - Stable cash generative production throughout the Tyra Redevelopment period • Full year production averaged 28.5 mboepd • Full year operational efficiency at ~82% (COVID impacted) • Added circa 200 boepd in Q4 through gas lift optimization • Retu
Slide 7: Tyra Redevelopment – Milestones & Outlook
Tyra Redevelopment – Milestones & Outlook Forward-looking Milestones 2020 Tyra Cost (actuals)1 o TEH sail away – Q3 2021 60 1 291 o TE WHRP sail away – Q3 2021 70 230 o Initiation of offshore hook-up – Q3 2021 160 o TW WHRP sail away – Q4 2021 o TEG process module sail away – 2022 o First gas – Q2 2
Slide 8: The Danish “2050 North Sea Agreement” – Key Considerations
The Danish “2050 North Sea Agreement” – Key Considerations - Agreement announced December 2020 provides industry stability and opportunities ~ 30 years ▪ Oil and gas production continue until 2050 – eight years beyond DUC concession expiry in 2042 ▪ Cease future licensing rounds for new exploration,
Slide 9: Financial Review
Financial Review IE
Slide 10: Financial Summary: Q4 2020
Financial Summary: Q4 2020 Financial performance in quarter benefitted from ongoing hedging arrangements ▪ Robust financial performance during Q4 2020 Hydrocarbon Production – Price and volume hedging give strong risk mitigation 25.5 mboe/d Total Revenue(1) ▪ Oil realisations significantly above mar
Slide 11: Increase and Extension of RBL Facility
Increase and Extension of RBL Facility Providing Noreco with a strong financial position and significant liquidity Commentary Key Terms ▪ Underwriting Agreement entered into in Feb 2021 for a new Underwritten USD 1.1 billion Reserve Base Lending (“RBL”) facility Current Amend, Extend and Facility In
Slide 12: Oil & Gas Production and Sales: Q4 2020
Oil & Gas Production and Sales: Q4 2020 Production(1) Sales Realised Liquids Price Revenue (mboepd) (mboepd) (USD/bbl) (USD million) 75,3 28,7 157 28,3 27,6 146 63,6 25,5 Average Dated Brent in Q4 2020 of USD 46.0/bbl Reflects overlift in the period of 2.8mboepd Q3 2020 Q4 2020 Q3 2020 Q4 2020 Q3 20
Slide 13: Overview of Hedging Arrangements: Q4 2020
Overview of Hedging Arrangements: Q4 2020 ▪ Existing price hedging arrangements delivered significant value during Q4 2020 – Realized price of USD 63.6/bbl compared to average Brent price of USD 46.0/bbl ▪ RBL hedge policy: 50% (0-12 months), 40% (13-24 months), 30% (25-36 months) forecast productio
Slide 14: Financial Statements: Q4 2020
Financial Statements: Q4 2020 (USD million unless otherwise stated) Q4 2020 Q4 2019(1) Revenue: Q4 2020 Operational (USD million) Production (mboepd) 25.5 31.7 10 2 146 134 Unit Field Opex (USD/boe)(2) 35.6 24.7 Profit & Loss Revenue 146 172 Production Expense (99) (102) EBITDA 39 61 Adj. EBITDA 73
Slide 15: Capital Structure: Q4 2020
Capital Structure: Q4 2020 Net Debt Overview: 31 December 2020 (USD million) ▪ 1 Reserve Based Lending Facility 175 25 1 122 259 – USD 751 million drawn end Dec-20 – Underwritten Amend, Extend (to 2028) and 171 Increase (to $1.1bn) announced Feb-21 862 171 751 ▪ 2 NOR13 Convertible Bond 692 – Subord
Slide 16: Closing Reflections
Closing Reflections q ents suse TT
Slide 17: Noreco: Attractive Long-Term Value Proposition
Noreco: Attractive Long-Term Value Proposition Material Reserves & • 2P reserves of 209 mmboe ✓ Resources Base • 2C resources of approx. 200 mmboe, with additional projects being progressed Substantial • Consistent production providing significant operational cashflow ✓ Production • Low decline rate
Slide 18: Contact: ir@noreco.com
Contact: ir@noreco.com > NorEco 18
Norwegian Energy Company — Q4 2020 Earnings Presentation on 6ix