Slide 1: Presentation of first quarter 2023
OKEA ASA Presentation of first quarter 2023 4 May 2023
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: Statfjord 28% - transformational deal in world-class assets
Statfjord 28% - transformational deal in world-class assets Advancing to league of producers with more than 40,000 barrels per day in 2024 Net production* • 28% WI in PL037 (Statfjord Area), world-class assets in 4 producing fields and a strong track record for IOR; enhancing OKEA’s robustness and o
Slide 4: Scale and diversification
Scale and diversification Step change in asset base, production and reserves with significant upside Change # fields producing or under # fields producing development 6 4* +67% • Step change in production growth and diversification – Increasing 2023 production by 60% – Increasing 2P reserves by 68%
Slide 5: Finding value where others divest
Finding value where others divest Delivering in line with strategy – more than double production volumes in 2024 compared to strategy launch in 2021 (Net production – kboepd) +40.0 37.5* 21.0 18.7 17.1 16.2 15.5 0.0 0.3 2016 2017 2018 2019 2020 2021 2022 2023 2024 *2023 based on midpoint of guided p
Slide 6: OKEA first quarter 2023 results
OKEA first quarter 2023 results Highlights • Operation – Production of 22.2 kboepd – Continued strong performance from Draugen, Ivar Aasen and Gjøa; production at Yme increasing following Beta Nord campaign – Brage and Nova still producing below initial plan; mitigating actions partly completed • Po
Slide 7: Quarterly key figures
Quarterly key figures (Previous quarter in brackets) Production Net CF from Serious incidents kboepd operations frequency NOK million per million work hours 22.2 2.7 (19.9**) 1,318 (1.5) (390) CO2 emissions Production expense Dividends paid NOK/boe NOK million intensity kg per boe produced 242 104 2
Slide 8: Production volume and reliability
Production volume and reliability Production (kboepd) Yme 25 22.2 Nova Ivar Aasen 19.9* 2.4 20 Gjøa 1.7 1.1 16.0 16.1 3.1 Brage 14.9 2.5 15 1.3 1.4 Draugen 1.3 1.0 6.8 6.8 10 6.5 7.1 7.4 1.5 2.2 5 6.9 7.1 6.3 6.8 6.6 0 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Production reliability (%) – last 5 quarters 100 10
Slide 9: Operational update
Operational update Draugen (op. WI 44.56%) Brage (op. WI 35.2%) • Topside installation for the Hasselmus tie- • Production impacted by reduced gas production back progressing according to plan; start up from one well following turnaround in Q3 2022; expected in Q4 2023 with plateau production contin
Slide 10: Financials
Financials
Slide 11: Oil and gas production, sales and revenues - per asset
Oil and gas production, sales and revenues - per asset Production (kboepd) Sold volumes (kboepd) Nova Nova 40 40 37.9 Yme Yme 0.9 35 Ivar Aasen 35 3.6 Ivar Aasen Gjøa 4.5 Gjøa - net tie-ins 30 30 Brage 0.4 Gjøa 25 Draugen 25 7.6 Brage 22.2 19.9 1.1 Draugen Q1 23 20 0.6 2.4 Q1 23 20 17.3 Gas 16.0 16.
Slide 12: Realised liquids prices
Realised liquids prices Lifted volumes vs Dated Brent – Q1 2022/2023e Lifted volumes vs Dated Brent USD/boe kboe 140 950 110 900 135 850 100 130 800 90 125 750 81.1 80.6 700 80 0.6 1.5 1.5 77.7 120 653 646 2.9 632 637 630 650 115 593 597 587 600 70 110 550 60 500 105 450 50 100 400 350 95 336 350 40
Slide 13: Gas market prices and sold volumes
Gas market prices and sold volumes Realised gas price exceeds market prices due to gains on fixed price contracts Sold volumes vs average NBP/Heren gas market prices USD/boe Kboe Monthly average USD/boe Volumes kboe 280 280 260 260 240 240 227 220 220 208 200 195 200 187 180 180 180 173 173 174 171
Slide 14: Income statement
Income statement Q1 23 comments Operating income • Revenue from sales of petroleum products of NOK 2 929 million; includes net gain on forward gas contracts of NOK 117 million • Other income amounted to NOK 25 million Figures in NOK million Q1 23 Q4 22 Q1 22 2022 Total operating income 2 954 1 664 1
Slide 15: Statement of financial position
Statement of financial position Figures in NOK million Assets 31.03.2023 31.12.2022 31.03.2022 Q1 23 comments Goodwill 1 292 1 297 805 Oil and gas properties 6 496 6 556 5 191 • Goodwill of NOK 1 292 million Asset retirement reimbursement right 3 760 3 662 2 833 Trade and other receivables 1 793 1 7
Slide 16: Cash development Q1 2023
Cash development Q1 2023 NOK million 3 000 +633 2 500 166 412 2 000 1 485 275 11 11 8 33 104 1 500 +530 1 000 1 738 1 634 1 104 500 0 Total liquidity Operating Taxes paid Investment Cash paid in Payment Interest paid Payments of FX effect on Total liquidity Dividend Total liquidity 31.12.22 activiti
Slide 17: Dividends according to plan
Dividends according to plan Dividend of NOK 1.00 per share to be paid in June NOK NOK NOK NOK NOK NOK NOK 0.90 1.00 1.00 1.00 1.00 1.00 Capital allocation principles /share /share /share /share /share /share 1.00 /share Maintain 1 financial flexibility Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Ensur
Slide 18: Outlook
Outlook No changes in guidance Production guidance of 22–25 kboepd in 2023 • Ivar Aasen turnaround of 6 days completed in Q1 • Planned turnaround at Draugen with expected downtime of 21 days scheduled for Q2 Production • The guiding does not include production volumes from the acquisition of 28% in
Slide 19: Summary
Summary ww
Slide 20: Summary
Summary Continuing to deliver on growth strategy; entered into SPA for acquisition of 28% WI in PL037 (Statfjord Area) with Equinor Transformational Statfjord transaction; increasing production in 2023 by 60% and increasing reserves by 68% Continued strong performance at Draugen, Ivar Aasen and Gjøa
Slide 21: Q&A
Q&A Growth Value creation Capital discipline