Slide 1: Third Quarter 2021
Third Quarter 2021 28 October 2021
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: Highlights
Highlights Third quarter 2021 Strong results – Higher oil and gas prices and stable operations Project portfolio progressing well – NOAKA resource estimate upgraded Unique financial position – Increasing dividends 3
Slide 4: Key performance indicators
Key performance indicators Third quarter 2021 SAFETY PRODUCTION PRODUCTION PRODUCTION EMISSIONS FIRST VOLUME COST EFFICIENCY INTENSITY 1.5 210 $9.0 90% 4.4kg Total recordable thousand barrels of per boe Aker BP operated CO2 emissions injury frequency (TRIF) 1) oil equivalents per day produced assets
Slide 5: Production performance
Production performance Oil and gas production (mboepd) Production efficiency (percent) 223 222 96 96 93 92 94 208 210 210 90 202 89 199 86 191 74 146 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Alvheim Ivar Aasen Skarv Ula Valhall Johan
Slide 6: HSSE performance
HSSE performance Total recordable injury frequency (TRIF) 1) CO2 emissions intensity 2) 3.1 6.9 6.3 5.7 2.4 5.0 4.5 4.4 4.3 4.2 1.7 1.5 1.3 1.2 1.2 1.2 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 1) Total recordable injuries per million exp. hours,
Slide 7: Capital discipline
Capital discipline Production cost (USD/boe) Capital spend (USD million) 13.2 602 595 597 513 9.1 9.1 9.0 9.0 8.7 8.6 483 8.1 436 447 7.3 402 364 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Capex Expex Abex 7
Slide 8: Development projects
Development projects Third quarter 2021 ▪ Ærfugl phase 2 approaching completion ▪ Frosk PDO submitted ▪ NOAKA concept selected – resources upgraded ▪ King Lear included in Valhall NCP scope ▪ Garantiana postponed 8 Frosk development
Slide 9: Progressing and optimizing the project portfolio
Progressing and optimizing the project portfolio 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 + Ki
Slide 10: NOAKA development concept selected – resources upgraded
NOAKA development concept selected – resources upgraded ~600 mmboe Reserves (gross) USD ~10 bn Capex (gross, real) ~$30/bbl Break-even 2027 First oil Aker BP interest NOA: 87.7% Fulla: 47.7% Krafla: 50.0% 10
Slide 11: NOAKA – development concept overview
NOAKA – development concept overview Krafla NOA PdQ • UPP Fulla subsea • 8-legged jacket • 5 x 6-slot templates • 6-slot Dual drilling template • 16 well slots Frøy NUI • Re-development • 12 well slots Export / power Rind subsea • Oil export • 6-slot Dual drilling template Langfjellet subsea • Gas e
Slide 12: Exploration 2021
Exploration 2021 3 5 Licence Prospect Operator Aker BP Pre-drill Status 1 share mmboe PL 533 Bask 1 Lundin 35 % Dry PL 554 Garantiana W 2 Equinor 30 % Discovery 8-23 mmboe PL 722 Shenzhou 3 Equinor 20 % Dry PL 442 Liatårnet 4 Aker BP 90 % Appraisal Volume reduced PL 858 Stangnestind 5 Aker BP 40 % N
Slide 13: Financial review
Financial review Third quarter 2021 13
Slide 14: Oil and gas sales
Oil and gas sales Third quarter 2021 Volumes sold Total income Realised prices mmboe USD million USD per boe 1 563 20.1 20.7 19.7 346 17.3 3.5 3.6 17.8 3.8 1 133 1 124 Liquids $71.5 +7% 2.8 2.9 139 130 834 684 111 52 1 209 16.2 16.5 16.9 14.5 14.9 990 995 Natural gas 715 $91.3 +103% 619 Q3-20 Q4-20
Slide 15: Production cost
Production cost Third quarter 2021 250 25 Unit production cost USD per boe 209 200 198 196 200 20 176 167 First nine months 2021 154 156 158 150 13.4 15.4 13.2 134 142 15 $8.9 100 10 9.1 8.7 9.1 8.6 9.0 9.0 Full-year guidance 8.1 7.3 50 5 $8.5-9.0 (higher end) 0 0 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20
Slide 16: Income statement
Income statement Third quarter 2021 16
Slide 17: Income statement
Income statement Third quarter 2021 USD million Q3 2021 Q2 2021 Change Comment Comments Total income 1 563 1 124 +39% 1 Production costs 209 158 +32% 2 1. Higher volume sold due to Other operating expenses 7 9 increased production and overlift, combined with higher EBITDAX 1 347 957 +41% oil and gas
Slide 18: Cash flow
Cash flow Third quarter 2021 USD million 1 063 Abex Expex Q3-2021 9M-2021 Capex (453) (113) FCF per share FCF per share 610 (52) $1.7 $4.9 1 421 975 Dividend per share Dividend per share 1) 2) 3) $0.3 $0.9 Cash Operating Invest- Free Dividends Interest Cash end-Q2 cash flow ments cash flow etc. end-
Slide 19: Statement of financial position
Statement of financial position USD million Assets 30.09.21 30.06.21 31.12.20 Equity and liabilities 30.09.21 30.06.21 31.12.20 Goodwill 1 647 1 647 1 647 Equity 2 128 2 030 1 987 Other provisions for liabilities Other intangible assets 1 779 1 873 2 043 2 639 2 681 2 650 incl. P&A (long) Property,
Slide 20: Superior financial flexibility
Superior financial flexibility Net interest-bearing debt Liquidity available Capital allocation priorities Excl. leases, USD million USD million 5000 3 4500 4000 2.5 4 819 4 538 4 821 1. Maintain financial capacity and 4 392 3500 3 554 3 431 4 375 investment grade credit rating 3 082 2 3000 2 639 2.
Slide 21: Returning value creation
Returning value creation Dividend considerations across oil price scenarios Aker BP dividends USD million >$65 Consider extra shareholder distributions 750 600 488 3 Grow distributions in line with value creation 450 425 $40-65 2 Deliver on profitable investment plan 1 Maintain financial capacity &
Slide 22: Cash tax sensitivity
Cash tax sensitivity USD million Payments of 2019 tax Refunds of 2020 tax Payments of 2021 tax 1) 800 $75 600 $70 400 $75 $70 200 $65 199 200 $65 106 48 81 94 0 (109) (11) (23) (201) -200 -400 -600 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 1) Estimated payments of curre
Slide 23: Guidance summary
Guidance summary Third quarter 2021 PRODUCTION CAPITAL SPEND PRODUCTION COST DIVIDENDS 2021 guidance 210-220 2.1-2.2 8.5-9.0 488 mboepd USD billion USD/boe USD million (lower end) (down from 2.2-2.3) (higher end) (up from 450) 9M-2021 actuals 210.2 1.5 8.9 338 mboepd USD billion USD/boe USD million
Slide 24: Concluding remarks
Concluding remarks Third quarter 2021 24
Slide 25: Priorities
Hanna Tronstad Drilling supervisor Priorities Aker BP Building a leading E&P company Drive operational performance ▪ Maximize production efficiency ▪ Safe operations with low cost and emissions Invest in profitable project portfolio ▪ Aiming to sanction ~600 mmboe by end-2022 ▪ Execute projects on t
Slide 26: www.akerbp.com
AkerBP www.akerbp.com