Equinor ASA · OSL:EQNR
Equinor ASA — Corporate Update (December 2020)
38 slides from Equinor ASA's corporate update, December 2020
Slide 1: Equinor Business Update December 2020
oh nal EQUINOF oe Bae st | IN ' Equinor Business Update December 2020
Slide 2: Equinor creating value in the energy transition
Equinor creating value in the energy transition Profitable and growing upstream portfolio - Low cost, low breakeven, low CO, emissions - Advantaged portfolio to meet continued demand - Johan Sverdrup; the new standard of excellence offshore. Full field breakeven <USD 20 per bbl - Troll gas phase 3 w
Slide 3: Equinor's 2020 action plan - Improving resilience
Equinor’s 2020 action plan - Improving resilience Organic capex 2020: Reduced from USD 10-11 bn to around USD 85 bn a 2021: Around USD 10 bn —s 2022-23: USD 12 bn per year on average 2020: Exploration spend reduced from $1.4bn to $1.1bn USD 3bn action plan Opex To strengthen Equinor's financial resi
Slide 4: Capital distribution - Dividend
Capital distribution - Dividend 2018-2019: Increased capital distribution by 42% 4Q 2019 dividend: 27 cents, + 4% 1Q 2020 dividend cut by 67%: 27 to 9 cents o Responding to the current extraordinary situation o Notareset or a rebase. Board review of the dividend prior to each quarterly announcement
Slide 5: Key deliverables
ws equinor ** Key deliverables Demonstrated ability to act decisively and create advantage 7 - COVID19 swift response, strong operations and ability to capture value - USD 3 bn action plan, repositioned on costs - Balance sheet resilience and flexible financial framework Profitable and growing upstr
Slide 6: Third quarter 2020
Third quarter 2020 - Solid results from operations in a low price environment - Positive free cash flow in the quarter - Ontrack to deliver on the USD 3 billion action plan to strengthen financial resilience - Continuing to create strong value from renewables - Capital gain of ~USD 1 billion on farm
Slide 7: Adjusted earnings by segment
Million USD 3Q’ 20 3a'19 1 EBIDA Adjusted ~ earnings E&P Norway ~ Reduced opex on new and late life fields - Lower tax rate due to temporary changes ~ Cosh flow from operations? of USD 2,081 million Pre tax After tax 713 414 1735 540 E&P International - Reduced opex and SG&A ~ Impacted by maintenanc
Slide 8: Equity production
Equity production - Production growth of 9%, adjusted for portfolio changes and curtailments - Ramp up of new fields - Capturing value from flexibility in gas production Oil and gas mboe/d 1,909 1,909 1994 1994 3Q 2019 3Q 2019 3Q 2020 3Q 2020 B Liquids =Gas m=NCS = International =USA equinor ** - Pr
Slide 9: Cash flow
Cash flow Net positive cash flow of USD 216 million in 3Q after share buy-back - Cash flow impacted by low commodity prices - NCS tax refund of USD 160 million in 3Q - Capital distribution includes dividend payment of USD 0.3 billion and share buy-back of USD 1 billion from the Norwegian state in 3Q
Slide 10: Guidance: capex, exploration, production growth
3 equinor Organic capex ~ 8 5 billion USD4 Exploration expenditure ~~ 1 1 billion USD! Production growth 2019-2026 =~ 3 Percent, CAGR? 1. Based on USD/NOK exchange rate of 9.5, compared to II at 1@ 2020 guiding 2. Rebased for portfolio measures 10 | Equinor Business Update
Slide 11: Anders Opedal
Anders Opedal New Equinor President and CEO from November 2, 2020 * The Board of Directors of Equinor has appointed Anders Opedal (52) as new president and CEO of Equinor from 2 November 2020 + Eldar Scetre will retire after six years as CEO and more than 40 years in the company * Equinor's Chair of
Slide 12: World class project portfolio
World class project portfolio ~6 Billion boe Resources Equinor equity ~5 Kg per boe CO, intensity Equinor operated upstream 100% <535 USD per bbl Break-even Volume weighted ~3 Percent Annual production growth 2019-2026 ‘Compound annual growth rate(CAGR). rebased for portfolio measures equinor Major
Slide 13: Competitive non-sanctioned portfolio
Competitive non-sanctioned portfolio! Offsetting cost pressure - maintaining high profitability Break-even USD per bbl 100 — 2017 t —2019 ey J — 2020 60 fife 40 0 ht or e ° 2 fey 2 ° fe fe} fe) 2 ' g fe) fo} 3 fo} S 9 So fo) 6 Volumes g SI g a S 3 S iS © Milion boe 1. Non-sanctioned upstream portfol
Slide 14: The NCS petroleum tax system
The NCS petroleum tax system and 2020+ incentive programme The regular NCS petroleum tax system Operating Income (based on “norm prices” !) - Operating expenses - Linear depreciation of investments (6 years) - Exploration expenses, R&D and decom. - Environmental taxes and area fees - Net financial c
Slide 15: Johan Sverdrup
Johan Sverdrup A new benchmark Phase 1 plateau: 0.7 Kg per boe co, <20 USD per bbl Break-even full field equinor *° ~500,000 barrels per day Plateau to be achieved by year end 2020 100% basis ~45 USD per boe CFFO after tax 2020 Based on 65 USD per bbl <2 USD per boe UPC at plateau, phase 1 Unit prod
Slide 16: Brazil overview
Nd equinor * Brazil overview Shape portfolio for : Build position as a power supplier higher value lower carbon P Ps IPP! Deliver on current portfolio Establish a gas value chain solution 2020-2021 2022 2023-24 2030 Peregrino Phase II Peregrino gas import Bacalhaustart-up BM-C-33 start-up? Bacalhau
Slide 17: US overview
CANADA @ OWiliston Bakken and Three Forks 68,000 tomford. 4 tee pede Massachusetts Wind Development (Equinor (50%, Operator), BP (50%)) Empire Wind Equinor (50%, Operator), BP (50%)) 816 MW. 25-year contract 232.000 =ceeeaeeetaD FID: 2021 Start: 2024 Will power 500,000 homes LA Austin Chalk Water de
Slide 18: Marketing, Midstream and Processing earnings by segment
SESuSR tum BininDo e900 SSS SSSSESSR 48 E842 485) BS equinor ** Marketing, Midstream and Processing (MMP) earnings by segment MMP adjusted earnings MMP guiding: MUSD - Expected adjusted earnings per quarter: 250-500 MUSD. MMP adj. earnings - More towards upper end during 1Q and 4Q assuming normal re
Slide 19: Summer gas prices recovering into winter
equinor *: Weak Summer 20 prices are recovering into Winter 20-21 on increasing demand* European gas demand started to pick up after easing of Covid- 19 measures and grew above 5- year average level. In the period of June-September 2020 US cargo cancelations averaged to 45 cargos per month and helpe
Slide 20: COVID-19 crisis seriously hit gas demand globally
COVID-19 crisis seriously hit gas demand globally The easing of lockdown measures from mid June contributed to gas demand recovery to 5-y average level - Indigenous gas production reduced ~9% YoY vs 2019 - Downturn in gas demand ~ 5% YoY vs 2019 due to mild weather and COVID-19 quarantine measures -
Slide 21: Low cost gas supply to Europe
Low cost gas supply to Europe - Total supply cost well below 2 USD per MMBtu - Flexibility in gas production and delivery points - Lowemissions in production and transportation 2019 gas share of total production compared to peers 0% 20% 40% 60% 80% 100% oo ———_—o Equinor a —————_——__, mOl Mi Gas Sou
Slide 22: Low cost, low emission gas supply to Europe
Low cost, low emission gas supply to Europe Well positioned for market recovery Value drivers Time optimisation Geographical optionality Bilateral contracts Financial Trading UNITED KINGDOM. Unique asset base DENMARK Success Factors
Slide 23: Key regional trends of the LNG global gas market
Ne o- Key regional trends of the LNG global gas market — equinor - Asia will drive growth in the coming years Government support to LNG Risk of new LNG projects delay Low cost producer; exports to increase geecceeeneseee - \ c=) Supply surge to Project delays decelerate
Slide 24: Global gas prices started recovery from Q3
equinor ** Global gas prices started recovery from Q3 20 Further increase requires global gas demand to regain stronger growth Key drivers Europe Impact on price Global gas prices 2022 2025 = USD per MMBtu Global LNG balance } European production eo “~s Pipeline imports PRM RIPE RR . ooo Inventories
Slide 25: Offshore wind performance
O 1.8 SIF TWh Safety performance Electricity generation Equinor share 96 160 Percent GBP per MWh Availability factor Achieved prices Equinor offshore wind assets Volume weighted prices for offshore wind portfolio 3.0 >10 Billion USD Percent Portfolio investment IRR, generating portfolio Cumulative g
Slide 26: Value driven growth in renewables
Value driven growth in renewables Value creation and ability to increase returns © Portfolio optimisation © Project financing © Leverage core competence O Perfect project © O&M excellence © Trading Expected returns (real)! Equinor equity return 1. Real unleveraged returns corresponding to 8-12% nomi
Slide 27: Creating value from scale in regional clusters
equinor ** Creating value from scale in regional clusters ‘i ___ BALTIC SEA Poland Arkona, Germany (Baltyk LILI) 385 MW NORTH SEA US EAST COAST Dogger Bank Sheringham Asia: future growth Empire Wind | Beacon Wind | 36GW Shoal 317 MW China, Japan, South Korea 816 MW 1200+ MW MoU with CPIH Hywind Tamp
Slide 28: Dogger Bank
Jogger Bank A Jogger Bank B Dogger Bank C Dogger Bank Round 3 Zone @ Teesside converter station © Creyke Beck converter station equinor *° Dogger Bank The world’s largest offshore wind farm Consist of three projects: Dogger Bank A, B & C Aand B: SSE (40%), Equinor (40%), ENI (20%) - Project financed
Slide 29: Equinor and BP form a new offshore wind partnership in the US
equinor *: Equinor and BP form a new offshore wind partnership in the US Capturing value and enabling growth oN Capturing value A new offshore wind partnership \ Demonstrates attractiveness of between Equinor and BP AN Equinor offshore wind portfolio bp Ne ae equinor Enabling growth 50% stake in Emp
Slide 30: Expected upcoming offshore wind auctions
es 20 Expected upcoming offshore wind auctions By 2030, US East Coast States Beacon Wind Empire Wind = Connecticut | New York| New Jersey ? New Yorki New Jersey Rhode Island °° Massachusetts New York @ Leases secured Dl Bureau of Ocean Energy Management indicative areas Expected offshore wind auctio
Slide 31: Global leader in floating offshore wind
Global leader in floating offshore wind Uniquely positioned to capture opportunities Capacity factor in 2019+ Percent 54 40 43 Total UK offshore Equinor offshore Hywind Scotland windaverage wind portfolio? 1. Actual eneray produced divided by hypothetical maximum power capacity 2. Equity production
Slide 32: Low Carbon Solutions portfolio
equinor Low Carbon Solutions portfolio Building markets for Carbon Capture & Storage (CCS) and clean hydrogen — = SILZI SLA a Si sy — BS i as as = — Bg 2024 2026 2025 2026 2027/28 2027/28 2026 Hydrogen Norway Zero Carbon Humber Clean Steel H2 Magnum Net Zero Teesside * CCS for industry + Pipeline tr
Slide 33: The Northern Lights project
Nd equinor ** The Northern Lights project Commercial transport and storage of CO,0n the NCS Equinor, Shell and Total - Opens for decarbonisation of industries and CO, emissions reductions. - Enabler for ‘Blue Hydrogen*. - Plan for development and operation submitted in May 2020. - Government approva
Slide 34: Hydrogen - a key contributor to the energy transition
equinor Hydrogen — a key contributor to the energy transition Competitive advantage * H2has similar supply chains to oil and gas + Experience in delivering large scale industrial projects * Gas experience and infrastructure + Experience working with governments incl UK and Norway + Demonstrated to b
Slide 35: Future value creation in CCS and hydrogen from natural gas
Future value creation in CCS and hydrogen from natural gas Transport | Permanently stored Compressed CO) | CO, received and temporarily stored. Export via pipeline transported by ship | offshore. Permanently stored in reservoir ,2000- 2000 meters below seabed), H, - Hydrogen CO, Capture Capture from
Slide 36: Equinor's climate strategy
. a equinor * Equinor’s climate strategy Profitable growth in renewables Develop a high value renewable business - 4-6 GW installed capacity 2026” - 12-16 GW installed capacity 2035? Climate is embedded in our We use our decision-making voice to drive change CO, price of at least USD 55 Stress testi
Slide 37: Long-term industry leadership
equinor ** Long-term industry leadership soe The most resilient against rising CO, prices on ESG and energy transition (Kepler Cheuvrewr) A valuable renewable portfolio (Credit Suisse) Early supporter of the TCFD ESG integrated in strategy and key events such as CMU ESG rating 2020 AAA - Industry le
Slide 38: Forward-looking statements
Forward-looking statements ‘This presentation contains certain forward-looking statements that involve risks and uncertainties In some cases, we use words such as “ambition, continue’, ‘could’ ‘estimate’, ‘intend’, “expect, ‘believe’, kel’, ‘may’, ‘outlook’ ‘plan’ strategy’, “will “quidance’, “targe