Bluenord Asa · OSL:BNOR
Bluenord Asa — Debt Investor Presentation (June 2024)
44 slides from Bluenord Asa's debt investor presentation, June 2024
Slide 1: BlueNord ASA Credit Investor Update June 2024
We S BlueNord2/> BlueNord ASA Credit Investor Update June 2024
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION (THE “INFORMATION MATERIAL") HAS BEEN PRODUCED AND DELIVERED BY BLUENORD ASA (THE “COMPANY’). THIS INFORMATION MATERIAL DOES NOT CONSTITUTE AN OFFER, INVITATION OR SOLICITATION OF AN OFFERTO BUY, SUBSCRIBE OR SELL ANY SHARES IN THE COMPANY. THE COMPANY DOES NOT MAKE ANY
Slide 3: Section 1
Section 1
Slide 4: BlueNord at a glance
▪ ▪ ▪ ▪ ▪ 27 213 mmboe 186 1) Based on a share price of NOK 542 as at 2P 2C 07.06.2024 2) Pro forma for contemplated USD 300m bond issue and new RBL facility 3) Following ramp-up of Tyra (expected 2025) 4
Slide 5: Reserves and resources as of 31.12.2023
▪ ▪ 1 2 ▪ ▪ 2 1 ▪ 3 1) As of 31.12.2023 5
Slide 6: Clear Strategic Priorities
Clear Strategic Priorit ies. 7 Focus onstrong production performance and operational efficiency Deliveri ng Active asset managementto enhance volumes and drive growth g focus on continued delivery against our three strategic pillars Operationally Attractive short-cycleinvestmentsbeing pursued 2024 m
Slide 7: ... With Strong Focus on Delivery
... With Strong Focus on Delivery Investmentin Tyra set to drive significant increase in BlueNord production and cashflow Strong support from RBL b group demonstr. obust balance sheet and techni Clear focus onmaximising value for all BlueNord’s stakeholders Wi Material investment phase completed USD
Slide 8: Production and 2P reserves by hub
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 12.7 mboepd 44.6 mmboe 7.9 mboepd 26.5 mmboe 4.3 mboepd 14.9 mmboe net 2023 production net 2P reserves net 2023 production net 2P reserves net 2023 production net 2P reserves 2 51 + 26 2 50 + 34 3 32 + 14 active producer + injector active producer + injector active producer + injec
Slide 9: Tyra Hub key figures
2.8 bn bcm 99.5 mmboe +25 years 95% gross annual gas sales at plateau Tyra Hub net 2P reserves Life extension reuse of materials 9
Slide 10: 2024 production and cost guidance
44-50 Base production: actual Base production: 2024 guidance Tyra production: 2024 guidance 27 29-36 23.5 23-26 <13 23-26 23-25 23-25 Q1-24 Q2-24E Q3-24E Q4-24 Q1-24 First full year of Tyra production - 30% ~45% ~24% Current Tyra fully ramped up Q1-24 Tyra fully ramped up Realised prices based on li
Slide 11: Strategically Important European Gas
Strategically Important European Gas Tyra ll set to deliver strategically important gas to both Denmark and the EU Operations supportive of both Energy Security and the Energy Transition BlueNord supporting both Danish and EU Energy Security and Energy Transition goals Tyra enables Danish gas self-s
Slide 12: Maximising Value Through Short to Medium Term Projects
Maximising Value Through Short to Medium Term Projects Development projects Long term opportunities we BlueNord + 2024 2025 2026 2027 Beyond Q— ™ Halfdan Tor NE infill Continuous infill drilling sequence with12 wells being matured Ongoing workover and P&A activity Infill well portfolio unit developm
Slide 13: Production profile 2021-2030
60 50 40 30 20 10 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Base Production Dan, Halfdan, Gorm Optimisation Profile Projects Out-of-Plan Base Production Tyra, Harald Projects In-Plan 13
Slide 14: Section 2
Section 2
Slide 15: Conservative Financial Strategy
Conservative Financial Strategy Foct onreducing leverage through the Tyra redevelopment Track record of proactively managing financial risks Focus onmaintaining a strong balance sheet and long-term asset portfolio Wi Key financial management principles Robust and highly cash generative portfolio Con
Slide 16: Operating cash flow and capex
611 977 859 868 731 421 388 250 2021 2022 2023 Q1’24 LTM 2021 2022 2023 Q1’24 >2x 1.3 1.2 0.2 0.04 1.3 1.0 Op CF Capex 2023 2025e Op CF Expansion capex base assets Base Production Dan, Halfdan, Gorm Optimisation Profile Maintenance capex Tyra Capex Base Production Tyra, Harald Projects In-Plan 16
Slide 17: Free cash flow and leverage
+12 years estimated 2.4x remaining field life and • ~100 mmboe of current 2P and selected 2C is yet to • be produced at YE 2030 • <1.5x • USD 859m Illustrative FCF pre interest, Net senior debt YE'23 Q1'24 Through-cycle debt repayment and Leverage Ratio Leverage Ratio dividends 2024-30 1) target 1)
Slide 18: Tax losses and depreciation balances
110 494 1,279 161 515 HCT tax losses CT depreciation balance HCT depreciation Uplift balance Total balance ▪ ▪ 18
Slide 19: Robust Funding Structure
Robust Funding Structure RBL facility successfully increased to USD 1.4bn in May 2024 Contemplated new USD 300m senior unsecured bond to refinance isting BNOR14 USD 175m red bon and for general corporate purposes BNOR15 subordinated convertible bond with last call option and mandatory share settleme
Slide 20: Disciplined Capital Allocation
Disciplined Capital Near-term distributions while maintaining a strong Allocation balance sheet and long-term asset portfolio Balance between Organic growth: High-return, quick payback investments WROM . short-cycle Maximise contribution from base assets Infill well programme + Measured reinvestment
Slide 21: Section 3
ion3 — oO o ” 21
Slide 22: Board and management
Glen Rødland Euan Shirlaw Chairperson Chief Executive Officer Has nearly 30 years of experience within corporate finance, Became CEO of BlueNord in 2022, having joined the Company as asset management and private equity, mainly within energy, CFO in 2019. Background of providing strategic advice to a
Slide 23: Income Statement Q1 2024
Income Statem Income statement (USDm) -Q12024 EBITDA impacted by lowe Revenue 169 184 prices and lower lifted oil volumes . ae Operating expenses (Opex)” (71) (73) Net financial items affected by non- cash fair value adjustment on embedded derivatives Restated Q4'23 finance costs due G&A andother op
Slide 24: Balance Sheet Q1 2024
Balance Sheet -Q12024 PP&E additions primarily Tyra Redevelopment Project and Halfdan infill well Taxes payable is a current liability, of which c. USD 50mis acash tax to be paid in 2024 in June and November Balance sheet (USDm) Assets PP8&E” Deferred tax Other non-current assets Derivatives (curren
Slide 25: Cash flow and available liquidity
88 308 12 12 65 150 158 74 -9 Op CF Tax paid Financing CF pre Capex Free CF capex cash flow Cash Undrawn RBL2) Available liquidity 25
Slide 26: Gas prices and production by season
3.83 3.60 74.5 73.5 67.7 1.50 2024 2025 2026 2024 2025 2026 52.8 • 1,590,000 1,770,000 1,620,000 99.4 • 990,000 41.4 41.1 34.3 35.0 29.3 420,000 420,000 Winter 24 Summer 24 Winter Summer 25 Winter Summer 26 Winter 24 Summer 24 Winter 24/25 Summer 25 Winter 25/26 Summer 24/25 25/26 26
Slide 27: Production, Tyra ramp-up, capex and distribution policy
▪ Production ▪ ▪ ▪ Tyra ramp-up ▪ ▪ Capex ▪ ▪ Distribution ▪ policy ▪ 27
Slide 28: EV bridge and senior debt structure
EV bridge 2,571 1,348 Senior debt structure 1,250 Undrawn 300 300 265 238 985 LC 100 300 Undrawn RBL Drawn 850 capacity RBL Contemplated Gross Cash2) Net senior BNOR15 (CB, Market cap EV new bond senior debt debt subordinated) 28
Slide 29: ▪ ▪ + ▪ - ▪ - - ▪ - - = ▪ ▪
▪ ▪ + ▪ - ▪ - - ▪ - - = ▪ ▪ ▪ ▪ + ▪ - - - ▪ = ▪ ▪ 29
Slide 30: Danish Petroleum Tax Regime (2/2)
Danish Petroleum Tax Regime (2/2) > Other key principles of fiscal regime = Noring fencing; tax losses from one field can offset profits from other fields, all fields are jointly taxed = Claw-back tax (surplus tax) for 2022-35 - 5% / 10% if Brent oil price averages above USD 84.5 / USD 95,7 per bbl
Slide 31: Tax losses and depreciation balances
▪ CT HCT HCT Uplift depreciation depreciation Total tax losses balance balance balance ▪ 211 949 ▪ 1,341 3,492 990 ▪ 52% tax 12% tax 52% tax 52% tax shield shield2) shield shield ▪ 110 ▪ 494 161 1,279 515 1) 7% for capex on pipelines 2) 12% = 25% x (1-52%) as 25% CT is tax deductible in the 52% HCT
Slide 32: Overview of Asset Retirement Obligations
Overview of Asset Retirement Obligations = Asof31March 2024, BlueNordhadasset retirement obligations of USD 1,050m of which USD 1,044m classified as long term = Based on discount rate of 5.5% before tax = Majority of spendis post 2030, = Onaper 2P barrel basis, the USD 1,050m amounts to USD 5.7/boe
Slide 33: BNOR15 subordinated convertible bond terms
Issuer: BlueNord ASA Status: Subordinated convertible bond Outstanding Amount: USD 237,564,559 as of 10 June 2024 Maximum Issue Amount: USD 250,000,000 (excluding PIK interest) Interest Rate: 8% PIK coupon or alternatively 6% cash coupon. Currently paying 8% PIK Issue Date 30 December 2022 Last Conv
Slide 34: Dan Hub
Da n H u b Dan Hub Net Reserves&Resources” _———s Dan Hub—Historic Production (gross)°) ( 160 ~95% oil weighting Developed Under Near-term 1972 197 1982 1987 1992 1997 2002 2007 2012 2017 20: Development 2C O : N ' Hegre’ a an ij Hl reo.cra naa ] | GQ rerreteten eee ee a es ee eee a 34 of fueland
Slide 35: Halfdan Hub
Halfdan Hub of fueland Halfdan Hub Net Reserves & Resources”) Justified For pment vafcars North Ess Hettosn Mein Halfdan Hub — Historic Production (gross)?) 1998 2003 Hh scien a Hs 35
Slide 36: Gorm Hub
Gorm Hub of fueland Gorm Hub Net Reserves & Resources”) Developed pment Near-term Gorm Hub — Historic Production (gross)?) Hh oven Hats Dw renctn 010 2015 2020 36
Slide 37: Tyra Hub
Tyra H u b Tyra Hub Net Reserves & Resources” Tyra Hub — Historic Production (gross)?) Under pment - He ME joie eS eS ee ee ee ee, 37 of fueland
Slide 38: Source: 2023 Annual Statement of Reserves and Resources
Source: 2023 Annual Statement of Reserves and Resources 38
Slide 39: Infrastructure and pipelines map
Trym Cecilie Lulita Harald Hejre Svend South Arne Gas to Denmark Valdemar Roar Tyra Oil to Refinery / export Tyra SE Rolf Dagmar Halfdan North Gorm Skjold Halfdan Dan Gas to the 20km Kraka Regnar Netherlands Gas pipeline Oil pipeline 39
Slide 40: DUC Commercial Framework
DUC Commercial > Overview of key commercial agreements that govern Framework the DUC MOPA & TransportAgr (redelivery gas.at Tyra & ~~ condensate at GormE) en 8 Danish OilPiperedelvery and 5 BiueNordcrude delivery pointto I j 2 STASCo(Crude SPA) I BlueNord/ DanishOiPipe I B transportationagreement |
Slide 41: BlueNord will supply Denmark and Europe with the energy it needs
BlueNord will supply Denmark and Europe with the energy it needs, for Gas is a necessary transition fuel as long as it needs it As we move toward net zero, transition should match supply and demand to We will support the objectives of Availability, Accessibility, avoid unintended consequences (e.g.
Slide 42: Targeted Initiatives Within Carbon Capture and Storage
Targeted Initiatives Within Carbon Capture and Storage BlueNord involved in two CCS projects — Bifrost and Ruby Holds strategic investment in CarbonCuts, intending to establish an onshore CO, storage location in Denmark Targeted first storage of CO, in 2029 through the Ruby project rost project (thr
Slide 43: Top shareholders
Investor Number of shares % of top 20 % of total Type Euroclear Bank S.A./N.V. 6,395,436 29.4% 24.4% Nominee Goldman Sachs International 5,090,021 23.4% 19.4% Nominee Sober AS 1,850,000 8.5% 7.1% Ordinary J.P. Morgan Securities Llc 1,447,576 6.6% 5.5% Nominee The Bank Of New York Mellon Sa/Nv 1,326,
Slide 44: End page
we BlueNord,v End page