Slide 1: OKEA ASA Presentation of third quarter 2023
OKEA ASA Presentation of third quarter 2023 26 October 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: OKEA third quarter 2023 results highlights
OKEA third quarter 2023 results Highlights • Operation – Production of 23.7 kboepd – Brage sustained production above plan; Draugen, Gjøa, Ivar Aasen and Nova producing according to plan – Technical issues at Yme resulted in reduced production in July • Portfolio – Hasselmus started production on 1
Slide 4: Quarterly key figures
Quarterly key figures (Previous quarter in brackets) Production Serious incidents kboepd Net CF from ops. frequency NOK million per million work hours 23.7 (22.3) 748 2.5 (1,401) (2.5) Dividends paid CO2 emissions Production expense NOK million intensity NOK/boe kg per boe produced 104 195 (104) 23*
Slide 5: Production volume and reliability
Production volume and reliability Production* (kboepd) 25 23.7 Nova 22.2 22.3 1.7 Yme 19.9 1.1 1.7 2.5 Ivar Aasen 20 0.6 2.4 1.7 2.9 2.8 Gjøa 16.1 3.1 2.5 3.2 Brage 15 1.4 1.0 5.1 Draugen 6.8 6.8 6.2 10 7.4 5.7 1.5 2.2 3.5 5 6.3 6.8 6.6 5.8 4.8 0 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Production reliability*
Slide 6: Operational update
Operational update Draugen (op. WI 44.56%) Brage (op. WI 35.2%) • Hasselmus production started 1 October; • Additional wells put onstream in the quarter; net gross plateau production of 4.4 kboepd plateau production of 6 kboepd by end of quarter • 13 days shutdown in July due to installation • Two m
Slide 7: Statfjord 28% WI - progressing towards closing
Statfjord 28% WI - progressing towards closing Transformational acquisition in a proven giant • One of the most prolific areas on the NCS with a strong track record for improved oil recovery; the largest liquids field on the NCS with ~4.0 bnboe originally recoverable* • Progressing towards completio
Slide 8: Financials
Financials
Slide 9: 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 Gjøa - net tie-ins 4.5 30 30 Brage 0.4 26.7 Gjøa 25 23.7 Draugen 25 7.6 22.8 2.3 Brage 22.2 22.3 2.2 19.9 1.7 Draugen Q3 23 1.1 1.7 2
Slide 10: Realised liquids prices
Realised liquids prices Lifted volumes* vs Dated Brent – Q3 2022/Q3 2023 + EQ4 2023 Lifted volumes vs Dated Brent USD/boe kboe 125 950 110 900 120 850 100 800 89.4 89.0 115 90 86.7 0.4 750 0.1 0.3 3.0 110 700 80 653 637 630 636 650 618 615 105 597 587 600 70 550 100 60 485 500 95 450 50 374 400 90 3
Slide 11: Gas market prices and sold volumes
Gas market prices and sold volumes Sold volumes vs average NBP/Heren gas market prices USD/boe Kboe Monthly average USD/boe Volumes kboe 280 280 260 260 240 240 220 212 220 198 200 200 187 188 180 180 181 180 173 174 171 172 172 180 166 165 160 160 147 140 140 120 120 100 100 80 80 60 60 40 40 20 20
Slide 12: Income statement
Income statement Q3 23 comments Operating income • Revenue from sales of petroleum products of NOK 2 131 million Figures in NOK million Q3 23 Q2 23 Q3 22 • Net other operating loss of NOK 26 million Total operating income 2 105 1 707 2 143 Production expenses Production expenses -465 -495 -425 • NOK
Slide 13: Statement of financial position
Statement of financial position Figures in NOK million Assets 30.09.2023 30.06.2023 31.12.2022 Q3 23 comments Goodwill 1 292 1 292 1 297 Oil and gas properties 6 001 6 416 6 556 • Cash and cash equivalents of NOK 2 346 million Asset retirement reimbursement right 3 395 3 486 3 662 • Tax payable of N
Slide 14: Cash development Q3 2023
Cash development Q3 2023 NOK million 4 500 4 000 3 500 +115 276 3 000 1 024 534 2 500 13 42 8 20 16 104 +11 2 000 1 500 2 335 2 450 2 346 1 000 500 0 Total liquidity Operating Taxes Investment Other liabilities Interest Lease debt Refinancing FX effect on Total liquidity Dividend Total liquidity 30.
Slide 15: Cash development YTD Q3 2023
Cash development YTD Q3 2023 NOK million 5 500 +1 553 5 000 776 4 500 4 000 1 459 3 500 4 243 3 000 297 36 121 25 20 43 2 500 312 2 000 +1 242 1 500 2 657 2 346 1 000 500 1 104 0 Total liquidity Operating Taxes Investment Business Other Interest Lease debt Refinancing FX effect on Total liquidity Di
Slide 16: Successful refinancing extends maturity and adds financial flexibility
Successful refinancing extends maturity and adds financial flexibility USD 125m bond issue extends maturity to 2026 – additional financial lever through USD 25m revolving credit facility Summary of key transaction components OKEA04 – Leverage Ratio(E) and key terms 150 Successful refinancing complet
Slide 17: Dividends for 2023 according to plan
Dividends for 2023 according to plan Dividend of NOK 1.00 per share to be paid in December Dividend (NOK per share) 0.90 1.00 1.00 1.00 1.00 1.00 Capital allocation principles 1.00 Maintain 1 financial flexibility Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Ensure 2 Paid Resolved robust portfolio • Th
Slide 18: 2023 guidance
2023 guidance Narrowing range for production and capex guidance for 2023 Production guidance of 23–24 kboepd in 2023 • Production guidance narrowed from 22-25 kboepd Production • Production guidance does not include volumes from the acquisition of 28% WI in PL037 (Statfjord Area); expected productio
Slide 19: Summary
Summary
Slide 20: Summary
Summary Continuing to deliver on growth strategy; Statfjord acquisition progressing towards closing in November 2023 Hasselmus project started production on 1 October 2023, adding 4.4 kboepd in gross production at plateau and restarting export of associated gas and NGL from Draugen Brage sustained p
Slide 21: Q&A
Q&A Growth Value creation Capital discipline
Slide 22: General and disclaimer
General and disclaimer This presentation is prepared solely for information purposes, and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities. Investors and p