Slide 1: First Quarter 2022
First Quarter 2022 28 April 2022
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 globa
Slide 3: Highlights
Highlights First quarter 2022 Record strong financial performance ▪ High oil and gas prices ▪ Increased gas exports ▪ Cognite sold – the digital journey continues Securing organic growth ▪ Hod on stream - Johan Sverdrup phase 2 on schedule ▪ PDOs approved for Hanz and KEG ▪ On track to submit PDOs b
Slide 4: Lundin transaction on track
Lundin transaction on track Post-transaction ownership structure About the transaction ▪ Aker BP acquires Lundin Energy’s oil and gas activities ▪ Lundin Energy remains listed as renewable pure-play ▪ ~0.95 AKRBP shares and USD 7.76 per LUNE share 21.2% Approval process ▪ Shareholders approvals rece
Slide 5: Key performance indicators
Key performance indicators First quarter 2022 Safety Production Efficiency Cost Emissions 1.8 208.2 88% $11.6 4.8 Injuries frequency (TRIF) boe/day Production efficiency per produced barrel kg CO2e/boe 5
Slide 6: Production performance
Production performance Oil and gas production mboepd 223 222 Stable volume 208 210 210 207 208 202 38 40 199 ▪ Produced 208 mboepd 33 34 41 30 40 45 32 ▪ Overlift of 8.0 mboepd Record high gas production of 45 mboepd 176 185 182 ▪ Full production from Ærfugl 175 171 167 169 167 163 ▪ Initiated gas b
Slide 7: HSSE performance
HSSE performance Injury frequency (TRIF) 1) CO2 emissions intensity 2) 6.3 2.4 5.7 5.0 4.8 4.8 1.9 4.5 4.4 1.8 4.3 4.2 1.7 1.6 1.4 1.2 1.2 1.2 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 ▪ Safety is always the top priority in Aker BP ▪
Slide 8: Our digital journey continues
Our digital journey continues Creating solutions with application across industries The foundation for digital transformation ▪ Co-founded by Aker BP to develop state-of-the-art industrial data platform ▪ Now serving many companies across various industries ▪ Aker BP sold its shares in Cognite to Sa
Slide 9: Skarv
Uer Skarv Growth, upside potential and reliable supply Initiated Skarv Blowdown ▪ Providing reliable gas supply to Europe ▪ Adds capacity to Skarv Satellites ▪ Highly profitable Newt Storjo East Barlindåsen Adding substantial reserves through Skarv Satellites ▪ Concept selected in Q1 ▪ PDO submissio
Slide 10: Hod
Hod On production after only 22 months First oil in April – in record time ▪ First of six wells on stream ▪ Gross 40 million barrels to be produced ▪ Minimal emissions with power from shore Five unified alliances contributing to development ▪ New standard set for the alliance model ▪ Integration fro
Slide 11: Projects in execution
Projects in execution Progressing towards first oil Johan Sverdrup Kobra East & Gekko Hanz phase 2 ▪ P2 platform installed ▪ PDO approved in Q1 2022 ▪ PDO approved Q1 2022 ▪ First oil Q4 2022 ▪ First oil Q1 2024 ▪ First oil Q1 2024 ▪ Increasing processing capacity by ▪ Extending Alvheim asset life t
Slide 12: Early-phase projects
Early-phase projects Maturing portfolio towards PDOs in 2022 NOAKA ▪ ~600 mmboe gross ▪ Flexible design to cater for upside potential ▪ Power from shore Valhall NCP & King Lear ▪ >200 mmboe gross ▪ Turning Valhall into a potential future gas hub ▪ Power from shore Other satellite developments ▪ Skar
Slide 13: NOAKA
NOAKA Targeting PDO by end-2022 ~600 mmboe resources (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% 13
Slide 14: Valhall NCP & King Lear
Valhall NCP & King Lear Targeting PDO by end-2022 >200 mmboe resources (gross) USD 4-5 bn capex (gross, real) $25-30/bbl break-even 2027 first oil Aker BP interest Valhall: 90% King Lear: 77.8% 14
Slide 15: On track to sanction 700 mmboe by end-2022
On track to sanction 700 mmboe by end-2022 Area 2021 2022 2023 2024 2025 2026 2027 Kobra East & Gekko Alvheim Frosk Trell & Trine Hanz Ivar Aasen Lille Prinsen NOA Fulla NOAKA Krafla Ærfugl phase 2 Skarv Skarv satellites (Ørn, Shrek, Alve Nord, Idun Nord) Hod Valhall Valhall NCP /King Lear Johan Joh
Slide 16: 2022 exploration program
2022 exploration program Uer Barlindåsen Licences Prospect Operator Aker BP Pre-drill Status share mmboe Storjo East Newt PL873 Grefsenkollen & Øst Frigg Aker BP 40% 1-7 mmboe Staurheia/ Peder PL685 Laushornet Aker BP 40% 17 - 147 Drilling PL1085 Overly Aker BP 55% 38 - 92 Q2 PL261 Storjo East Aker
Slide 17: Financial review
Financial review David Tønne, CFO 17
Slide 18: Financial highlights
Financial highlights First quarter 2022 Production Cash flow metrics Liquids: 163.2 mboepd CFFO: USD 1.4 billion Gas: 45.0 mboepd FCF: USD 1.1 billion Realised commodity prices Key credit metrics Liquids: 100.9 USD/boe Net debt: USD 0.9 billion2) Gas: 171.0 USD/boe Leverage ratio: 0.12x3) Costs and
Slide 19: Oil and gas sales
Oil and gas sales Volumes sold Total income Realised prices mmboe USD million USD/boe 2 291 20.1 20.7 19.5 Q1-2022 Q4-2021 18.9 17.8 3.8 1 849 3.6 693 3.6 4.1 2.9 1 563 Liquids Liquids 618 $100.9 $78.8 346 1 133 1 124 139 130 16.5 16.9 14.9 15.2 15.4 1 554 1 209 1 199 990 995 Natural gas Natural gas
Slide 20: Oil lifted and realised prices
Oil lifted and realised prices Crude oil liftings Time effect and realised differentials mmbbl USD/bbl Realised Brent Dated (USD/bbl) 6.3 Differential 150 Timing 5.6 5.6 140 5.5 Brent Dated 5.1 5.0 130 4.9 4.6 4.6 0.2 1.2 120 103.7 4.2 102.2 4.1 110 3.3 100 90 0.0 0.1 79.8 79.6 80 0.0 0.4 0.3 73.5 7
Slide 21: Continued strong contribution from natural gas
Continued strong contribution from natural gas Gas volumes and realised prices 22% of total production in Q1 2022 ▪ Skarv 55% ▪ Alvheim area 20% 169.5 171.0 ▪ Valhall 14% 45.0 40.2 41.2 39.7 Continued strong price realisation ▪ ~90% of gas sold linked to spot (TTF/NBP) 31.6 91.3 ▪ Other income of US
Slide 22: Capital discipline
Capital discipline Capital spend (USD million) Production cost1) (USD million) 438 218 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Capex Expex Abex Environmental taxes Shipping & handling Cost of operations 1) Production cos
Slide 23: Production costs impacted by power prices and well maintenance activity
Production costs impacted by power prices and well maintenance activity Production cost Production cost breakdown USD/boe USD/boe • Continued high well maintenance 12.1 12.4 activity on Valhall 11.6 9.2 • High power prices correlated with 8.3 European gas prices • Increasing environmental taxes • Sh
Slide 24: Income statement
Income statement First quarter 2022 USD million Q1 2022 Q4 2021 Change Comment Comments Total income 2 291 1 849 +24% 1 Production costs 220 202 1. Increased due to higher prices. Other Other operating expenses 7 6 income of USD 41m mainly driven by gains on gas futures EBITDAX 2 064 1 641 +26% Expl
Slide 25: Cash flow
Cash flow First quarter 2022 USD million Taxes paid Q1-2022 Q4-2021 (388) WC (266) Expex/Abex FCF per share FCF per share 1 375 $3.0 $2.0 Capex 118 1 093 (400) (171) (77) 845 Dividend per share Dividend per share Operating Invest- Cognite Free 1) Dividends Interest 2) Cash build $0.48 $0.42 cash flo
Slide 26: Statement of financial position
Statement of financial position USD million Assets 31.03.22 31.12.21 31.03.21 Equity and liabilities 31.03.22 31.12.21 31.03.21 Goodwill 1 647 1 647 1 647 Equity 2 708 2 342 1 989 Other provisions for liabilities Other intangible assets 1 589 1 664 1 879 2 834 2 659 2 665 incl. P&A (long) Property,
Slide 27: Capital allocation priorities
Capital allocation priorities Growing capital distribution in line with value creation Aker BP investment plan 2022-2028 USD billion, accumulated 30 Maintain sufficient 25 1 financial capacity Dividend capacity 20 Financing cost $30 Cash flow from Invest in 15 operations after tax 2 profitable growt
Slide 28: Superior financial flexibility
Superior financial flexibility 2) Net interest-bearing debt Liquidity available Comments Excl. leases, USD billion USD billion 6.2 5.4 3.1 4.8 • S&P upgrade to BBB on 8 April 4.4 4.4 2.6 • No debt maturities before 2025 2.2 1.23 1.6 2.8 • Capacity to fund Q2 dividends, 0.85 2.0 taxes and Lundin USD
Slide 29: Return value creation
Return value creation Aker BP dividends USD 1.9/share USD per share guidance for 2022 2.08 1.90 40% 1.35 dividend growth from 2021 1.25 1.18 0.74 Capacity 0.19 for extraordinary dividends or buybacks if prices sustained above $65/bbl 2016 2017 2018 2019 2020 2021 2022 29
Slide 30: Guidance for 2022
Guidance for 2022 2022 Q1-2022 Guidance Actuals No change to guidance for full year Production (mboped) 210-220 208.2 ▪ Production set to increase in the second half of the year, driven by Johan Sverdrup phase 2 and Hod Opex (USD/boe) ~10 11.6 ▪ Opex currently above guidance, Capex (USDbn) 1.6 0.4 o
Slide 31: Priorities ahead
Priorities ahead First quarter 2022 ▪ Deliver safe and efficient operations ▪ Establish net zero plan ▪ Continue the digital transformation ▪ Execute projects on time, cost and quality ▪ Integrate Lundin 31
Slide 32: www.akerbp.com
AkerBP www.akerbp.com