OKEA ASA

Investor Presentation • Jul 17, 2024

OKEA ASA

Presentation of second quarter 2024

17 July 2024

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 risks as they relate to events and/or circumstances in the future
• This presentation must be read in conjunction with the published financial reports of the company and the disclosures therein
• A full disclaimer is included at the end of this presentation

Solid operational performance

• Production at 38.4 kboepd
• OKEA operated assets: Draugen performance remains strong; production upsets at Brage rectified and new wells on stream
• Partner operated assets: Overall stable production; planned shutdown due to maintenance at Statfjord A completed

Development projects on track

• Bestla PDO submitted in April
• Draugen power from shore project progressing according to plan
• High activity level on infill and production drilling at Brage and Statfjord

Financial

• EBITDA of NOK 1.6 billion and net profit of NOK 87 million
• Impairments relating to Statfjord and Yme of NOK 267 million
• Strengthened liquidity position by issuance of a USD 125 million senior secured bond (OKEA05)

Key operational figures - Q2 2024*

The leading mid- to-late-life operator on the Norwegian continental shelf

Our priorities

4

Operational excellence

Production volume and efficiency

Production efficiency (%) – Q2 23 to Q2 24*

5 *Gjøa & Nova combined as one CGU and all four Statfjord fields treated as one CGU (Statfjord area); production efficiency volume weighted **Draugen production volumes in Q1 24 include a prior period adjustment of volumes from Hasselmus which increased production in Q1 24 by 1.1 kboepd

Operational update

	Working Interest	Operator	Key updates
Draugen	44.56%	OKEA	Strong and reliable operation ✓ Initiatives to ensure the integrity and continued stable production ongoing ✓ ✓ Power from shore project progressing according to plan
Brage	35.20%	OKEA	✓ Production upsets rectified ✓ The second Talisker east well commenced production in Q2 24; further wells planned for H2 24 PDO submitted for the Bestla project ✓
Statfjord area	28.00%	Equinor	✓ Planned maintenance at Statfjord A completed ✓ Production efficiency improving ✓ Work to update activity/drilling plans ongoing
Ivar Aasen	9.24%	Aker BP	✓ Continued reliable operation ✓ Hanz put on production during Q2 2024; reducing cost going forward ✓ Maturation of IOR 2026 campaign ongoing
Gjøa/Nova	12.00% / 6.00%	Vår Energi	Work to resolve water injection issues ongoing ✓ ✓ Maturing wells to increase production potential ✓ Several tie-in candidates approaching Gjøa as potential host
Yme	15.00%	Repsol	Production efficiency improving ✓ Drilling of C-3 infill well ongoing; expected completion in Q3 24 ✓ ✓ Work to mature additional infill targets from the Beta template ongoing

Development projects

	Rationale	Key figures
	✓ Positioning Draugen for the future: low emissions and reduced cost extend economic liftime	~95% CO e reduction** 2
Draugen Njord	✓ Robustness and visibility through fixed power price*	~200,000 Sm3/day available for gas exports (gross)
	✓ Reduced CO emissions and power need 2	Improved production efficiency
Draugen Power from Shore	2024 2025	2026 2027
	✓ Tie-back to Brage with substantial volumes and attractive economics	24 mboe recoverable reserves (gross)
Brage platform	✓ Facilitating lifetime extension; enabling potential value from future projects	~USD 40/boe breakeven
	✓ Reduced CO emissions and power need 2	~6 bnNOK CAPEX (gross)

7

* Long-term contract for 75% of expected power usage at fixed price contract from 2028

** Compared to emissions in reference year 2019

Financials

Capital structure development

USD 125 million senior secured bond (OKEA05) issued

• Four-year tenor with maturity in May-28
• 9.125% fixed interest rate
• Maturing after startup of Draugen power from shore and Bestla
• USD 125 million tap option replaces the tap option in OKEA04

Super senior RCF increased to USD 37.5 million

• Facility size drops back to USD 25 million in Mar-26
• RCF matures in Nov-27
• Adds flexibility at limited cost
• Remains fully undrawn

Debt maturity profile*

Production and sales

Revenue by component (NOK million)

Realised prices (USD per boe)

Oil

10

Market prices for crude, realised liquids price and lifted volumes

Gas market price and sold volumes

Income statement

Q2 2024 figures	Q2 2024 comments
Figures in NOK million	Q2 24	Q1 24	Q2 23	H1 24	H1 23	2023
Total operating income	2,584	3,474	1,707	6,058	4,661	8,885		from sale of petroleum products
Production expenses	-879	-839	-495	-1,718	-1,013	-2,084		229 NOK/boe
Changes in over-/ underlift positions and inventory	155	-385	126	-229	-667	-684	•	Impairments of NOK 267 million
Depreciation	-714	-778	-362	-1,491	-689	-1,695
Impairment (-)/ reversal of impairment	-267	-158	-300	-425	-394	-2,745		for crude
Exploration, general and administrative expenses	-243	-91	-171	-334	-222	-360		243 million
Profit/ loss (-) from operating activities	637	1,223	506	1,860	1,676	1,316
Net financial items	-23	-144	-115	-167	-164	-217		NOK 33 million in SG&A expenses –
Profit/ loss (-) before income tax	613	1,080	391	1,693	1,512	1,099	•	Net financial expense of NOK 23 million NOK 49 million in net FX gain –
Income taxes	-526	-1,129	-322	-1,655	-1,217	-2,034		NOK 33 million in net interest expenses –
Net profit/ loss (-)	87	-49	69	38	295	-935	•	Income tax expense of NOK 526 million
EBITDA	1,617	2,159	1,167	3,776	2,759	5,756		78% mainly due to no tax shield on goodwill impairment

•	Operating income of NOK 2,584 million; NOK 2,442 million from sale of petroleum products
•	Production expenses of NOK 879 million; corresponding to 229 NOK/boe
•	Impairments of NOK 267 million NOK 121 million in technical goodwill on Statfjord area – NOK 144 million on Yme due to reduced forward prices – for crude
•	Exploration, general and administrative expenses of NOK 243 million NOK 210 million in exploration expenses mainly due to – expensing of previously capitalised costs on Calypso NOK 33 million in SG&A expenses –
•	Net financial expense of NOK 23 million NOK 49 million in net FX gain – NOK 33 million in net interest expenses –
•	Income tax expense of NOK 526 million Effective tax of 86% was higher than the expected – 78% mainly due to no tax shield on goodwill

Statement of financial position

Q2 2024 figures
Figures in NOK million	2024		2023
Assets	30.06	31.03	31.12	30.06
Goodwill	1,927	2,049	2,295	1,292
Oil and gas properties	7,166	7,130	7,199	6,416
Asset retirement reimbursement right	4,179	4,072	4,163	3,486
Trade and other receivables	1,858	1,932	1,211	1,362
Cash and cash equivalents	3,182	2,130	2,301	2,335
Other assets	1,023	1,286	1,331	1,171
Total assets	19,336	18,599	18,500	16,062
Total equity	764	676	726	2,165
Liabilities
Asset retirement obligations	9,383	9,258	9,535	5,715
Deferred tax liabilities	895	1,013	888	2,774
Interest bearing bond loans	2,614	1,327	1,246	1,293
Other interest-bearing liabilities	472	494	477	531
Trade and other payables	3,207	2,935	2,997	1,961
Income tax payable	1,580	2,358	2,141	1,238
Other liabilities	421	538	489	384
Total liabilities	18,573	17,923	17,774	13,896
Total equity and liabilities	19,336	18,599	18,500	16,062

• Goodwill of NOK 1,927 million; NOK 635 million relating to Statfjord area
• Oil & gas properties of NOK 7,166 million
• Cash and cash equivalents of NOK 3,182 million
• Interest-bearing bond loans of NOK 2,614 million; comprising OKEA04 and OKEA05
• Other interest-bearing liabilities of NOK 472 million relating to the financial lease of the Inspirer rig at Yme
• Income tax payable of NOK 1,580 million
• Asset retirement obligation of NOK 9,383 million; partly offset by the asset retirement reimbursement right of NOK 4,179 million

Cash development Q2 2024

Outlook / Guidance

Narrowing guidance ranges

Production	Production guidance for 2024 of 36 – 40 kboepd Guidance range somewhat narrowed from 35 - 40 kboepd • • Major turnarounds scheduled for H2 24 include three weeks at Kårstø which prevents gas export at both Brage and Draugen, and three weeks at Ivar Aasen – both scheduled for the third quarter
Capex	Capex guidance for 2024 of NOK 3.2 – 3.6 billion • Guidance range somewhat narrowed from 3.2 - 3.7 billion ~1/3 of capex relates to infill and production drilling at Brage and Statfjord with short payback time • In addition, capex comprises Bestla development, Draugen Power from Shore, and other investments • • Capex guidance does not include capitalised interest, exploration spending or projects not yet sanctioned
Other	Taxes payable • The first three tax instalments for 2024 NOK 349 million each • • Payable in August, October and December

Summary

Summary

Growth Value creation Capital discipline

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 prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities. The contents of this presentation have not been independently verified, and no reliance should be placed for any purposes on the information contained in this presentation or on its completeness, accuracy or fairness.

The presentation speaks as of the date sets out on its cover, and the information herein remains subject to change.

Certain statements and information included in this presentation constitutes "forward-looking information" and relates to future events, including the Company's future performance, business prospects or opportunities. Forward-looking information is generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions and could include, but is not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration, development and production activities. Forward-looking information involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Such risks include but are not limited to operational risks (including exploration and development risks), productions costs, availability of equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. Neither the Company or any officers or employees of the Company provides any warranty or other assurance that the assumptions underlying such forward-looking information are free from errors, nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments and activities. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable law.

This presentation contains non-IFRS measures and ratios that are not required by, or presented in accordance with IFRS. These non-IFRS measures and ratios may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results as reported under IFRS. Non-IFRS measures and ratios are not measurements of our performance or liquidity under IFRS and should not be considered as alternatives to operating profit or profit from continuing operations or any other performance measures derived in accordance with IFRS or as alternatives to cash flow from operating, investing or financing activities.

The Company's securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act"), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S of the US Securities Act.

The presentation is subject to Norwegian law.