OKEA ASA

Investor Presentation • Jul 13, 2022

Presentation of second quarter 2022 OKEA ASA

13 July 2022

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 second quarter report and the disclosures therein
• •A full disclaimer is included at the end of this presentation

OKEA second quarter 2022 results

Highlights

Operations

• Production 16,039 boepd
• Solid production performance from Draugen and Gjøa in the quarter
• Planned shut-down for tie-ins/maintenance at Gjøa completed in April
• Ramp up of production plant and start-up of new wells at Yme progressing at slower pace than anticipated

Financials

• Operating income of NOK 1,332 million
• EBITDA of NOK 928 million
• Net profit of NOK 28 million
• Cash increase of NOK 289 million; dividend of NOK 93 million in June

Well-positioned for value-accretive growth

• Second dividend payment in September of NOK 1 per share
• Net debt free; full redemption of OKEA02 in July
• Acquisition of a substantial portfolio of assets from Wintershall Dea
• Discovery confirmed in the Hamlet exploration well; development project initiated with goal of FID by end 2022
• Hasselmus gas project and power from shore progressing as planned

Turmoil in European gas markets

Growing difference between UK and European continental gas prices

• Since the beginning of the quarter NBP (UK) prices been sold to discount compared to TTF (Netherlands) o Appears to be driven by LNG import capacity, limited gas inventories, and restricted export capacity

• Forward prices converge by winter 2022/2023
• OKEA's current gas production (Gjøa and Ivar Aasen) is exported and sold to the UK
• Optionality to export gas to continental Europe and UK from Brage and Hasselmus

Production volumes and reliability

Strong performance from Draugen and Gjøa

Production reliability (%)

Safety and emissions

Serious incident frequency (SIF) – per million work-hours* Total recordable injury frequency (TRIF) – per million work-hours

Zero hydrocarbon leaks > 0.1 kg/second last 3 years

Draugen – WI 44.56% Production 7,060 boepd Reserves* 27.9 mmboe

• Net production 7,060 boepd and production reliability 99%; solid performance resulting in increased production
• LWI campaign to prepare for plug and abandonment of two subsea wells successfully completed
• Hasselmus project progressing according to plan
  • o Subsea installation scope for 2022 completed
  • o Drilling of well to start in July
  • o Topside pre-fabrication and installation at Draugen to start in Q3
  • o Production start is planned for Q4 23 with gross plateau gas production of more than 4 400 boepd
• Power from shore project joint for Draugen and Njord
  • o Final stage of FEED studies
  • o Public consultation process NVE ongoing

• Net production 7,107 boepd and production reliability 97%; solid performance resulting in increased production

• Planned shut-down successfully completed on 8 April; mainly relating to tie-in work for Nova, Duva and Vega for which Gjøa will be compensated for the deferred production
• Discovery confirmed in the Hamlet exploration well; development project initiated with goal of FID by end 2022
  • o Operator's preliminary estimate 8-24 mmboe recoverable

• Net production 1,322 boepd; ramp up process progressing slower than plan due to production interruptions relating to commissioning and the minor leak reported during Easter
• Production from four available wells in the quarter; re-completion of two additional wells ongoing for production in Q3 22
• Beta North drilling campaigns commenced in Q2 22 and Gamma program to commence in Q3 22
• With the new wells onstream in H2 22, plateau production is expected by year end

Photo: Repsol

Ivar Aasen – WI 2.777%

• Net production 550 boepd and production availability of 99%
• Acquisition of 2.223% working interest in the Ivar Aasen field from Neptune Energy Norge AS completed on 31 March 2022
• Shut down on 27 March due to power supply disruption from Edvard Grieg
• o Production at reduced rates from 21 April
• o Back in full production from 24 May

Photo: Aker BP

Delivering on growth strategy

Finding value with complementary Wintershall Dea assets

Photo: Wintershall Dea

Fixed consideration of USD 117.5 million with additional contingent payment structure subject to oil price and oil production during 2022-24²

80% of Brage decommissioning cost retained by Wintershall Dea

13.2 mmboe 2P reserves and 10.6 mmboe 2C resources1; 33% increase in OKEA's 2022E exit production

Annual cost synergies estimated to USD 4–7 million across OKEA's operated assets; Significant production upside potential at Brage to be realised through infill drilling

1) OKEA estimates

2) The contingent consideration will be paid if the average oil price for each of the six half year periods during 2022-24 exceeds USD 80/bbl and the aggregated net oil production volumes exceeds certain predefined production levels. The split on the price exceeding 80 USD/bbl is 70% net after tax to Wintershall Dea and 30% to OKEA in 2022 and a 50/50 net after tax split in 2023-24.

Attractive growth characteristics

Significant increase in production, reserves and resource base

OKEA pre-acquisition Acquisition

Step change in asset base and cash flow

Fully financed by existing cash

New operatorship in Brage

Imminent production start ~Q3 22E on Nova

Significant increased opportunity set through material increase in 2C resources

Solid strategic fit

OKEA - a leading mid- to late-life NCS operator

Near term value creation focus

Focus on shareholder value creation through right additions to the portfolio

An organisation fit for growth

Capitalising on existing capabilities and deliver where we have a competitive advantage

A larger and more robust portfolio

Strengthening resource base and increasing cost resilience and diversification

TRANSACTION CONTRIBUTIONS

Financials

Oil and gas production, sales and revenues - per asset

Oil

0

Q2 21 Q3 21 Q4 21 Q1 22

Q2 22

0 200

1 Q2 21

^{132 252}

Q4 21 8

150

471

7

NGL

Q2 22

620

Q3 21

3

Realised liquids prices

Volatile liquids prices at high levels

Gas market prices and sold volumes

Volatile gas prices continues in second quarter

Income statement

Figures in NOK million	Q2 22	Q1 22	Q2 21
Total operating income	1 332	1 513	607
Production expenses	-381	-287	-213
Changes in over/underlift positions and inventory	61	33	38
Depreciation	-165	-158	-144
Impairment (-) /reversal of impairment	0	363	730
Exploration, general and adm. expenses	-84	-115	-121
Profit / loss (-) from operating activities	763	1 348	898
Net financial items	-231	-61	-34
Profit / loss (-) before income tax	532	1 287	863
Income taxes	-504	-1 074	-663
Net profit / loss (-)	28	213	200
EBITDA	928	1 143	311

Q2 22 comments

Operating income:

• Lower realised gas prices, partly offset by higher sold volumes
• Net gain from hedging of gas price NOK 41 million

Production expenses:

• NOK/boe of 235 compared to 192 in Q1 22
  • o Increase in absolute cost mainly due to well recompletion at Yme
  • o Higher cost per boe additionally due to low volumes in the ramp up phase relative to additional cost of operations from Yme

Exploration, general and administrative expenses:

• NOK 26 million exploration expense
• NOK 58 million SG&A expenses; increase mainly due to corporate costs following acquisition of assets from Wintershall Dea and long-term incentive scheme

Net financial items:

• NOK weakened by 14% vs USD resulting in net FX loss NOK 177 million:
  • Unrealised FX loss on bond loans and borrowing NOK 338 million
• Net FX gain on bank deposits NOK 161 million
• Net interest expense amounted to NOK 51 million

Income taxes:

• Effective tax rate of 95%; high due to net loss on financial items taxed at a low tax rate

Statement of financial position

Figures in NOK million

Assets	30.06.2022	31.03.2022	31.12.2021
Goodwill	801	805	769
Oil and gas properties	5 129	5 191	4 685
Asset retirement reimbursement right	2 572	2 833	3 108
Trade and other receivables	1 060	996	1 053
Financial investments	210	209	210
Tax refund, current	0	0	0
Cash and cash equivalents	2 758	2 470	2 039
Other assets	567	554	509
Total assets	13 098	13 057	12 373
Total equity	1 856	1 922	1 709
Liabilities
Asset retirement obligations	3 662	4 039	4 237
Deferred tax liabilities	2 289	2 091	1 736
Interest bearing bond loans	2 182	2 001	2 295
Other interest bearing liabilities	527	480	493
Trade and other payables	943	834	787
Income tax payable	1 298	1 364	773
Other liabilties	342	326	343
Total liabilities	11 241	11 135	10 664
Total equity and liabilties	13 098	13 057	12 373

Q2 22 comments

• Total liquidity of NOK 2 968 million
• o Cash and cash equivalents NOK 2 758 million
• o Financial investments NOK 210 million
• Trade and other receivables of NOK 1 060 million
  • o Prepaid consideration on Wintershall Dea transaction of NOK 97 million
• Tax payable NOK 1 298 million
• Interest-bearing bond loans of NOK 2 182 million
  • o Increase du to unrealised FX loss partly offset by buy-back of NOK 105 million in OKEA02
  • o NOK 95 million of the buy back reclassified to trade and other payables
• o OKEA02 due June 2023 and hence classified as current liability as of 30 June
• Other interest-bearing liabilities of NOK 527 million
• Asset retirement obligation of NOK 3 662 million is partly offset by asset retirement reimbursement right of NOK 2 572 million

Cash development Q2 22

Cash development YTD 22

New tax regime enacted by Parliament on 17 June

Effective from 1 January 2022

Neutral cash flow tax in the special petroleum tax

Key features

• Investments immediately deductible in the special petroleum tax (SPT)
• o Replaces six years' depreciation and removes uplift
• Petroleum tax rate unchanged at 78%; however, a technical change:
• o Offshore corporate tax (22%) deductible in the SPT
• o The SPT rate changes from 56% to 71.8%
• Tax value of losses under the SPT to be paid out as a part of the ordinary yearly tax settlement
• Temporary rules introduced in 2020 continued for qualifying projects, but uplift reduced from 24% to 17.69%

Impact OKEA

• Significant liquidity improvement near term
• Lower tax shield / higher tax expense over time
• Improves valuation for investments with discount rate >6.85%
• The effect of the new tax regime on projects qualifying for the temporary tax, further improve valuation of projects despite the reduced uplift

Production guiding for 2022 revised down; for 2023 revised up

Due to deferral of Yme production and volumes of Wintershall Dea transaction***

Production – thousand boepd			Capex* – NOK million
28 26 24 22 20 18 16 14 12 10 8 6 4 2 0	0.9 – 1.2 18.5 – 20	Gjøa accelerated compensation 0.9 - 1.2 16 - 17	0.6 – 0.8 17 - 19	25 – 27	1 200 1 100 1 000 900 800 700 600 500 400 300 200 100 0	950 – 1 150
	2022 initial guiding**	2022 Revised Q2 /*	Previous 2023 outlook**	2023 outlook***		2022 guiding**

• Duva deferrals compensated by 8% p.a. interest element including short period after Duva production start

• Nova - accelerated compensation volumes from tie-in to Gjøa include 8% interest p.a.; deferred volumes (excl. interest) to be redelivered to Nova over remaining production period at Gjøa. Range shown is net of Gjøa receivable and Nova payable

** Increased Ivar Aasen working interest from 1 April 2022 reflected

*** Effect of Wintershall Dea transaction not included in 2022 figures, but included in 2023 figures. Expected completion in Q4 22 with effective date 1 January ²⁰²² 23

Dividend of NOK 1.00 per share and early redemption of OKEA02

Distributing to shareholders and reducing financial expense

2022 dividend

• Cash dividend of NOK 93.5m (NOK 0.90 per share) was paid in June
• Distribution of NOK 103.9m (NOK 1.00 per share) in Q3 22 resolved o Ex date 2 September; payment date on or about 15 September
• Reaffirming intention to distribute the same amount also in Q4 22
  • o In total NOK 301.2 million (NOK 2.90 per share) planned or already distributed in 2022, which is equivalent to the max capacity allowed in bond terms (50% of NPAT)
  • o Dividends to be maintained and determined on an annual basis

Bond buyback

• Voluntary early redemption of OKEA02 bond initiated
  • o Remaining outstanding net USD 100m called at current premium of 102.75
  • o Repayment to be settled on 27 July
  • o Net cash/cost saving of ~ NOK 55m a/tax compared to settle debt at maturity in June 23

Summary and outlook

Summary

Delivering on growth strategy by material acquisition from Wintershall Dea fully funded by existing cash resources

Continued solid performance at Draugen and Gjøa operations

Organic projects progressing well; Hasselmus and Power from shore at Draugen according to plan

Yme ramp up slower than anticipated; reduces production guiding for 2022 and increases guiding for 2023

Solid cash position; initiated cash dividend and reducing debt

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.