Aker BP — Interim / Quarterly Report 2021

Oct 28, 2021

Third Quarter 2021

28 October 2021

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 global economic conditions, the economic conditions of the regions and industries that are major markets for Aker BP ASA's lines of business.
• These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions.
• Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker BP ASA's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Document.
• Although Aker BP ASA believes that its expectations and the Document are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Document.
• Aker BP ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Document, and neither Aker BP ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

Highlights

Third quarter 2021

Strong results

– Higher oil and gas prices and stable operations

Project portfolio progressing well

– NOAKA resource estimate upgraded

Unique financial position

– Increasing dividends

per boe 1)

Key performance indicators

oil equivalents per day

Third quarter 2021

injury frequency (TRIF) 1)

SAFETY FIRST	PRODUCTION VOLUME	PRODUCTION COST	PRODUCTION EFFICIENCY	EMISSIONS INTENSITY
1.5	210	9.0 \$	90 %	4.4 kg
Total recordable	thousand barrels of	per boe	Aker BP operated	CO emissions 2

produced

1) 12 months rolling average

assets, gross

Production performance

Oil and gas production (mboepd) Production efficiency (percent)

HSSE performance

1) Total recordable injuries per million exp. hours, rolling 12 months average

2) Kg CO² emissions per barrel of oil equivalents produced, rolling 12 months average

Capital discipline

Production cost (USD/boe) Capital spend (USD million)

Development projects

• Ærfugl phase 2 approaching completion
• Frosk PDO submitted
• NOAKA concept selected resources upgraded
• King Lear included in Valhall NCP scope
• Garantiana postponed

Progressing and optimizing the project portfolio

Area	2021	2022	2023	2024	2025	2026	2027
Alvheim	Kobra Frosk Trell & Trine	East & Gekko
Ivar Aasen	Hanz
NOAKA	NOA Fulla Krafla
Skarv	Ærfugl phase 2 Skarv satellites (Ørn, Shrek, Alve	Nord, Idun Nord)
Valhall	Hod Valhall infill drilling Valhall NCP + King Lear
Other	Johan Sverdrup phase 2 (Equinor operated)			Garantiana	(Equinor operated)
		Project planning	Project execution	Concept select	Final investment decision

NOAKA development concept selected – resources upgraded

~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: 50.0%

NOAKA – development concept overview

Exploration 2021

	Licence	Prospect		Operator	Aker BP share	Pre-drill mmboe	Status
	PL 533	Bask	1	Lundin	35 %		Dry
PL 554		Garantiana W	2	Equinor	30 %		Discovery 8-23 mmboe
	PL 722	Shenzhou	3	Equinor	20 %		Dry
3 Q	PL 442	Liatårnet	4	Aker BP	90 %	Appraisal	Volume reduced
	PL 858	Stangnestind	5	Aker BP	40 %		Non-commercial
	PL 167	Lille Prinsen	6	Lundin	10 %	Appraisal	12-60 mmboe confirmed
	PL 006C	Gomez	7	DNO	35 %		Discovery, volume TBC
	PL 981	Merckx Ty	8	Lundin	40 %		Dry
	PL 1041	Lyderhorn	9	Aker BP	55 %	6 - 14	Planned start in Q4
	PL 906	Mugnetind1)	10	Aker BP	50 %	10 - 40	Drilling

9

10

Financial review

Oil and gas sales

Third quarter 2021

Volumes sold

mmboe

Liquids Natural gas

Total income

USD million

Liquids Natural gas Other

Liquids \$71.5 +7% Natural gas Realised prices USD per boe

\$91.3 +103%

Production cost

Third quarter 2021

0

50

100

150

200

250

Unit production cost USD per boe

First nine months 2021 \$8.9

Full-year guidance \$8.5-9.0

(higher end)

0

5

10

15

20

25

Income statement

Income statement

USD million	Q3 2021	Q2 2021	Change	Comment
Total income	1 563	1 124	+39%	1
Production costs	209	158	+32%	2
Other operating expenses	7	9
EBITDAX	1 347	957	+41%
Exploration expenses	97	102	-4%	3
EBITDA	1 250	855	+46%
Depreciation	247	240
Impairments	154	-
Operating profit (EBIT)	849	614	+38%
Net financial items	(47)	(62)
Profit/loss before taxes	802	552	+45%
Tax (+) / Tax income (-)	596	399
Net profit / loss	206	154	+34%
EPS (USD)	0.57	0.43

• 1. Higher volume sold due to increased production and overlift, combined with higher oil and gas prices
• 1. Driven by increased volume and sales mix – overlift in Q3 was dominated by higher-cost barrels which also carry an element of depreciation
• 1. Mainly driven by field evaluation (USD 43m) and dry well expenses (USD 38m)

Cash flow

Third quarter 2021

USD million

1) Including payments on lease debt which are classified as financing activities in the statement of cash flow

2) Net cash flow from operating activities and investment activities including payments on lease debt

3) Includes interest paid, fees related to RCF, and FX effect on cash held

Statement of financial position

USD million

Assets	30.09.21	30.06.21	31.12.20
Goodwill	1 647	1 647	1 647
Other intangible assets	1 779	1 873	2 043
Property, plant and equipment	7 667	7 630	7 266
Right-of-use asset	105	116	133
Receivables and other assets	963	834	793
Cash and cash equivalents	1 421	975	538
Total Assets	13 582	13 076	12 420

Equity and liabilities	30.09.21	30.06.21	31.12.20
Equity	2 128	2 030	1 987
Other provisions for liabilities incl. P&A (long)	2 639	2 681	2 650
Deferred tax	3 142	3 050	2 642
Bonds and bank debt	3 595	3 615	3 969
Lease debt	158	179	216
Other current liabilities incl. P&A	930	923	792
Tax payable	990	597	163
Total Equity and liabilities	13 582	13 076	12 420

Superior financial flexibility

0

0.5

1

1.5

2

2.5

3

Net interest-bearing debt

Excl. leases, USD million

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Liquidity available USD million

Capital allocation priorities

• 1. Maintain financial capacity and investment grade credit rating
• 1. Allocate capital to investments in profitable projects
• 1. Return value creation to stakeholders

Returning value creation

Dividend considerations across oil price scenarios Aker BP dividends

Consider extra shareholder distributions

1

2

3

Grow distributions in line with value creation Deliver on profitable investment plan Maintain financial capacity & Investment grade

Reassess investment plan and distribution level to sustain financial robustness

Cash tax sensitivity

USD million

1) Estimated payments of current tax on income for fiscal year 2021 for Aker BP at various oil price scenarios (average Brent for the full year), assuming USDNOK 8.5. Tax payments for 2H-21 were fixed in June. The payments in 1H-22 will be adjusted after year-end to reflect actual 2021 results. Potential payments related to uncertain tax cases are excluded.

Guidance summary

2021 guidance	PRODUCTION 210-220 mboepd (lower end)	CAPITAL SPEND 2.1-2.2 USD billion (down from 2.2-2.3)	PRODUCTION COST 8.5-9.0 USD/boe (higher end)	DIVIDENDS 488 USD million (up from 450)
9M-2021	210.2	1.5	8.9	338
actuals	mboepd	USD billion	USD/boe	USD million

Concluding remarks

Priorities

Building a leading E&P company

Drive operational performance

• Maximize production efficiency
• Safe operations with low cost and emissions

Invest in profitable project portfolio

• Aiming to sanction ~600 mmboe by end-2022
• Execute projects on time, cost and quality

Maintain superior financial flexibility

• Preserve unique financial position
• Return value to stakeholders

Hanna Tronstad Drilling supervisor Aker BP

www.akerbp.com