Aker BP — Investor Presentation 2022

Feb 10, 2022

Fourth Quarter 2021

10 February 2022

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.

2021 in review

Strong results driven by performance and high prices

• Stable operational performance
• Higher oil and gas prices
• Record cash flow and financial strength

Organic growth on track

• Projects on time and cost three PDOs submitted
• Concept selected for NOAKA and Valhall NCP/King Lear
• Stepping up our digital transformation

Acquiring Lundin Energy's oil and gas activities

• Subject to AGM and regulatory approvals
• Closing targeted around mid-2022

Lundin transaction summary

Key terms and conditions

• Aker BP acquires Lundin Energy's oil and gas activities
• Consideration per LUNE share: ~0.95 AKRBP shares and USD ~7.76
• Lundin Energy retains renewable energy activities and remains listed
• Subject to approval by AGMs and authorities
• Supported by main shareholders Aker, bp and Nemesia1)

Corporate structure

• Headquartered at Fornebu and listed on Euronext Oslo Børs
• Aker BP's CEO to lead the combined company
• Ashley Heppenstall to be elected as new member of the Aker BP Board

Timeline

21 Dec Merger announced Early March Merger plan published

Mar/Apr Shareholder meetings

30 June Closing

Post-transaction ownership structure

Equity in combined entity: 57% Aker BP and 43% Lundin Energy

1) Nemesia is an investment company wholly owned by a Lundin family trust

Key performance indicators 2021

SAFETY FIRST

Total recordable injury frequency (TRIF) PRODUCTION VOLUME

1.9 209.4 \$9.2 85% 4.8kg

thousand barrels of oil equivalents per day PRODUCTION COST

per boe produced PRODUCTION EFFICIENCY

Aker BP operated assets, gross

EMISSIONS INTENSITY

CO2 emissions per boe

Production performance

Oil and gas production mboepd

2021 production vs guidance mboepd

Delivering decarbonisation

Strong progress in 2021

Scope 1 – reduced emissions by ~23,000 tonnes CO2e

• Energy efficiency improvements through upgraded equipment and digital-enabled process optimisation
• Rerouting of gas from cold vent reduces methane emissions by ~7,000 tonnes CO2e

Scope 2 – towards zero with electrification

Ivar Aasen to receive power from shore in 2022

Scope 3 – marine supply chain emissions reduced by 6%

• Fleet optimization and collaboration
• Converting supply vessels to hybrid exploring fuel cells

Emissions intensity kg CO2/boe

Executing projects according to plans

Three PDOs submitted in 2021

Ærfugl Phase II

Subsea tieback to Skarv FPSO

First oil in Q4 2021

Kobra East & Gekko

• PDO submitted Q2 2021 First oil scheduled in Q1 2024
• 51 mmboe gross reserves

Hod

• Wellhead platform connected to Valhall
• First oil expected in H1 2022

Frosk

• PDO submitted Q3 2021
• First oil scheduled in Q1 2023
• 10 mmboe gross reserves

Johan Sverdrup

• Expanding capacity to 755,000 bbl/day
• First oil expected in Q4 2022

Hanz

• PDO submitted Q4 2021
• First oil scheduled in 2024
• 20 mmboe gross reserves

Building the E&P company of the future

Disciplined approach to M&A

Logos represents acquisitions, mergers and asset transactions by Aker BP in Norway in the respective year (M&A: mergers & acquisitions) *Lundin transaction pending approval from both companies' shareholders and relevant authorities

Our digital vision

Fully transform core end-to-end processes

Field development

Well construction & intervention

Subsurface interpretation & modelling

Production optimisation and energy efficiency

Maintenance

Alliances – the cornerstone of our execution model

Leading the way on low carbon

Emissions intensity 2020

kg CO2/boe, equity share

Aker BP's scope 1 emissions targets:

50% reduction by 2030

in gross operated emissions through electrification, energy efficiency and portfolio

~100% reduction by 2050

in gross emissions with all assets electrified

Evaluating decarbonisation strategy to achieve Net zero by 2030

Reserves and resources

Resources of 1.8 billion boe1)

Break-even for projects targeted for FID by 2022

1) 2P reserves + 2C resources

2) Break-even oil price using 10% discount rate 14

NOAKA development concept selected

~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%

Valhall NCP/King Lear development concept selected

200 mmboe resources (gross)

USD 4-5 bn capex (gross, real)

\$25-30/bbl break-even

Aker BP interest

Valhall: 90% King Lear: 77.8%

On track to sanction 700 mmboe by end-2022

Production outlook

Preliminary production profile mboepd

production growth to 2028

<30/bbl

full-cycle break even on all projects1)

~80% of investments covered by

temporary tax scheme

Our exploration strategy

An active explorer in an attractive basin

Maximize value of existing infrastructure

80 %

Explore for new hub potential 20 %

Smart integration of data and technology

Licences awarded in APA 2021 announced 18 January 2022

2022 exploration program

Targeting ~250 mmboe net unrisked

Licences	Prospect	Operator	Aker BP share	Pre-drill mmboe	Status
PL685	Laushornet	Aker BP	40%	17 - 147
PL873	Grefsenkollen & Øst Frigg	Aker BP	40%	17 - 40	Drilling
PL1085	Overly	Aker BP	55%	38 - 92
PL261	Storjo East	Aker BP	70%	16 - 45
PL941	Newt	Aker BP	80%	13 - 33
PL941	BarlindåsenCW	Aker BP	80%	18 - 86
PL867	Gjegnalunden	Aker BP	80%	3 - 124
PL1141	Styggehøe	Aker BP	70%	10 - 41
PL554	Angulata	Equinor	30%	8 - 64
PL782S	Busta (Lamba)	CoP	20%	8 - 114
PL1064	Staurheia/Peder	CoP	20%	23 - 76
PL265	P-Graben (Sverdrup)	Equinor	20%	5 - 19
PL943	Uer	Equinor	10%	7 - 93

Financial review

Financial highlights

Fourth quarter and full year 2021

Q4 production

Liquids: 167.3 mboepd Gas: 39.7 mboepd

2021 cash flow metrics

CFFO: USD 4.3 billion FCF: USD 2.6 billion

Q4 realised commodity prices

Liquids: 78.8 USD/boe Gas: 169.5 USD/boe

Key credit metrics

Net debt: USD 1.7 billion2) Leverage ratio: 0.33x3)

2021 costs and investments

Opex: 9.2 USD/boe1) Capex: USD 1.4 billion

Shareholder distribution

2021: 1.3537 per share 2022: 1.9 per share

2) Including lease debt of USD 0.1 billion

3) Net interest-bearing debt divided by 2021 EBITDAX, excluding IFRS 16 Leasing

2021 financial review

Total spend 2021

USD billion

Cost control remains a top priority in Aker BP

• Both in operations and project development

Total 2021 spend below guidance

• Higher drilling efficiency and phasing

Production expenses impacted by high power costs

Production cost

Production cost per unit produced USD per boe

2021 actual vs guidance USD per boe

Oil and gas sales

Volumes sold mmboe

Total income USD million

Realised prices USD/boe

Q4-2021 Liquids \$78.8 Natural gas \$169.5 2021 Liquids \$69.2 Natural gas \$88.5

Oil lifted and realised prices

2021 crude oil liftings

mmbbl

2021 time effect and realised differentials

Gas sales

18% of total production in 2021

• Skarv 49%
• Alvheim area 22%
• Valhall 17%

Majority of volumes linked to spot (TTF/NBP)

Some volumes linked to oil price

Gas volumes to increase in the future

• Skarv satellites from 2025
• NOAKA and King Lear from 2027

Gas volumes and realised prices 2021

Income statement

Fourth quarter 2021

USD million	Q4 2021	Q3 2021	Change	Comment
Total income	1 849	1 563	+18%	1
Production costs	202	209
Other operating expenses	6	7
EBITDAX	1 641	1 347	+22%
Exploration expenses	83	97	-15%	2
EBITDA	1 559	1 250	+25%
Depreciation	219	247		3
Impairments	79	154		4
Operating profit (EBIT)	1 260	849	+48%
Net financial items	(43)	(47)
Profit/loss before taxes	1 218	802	+52%
Tax (+) / Tax income (-)	854	596
Net profit / loss	364	206	+77%
EPS (USD)	1.01	0.57

• 1. Increased due to higher prices, in particular on gas
• 1. Reduced field evaluation expenses as Krafla passed DG2
• 1. Lower rate due to lifetime extension on Alvheim
• 1. Impairment of Ula and Liatårnet partly offset by reversal on Trell & Trine

Cash flow

Fourth 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

2021

FCF per share

\$6.9

Dividend per share

\$1.4

Q4-2021

FCF per share

\$2.0

Dividend per share

\$0.4

29

Tax payments

USD million

	For fiscal year 2020					For fiscal year 2021				Sensitivity for fiscal year 2022	1)
							~800		\$100
							2)				\$100
						~400 2)		\$100	\$80	\$100	\$80
								\$80		\$80
				98	160			\$60	\$60	\$60	\$60
(109)		(11)	(23)
	(201)
Q 3-2 0	Q 4-2 0	Q 1-2 1	Q 2-2 1	Q 3-2 1	Q 4-2 1	Q 1-2 2	Q 2-2 2	Q 3-2 2	Q 4-2 2	Q 1-2 3	Q 2-2 3

1) Estimated current tax on income for fiscal year 2022 for Aker BP at various oil price scenarios, assuming USDNOK 8.5. Gas price assumptions are linked to oil prices where \$1/bbl equals \$0.1/mmbtu. Excluding potential payments related to uncertain tax cases.

2) Share of tax payment in H1 2022 related to higher oil and gas prices in H2 2021 than anticipated when the tax instalments were decided in June 2021

Statement of financial position

USD million

Assets	31.12.21	30.09.21	31.12.20
Goodwill	1 647	1 647	1 647
Other intangible assets	1 664	1 779	2 043
Property, plant and equipment	7 976	7 667	7 266
Right-of-use asset	94	105	133
Receivables and other assets	1 117	963	793
Cash and cash equivalents	1 971	1 421	538
Total Assets	14 470	13 582	12 420

Equity and liabilities	31.12.21	30.09.21	31.12.20
Equity	2 342	2 128	1 987
Other provisions for liabilities incl. P&A (long)	2 659	2 639	2 650
Deferred tax	3 323	3 142	2 642
Bonds and bank debt	3 577	3 595	3 969
Lease debt	136	158	216
Other current liabilities incl. P&A	936	930	792
Tax payable	1 497	990	163
Total Equity and liabilities	14 470	13 582	12 420

Capital allocation priorities

Growing capital distribution in line with value creation Aker BP investment plan 2022-2028

Invest in profitable growth

1) BE: Break-even oil price using 10% discount rate

Capital allocation priority #1: Financial capacity

Net interest-bearing debt Excl. leases, USD billion

4.5 4.4 4.4 4.8 0.5 0.4 1.0 1.4 2.0 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21

2)

Liquidity available

USD billion

5.4

Cash and cash equivalents

500 500

BBB- (positive outlook)

Baa3 (review for upgrade)

1) Leverage ratio: Net interest-bearing debt divided by EBITDAX last 12 months, excluding effects of IFRS16 Leasing

2) Liquidity available: Undrawn bank facilities and Cash and cash equivalents

Bond maturities USD million

1 000

750

4.000 % USD

865

Capital allocation priority #2: Invest in profitable growth

Investment plan 2022-2028 USD billion

Investing in projects with break-even below 30 \$/bbl in a supportive fiscal regime providing >70% tax deductions in year 1

mboepd 210- 220 0 100 200 300 400 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Sanctioned (2P) Non-sanctioned (2C) NOAKA (2C)

Generating value accretive growth with high returns and short payback time across price scenarios

Preliminary production profile

Capital allocation priority #2: Invest in profitable growth

Break even oil price hurdle of USD 30 per barrel for sanctioning new projects (NPV10)

Break-even for projects targeted for FID by 2022 Preliminary figures, USD/boe

IRR for projects targeted for FID by 2022

Preliminary figures

Capital allocation priority #3: Return value creation

Aker BP dividends USD per share

USD 1.9/share

paid quarterly

40%

dividend growth from 2021

5%

minimum annual dividend growth at oil prices above USD 40/bbl

Guidance for 2022

	2021 CMU	2021 Actuals	2022 Guidance
Production (mboped)	210-220	209.4	210-220
Opex (USD/boe)	8.5-9.0	9.2	~10
Capex (USDbn)	~1.6	1.4	1.6
E&A (USDbn)	0.4-0.5	0.4	0.4
Decom (USDbn)	0.2	0.2	0.1

Key project milestones

Hod First oil H1 2022

Johan Sverdrup First oil Q4 2022

NOAKA FID in late 2022

Valhall NCP & King Lear FID in late 2022

Skarv Satellites DG2 in Q1 2022, FID in late 2022

Trell & Trine FID in mid-2022

Concluding remarks

Building the E&P company of the future

• Pure play oil and gas company
• Quality assets with low cost and low emissions
• Driving improvement through the value chain
• Profitable growth from unique resource base
• Financial strength and growing dividends

www.akerbp.com