Aker BP — Investor Presentation 2024

Oct 30, 2024

Third quarter 2024

30 October 2024 Aker BP ASA

Highlights

Third quarter 2024

Excellent operational performance

• High production efficiency and volumes despite scheduled maintenance
• Low cost and emissions maintained
• Upgraded full-year guidance with improved production and cost targets

Development projects on track

• Fabrication, installation and drilling well underway
• Cost estimates and schedule unchanged
• Tyrving start-up accelerated to Q3

Strong financial performance

• Record-high quarterly cash flow from operations
• Capital structure optimised with 10-year and 30-year USD bonds
• Dividend of USD 0.60 per share paid in the quarter

Production

Q3 impacted by scheduled maintenance

1,000 barrels oil equivalents per day, mboepd

World-class oil field Production Near-term plans

• High production efficiency
• Opex ~\$2 USD/boe
• Emissions below 1 kg CO2e/boe

mboepd (gross)

• Finalise drilling campaign
• Retrofit multilaterals
• Phase 3 concept select

Production costs

A strong competitive position

Aker BP production cost USD per boe

Industry peers total operational cost¹

USD per boe, 2023

Decarbonisation

A global leader in low GHG emissions

Decarbonising the business

Aker BP emission intensity, kg CO2e/boe

120 Industry net emission intensity¹ Kg CO² /boe, equity share (2023)

285 largest producing upstream companies

1

140

~525

Field developments driving growth and value creation

High returns and low break-evens in investment-friendly tax system

▪ New area hub with several discoveries ▪ Significant exploration upside potential

Production outlook

mboepd

Yggdrasil Net ~415 mmboe

Valhall PWP/Fenris Net ~190 mmboe

• New platform at Valhall and UI at Fenris ▪ Modernising Valhall field centre and enabling development of Fenris gas field
• Capex USD 5.5bn (pre-tax)

▪ Capex USD 10.7bn (pre-tax)

Tie-back projects at Alvheim, Skarv, Grieg Net ~170 mmboe

• Nine tie-backs to existing infrastructure four of these on production by Q3-24
• Low breakeven oil price, high returns, and rapid payback time
• Capex USD 4.0bn (pre-tax)

Projects on track

Successful installation activities

From prefabrication to yard assembly

Focus on quality and schedule

Total capex estimate in line with plans

Successful Tyrving start-up

Efficient execution I Ahead of schedule I Below budget

• Delivered through our alliance model, fostering collaboration with suppliers toward shared goals and incentives
• World-class drilling and subsea performance
• Estimated gross recoverable resources ~25 mmboe¹
• Expected gross production over 13 mboepd by 2025
• Exceptionally low operational emissions of only 0.3 kg CO2e/boe

Aker BP project overview

Four projects already on stream - Combined below budget and ahead of schedule

Asset area	Field development	Aker BP ownership	Gross/net volume	Net capex estimate	PDO submission	Production start
Alvheim	Frosk	80.0%	10/8 mmboe	USD 0.2bn	2021	2023
	Kobra East & Gekko	80.0%	50/40 mmboe	USD 0.9bn	2021	2023
	Tyrving	61.3%	25/15 mmboe	USD 0.4bn	2022	2024
	Hanz	35.0%	20/7 mmboe	USD 0.2bn	2021	2024
Grieg/Aasen	Symra	50.0%		USD 1.3bn	Dec-22	2026
	Solveig Phase II	65.0%	87/49 mmboe			2026
Skarv	Alve North	68.1%		USD 1.0bn	Dec-22	2027
	Idun North	23.8%	119/51 mmboe			2027
	Ørn	30.0%				2027
Valhall	Valhall PWP	90.0%		USD 5.5bn	Dec-22	2027
	Fenris	77.8%	230/187 mmboe			2027
Yggdrasil	Hugin	87.7%		USD 10.7bn	Dec-22	2027
	Munin	50.0%	650/415 mmboe			2027
	Fulla	47.7%				2027

Targeting the next growth phase

Develop existing resources I M&A I Exploration

Reserves and resources billion boe

Exploration strategy

Establishing new growth options Aker BP partner

Uniquely positioned on the NCS

• Second largest player with over 200 licences
• Present in all key NCS regions
• Operator of ~70%

Driving innovation

• Technology development driving efficiency and success rates
• Data gathering and processing speed multiplied

Ambitious exploration programme

• 10-15 exploration wells per year
• 80% near-field 20% in new areas

Drilling ahead

High-impact wells and emerging opportunities

Skarv area – building on recent successes

• Multiple discoveries under evaluation for development (Adriana, Lunde and Storjo)
• Three firm wells scheduled: Sabina, Kongeørn and E-prospect
• Additional prospects advancing towards drill decisions

Northern North Sea – an emerging exploration region

• Substantial potential with several recent discoveries
• Four firm wells scheduled: Kaldafjell, Njargasas, Horatio and Skrustikke
• Additional prospects advancing towards drill decisions

Other wells to watch

• High-potentials planned for drilling in the next 12 months: Rondeslottet, Bounty, Arkenstone and Kokopelli
• East Frigg success unlocks additional opportunities in the Yggdrasil area

Near-term exploration programme

Licence	Prospect	Operator	Aker BP share	Pre-drill mmboe	Status
PL261	Storjo	Aker BP	70%		21-67 mmboe
PL1086	Falstaff	DNO	20%	20 - 95	Ongoing
PL1185	Kvernbit	Equinor	20%	10 - 65	Ongoing
PL211CS	Sabina (appraisal)	Wintershall Dea	15%	5 - 15	Ongoing
PL932	Kaldafjell	Aker BP	40%	10 - 140	Ongoing
PL1014	Arkenstone	Equinor	10%*	30 - 250	Q4-24
PL1110	Njargasas	Aker BP	55%	20 - 120	Q4-24
PL1131	Elgol	Vår Energi	20%	30 - 180	Q4-24
PL869	Rumpetroll South	Aker BP	80%	10 - 45	Q4-24
PL1005	Rondeslottet	Aker BP	40%	700 - 1,000	Q1-25
PL1090	Kokopelli	Vår Energi	20%*	50 - 375	Q1-25
PL1109	Horatio	OMV	20%*	20 - 70	Q1-25
PL1182S	Kjøttkake	DNO	30%	20 - 40	Q1-25
PL212	E-Prospect	Aker BP	30%	5 - 15	Q1-25
PL554	Skrustikke	Equinor	30%	25 - 100	Q1-25
PL886	Bounty	Aker BP	60%	50 - 440	Q1-25
PL942	Kongeørn	Aker BP	30%	5 - 30	Q1-25
PL873	Alfa	Aker BP	48%	10 - 35	Q2-25
PL873	Natrudstilen	Aker BP	48%	15 - 60	Q2-25
PL873	Sigma NE	Aker BP	48%	5 - 20	Q2-25
PL873B	Omega	Aker BP	48%	5 - 35	Q2-25

14 Kongeørn Bounty Rondeslottet Kokopelli Sigma NE Omega Alfa Natrudstilen E-prospect Horatio Elgol Njargasas Arkenstone Kaldafjell Skrustikke Sabina* Kjøttkake Kvernbit Falstaff Rumpetroll Aker BP partner Aker BP operator

* Subject to government approval

Financial highlights

Sales of oil and gas

Volume sold mboepd

Realised prices USD/boe

Liquids Natural gas

Total income USD million

Liquids Natural gas

Liquids Natural gas Other

Income statement

USD million

	Q3 2024		Q2 2024
	Before impairment	Impairments	Actual	Before impairment	Impairments	Actual
Total income	2 858		2 858	3 377		3 377
Production costs	186		186	290		290
Other operating expenses	19		19	13		13
EBITDAX	2 652		2 652	3 074		3 074
Exploration expenses	40		40	108		108
EBITDA	2 612		2 612	2 966		2 966
Depreciation	614		614	588		588
Impairments		304	304		83	83
Operating profit (EBIT)	1 998	(304)	1 695	2 378	(83)	2 295
Net financial items	(68)		(68)	(16)		(16)
Profit/loss before taxes	1 931	(304)	1 627	2 362	(83)	2 279
Tax (+) / Tax income(-)	1 454		1 454	1 718		1 718
Net profit / loss	477	(304)	173	644	(83)	561
EPS (USD)	0.76		0.27	1.02		0.89
Effective tax rate	75 %		89 %	73 %		75 %

391 mboepd (461)

Oil and gas sales

\$78 per boe (80)

Net realised price

\$6.6 per boe (6.4)

Production cost

Technical goodwill explained

Accounting effect arising from M&A transactions

Illustrative example of goodwill formation and impairments

▪ Technical goodwill, allocated to assets during transactions, is not depreciated

• Impaired over the asset's lifetime at a 0% tax rate, affecting EPS
• The impairment has no effect on the company's cash flow
• Aker BP has USD 5.9 billion in technical goodwill per Q3-24

Cash flow

USD million

	Q3-24	Q2-24	Q1-24	Q4-23
Op. CF before tax and WC changes	2 595	3 133	2 986	3 204
Net taxes paid	(424)	(2 086)	(1 054)	(2 207)
Changes in working capital1	586	100	(476)	506
Cash flow from operations	2 757	1 147	1 456	1 503
Cash flow from investments	(1 402)	(1 430)	(1 117)	(1 042)
Free cash flow	1 355	(283)	339	461
Net debt drawn/repaid	-	807	-	(0)
Dividends	(379)	(379)	(379)	(348)
Interest, leasing & misc.	(112)	(119)	(110)	(85)
Cash flow from financing	(491)	308	(489)	(433)
Net change in cash	864	25	(150)	28
Cash at end of period	4 147	3 233	3 215	3 388

\$2.8 bn (1.5)

Cash flow from operations

\$2.15 (-0.45) FCF per share

\$0.60 (0.60)

Dividend per share

Near-term tax payments

Sensitivity for H1-2025

USD million

2 500

Tax instalments

• Tax for the year is paid in six bimonthly instalments with six months delay
• Initial tax estimate for the year is made in Q2, the H2-instalments are then fixed in NOK
• Voluntary additional payment in October

Q4-24 assumptions for H1-25 sensitivity analysis

• Two oil price scenarios illustrated
• Gas prices assumed at USD 10.3 per mmbtu
• USDNOK rate assumed at 10.5

Balance sheet

USD million

Assets	30.09.24	30.06.24	31.12.23
PP&E	19 803	18 620	17 450
Goodwill	12 757	13 060	13 143
Other non -current assets	3 362	3 307	3 314
Cash and equivalent	4 147	3 233	3 388
Other current assets	1 625	1 997	1 751
Total Assets	41 693	40 218	39 047

Equity and liabilities
Equity	12 477	12 685	12 362
Financial debt	6 673	6 589	5 798
Deferred taxes	12 363	11 691	10 592
Other long -term liabilities	5 125	4 734	4 861
Tax payable	2 904	2 512	3 600
Other current liabilities	2 152	2 007	1 833
Total Equity and liabilities	41 693	40 218	39 047

\$7.5 bn (\$6.6)

Total available liquidity

30% (32%) Equity ratio

0.21 (0.27)

Leverage ratio

Maintaining financial flexibility

Net interest-bearing debt

Excl. leases, USD billion

0

1

2

3

4

5

6

7

8

Leverage ratio¹ Targeting below 1.5 over time

Investment grade credit ratings

Q1-21 Q3-21 Q1-22 Q3-22 Q1-23 Q3-23 Q1-24 Q3-24

0.2 0.2

0.2

0.2 0.2 0.2 0.2

BBB Baa2 BBB

0.3 0.2

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

1.2

0.9

0.6

0.3

0.1

0.5

Optimising the capital structure

New 10-year and 30-year USD senior notes issued 1 October 2024

Bond maturities USD/EUR billion

Aligning debt maturities with longevity of business profile

• Issued USD 1.5 billion notes split equally between 10 and 30 years
• Repurchased of USD 668 million with maturity 2025/26
• Increased average debt maturity by 3 years

Strong demand and pricing of milestone 30-year notes illustrate investor long-term confidence

• Demand for oil and gas
• Attractiveness of the Norwegian basin
• Strategy and value creation of Aker BP

Longer maturity at attractive terms

Value creation and distributions

Strong and resilient cash flow as basis for dividend growth

Aker BP value creation plan 2023-2028 USD billion, accumulated

Dividends USD per share

• Strong and resilient dividend capacity
• Distributions reflect financial capacity through the cycle

2.40

Q4

Q3

Q1

Q2

• Quarterly dividend of USD 0.60 per share paid in Q3 2024
• Approximately 9% dividend growth for the full year 2024
• Ambition to grow dividends by at least 5% annually

2024 guidance

	Previous guidance	Actual Jan -Sept	New guidance
Production mboepd	420 -440	436	430 -440
Production cost USD/boe	~7.0	6.3	~6.5
Capex USD billion	~5.0	3.5	~5.0
Exploration USD billion	~0.50	0.38	~0.50
Abandonment USD billion	~0.25	0.22	~0.25

Delivering on the strategy

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.

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