Aker BP — Investor Presentation 2024

Jul 12, 2024

Second quarter 2024

12 July 2024 Aker BP ASA

Highlights

Second quarter 2024

Excellent operational performance

• High production efficiency and volumes
• Low cost and emissions

Development projects on track

• Fabrication and installation activities well underway
• Cost estimates and schedule unchanged

Strong financial performance

• High underlying cash flow in the quarter
• Continued optimising capital structure with Euro bond

Production

1,000 barrels oil equivalents per day (mboepd)

Johan Sverdrup

A world-class oil field with excellent reservoir properties

Johan Sverdrup

Steady production at elevated plateau

• Continued high production efficiency
• Four new production wells online in 1H
• Six more production wells to be added in 2H
• Planning for retrofit multilaterals next year
• Maturing Phase 3 subsea expansion

Johan Sverdrup production

Net to Aker BP, mboepd

Aker BP has a 31.6% interest in the Johan Sverdrup field, which is operated by Equinor. Prior to Q3-22, Aker BP's interest was 11.6%.

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

Project execution on track

• Major milestones successfully reached
• Fabrication and installation activities well underway
• Subsea activities and drilling progressing well
• Tyrving start-up planned for October
• Total capex estimate in line with plans

Development projects to drive growth and value creation

Net volume ~770 mmboe I Net capex USD ~3 billion after tax I Portfolio BE at USD 35-40 per barrel¹

Production outlook

mboepd

Aker BP project overview

~770 mmboe net oil and gas volume at net capex of around USD 3 billion after tax

Asset area	Field development	Aker BP ownership	Gross/net volume	Net capex estimate	PDO submission	Production start
	Frosk	80.0%	10/8 mmboe	USD 0.2bn	2021	2023
Alvheim	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%	87/49 mmboe USD 1.3bn			2026
	Solveig Phase II	65.0%				2026
	Alve North	68.1%				2027
Skarv	Idun North	23.8%	119/51 mmboe	USD 1.0bn	Dec-22	2027
	Ørn	30.0%	Dec-22 230/187 mmboe USD 5.5bn Dec-22 650/413 mmboe USD 10.7bn Dec-22	2027
Valhall	Valhall PWP	90.0%				2027
	Fenris	77.8%				2027
	Hugin	87.7%				2027
Yggdrasil	Munin	50.0%				2027
	Fulla	47.7%				2027

Eventful exploration year so far

Positive exploration results

• Successful Adriana well: Candidate for tie-in to Skarv
• Successful Trell North well: Already included in Tyrving
• Ringhorne North: Potential tie-in to nearby infrastructure
• Frigg Gamma: Successful geopilot in Yggdrasil area

The unlocking of Wisting continues

• Positive Wisting geopilot in the quarter
  • Encountered good reservoir quality
  • Important data for evaluation and development of Wisting
• Small gas discoveries at Ferdinand and Hassel

2024 exploration program

Licence	Prospect	Operator	Aker BP share	Pre-drill mmboe	Status
PL102G	Trell North*	Aker BP	61%		3-8 mmboe
PL1138	Ametyst	Harbour Energy	30%		6-19 mmboe
PL956	Ringhorne North	Vår Energi	20%		13-23 mmboe
PL211CS	Adriana*	Wintershall Dea	15%		23-45 mmboe
PL442	Ypsilon	Aker BP	88%		Dry
PL203	Alvheim Deep	Aker BP	80%		Dry
PL1170	Ferdinand	Aker BP	35%		Small gas discovery
PL1170	Hassel	Aker BP	35%		Small gas discovery
PL261	Storjo West	Aker BP	70%	4 - 30	Ongoing
PL1185	Kvernbit	Equinor	20%	9 - 65	Q3
PL554	Garantiana Skrustikke	Equinor	30%	26 - 100	Q3
PL211CS	Sabina*	Wintershall Dea	15%	6 - 15	Q3
PL869	Rumpetroll South	Aker BP	80%	10 - 45	Q3
PL932	Kaldafjell	Aker BP	40%	12 - 140	Q3
PL1110	Njargasas	Aker BP	55%	23 - 120	Q4
PL942	Kongeørn	Aker BP	30%	5 - 40	Q4
PL886	Bounty	Aker BP	60%	50 - 400	Q4
PL212	E-Prospect	Aker BP	30%	5 - 10	Q4
PL1182S	Kjøttkake	DNO	30%	19 - 40	Postponed to 2025
PL1131	Elgol	Vår Energi	20%	27 - 180	Postponed to 2025

Financial highlights

Sales of oil and gas

Volume sold mboepd

Realised prices USD/boe

Total income USD million

Liquids Natural gas

Liquids Natural gas

Q2-23 Q3-23 Q4-23 Q1-24 Q2-24

Liquids Natural gas Other

Income statement

USD million

		Q1 2024
	Before impairment	Impairments	Actual	Actual
Total income	3 377		3 377	3 078
Production costs	290		290	211
Other operating expenses	13		13	11
EBITDAX	3 074		3 074	2 855
Exploration expenses	108		108	68
EBITDA	2 966		2 966	2 787
Depreciation	588		588	592
Impairments		83	83	0
Operating profit (EBIT)	2 378	(83)	2 295	2 194
Net financial items	(16)		(16)	(104)
Profit/loss before taxes	2 362	(83)	2 279	2 090
Tax (+) / Tax income (-)	1 718		1 718	1 559
Net profit / loss	644	(83)	561	531
EPS (USD)	1.02		0.89	0.84
Effective tax rate	73 %		75 %	75 %

461 mboepd (429) Oil and gas sales

\$80 per boe (78)

Net realised price

\$6.4 per boe (6.1)

Production cost

75% (75%)

Effective tax rate

Cash flow

USD million

	Q2-24	Q1-24	Q4-23	Q3-23
Op. CF before tax and WC changes	3 133	2 986	3 204	3 235
Taxes paid	(2 086)	(1 054)	(2 207)	(862)
Changes in working capital1	100	(476)	506	(272)
Cash flow – operations	1 147	1 456	1 503	2 101
Cash flow – investments	(1 430)	(1 117)	(1 042)	(944)
Free cash flow	(283)	339	461	1 157
Net debt drawn/repaid	807	-	(0)	(2)
Dividends	(379)	(379)	(348)	(348)
Interest, leasing & misc.	(119)	(110)	(85)	(138)
Cash flow – financing	308	(489)	(433)	(488)
Net change in cash	25	(150)	28	669
Cash at end of period	3 233	3 215	3 388	3 375

\$-0.28bn (0.34)

Free cash flow (FCF)

\$-0.45(0.54)

FCF per share

\$0.60 (0.60)

Dividend per share

Near-term tax payments

Sensitivity for H2-2024

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
• Option for voluntary additional payment in October

Assumptions for H1-25 sensitivity analysis

• Three oil price scenarios illustrated (average for H2-24)
• Gas prices assumed at USD 9 per mmbtu
• USDNOK rate assumed at 10.0

Balance sheet

USD million

Assets	30.06.24	31.03.24	31.12.23
PP&E	18 620	17 819	17 450
Goodwill	13 060	13 143	13 143
Other non-current assets	3 307	3 207	3 314
Cash and equivalent	3 233	3 215	3 388
Other current assets	1 997	2 053	1 751
Total Assets	40 218	39 437	39 047

Equity and liabilities
Equity	12 685	12 514	12 362
Financial debt	6 589	5 791	5 798
Deferred taxes	11 691	11 058	10 592
Other long-term liabilities	4 734	4 674	4 861
Tax payable	2 512	3 444	3 600
Other current liabilities	2 007	1 955	1 833
Total Equity and liabilities	40 218	39 437	39 047

\$6.6 bn (\$6.6)

Total available liquidity

32% (32%)

Equity ratio

0.27 (0.21)

Leverage ratio¹

Continuously optimising our capital structure

Bond maturities

USD/EUR billion

Senior notes issued in May

• EUR 750 million
• 2032 maturity at 4.0% annual fixed coupon

Strong financial capacity and flexibility

• A robust balance sheet
• Maintaining financial flexibility
  • Available liquidity
  • Manage leverage ratio

Maintaining financial flexibility

3.4

Net interest-bearing debt Excl. leases, USD billion

2.4 2.4 2.6

Q2-23 Q3-23 Q4-23 Q1-24 Q2-24

3.1

0

1

2

3

4

5

6

7

Leverage ratio¹ Targeting below 1.5 over time

0.9

0.6

0.3

0.1

0.5

Q2-21 Q4-21 Q2-22 Q4-22 Q2-23 Q4-23 Q2-24

0.2 0.2

0.2

0.2 0.2 0.2 0.2

0.3

BBB Baa2 BBB 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

Dividends

Strong and resilient cash flow as basis for dividend growth

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

Dividends USD per share

• Low-cost production gives resilient dividend capacity
• Distributions shall reflect the capacity through the cycle
• A quarterly dividend of USD 0.60 per share also paid in the second quarter 2024
• ~9% dividend growth in 2024

Q1

Q3

Q4

Q2

▪ Ambition to grow dividend by minimum 5% per year

2024 guidance

	Previous guidance	Actual Jan -June	New guidance
Production mboepd	410 -440	446	420 -440
Production cost USD/boe	~7.0	6.2	~7.0
Capex USD billion	~5.0	2.28	~5.0
Exploration USD billion	~0.50	0.25	~0.50
Abandonment USD billion	~0.25	0.14	~0.25

Second quarter 2024 - Delivering on the strategy

Operate safely and efficiently	Decarbonise our business	Deliver high return projects on quality, time and cost	Establish the next wave of profitable growth options	Return maximum value to our shareholders and our society
444 mboepd with 95% efficiency	Equity GHG intensity of 2.9 kg CO e/boe 2	Project portfolio progressing as planned	Several discoveries close to existing infrastructure	Quarterly dividend of USD 0.60 per share
Low unit cost of USD 6.4/boe	A global leader in low CO emissions 2	Hanz on stream and Tyrving start-up accelerated to October	The unlocking of Wisting continues	Successful EUR 750 mill bond issue

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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