Equinor — Investor Presentation 2018

Oct 25, 2018

3rd Quarter 2018 results

XXXX

EBERG-

equinor

Lars Christian Bacher Executive Vice President and Chief Financial Officer

Third quarter 2018

• Strong results and cash flow across all segments
• Net debt ratio reduced to 25.7%
• High activity level and efficient project execution
• Capex guiding for 2018 reduced to around USD 10 billion
• Continued strong cost focus
• Value enhancing transactions to strengthen and sharpen portfolio
• Dividend of 23 cents per share

Safety

Serious incidents per million work-hours 12-month rolling figures

Financial results

• Adjusted earnings more than doubled
• Underlying operating costs per barrel up slightly
• mainly due to turnarounds and preparations for start-ups
• High earnings after tax
• Increased by 143%

Strong adjusted earnings

• E&P Norway		• E&P International		MMP
Million USD 3Q'18	Capturing higher margins Low unplanned losses Pre tax 3,393	After tax 930		Record high adjusted earnings after tax Pre tax 994	Stable underlying operating cost per barrel After tax 774	Strong products trading results Strong results from European gas sales $\bullet$ Pre tax 481	After tax 303
$3Q'$ 17	2,015	662		(27)	(78)	423	273

• •
• •
• •

Strong cash generation

• Strong cash flow from operations

• Net debt ratio reduced from 27.2% to 25.7%
• Organic capex USD 7.2 billion
• Continued strict capital discipline

2018 YTD Cash flow Million USD

• 1. Income before tax (12,307) + non-cash adjustments (8,123).
• 1. Four of six NCS tax instalments in 2018
• 1. Including inorganic investments

Outlook

	PERIOD	PHILLIP OUTLOOK
Organic capex	2018	Around $10$ bn USD 1
Exploration	2018	Around $1.5$ bn USD
Production	$2017 - 2018$ 2017 - 2020	$1 - 2%$ 3-4% CAGR
Maintenance	2018	Around $35$ mboe per day

1. Based on USD/NOK exchange rate of 8.25.

8 | by Lars Christian Bacher, Executive Vice President and Chief Financial Officer

25 October 2018

3rd Quarter 2018 results

XXXX

EBERG-

JING

LC)

Lars Christian Bacher Executive Vice President and Chief Financial Officer

Forward-looking statements

This presentation contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use words such as "ambition", "continue", "could", "estimate", "expect", "believe", "focus", "likely", " "plan", "strategy", "will", "guidance" and similar expressions to identify forward-looking statements. All statements other than statements of historical fact, including, among others, statements regarding plans and expect with respect to Equinor's returns, balance sheet and long-term underlying earnings growth; market outlook and future economic projections and assumptions; capital expenditure and exploration auidance for 2018 and beyond; production quidance through 2020; CAGR for the period 2017 - 2020; organic capital expenditure for 2018; Equinor's intention to mature its portfolio; exploration and development activities, including estimates regarding exploration activity levels; ambition to keep unit of production cost in the top quartile of its peer group; equity production and expectations for 2018; planned maintenance activity and the effects thereof for 2 accounting decisions and policy judgments, ability to put exploration wells into profitable production, and the impact thereof;] expected dividend payments and dividend subscription price; estimated provisions and liabilit including the COSL Offshore Management AS litigation; implementation of IFRS 16, and the impact thereof; planned and announced acquisitions and divestments, including timing and impact thereof, including the acquisition of Danske Commodities, the acquisition of Barra Energia's interest in the BM-S-8 licence, the acquisition of Chevron's interest in the Rosebank project, the divestment of our operated interest in the Kina Lear discovery to Ak and the divestment of our non-operated interest in the Tommeliten to PGNiG; and other pending acquisitions and divestments discussed in this report; and the projected impact or timing of administrative or governmental rules, standards, decisions or laws, including with respect to and future impact of legal proceedings are forward-looking statements.

You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons.

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including levels of industry product supp demand and pricing; price and availability of alternative fuels; currency exchange rate and interest rate fluctuations; the political and economic policies of Norway and other oil-producing countries; EU developments; gene economic conditions; political and social stability and economic growth in relevant areas of the world; global political events and actions, including war, political hostilities and terrorism; economic sanctions, security changes or uncertainty in or non-compliance with laws and governmental regulations; the timing of bringing new fields or wells on stream; an inability to exploit growth or investment opportunities; material differences fro reserves estimates; unsuccessful drilling; an inability to find and develop reserves; ineffectiveness of crisis management systems; adverse changes in tax regimes; the development and use of new technology; geological or technical difficulties; operational problems; operator error; inadequate insurance coverage; the lack of necessary transportation infrastructure when a field is in a remote location and other transportation problems; the actions of competitors; the actions of field partners; the actions of governments (including the Norwegian state as majority shareholder); counterparty defaults; natural disasters and adverse weather conditions, climate change, and other changes to business conditions; an inability to attract and retain personnel; relevant governmental approvals; labour relations and industrial actions by workers and other factors discussed elsewhere in t report. Additional information, including information on factors that may affect Equinor's business, is contained in Equinor's Annual Report on Form 20-F for the year ended December 31, 2017, filed with the U.S. Securities Exchange Commission (and section 2.11 Risk review - Risk factors thereof). Equinor's 2017 Annual Report and Form 20-F is available at Equinor's website www.equinor.com.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity, performance or achievements will meet these expectation Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by applicable law, we undertake no obligation to update any of these statements after the date of this report, whether to make them either conform to actual results or changes in our expectations or otherwise.

Investor Relations in Equinor

E-mail: irpost@equinor.com

Investor Relations Europe

Peter Hutton	Senior Vice President	phutt@equinor.com	+44 7881 918792
Lars Valdresbråten	IR Officer	lava@equinor.com	+47 40 28 17 89
Erik Gonder	IR Officer	ergon@equinor.com	+47 99 56 26 11
Ida Marie Fjellheim	IR Officer	idfj@equinor.com	+44 7889 806953
Marc Jacouris	IR Officer	mnjac@equinor.com	+44 7885 983904
Marius Javier Sandnes	Senior Consultant	mjsan@equinor.com	+47 90 15 50 93
Anne Sofie Dahle	Senior Consultant	asda@equinor.com	+47 90 88 75 54

Investor Relations USA & Canada

Helge Hove Haldorsen	Vice President	hehh@equinor.com	+1 281 224 0140
leva Ozola	IR Officer	ioz@equinor.com	+1 713 485 2682