OKEA : Q2 2023 Presentation

Presentation of third quarter 2022

OKEA ASA

26 October 2022

Cautionary statement

•This presentation contains forward looking information

•Forward looking information is based on management assumptions and analysis

•Actual experience may differ, and those differences may be material

•Forward looking information is subject to significant uncertainties and risks as they relate to events and/or circumstances in the future

•This presentation must be read in conjunction with the published financial reports of the company and the disclosures therein

•A full disclaimer is included at the end of this presentation

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OKEA third quarter 2022 results

Highlights

Operations

• Production 16,064 boepd

• Solid production performance from Draugen, Gjøa and Ivar Aasen in the quarter; planned well maintenance at Draugen reduces volume

• Ramp up of Yme progressing slower than anticipated; six weeks of production outage in the quarter

Financials

• Record high operating income of NOK 2,143 million

• Record high EBITDA of NOK 1,636 million

• NOK 609 million impairment of Yme mainly due to reduced reserves

• Net profit of NOK 104 million

• NOK 916 million in cash flow generated to capital providers

Well-positioned for value-accretive growth

• Net cash positive; debt reduced by redemption of OKEA02 in July

• Transfer of operatorship Brage progressing according to schedule

• Dividend payment in December of 1 NOK/share; announcing intention to pay 1 NOK/share each quarter in 2023

• Hasselmus gas project and power from shore - progressing as planned	Draugen

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Extreme volatility in European gas markets

Still price differential between mainland Europe and UK

Historical prices (Last 4 years)		NBP vs TTF (Q3 2022 incl. October)

• Relatively stable oil prices, but significant volatility in gas prices during the quarter
• NBP (UK) still trading at substantial discount compared to TTF (Netherlands); forward pricing indicates market expectation of convergence by winter 2022/2023
• OKEA's current gas production is exported and sold to the UK due to physical flow (Gjøa and Ivar Aasen), while Brage and Hasselmus will have the optionality to export gas to both continental Europe and UK. Nova exports through Gjøa to UK

Source: Refintiv as of 21 October 2022

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Production volumes and reliability

Steady base performance at Draugen, Gjøa and Ivar Aasen

Production (boepd)
20 000							Draugen
					16 039
	16 316			14 908	16 064	Gjøa
	16 038		550
15 000			208	Ivar Aasen
	6 735	7 231			7 060	6 338	Yme
		6 877
10 000
						Gas
							30%
5 000	9 348	8 367		6 478	7 107	7 353		58%
			Oil
			12%
			217		1 322	1 019	NGL
0	233	223	1 345	1 354
	Q3 21	Q4 21		Q1 22	Q2 22	Q3 22

Production reliability (%)

99 100	99	99	100		Draugen
97 97	97	97	94		Gjøa

Q3 21

Q4 21

Q1 22

Q2 22

Q3 22

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