Lundin Energy : Report for the three months ended 31 March 2022 (regulatory)

Q1

Report for the

THREE MONTHS

ended 31 March 2022

Lundin Energy AB (publ)

company registration number 556610-8055

These materials do not constitute an offer of securities for sale or a solicitation of an offer to purchase the securities described in such materials in the United States. In particular, any securities referred to in these materials have not been and will not be registered under the U.S. Securities Act of 1933 (the "Securities Act"), or under the securities laws of any state or other jurisdiction of the United States and may not be offered, sold or delivered, directly or indirectly, in or into the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. There will be no public offering of securities in the United States.

Highlights

• • Combination of Lundin Energy's E&P business with Aker BP, to create the leading European independent E&P company, approved by shareholders from both companies, with completion of the transaction anticipated on 30 June 2022

• • Johan Sverdrup Phase 2 processing platform successfully installed, with first oil firmly on track for the fourth quarter of 2022

• • Record quarterly revenue of BUSD 1.98 with an achieved oil price of USD 104 per barrel

• • Strong free cash flow of MUSD 822, operating costs in line with guidance at USD 3.7 per boe and net debt reduced to BUSD 2.1

• • Quarterly dividend increased by 25 percent to USD 0.5625 per share, payable until completion of the Aker BP transaction, approved by the 2022 AGM

• • Strong production performance of 191 Mboepd, towards the top of the guidance range for the quarter

• • Five new projects, including the large Wisting development, heading towards sanction by the end of 2022

• • Delivering on Lundin Energy's Decarbonisation Plan with the recent completion of the Company's first wind farm and electrification of Edvard Grieg on track for end 2022

• • Launch of Lundin Energy Renewables business, which is positioned for growth, with Daniel Fitzgerald as the proposed CEO

Financial summary1

1 Jan 2022-	1 Jan 2021-	1 Jan 2021-
31 Mar 2022	31 Mar 2021	31 Dec 2021
3 months	3 months	12 months
Production in Mboepd	191.4	182.9	190.3
Revenue and other income in MUSD	1,976.9	1,111.9	5,484.7
CFFO in MUSD	1,009.6	750.2	3,058.0
Per share in USD	3.55	2.64	10.75
EBITDAX in MUSD	1,888.5	1,018.4	4,822.8
Per share in USD	6.64	3.58	16.96
Free cash flow in MUSD	822.3	526.2	1,645.5
Per share in USD	2.89	1.85	5.79
Net result in MUSD	468.5	68.9	493.8
Per share in USD	1.65	0.24	1.74
Adjusted net result in MUSD	395.4	149.8	795.7
Per share in USD	1.39	0.53	2.80
Net debt in MUSD	2,062.2	3,464.0	2,747.9

1 All numbers in this table relate to continuing and discontinued operations combined. For a further breakdown between continuing and discontinued operations, reference is made to pages 29-30

Comment from Nick Walker, President and CEO of Lundin Energy AB:

"I'm pleased to report that the combination of Lundin Energy's E&P business with Aker BP, to create the leading European Independent E&P company, has now received approval from the shareholders of both companies. The combination is a tremendous deal, drawing on the best of both companies; creating a Norway pure play E&P company of scale, with production growth, a complementary portfolio of industry leading low cost and low carbon emissions assets, delivering sustainable and growing dividends into the next decade.

"For the Lundin Energy shareholders, the transaction delivers a significant up-front cash consideration, the opportunity to be a shareholder in the leading European E&P company and a retained interest in an exciting new renewables business that is positioned for growth, which will be led by a tremendous team with the Lundin entrepreneurial spirit. We anticipate that the transaction will be completed on 30 June 2022.

"In the meantime, our business continues to deliver on all fronts, with strong production and financial performance in the first quarter of 2022. Our world class assets continue to outperform, with production during the quarter towards the top of the guidance range and with industry leading low costs and low carbon emissions.

"Johan Sverdrup continues to exceed expectations. The Phase 2 processing platform was successfully installed on schedule and the project is on target to achieve first oil in the fourth quarter of 2022, which will boost production to 755 Mbopd gross.

"At the Greater Edvard Grieg Area, we see excellent reservoir performance from the recently completed projects and we're progressing a series of new projects towards sanction in this prolific area, which will further extend the production plateau.

"Our Decarbonisation Plan is making great progress, with the recent completion of our first wind farm in Finland and with everything now on track for the electrification of Edvard Grieg by the end of 2022.

"Financially we had a very strong quarter, with record revenue of BUSD 1.98, delivering significant free cash flow of MUSD 822, allowing us to further reduce net debt to BUSD 2.1, despite a significant build of working capital. This really shows the quality of our business, allowing us to provide an increased quarterly dividend, that will continue until completion of the Aker BP transaction.

"Our mission, in everything we do, is long-term value creation for shareholders and we've had a great start to the year. We continue to deliver very strong results and the transformation of our business with the combination with Aker BP and the establishment of an exciting new renewables energy business means we can look forward to many more years of value creation."

Lundin Energy is an experienced Nordic oil and gas company that explores for, develops and produces resources economically, efficiently and responsibly. We focus on value creation for our shareholders and wider stakeholders through three strategic pillars: Resilience, Sustainability and Growth. Our high quality, low cost assets mean we are resilient to oil price volatility, and our organic growth strategy, combined with our sustainable approach and commitment to decarbonisation, firmly establishes our leadership role in a lower carbon energy future. (Nasdaq Stockholm: LUNE). For more information, please visit us atwww.lundin-energy.comor download our App www.myirapp.com/lundin

OPERATIONAL REVIEW

All the reported numbers and updates in the operational review relate to the three month period ending 31 March 2022 (reporting period), unless otherwise specified.

2022 Guidance

Production	180 to 200 Mboepd
Operating Cost	USD 3.6 per boe
Development expenditure	MUSD 520
Exploration and Appraisal expenditure	MUSD 230
Decommissioning expenditure	MUSD 10
Renewables Investments	MUSD 70
Continuing operations

Continuing operations represents Lundin Energy AB's onshore renewable energy portfolio in the Nordics, forming the platform for a new, renewables focused business positioned for growth. The Company has committed to three renewables projects that will constitute the core of the Company after completion of the combination with Aker BP. From late 2023 the net power generation capacity will be around 600 gigawatt hours (GWh) per annum. In addition, the Company retains certain non-Norwegian potential liabilities related to past operations.

Renewable Power Generation

The Company owns a 50 percent interest in the Leikanger hydropower plant in Norway, with the remaining 50 percent held and operated by Sognekraft AS. Leikanger delivered strong performance during the period with net production of 6.3 GWh, at an average power price of above EUR 135 per megawatt hour (MWh). As the asset is a river based hydropower plant, the production is forecast to increase in the second and third quarters due to snow melting during the spring and summer months and increasing precipitation in the autumn season. With the facility located in the NO5 price region, continued high power prices are forecasted for 2022.

Construction and commissioning activities at the Metsälamminkangas (MLK) wind farm in Finland were completed and the project achieved commercial handover at the end of the reporting period. The project was originally purchased from OX2 AB (publ) (OX2), who managed the construction phase alongside General Electric (GE) as the turbine supplier and contractor. The handover was originally planned for late fourth quarter 2021 and Lundin Energy has been financially compensated through liquidated damages for the entire delay period. The project is now operational at full capacity with 24 wind turbines generating an estimated gross production of 400 GWh per annum, with Lundin Energy holding a 50 percent interest in the asset. The wind farm is equipped with the latest technology, to ensure low cost and efficient operations and will be managed in the operations phase by OX2 under an availability warranty provided by GE, guaranteeing the availability from the turbines, through their operational life, giving the Company significant protection against downtime and outages.

Renewable Project Development

Construction activities at the Karskruv onshore wind farm project in southern Sweden are progressing on schedule, with the facility planned to be operational in late 2023. The project has been purchased from OX2, who are managing the construction and commissioning phase, alongside Vestas Wind Systems A/S as the turbine supplier and contractor. Lundin Energy holds a 100 percent interest in the asset and once operational, the 20 onshore wind turbines will add 290 GWh to the Company's annual net power production. With the asset situated in the high priced SE4 region in southern Sweden, it constitutes an important contribution to the Company's growth plans. The total investment in Karskruv, including the acquisition cost, will amount to MEUR 130, of which MEUR 40 has already been spent, with the remaining spend occurring in 2022 and 2023. The project is expected to be cash flow positive from late 2023.

Discontinued Operations

Discontinued operations represents all of Lundin Energy AB's E&P business.

Production

Production was 191.4 thousand barrels of oil equivalent per day (Mboepd), placing it towards the top end of the guidance range for the quarter, mainly driven by the outperformance of Edvard Grieg and high production efficiency at Johan Sverdrup. The Edvard Grieg field has been restarted after an unplanned shutdown at the end of the reporting period, where the field was shut in for approximately one month. The full year production guidance range remains unchanged at 180 to 200 Mboepd. Despite the outage on Edvard Grieg, the production forecast for the full year remains at or above the mid-point of the guidance range.

Operating costs, net of tariff income, for the period were USD 3.72 per boe, which is in line with guidance. Full year operating cost guidance remains USD 3.60 per boe.

1 Jan 2022-	1 Jan 2021-	1 Jan 2021-
Production	31 Mar 2022	31 Mar 2021	31 Dec 2021
in Mboepd	3 months	3 months	12 months
Crude oil	176.9	170.0	177.4
Gas	14.5	12.9	12.9
Total production	191.4	182.9	190.3
1 Jan 2022-	1 Jan 2021-	1 Jan 2021-
Production	WI1	31 Mar 2022	31 Mar 2021	31 Dec 2021
in Mboepd	3 months	3 months	12 months
Johan Sverdrup	20%	106.9	102.8	106.3
Greater Edvard Grieg Area2	65% - 80%	73.2	67.9	72.9
Ivar Aasen	1.385%	0.5	0.8	0.6
Alvheim Area	15% - 35%	10.8	11.4	10.5
Total Production	191.4	182.9	190.3
1 Lundin Energy's working interest (WI)
2 Consisting - Edvard Grieg, Solveig and Rolvsnes EWT
4

Johan Sverdrup Phase 1 delivered ahead of guidance with a production efficiency of 96 percent, including planned downtime preparing for installation of the Phase 2 processing platform. One production well was completed in the first quarter and drilling of subsea wells for Phase 2 has commenced. Operating costs of USD 2.22 per boe were slightly above guidance due to increased electricity prices. The carbon emission intensity for the first quarter of 2022 was 0.1 kg CO2 per boe.

Edvard Grieg continued its strong performance in the first quarter of 2022, delivering ahead of guidance with a production efficiency of 92 percent. At the end of March 2022, Edvard Grieg experienced a power outage causing damage to electrical systems in the gas export system, resulting in a production outage for approximately one month. Production was restarted, post the reporting period in April 2022, and planned maintenance works due to take place in Q2 2022 were also completed during this outage. The 2021 infill wells are continuing to perform better than expected, and preparations are ongoing for the second phase of infill drilling, expected to commence in the first half of 2023. A further 4D seismic acquisition commenced during the reporting period, providing data to further understand field performance and to allow for optimal placement of the future infill wells. Operating costs were better than guidance at USD 5.10 per boe.

Development drilling on Solveig Phase 1 was completed in the first quarter 2022, below budget and ahead of schedule. Production on both Solveig and Rolvsnes Extended Well Test (EWT) was held back as a result of production optimization between the Edvard Grieg Area assets, due to the excess well capacity. Reservoir performance on Solveig is ahead of expectations and the Rolvsnes EWT continues to be in line with expectations.

Power from shore at Edvard Grieg is on track for completion in the fourth quarter of 2022. The new electric boilers have been installed on the Edvard Grieg platform and the power cable has been pulled into the Johan Sverdrup Phase 2 platform. The Company will benefit from a 10 percent increase in gas sales from Edvard Grieg and a significant reduction in CO2 emissions compared to current levels, by the end of 2022; due to the removal of the gas turbine power generation.

Production from the Alvheim Area was ahead of guidance at 98 percent production efficiency. The infill programme was completed in February 2022, with the Kameleon West Infill well coming on stream. Operating costs were in line with guidance, at USD 7.65 per boe. The gas and water handling debottlenecking projects are progressing well, with expected completion during the second quarter of 2022.

Development

The development expenditure guidance remains unchanged at MUSD 520.

Project

WIOperator

Estimated gross reservesProduction startExpected gross plateau production

Johan Sverdrup Phase 2 Frosk

• 20% Equinor

  2.2 - 3.2 Bn boeQ4 2022

  755 Mbopd1

• 15% Aker BP

  9 MMboe

  Q2 2023

  13 Mboepd

  Kobra East/Gekko (KEG) Wisting

• 15% Aker BP

  39 MMboe

  Q1 2024

  28 Mboepd

• 35% Equinor

500 MMbo

Q2 2028

150 Mbopd

1 Johan Sverdrup full field

Johan Sverdrup Phase 2

The Johan Sverdrup Phase 2 development project is progressing well and was approximately 75 percent complete at the end of the reporting period, with completion of the critical activities for first oil at approximately 95 percent complete. The project involves a second processing platform bridge linked to the Phase 1 field centre, subsea facilities to access the Avaldsnes, Kvitsøy and Geitungen satellite areas of the field, implementation of full field water alternating gas injection (WAG) for enhanced recovery and the drilling of 28 additional wells. The drilling of the first subsea wells commenced in January 2022, and the Phase 2 topside processing platform and bridge connection were successfully installed offshore in March 2022. All subsea flowlines have been installed with tie-back to topside facilities expected to take place in the second quarter of 2022. Phase 2 production start is expected in fourth quarter of 2022. The Johan Sverdrup gross field reserves are in the range of 2.2 to 3.2 billion boe and the ambition of the partners in the field, is to achieve a recovery factor of more than 70 percent. The Phase 2 capital expenditure is estimated at gross NOK 41 billion (nominal), which is unchanged from the Phase 2 PDO estimate in 2019. Breakeven oil price for the full field project is less than USD 15 per boe.

Greater Edvard Grieg Area Tie-Back Projects

Solveig Phase 2 is targeting additional resources from supplementary segments of the Solveig field. Production experience from Phase 1 plays an important role in the maturation of the project. The project is progressing according to schedule, with project sanction expected by year end 2022.

The Rolvsnes full field development uses the production experience from the Extended Well Test to further develop the weathered and fractured reservoir found on Rolvsnes. A production logging test has been approved in the licence and will be performed in mid-2022. Together with the production experience, this will provide important data to support the concept select phase.

The Lille Prinsen field is located north of Edvard Grieg and is planned to be a subsea tie-back directly to the Edvard Grieg or Ivar Aasen facilities. The development is targeting an initial gross resource potential of 12-60 MMboe and the field also holds a potential upside in basement, in which synergies with Rolvsnes is being used in the maturation of the associated volumes.

All three projects are progressing well with a target of PDO submission in late 2022. These projects will add high margin barrels and contribute to sustaining production and extending plateau production at the Edvard Grieg facility.

Wisting

The Wisting project is scheduled to be one of the next Barents Sea production hubs and will be a significant contributor to sustaining the Company's long term production profile. The estimated volumes at Wisting amounts to approximately 500 MMbo, with further upsides in nearby exploration targets amounting to a further 500 MMbo. The project is progressing as planned, with FEED studies ongoing and on track for PDO submission by end 2022, allowing the project to benefit from the temporary tax incentives established by the Norwegian Government in June 2020. The Wisting project has strong economics, and the development plan is aligned with Lundin Energy's Decarbonisation Plan, with a power from shore solution being matured as part of the PDO. In addition, in December 2021, Lundin Energy concluded a cooperation agreement with Equinor for the Wisting development, whereby Equinor will retain operatorship of the Wisting development into the operations phase.