DEA Group. Deutsche Bank 22nd Annual European Leveraged Finance Conference

Transcription

1 DEA Group Deutsche Bank 22nd Annual European Leveraged Finance Conference June 2018

2 Disclaimer Forward-Looking Statements This communication may include projections and other forward-looking: statements within the meaning of applicable securities laws, which are based on current expectations and projections about future events and financial performance. Statements herein, other than statements of historical fact, regarding future events or prospects, are forward-looking statements. The words may, will, should, expect, anticipate, believe, estimate, plan, predict, intend or variations of these words, as well as other statements regarding matters that are not historical fact or regarding future events or prospects, constitute forward-looking statements. L1E Finance GmbH & Co KG (the Company ) has based these forward-looking statements on its current views with respect to future events and financial performance in addition to certain assumptions about the future, some of which are beyond the Company s control. These forward-looking statements involve a number of risks, uncertainties, and assumptions about the Company and its subsidiaries and its investments, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, actual results may not occur or may differ materially from those predicted in the forward-looking statements and from the past performance of the Company. As a result, you should not rely on these forward-looking statements. Neither the Company nor any other person make any warranties or representations about accuracy, sequence, timeliness or completeness of the content of the presentation or the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any. Non-GAAP and Non-IFRS Financial Measures This communication may contain certain non-gaap and non-ifrs measures and ratios, including for example EBITDAX, net debt, net working capital, coverage ratios and EBITDAX per boe that are not required by, or presented in accordance with, any GAAP or IFRS. The non-gaap and non-ifrs measures and ratios may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results as reported under IFRS or any GAAP. Our management uses these measures to measure operating performance and liquidity, in presentations to our Management Board and as a basis for strategic planning and forecasting, as well as monitoring certain aspects of our operating cash flow and liquidity. We present non-gaap and non-ifrs measures and ratios because we believe that they and similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. Non-GAAP and non-ifrs measures and ratios such as EBITDAX, coverage ratios and EBITDAX per boe are not measurements of our performance or liquidity under IFRS and should not be considered as alternatives to operating profit, profit for the year, capital expenditure or any other performance measures derived in accordance with IFRS or any GAAP or as alternatives to cash flow from operating, investing or financing activities. We present in this communication a reconciliation of each of the non-gaap and non-ifrs measures to the most directly comparable measure calculated and presented in accordance with IFRS and discuss its limitations See note above. Some of the limitations of EBITDAX are: they do not reflect our cash expenditures or future requirements for contractual commitments; they do not reflect changes in, or cash requirements for, our working capital needs; they do not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments on our debt; although depreciation and amortization are non cash charges, the assets being depreciated and amortized will often need to be replaced in the future and EBITDAX does not reflect any cash requirements that would be required to make such replacements; they do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; and other companies in our industry may calculate these measures differently from the way we do, limiting their usefulness as comparative measures. Because of these limitations, EBITDAX should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. You should compensate for these limitations by relying primarily on our IFRS results and using these non-gaap and non-ifrs measures only to supplement your evaluation of our performance. Page 2

3 Introduction

4 Recent Developments Increased EBITDAX by 22% from 759m in 2016 to 924m in 2017 Performance Increased 2P reserves by 5% from 667mmboe in 2016 to 698mmboe in 2017 (1) Despite increased investments by 30%, free cash flow increased to 60m Leverage decreased significantly from 2.33x in 2016 to 1.79x (2) in 2017 Country entry in Mexico in 2017 with first exploration license and operatorship of producing Ogarrio field awarded; in 2018, three further exploration licenses with operatorship awarded Projects Major developments in Norway, after Njord sanctioning in early 2017, DEA sanctioned further three developments in the Norwegian Sea, Ærfugl (formerly Snadd) and Snorre SEP in late 2017 as well as Nova (formerly Skarfjell) in April 2018 First gas in Algerian Reggane field achievedin December 2017 In Egypt, the Gulf of Suez license was extended and a number of well interventions and new developments sanctioned to restore production in Ras Budran and Zeit Bay fields. Additionally, West Nile Delta development plan was adjusted in order to bring forward first gas for the Giza and Fayoum fields to 2018, Raven production commencement remains in 2019 Financing RBL available amount unchanged at $2,300 million post re-calculation in March 2018 In September 2017, Standard & Poor s upgraded unsecured notes rating to BB- from B+ In June 2017, Moody s rating of Ba3 for both corporate family and senior unsecured notes assigned An additional overdraft facility of 60 million was signed in September 2017 to complement$50 million existing overdraft Other On December 7 th 2017, LetterOne and BASF signed Letter of Intent to combine their oil and gas businesses under Wintershall DEA Significant de-risking of North African operations: In May 2017, $125 million payment received for partial settlement of EGPC receivables (1) Does not include reserves associated with Ogarrio due to ongoing external reserves audit (2) Adjusted for discontinued operations Page 4

5 Financial Results Q1 2018

6 Q Highlights Production 125 kboe/d -5% vs. Q Business Development Ogarrio acquisition completed Three exploration licenses with operatorship in Mexico awarded EBITDAX Leverage LTM 250 million +20% vs. Q x vs x as of Q (1) Production Costs QHSE $6.7 / boe +12% vs. Q LTIF 0.21 vs as of Q (1) Adjusted for discontinued operations Page 6

7 DEA Group Q Highlights Q Q (1) Production (kboe/d) Realized oil price ($/boe) Realized gas price ($/mcf) Revenue ( m) Production costs ($/boe) Exploration costs ( m) (22) (11) EBITDAX ( m) Net income ( m) (29) (35) Capex ( m) Free cash flow ( m) (47) (17) Q Q (2) Net debt ( m) 1,687 1,592 LTM Leverage 1.81x 1.79x (1) P&L and cash flow items were adjusted for discontinued operations (2) Adjusted for discontinued operations Page 7

8 Production and Pricing Commentary Production Profile (kboe/d) (1) Q production 8 % higher QoQ mainly due to resumed production after temporary shut-in of two wells in Norway and production start in Algeria at the end of Additionally, our recently acquired Ogarrio field in Mexico started contributing to the overall production in March 2018 Q realized oil price 10 % higher QoQ, broadly in line with Brent price development % liquids: % gas: 45% 55% % 55% % 44% 38% 57% 56% 62% % 39% 62% 61% % 61% Q realized gas price was $5.6/mcf, 12 % higher QoQ due to seasonally higher gas prices and country mix shifting towards higher-value Norway Q Q Q Q Q Q Q Q Norway Germany/Denmark North Africa Latin America Realized Oil Price ($/bbl) Realized Gas Price ($/mcf) Q Q Q Q Q Q Q Q Q Q Q Q Quarterly Realized Oil Price Q Quarterly Realized Oil Price Q Q Quarterly Realized Gas Price Q Quarterly Realized Gas Price (1) Including Ogarrio field since March 6 th, 2018 Page 8

9 Revenues and Profitability Commentary Revenues ( million) Q revenues were 5 % higher YoY as lower production volumes were offset by higher commodity prices and positive effect of increase of overlift Q EBITDAX was 20 % higher YoY due to higher revenues, lower cost of sales, lower impairments of receivables, as well as lower tariffs Q unit production costs increased 12% YoY, mainly due to lower output as well as higher workover costs in Norway EBITDAX ( million) Q Q Germany/Denmark North Africa Norway Latin America Average Production Costs ($/boe) % margin 54% 62% Q Q Germany/Denmark Norway North Africa Other (1) Incl. rest of the world and central functions (1) Q Q Page 9

10 Capital Expenditure Commentary Capex Breakdown ( million) Q capital expenditures increased 14 % YOY Norway: Q expenditures were higher by 41 million mainly due to increased development activity in Dvalin and Njord fields. Both developments are progressing in line with the plan Germany/Denmark: Q expenditures were 12 million higher due to drilling campaign in Völkersen in addition to the continuous drilling in Mittelplate 86 North Africa: Q investments were 25 % lower compared to Q1 2017, as Reggane field went into production in December Q Q Germany/Denmark Norway North Africa Page 10

11 Cash Position Development Cashflow Bridge ( million) Ogarrio acquisition payment 162 (209) 129 (202) 82 (47) (1) Cash 01/01/18 Cash Flow from Operations Cash Flow from Investment Activities Free Cash Flow Cash Flow from Financing Equity Contribution for Ogarrio Acquisition Cash Flow from M&A Cash Flow from Discontinued Operations Cash 31/03/18 Page 11

12 Liquidity and Net Debt Source of Liquidity ( million) Net Debt ( million) 101 (2) ,867 (1) 2,267 2,367 1,320 (3) 1,779 (3) 1,725 1,686 1,687 (1) (3) (1) Senior Unsecured Notes (1) RBL Overdraft Facilities Cash Available Liquidity Senior Unsecured Notes (3) RBL (drawn) Overdraft Facilities Cash Net Debt 31/03/2018 (1) Nominal value (2) Includes US$50m and 60m unsecured revolving credit facilities (3) Balance sheet amount, net of amortized fees and including accrued interest FX rate used USD/EUR Page 12

13 Hedging Overview Oil (as of March 31 st, 2018) Gas (as of March 31 st, 2018) Volume (mmbbl) Volume (bcf) Hedged Volumes Price ($/boe) Price ($/mcf) (1) % of Target Hedging Volume 100% 100% 65% % of Target Hedging Volume >100% >100% 85% 14% 12% 2% (1) Calculated at the forward rates applicable on March 31 st, 2018 Page 13

14 Operational Update

15 Reserves Overview Reserves Addition 2P Reserves by Country Organic Reserves Replacement Ratio mmboe Norw ay 49% Germany / Denmark 18% North Africa 33% 153% 169% P P 698 mmboe Significant Undeveloped Reserves Upside Historical Evolution of 2P Reserves mmboe % Germany / Denmark 39% % % 323 Norway North Africa Total 2P 2PD 2PD / 2P Ratio >99% of reserves are audited by RPS, excl. Ogarrio as external audit is not yet completed 100% 80% 60% 40% 20% 0% Page 15 mmboe (46) 2016 Production Organic Growth GoS Extension

16 Norway Development Activity Dvalin Njord Area Current Status and Outlook Drilling rig contract awarded to Transocean in November 2017 Drilling rig services contracts to be awarded shortly Drilling of four production wells to start in mid-2019 Project Background Dvalin is being developed as subsea connection to Heidrun platform First own operated field development in Norway; PDO approved in March 2017 Production start planned in 2020 DEA s Working Interest: 55 % Operator: DEA 2P reserves of 58 mmboe (1) Current Status and Outlook Njord, Hyme and Bauge sanctioned in early 2017; PDO approved in June Tie-in agreement signed with Fenja in December 2017, enhancing economics of the fields Contract awarded to Aibel for upgrading of the Njord Bravo floating storage and offloading (FSO) vessel Next upcoming major contract are Bauge drilling rig contracts Planned production start in 2020 Project Background Njord redevelopment to boost recovery and extend producing of all three fields DEA s Working Interest: Njord: 50 %, Hyme/Bauge: 27.5 % Operator: Statoil 2P reserves of 88 mmboe (1) (1) As per 01/18 audit Page 16

17 Norway Development Activity Ærfugl (formerly Snadd) Skarv Unit Snorre Expansion Project Current Status and Outlook PDO submitted in December 2017 and approved in April 2018 Snadd test well producing via Skarv since 2013, increasing confidence to in-place volumes Production start planned in 2020 Project Background First development concept includes three production wells to be drilled in southern part of the field and tied back to Skarv FPSO DEA s Working Interest: % Operator: Aker BP 2P reserves of 37 mmboe (1) Current Status and Outlook PDO submitted in December 2017 Production start planned in 2021 Project Background Conventional subsea tie-back project to increase and accelerate production DEA s Working Interest: 8.57 % Operator: Statoil Incremental 2P reserves of 17 mmboe (1) (1) As per 01/18 audit Page 17

18 Norway Development Activity Nova (formerly Skarfjell) Current Status and Outlook PDO submitted in May 2018 Production start planned in 2021 Project Background The project consists of two subsea templates tied-back 17 km to the Gjøa semi-submersible platform DEA s Working Interest: 10.0 % Operator: Wintershall Page 18

19 North Africa Development Activity West Nile Delta Reggane Current Status and Outlook The first two fields, Taurus and Libra, started production in March 2017 The remaining fields, Giza, Fayoum and Raven are expected to come on-stream by late 2018 and 2019 Project Background Subsea development of five fields, Taurus, Libra, Giza, Fayoum and Raven DEA s Working Interest: % Operator: BP 2P reserves of 91 mmboe (1) Current Status and Outlook First Gas achieved on December 13th 2017 The ramp up phase is ongoing with the first 10 wells put on production, further wells to be tied-in to reach plateau production later on in 2018 A new drilling campaign will start in mid 2018 and will extend until mid 2020 Project Background Comprises of six gas fields Reggane, Azrafil Sud-Est, Kahlouche, Kahlouche Sud, Tiouliline and Sali DEA s Working Interest: 19.5 % Operator: Grouppement Reggane (1) As per 01/18 audit Page 19

20 North Africa Development Activity Disouq Gulf of Suez Current Status and Outlook The Disouq redevelopment project has commenced with construction of an additional pipeline to tie-in 17 wells (existing and yet to be drilled wells). Drilling to commence in June 2018 Project Background Disouq area contains 8 producing wells, 11 wells are waiting to be tied-in and 6 are planned to be drilled Production from the current fields commenced in 2013 DEA s WI 2P reserves of 64.7mmboe (1) Operator: Suco Current Status and Outlook Work has started to complete a number of well interventions at Ras Budran in order to increase production from the existing wells Mooring buoy towed to yard for inspection and repair in order to provide DEA with option to export from Ras Budran Project Background Ras Budran contains four offshore platforms Production commenced in 1983 DEA has exercised its option to extend the license period to 2022 DEA s WI 2P reserves of 30.0mmboe (1) Operator: Suco (1) As per 01/18 audit Page 20

21 Appendix 1 DEA Overview

22 DEA Overview Ba3 / BB- / BB Corporate Ratings by Moody s, S&P and Fitch Respectively DEA Company Overview DEA Assets Overview DEA is a leading European E&P company with 2017YE 2P WI reserves of 698mmboe and 2017 production of 125kboe/d DEA currently operates c. 40% of its production Since DEA s founding in 1899, DEA has become one of the largest full cycle upstream oil and gas companies in Europe leveraging its technical excellence and experience to develop and operate upstream oil and gas assets mainly in Germany, Norway, Denmark, Egypt, Algeria and Mexico In 2015, DEA was acquired by L1 Energy, an investment vehicle of LetterOne. LetterOne is a well capitalised, privately owned investment business DEA aims to increase production in its core areas, maintain a disciplined approach to financial management and focus on safety and operational excellence Summary Financial Information 2015A 2016A 2017A (2) Q (2,3) Q1 2018A (2,4) Q Production by Geography Mexico 1% 2P Reserves by Geography (2017) Production (kboe/d) Revenue (EURm) EBITDAX (EURm) 164 (1) ,425 1,476 1, Egypt 28% Germany/ Denmark 27% Norway 44% North Africa 35% Germany / Denmark 20% Norway 45% Capex (EURm) Q production 125 kboe/d 2P reserves: 698 mmboe (5) (1) Incl. E.ON Norge and excl. UK (2) Represents L1E Finance GmbH & Co KG results (3) P&L and cash flow items adjusted for discontinued operations (4) Inlcudes Ogarrio field since March 6 th, 2018 (5) Audit of Ogarrio field not yet finalised Page 22

23 118 Year History Established 1899, developed to Deutsche Erdöl Aktiengesellschaft (DEA) Integrated oil company involved in upstream, refining, chemicals, storage, mining International upstream activities in Europe including Denmark, Austria, Norway, the Gulf, Syria, Dubai, Turkey and South America Public takeover by Texaco, Deutsche Texaco Aktiengesellschaft Dubai production contributing to company performance 1985 Schwedeneck See oil field, 1987 Mittelplate coming onstream Wietze lab responsible for Texaco Eastern hemisphere RWE-DEA Aktiengesellschaft für Mineralöl und Chemie 1995 Völkersen production start, 1996 discovery Hanze (Netherlands) 1996 entry into Kazakhstan German upstream company Deminex (RWE 18.5%) broken up; Norway and Egypt go to Dea, Netherlands to Veba Oil; sale of downstream and chemical business Renamed to RWE Dea AG, acquisition of Highland Energy UK, country entry Libya, Algeria and first gas discoveries in Egypt, Algeria and Norway Sale of Akshabulak (Kazakhstan); acquisition of Clipper South and Breagh (UK), country entries in Turkmenistan, Trinidad & Tobago, Suriname and Guyana; sale of Edvard Grieg (Norway) L1 Energy acquired DEA, bringing in a long-term strategic partner in LetterOne; acquisition of E.ON E&P Norge AS (Norway) strengthened existing Norwegian position; sale of UK assets to INEOS DEA sanctioned its first operated development in Norway, Dvalin Received its debut ratings of BB- by S&P and BB by Fitch and issues its inaugural 400m bond DEA acquired additional interests in seven licences from Engie, including 20% increased interest in Njord Sanctioned redevelopment of Njord and Bauge development West Nile Delta first gas achieved Received Moody s corporate and unsecured ratings of Ba3 First exploration licence in Mexico awarded and opened an office in Brazil License share and operatorship in Ogarrio field in Mexico acquired Sanctioned two developments in the Norwegian Sea, Ærfugl (formerly Snadd) and Snorre SEP Three exploration licenses with operatorship in Mexico awarded Sanctioned Norwegian field Nova (formerly Skarfjell) Page 23

24 Germany & Denmark Overview Stable cash flow contributors Stable cash flow contributors Highlights & Key Projects Germany: largest oil producer in the country (125 mmboe of 2P reserves (1) ) Mittelplate/Dieksand (50% WI) Germany s largest oil field, with about half of all remaining German recoverable oil reserves. Has been safely operated for more than 30 years by DEA. Continuous drilling enables steady production. Produces 12 kboe/d (2017) oil and holds 55 mmboe of 2P reserves Völkersen (100% WI) Germany s largest gas producing field and has been safely operated by DEA for 24 years. Produces 15 kboe/d (2017) mainly gas and holds 38 mmboe of 2P reserves Denmark: non-operated position in two producing fields (3 mmboe of 2P reserves (1), thereof 100% oil) Wide range of technical skills applied in own operated fields (ERD drilling, intelligent well completions, multi-laterals, own Wietze lab) Key indicators 2015A 2016A 2017A (2) Q1 2017A (2,3) Q1 2018A (2) Production (kboe/d) Current Portfolio / Key Fields Germany Denmark Oil & gas (Q production) Other Germany 25% 33 mmboe Gas 63% Oil 37% 2P Reserves (2017) Denmark 2% 3 mmboe Mittelplate 43% 55 mmboe Revenue (EURm) EBITDAX (EURm) Capex (EURm) Völkersen 30% 38 mmboe 128 mmboe (1) Includes <1% of unaudited reserves (2) L1E Finance GmbH & Co KG results (3) P&L and cash flow items adjusted for discontinued operations Page 24

25 Norway Overview Well established position in Norway Well established position in Norway with largest EBITDAX contribution to the Group Highlights & Key Projects Norway: over 40 year track record (343 mmboe of 2P reserves (1) ) Skarv (28.1% WI) - producing hub operated by BP started producing in 2013 (c.29 kboe/d in 2017), Ærfugl (formerly Snadd) as an additional near-field development sanctioned in 2017 (2P reserves of 37mmboe) Snorre (8.57% WI) Norway s second largest oil field, operated by Statoil, further development (Snorre Extension Program) sanctioned in 2017 (incremental 2P reserves of 17mmboe) Dvalin (55% WI) first DEA-operated project in Norway. Sub-sea gas development with a tie-in to Heidrun platform, PDO was approved in March 2017 Njord (50% WI) hub operated by Statoil, offers significant medium-term growth, revised Plan of Development and Operations approved by the authorities in June 2017 DEA is among the top-5 players in the emerging Barents Sea with Snohvit production, Alta discovery and the upcoming exploration activities DEA has participated in six of the largest 30 discoveries in Norway Key indicators 2015A 2016A 2017A (2) Q1 2017A (2) Q1 2018A (2) Current Portfolio / Key Fields Oil & Gas (Q Production) Gas 48% Oil 52% 2P Reserves (2017) Gjoa; 10 mmboe; 3% Snohvit; 22 mmboe; 6% Snorre; 46 mmboe; 13% Other; 6 mmboe; 2% Njord Area; 88 mmboe; 26% Production (kboe/d) Revenue (EURm) EBITDAX (EURm) Capex (EURm) Dvalin; 58 mmboe; 17% 343 mmboe Skarv/Snadd 113 mmboe, 33% (1) All reserve figures as per RPS report (2) L1E Finance GmbH & Co KG results Page 25

26 North Africa Overview World class asset base providing long term growth World class asset base providing long term growth Egypt: present in Egypt for about 40 years. Current 2P reserves of 186 mmboe (1) ). Key assets include: Current Portfolio / Key Fields Oil & Gas (Q Production) Disouq (100% WI): gas field put in production in 2013 by DEA with significant upside potential Egypt Highlights & Key Projects West Nile Delta (17.25% WI): world-class asset; production from the first two fields started in March 2017 (Taurus and Libra). In 2018 and 2019 further fields on stream (Giza, Fayoum and Raven). 2P reserves of 91 mmboe Gulf of Suez (100% WI): key assets include Ras Budran and Zeit Bay, extension right option exercised in 2017 Gas 80% Oil 20% Algeria (Reggane, 19.5% WI): first gas achieved in December 2017 with targeted production level expected to be reached within 2018, a new drilling campaign will start in mid 2018 and will extend until mid 2020 North African assets are covered by the Investment guarantees of the Federal Republic of Germany Key indicators 2015A 2016A 2017A (2) Q1 2017A (2) Q1 2018A (2) Production (kboe/d) Revenue (EURm) EBITDAX (EURm) 10 (27) 187 (13) 32 Capex (EURm) Algeria 2P Reserves Egypt (2017) Gulf of Suez 16% 30 mmboe Disouq 34% 65 mmboe 186 mmboe West Nile Delta 50% 91 mmboe (1) All reserve figures as per RPS report (2) L1E Finance GmbH & Co KG results Page 26

27 Mexico Overview World class asset base providing long term growth Recent acquisitions with current production paved the way for further growth Mexico is a key part of DEA s Latin America strategy Since 2017, DEA has successfully secured a material country position with current production, which has paved the way for further growth DEA s current portfolio now consists of five assets: Block 2 (30% WI): Exploration block in partnership with operator Pemex (70 %) Current Portfolio / Key Fields Highlights & Key Projects Ogarrio (50% WI): Onshore oilfield in the Tabasco state with material redevelopment potential, operated by DEA, in partnership with Pemex. Block 16,17 and 30 (40% WI): Three exploration licenses with operatorship awarded in March 2018; in partnership with its partners Pemex and CEPSA in block 16 and 17 and with Sapura and Premier Oil in block 30 The company has established strong relationships with Pemex and other key stakeholders, positioning itself well for further expansion in the country Ogarrio field DEA continues to evaluate its options to participate in further bidding rounds and IOC farm-downs Page 27

28 DEA Strategy Grow production and execute key projects Increase production in in existing core assets and execute development of of operated fields Develop Dvalin and Njord gas fields in in Norway, realise potential of of West Nile Delta, Disouq and Reggane gas projects Increase company value through balanced organic & inorganic growth Capitalise on exploration success in known and emerging plays targeting exploration while spending below 15% of after-tax investment budget Pursue production and asset development opportunities in Norway and Denmark, asset roll up opportunities in Germany, as well as potential acquisitions in other areas such as Brazil and Mexico Focus on costs and capital efficiency Manage the the size and structure of of the the organisation in in line with lean business model Exit non-core assets and areas Further improve costs through technological and procurement optimization Deliver high QHSE standards and sustainability of operations Maintain industry-leading QHSE standards and environmental track record Further develop operational capabilities in in key areas of of company s presence strengths Page 28

29 Definitions DEA Group DEA Group consists of L1E Finance GmbH & Co. KG and its subsidiaries Free cash flow EBITDAX Free cash flow comprises of cash flows from operating activities and from investing activities, but excludes cash flows from/for acquisitions and excludes cash flows from discontinued operations EBITDAX defined as income before tax, financing costs, exploration expense, DD&A and impairments, acquisitions, disposals, extraordinary items, minority interest, FX gains and losses, pensions, loss or gain in relation to disposal of fixed assets Production Working Interest Production Production costs Production costs include G&A allocation but exclude export and processing tariffs, finance items and R&D LTIF Lost Time Incident Frequency (number of Lost Time Incident per 1 million working hours) Capital Expenditure Capex excludes financial asset capex and excludes capex from discontinued operations and acquisitions Realized oil/gas price Includes hedges and physical forward sales Note: Certain numerical figures and percentages set out in this presentation have been subject to rounding adjustments Page 29