DEA Group. Jyske Bank Credit Company Day

Transcription

1 DEA Group Jyske Bank Credit Company Day September 2017

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 DEA Introduction

4 DEA Overview Ba3 / BB- / BB Corporate Ratings by Moody s, S&P and Fitch Respectively DEA Company Overview DEA is a leading European E&P company with 2016YE 2P WI reserves of 667mmboe and 2016 production of 138kboe/d DEA currently operates c.50% 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 and Algeria 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 Skarv Dvalin Snorre Mittelplate Völkersen Snøhvit Germany Norway Denmark West Nile Delta Algeria Disouq Gulf of Suez Reggane Nord Egypt DEA Assets Overview Summary Financial Information 6m 2017 Production by Geography 2P Reserves by Geography (2016) 2014A 2015A 2016A 6m 2016A (2) 6m 2017A (2) Production (kboe/d) Revenue (EURm) EBITDAX (EURm) (1) ,031 1,425 1, , Egypt 26% Norway 45% Germany / Denmark 29% North Africa 35% Germany / Denmark 20% Norway 45% Capex (EURm) m 2017 production 134 kboe/d 2P reserves: 667 mmboe (1) Incl. E.ON Norge and excl. UK (2) Represents L1E Finance GmbH & Co KG results Page 4

5 118 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 Page 5

6 Recent Highlights Production 137 kboe / d in Q % vs Q Production Costs $6.7 / boe in Q vs. $8.3 / boe in Q EBITDAX 275 million in Q % vs Q Financial $125m partial settlement of EGPC outstanding receivables Upgrade of S&P Issue Rating to BB- from B+; Moody s rating of Ba3 for both corporate family and senior unsecured notes assigned RBL available amount unchanged at $2,300m post re-calculation LTM Leverage 1.86x in Q vs 2.26x in Q Projects First exploration license in Mexico awarded Njord and Bauge PDO approved by the authorities West Nile Delta first gas achieved Page 6

7 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 7

8 DEA Credit Highlights

9 Key Credit Highlights World class asset base providing long term growth 1 8 Supportive Shareholder Producing Assets Concentrated in Low-Risk Countries Diversified Portfolio of Assets with Competitive Production Costs 2 7 Significant Liquidity and Financial Flexibility Significant Reserve Base Supporting Production Growth 3 6 Experienced Management Team 5 Proven Project Development Capabilities 4 Excellent QHSE Track Record Page 9

10 1 Producing Assets Concentrated in Low-risk Countries World class asset base providing long term growth with Developed Infrastructure Low country risk DEA s operations are mostly in low-risk OECD countries 90% of DEA s LTM June-17 revenues and 92% of EBITDAX came from AAA-rated countries Home base in Germany Largest oil producer in Germany Operator of the largest oil field in Germany, Mittelplate, and the largest gas field, Völkersen Established presence in Norway, one of the most resource-rich hydrocarbon basins in the last decade 40 years track record Participation in 6 of the 30 largest discoveries Further strengthened position through E.ON Norge acquisition Sanctions two new developments, Dvalin and Njord German Federal Government guarantee covers risks in North Africa Production (LTM June-2017) Revenue (LTM June-17) EBITDAX (LTM June-17) (1) Egypt 26% Germany/ Denmark 29% Norway 45% Egypt 10% Germany Germany/ / Denmark Denmark 29% 32% Norway 57% Egypt 8% Germany/ Denmark 32% Norway 60% (1) Excludes negative EBITDAX contribution from Egypt and Group Expenses Page 10

11 2 Diversified Asset Portfolio with Competitive and Declining Production Costs Broad asset diversification (2016 production) Average production costs evolution ($/boe) 9.1 Other 22% Skarv 22% Mittelplate 9% Snorre 9% Gulf of Suez 12% Völkersen 12% Disouq 14% H1 2016A H Group Production Costs Page 11

12 mmboe mmboe 3 Significant Reserve Base Supporting Production Growth Evolution of Reserves 2P Reserves Breakdown by Country North Africa 35% Germany / Denmark 20% Norway 45% P 2P High Potential Through Undeveloped Reserves (mmboe) Historical Evolution of 2P Reserves (mmboe) % % 80% % % 35 48% % 40% 20% % - 364mmboe designated to the RBL 56% - 375mmboe designated to the RBL 0 Germany/Denmark Norway Egypt/Algeria Total 2P 2PD 2PD/2P Ratio (1) >99% of reserves are audited by RPS 0% Production Acquisitions GoS ExtensionOrganic Growth 2016 Page 12

13 4 Proven Project Development Capabilities Location Development Type Schwedeneck See Offshore Gulf of Suez Offshore Mittelplate Transition zone Snorre A 1992 Offshore oil Völkersen Deep onshore gas Breitbrunn Njord Gas storage Offshore oil Kazakhstan Central oil/gas facilities Dieksand Extended reach drilling Dieksand 2000 Oil separation facilities Snorre B platform 2001 Offshore oil Schwedeneck See 2001 Decommissioning PL270 Agath 2002 Semisub exploration Mittelplate 2004 Rig, living quarter, pipeline Völkersen 2004 Central gas treatment plant Cavendish (1) Offshore gas development Libya Onshore exploration Skarv Snoevhit Offshore oil/gas LNG development Brammer 2008 Gas compressor station Breagh (1) Offshore gas Clipper South, Devenick (1) Offshore gas Disouq Onshore gas Knarr FPSO oil development Gjøa platform 2012 Oil/gas Reggane Onshore gas Alta 2014 Offshore oil West Nile Delta Offshore gas Dvalin Njord Redevelopment Offshore gas Offshore oil Völkersen West Nile Delta Breagh Mittelplate Gulf of Suez Clipper South (1) UK business was sold in 2015 Bold denotes operated assets Page 13

14 LTI [Number] 5 Excellent QHSE Track Record Quality, Health, Safety & Environmental (QHSE) is a top priority for DEA and compliance is reviewed regularly by both internal and external auditors QHSE Principles DEA incident statistics LTI LTIF LTIF BG LTIF [Number of LTI / 1 mio working hours] LTI = Lost Time Incident LTIF = Lost Time Incident Frequency BG = German Social Accident Insurance Institution Worldwide Management System Certificates: Currently for ISO (environment), ISO 9001 (quality), ISO 5001 (energy efficiency) OHSAS (occ. health & safety) since 2015 Additionally in Germany: ISO (Energy), Safety Management System of BG RCI German Social Accident Insurance Institution International standards implemented as mandatory for DEA: International Finance Corporation (IFC): Policy on Environmental and Social Sustainability (Performance Standards) Environmental, Health & Safety Guidelines ISO, DIN, BS OHSAS, NORSOK, IOGP, API, etc. where applicable Corporate Integrated Management System: The DEA Corporate Integrated Management System ensures that our QHSE policy is brought into practice in setting and following up objectives and targets by systematically analyzing our processes to strive for business excellence through the continuous improvement process Page 14

15 6 Experienced Management Team Thomas Rappuhn CEO Dmitry Avdeev CFO Johannes Johannes Karlisch Karlisch, Dr. CCO CCO (1) Dirk Warzecha COO 28 years of experience at Texaco/DEA CEO since 2010 Previous positions: COO Director of Domestic Gas/Oil Deputy Managing Director, DEA Norge Intern. experience: Norway, Netherlands, UK Studied Petroleum Engineering Until May 2016, Partner, Finance and Controlling at L1 Energy Previous Positions: CFO of Rosneft Co-Head of Russian Investment Banking at Morgan Stanley Intern. experience: Russia, UK, Germany Studied Mathematics 16 years of experience at RWE/DEA Previous Positions: CFO at DEA Deutsche Erdoel AG VP Group Executive Management at RWE AG Various senior leadership positions at STEAG AG Studied Mathematics, PhD (1) Chief Commercial Officer 13 years of experience at DEA Previous Positions: General Manager RWE DEA Egypt Manager of Production District Holstein REA DEA Various positions at Preussag Energie, e.g. Development Manager Tunisia Intern. experience: Egypt, Tunesia, Venezuela, Ecuador Studied Petroleum Engineering Manfred Böckmann Exploration Jone Hess Field Development Rene Pawel Geo Support Centre Christoph Schlichter DEA Brazil Hans-Hermann Andreae DEA Norge Thomas Kremski Strategy & Portfolio Management Andrea Pinarel M&A Uwe Balasus-Lange OpCo Germany/Denmark Thomas Radwitz DEA Egypt 19+ years with DEA SVP Exploration since 2014 Previous roles with DEA: Manager NV N. Africa General Manager NV Africa / LatAm International experience: Egypt Geophysicist 23+ years in E&P Former work experience: ExxonMobil and E.ON E&P covering engineering, operational, executive and executive board positions International experience: Australia, US, UK, Germany and Norway Petroleum Engineer 27 years with DEA Over 28 years in E&P Previous roles with DEA: SVP Production Europe MD DEA UK Head of Field Development Senior District Manager Mittelplate & Dieksand Production Manager Kazgermunai International experience: GER, UK, Kazakhstan Petroleum Engineer 15+ years with DEA 31+ years in E&P GM Brazil since 2017 Previous roles with DEA: GM Libya / Algeria SVP Production North Africa MD DEA UK Former work experience: Veba Oil AG, Shell International International experience: Oman, Netherlands, UK Petroleum Engineer 13+ years with DEA Over 35 years in E&P Previous roles with DEA: SVP Geo Support Centre GM JV Suez Oil Co and Dea Egypt branch Former work experience: Preussag Energy, Norsk Hydro, Texaco Germany International experience: Norway, Venezuela, Germany, Tunisia, Russia Petroleum Engineer 14+ years with DEA/in E&P SVP Strategy & PM since 2017 Previous roles with DEA: SVP BD/M&A VP Controlling & BD Head of Treasury Former work experience at Reemtsma: Head of Internal Audit Manager Corp. Finance Economist, PhD 15+ years of oil & gas experience Head of M&A at DEA since 2017 Previously Director at Bank of America Merrill Lynch (Energy M&A) Former banking and corporate experience at: - UBS Investment Bank (Energy M&A) - Eni SpA (Strategy & M&A) Insead MBA 23+ years with DEA Previous roles with DEA: SVP Field Development Senior District Manager Mittelplate & Dieksand Senior District Manager Gas Storages Head of Reservoir Engineering Egypt New Ventures International experience: Egypt, Germany Petroleum Engineer 16+ years with DEA 30+ years in E&P Previous roles with DEA: MD DEA UK Heading the business in Egypt, Libya and Turkmenistan Former work experience with Veba Oil AG: Petroleum Engineer in Golf of Mexico, USA Field Operations Manager, Libya Production Manager JV SUCO, Egypt Petroleum Engineer, PhD Page 15

16 7 Significant Liquidity and Financial Flexibility Leverage target range of x at the centre of all major decisions DEA s financial policy is to maintain net leverage (net debt / EBITDAX) below 2.0x in mid-cycle conditions Leverage Possible temporary increase up to 2.5x in the event of a major acquisition Simple two-tier capital structure in the form of a Reserve Based Lending (RBL) facility and Senior Unsecured Debt Capital Structure Target 70-80% utilization of RBL Two tier cap structure complimented with overdraft facility for temporary working capital needs Explore other sources of financing, such as ring-fenced project financing or other asset backed financings Business needs to be fully funded at all times at least on a 12-month forward basis, taking into account: Liquidity Conservative macro assumptions, planned investments and scheduled debt services Shortfall can be covered with working capital lines or further drawdowns on the RBL Page 16

17 8 Supportive Shareholder Long-term, strategic shareholder with depth of E&P experience L1 Energy part of L1 Holdings, a member of the LetterOne Group Ownership LetterOne is an international investment business which target investments in the energy, telecoms, technology, health and retail sectors, where it has world class expertise Founded in 2013 by Mikhail Fridman, German Khan, Alexey Kuzmichev, Petr Aven and several other shareholders Combined net assets of $22.2bn, including $9.3bn of liquidity Mandate Establish a safe and sustainably growing global oil and gas company Strategically deploy capital for further organic growth and bolt-on acquisitions Approach Invest in upstream with key focus on production and development Indifferent to oil and gas mix, subject to commerciality Page 17

18 Financial Results

19 DEA Group (1) Q Highlights 6m 2017 Q Production (2) (kboe/d) Realized oil price (3) ($/boe) Realized gas price (3) ($/mcf) Revenue ( m) Production costs ($/boe) Exploration costs ( m) (60) (49) EBITDAX (4) ( m) Net income ( m) Capex (5) ( m) Free cash flow (6) ( m) Net debt ( m) 1,605 1,605 Leverage 1.86x 1.86x (1) DEA Group consists of L1E Finance GmbH & Co. KG and its subsidiaries (2) Working interest production (3) Includes hedges and physical forward sales (4) 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 (5) Capex excludes financial asset capex and excludes capex from discontinued operations and acquisitions (6) Free cash flow comprises of cash flows from operating activities and from investing activities, but excludes cash flows from acquisitions Note: Certain numerical figures and percentages set out in this presentation have been subject to rounding adjustments Page 19

20 Production and Pricing Commentary Q production was 4% higher QoQ as West Nile Delta production start up outweighed natural decline in mature fields, temporary shut-in of a well in Skarv and planned maintenance of Snohvit Q share of gas production increased to 62% of total compared to 55% in Q mainly due to the contribution of West Nile Delta output Q realized oil price was 6% lower QoQ but 9% higher YoY, in line with Brent price development Q realized gas price was $4.4/mcf, 12% lower QoQ and 4% lower YoY mainly due to higher gas output in Egypt where fixed prices are lower than in Europe on average, as well as seasonally lower NBP and TTF prices QoQ Realized Oil Price ($/bbl) % oil: % gas: Production Profile (kboe/d) 44% 44% 45% 45% 43% 44% 38% 56% 56% 55% 55% 57% 56% 62% FY 2015 Q Q Q Q Q Q Norway North Africa Germany/Denmark 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 Page 20

21 Revenues and Profitability Commentary Q revenues largely in line YoY as lower production volumes were offset by higher oil prices Q EBITDAX was 41% higher YoY, due to reversal of impairments ( 62m) following partial settlement of overdue receivables from EGPC in May as well as continued cost savings Q production costs decreased by 19% to $6.7/boe YoY, mainly due to cost reduction measures, depreciation of the Egyptian Pound and the Euro. QoQ production costs increased mainly due to the Euro appreciation, but also due to certain one-off events such as workover in Dieksand and a temporary shut-in of a well in Skarv EBITDAX ( m) Gross Revenues ( m) m m 2017 Q Q Norway Germany/Denmark North Africa Average Production Costs ($/boe) % margin 51% 64% % 75% (20) (44) (10) (30) (21) (57) 6m m 2017 Q Q Norway North Africa Germany/Denmark Other (1) Incl. rest of the world, central functions and investment property (1) Q Q Note: Production costs include G&A allocation but exclude export and processing tariffs, finance items and R&D Page 21

22 Capital Expenditure Commentary Capex Breakdown ( m) Q2 and 6m 2017 capital expenditures increased 20% and 31% YoY respectively 388 Norway: expenditures increased mainly due to increased development activity in the newly sanctioned Dvalin and Njord fields. Both are in early development stages and progressing according to plan Germany/Denmark: expenditures remain low, as continuous drilling was ongoing only in Mittelplate, whilst drilling in Völkersen commenced just in June North Africa: 6m 2017 investments are stable YoY, as Reggane is nearing completion, while development of the three remaining WND fields is ramping up m m 2017 Q Q Norway North Africa Germany/Denmark (1) Other (1) Incl. rest of the world, central functions and investment property Page 22

23 Cash Position Development Cashflow Bridge ( m) 451 (387) Mainly Njord acquisition payment Mainly voluntary reduction of utilization under the RBL 64 (14) (47) Cash 01/01/17 Cash Flow from Operations Cash Flow from Investment Activities Free Cash Flow Cash Flow from M&A Cash Flow from Financing Cash 30/06/17 Page 23

24 Liquidity and Net Debt Source of Liquidity ( m) Net Debt ( m) ,015 (1) 107 2,415 2,459 1,315 (2) 1,736 1,605 1,605 (1) (1) (2) Senior Unsecured Notes RBL Overdraft Facility Cash Available Liquidity Senior Unsecured Notes RBL (drawn) Cash Net Debt 30/06/2017 (1) Nominal value (2) Balance sheet amount, net of amortized fees and including accrued interest FX rate used USD/EUR Page 24

25 Hedging Overview Oil (as of June 30 th, 2017) Gas (as of June 30 th, 2017) Volume (mmbbl) Volume (bcf) Hedged Volumes Price ($/boe) Price ($/mcf) (1) % of Target Hedging Volume 100% 100% 45% % of Target Hedging Volume >100% >100% 100% 18% (1) Calculated at the exchange rates applicable on June 30 th, 2017 Page 25

26 Appendix

27 Germany & Denmark Overview Stable cash flow contributors Stable cash flow contributors Highlights & Key Projects Germany: largest oil producer in the country (129 mmboe of 2P reserves (1) ) Mittelplate/Dieksand (50% WI) Germany s largest oil field, with over half of all remaining German recoverable oil reserves. Has been safely operated for almost 30 years by DEA. Continuous drilling enables steady production. Produces 12 kboe/d (2016) oil and holds 50 mmboe of 2P reserves Völkersen (100% WI) Germany s largest gas producing field and has been safely operated by DEA for 23 years. Produces 16 kboe/d (2016) mainly gas and holds 40 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 2014A 2015A 2016A 6m 2016A (2) 6m 2017A (2) Production (kboe/d) Current Portfolio / Key Fields Germany Denmark Oil & gas (6m 2017 production) Other Germany 30% 39 mmboe Gas 63% Oil 37% 2P Reserves (2016) Denmark 2% 3 mmboe Mittelplate 38% 50 mmboe Revenue (EURm) EBITDAX (EURm) Capex (EURm) Völkersen 30% 40 mmboe 132 mmboe (1) Includes <1% of unaudited reserves (2) L1E Finance GmbH & Co KG results Page 27

28 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 (300 mmboe of 2P reserves (1) ) Skarv (28.1% WI) - producing hub operated by BP started producing in 2013 (c.31 kboe/d in 2016), additional near-field development tie-ins like Snadd Snorre (8.57% WI) Norway s second largest oil field, operated by Statoil, further development concept (Snorre future) in selection process Dvalin (55% WI) first DEA-operated project in Norway. Sub-sea gas development with a tie-in to Heidrun platform, the PDO was submitted in October 2016 and acceded by 3 January 2017; approval of PDO occurred 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 2014A 2015A 2016A 6m 2016A (2) 6m 2017A (2) Current Portfolio / Key Fields Oil & Gas (6m 2017 Production) Snorre, 31 mmboe, 10% Gas 45% Oil 55% 2P Reserves (2016) Gjoa, 11 mmboe, 4% Snohvit, 21 mmboe, 7% Other, 8 mmboe, 3% Njord Area, 88 mmboe, 29% Production (kboe/d) Revenue (EURm) EBITDAX (EURm) Capex (EURm) Dvalin, 58 mmboe, 19% 300 mmboe Skarv/Snadd 83 mmboe, 28% (1) All reserve figures as per RPS report (2) L1E Finance GmbH & Co KG results Page 28

29 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 191 mmboe (1) ). Key assets include: Current Portfolio / Key Fields Oil & Gas (6m 2017 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), reaching over 700mmscf/d more than planned production rates for these fields further fields on stream (Giza, Fayoum and Raven). 2P reserves of 98 mmboe Gulf of Suez (100% WI): key assets include Ras Budran and Zeit Bay, extension right option exercised in 2017 Gas 79% Oil 21% Algeria (Reggane, 19.5% WI): six gas fields currently under development, production expected to commence at the end of 2017 Algeria 2P Reserves (2016) North African assets are covered by the Investment guarantees of the Federal Republic of Germany Key indicators 2014A 2015A 2016A 6m 2016A (2) 6m 2017A (2) Production (kboe/d) Revenue (EURm) EBITDAX (EURm) (27) (20) 78 Capex (EURm) Other 13% 25 mmboe Disouq 36% 68 mmboe West Nile Delta 51% 98 mmboe 191 mmboe (1) All reserve figures as per RPS report (2) L1E Finance GmbH & Co KG results Page 29

30 Balance Sheet P&L Reconciliation of Certain Line Items of L1E Finance to DEA AG Group ( m) DEA AG FY 2016 Adjustments L1E Finance FY Comments Revenue 1, ,460 Slightly lower oil hedges (one off), different accounting treatment of financial leases for gas storages Cost of Sales -1, ,261 Due to higher scheduled depreciation EBITDAX (1) Financial Income Interest income from Upstream loan eliminated in consolidation at L1E Finance level, no net fx gains Financial Expenses Shareholder loan interest, net fx losses Income Taxes Net Income Change in deferred taxes related to purchase price allocation and current taxes Differences in revenues, financial result, taxes and higher DDA related to purchase price allocation Free Cash Flow (2) Working capital effect Net Debt 1, ,765 RBL net of unamortized fees Other and Deferred Tax Liabilities ,129 Deferred tax liabilities from purchase price allocation adjustment PP&E, Intangible Assets 3,097 +1,859 4,956 Effects from purchase price allocation Financial Receivables 2,209-1, Loans to related parties, intercompany eliminations (1) 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 (2) Free cash flow comprises of cash flows from operating activities and from investing activities, but excludes cash flows from Acquisitions Note: Certain numerical figures and percentages set out in this presentation have been subject to rounding adjustments Page 30

31 L1E Finance Group Highlights 2016/2015 FY 2016 FY 2015 Production (1) (kboe/d) P Reserves (mmboe) Realized oil price (2) ($/boe) Realized gas price (2) ($/mcf) Revenue ( m) 1,460 1,094 Production costs (3) ($/boe) EBITDAX (4) ( m) Net Income ( m) ,107 Capex (5) ( m) Free Cash Flow (6) ( m) Net Debt ( m) 1,765 1,672 (1) Working interest production (2) Includes hedges and forward sales (3) Production costs include G&A allocation but exclude export and processing tariffs, finance items, CO ² tax and R&D (4) 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 (5) Capex excludes financial asset capex and acquisitions (6) Free cash flow comprises of cash flows from operating activities and from investing activities, but excludes cash flows from Acquisitions Note: Certain numerical figures and percentages set out in this presentation have been subject to rounding adjustments Page 31

32 DEA Asset Base Overview Field Operator Working Interest Oil/Gas Split 1PD (mmboe) 1P (mmboe) 2PD (mmboe) 2P (mmboe) 2016 Production (kboepd) Production Start Germany Mittelplate DEA AG 50% Oil Volkersen DEA AG 100% Gas Low Materiality Norway Gjøa ENGIE 8% Oil / Gas Snorre Statoil 8.57% Oil Snøhvit Statoil 2.81% Mostly gas Knarr BG 10% Mostly oil Skarv BP 28.1% Oil / Gas Njord Statoil 50% Oil / Gas Hyme Statoil 27.5% Oil / Gas Bauge Statoil 27.5% Oil Dvalin DEA 55% Gas Low Materiality Egypt Gulf of Suez SUCO 100% Oil / Gas Disouq DISOUCO 100% Gas West Nile Delta BP 17.25% Gas Denmark Other Total (1) Individual sums may not add up due to rounding (2) Reserves as of January 1 st, 2017 Page 32