Equinor Asa · OSL:EQNR
Equinor Asa — Investor Day (February 2019)
23 slides from Equinor Asa's investor day presentation, Feb 6, 2019
Slide 1: Capital markets update
e acy equinor Capital markets update February 06, 2019 London, United Kingdom
Slide 2: Forward-looking statement
Forward-looking statement This presentation contains certain forwarctlooking statements that involve risks and uncertainties. In some cases, we use words such as “ambition’. ‘continue’, ‘could’, ‘estimate’, ‘expect’ "believe", focus’, "ikely’, ‘may’, ‘outlook’, ‘plan’, ‘strategy’. “will. "guidance"
Slide 3: Capturing value
mil vf BE==! i222 2 %e tt equinor Capturing value Lars Christian Bacher Chief Financial Officer
Slide 4: Solid adjusted earnings in 4Q'18
equinor *: 2018 Solid adjusted earnings in 4Q‘18 E&P Norway E&P International MMP. * Strong results from LNG and crude trading + Weak results from refining Adjusted Group? earnings + Higher commodity prices + Record production * Solid operational + High adjusted earnings performance + Increased expl
Slide 5: Strong financial results and deliveries
2018 Strong financial results and deliveries Adjusted earnings 18.0 bn USD Organic free cash flow 6.5 bn USD After dividend, excluding considerations from closed transactions and signature bonuses Net operating income 20.1 bn USD Net debt ratio 22.2 Percent Production growth Organic capex RoACE Expl
Slide 6: All-time high production
equinor’* 2018 All-time high production * Production growth as promised - New wells coming on stream - Start-up of 8 fields - Underlying production growth of 2.1% Equity volume kboe per day 2134 2170 2080 2111 1152 1139 4Q 2017 4Q 2018 FY 2017 FY 2018 B Liquids Gas
Slide 7: Strong cash generation
2018 Strong cash generation Strong cash flow from operations Organic capex USD 9.9 billion Value-adding transactions Net debt ratio reduced from 29.0% to 22.2% Continued strict capital discipline USD million Cash flow from operating activities Taxes paid 27615 (9010) Dividends paid __Q672) Cash flow
Slide 8: Simplification, standardisation and digitalisation
Simplification, standardisation and digitalisation Peer leading unit production cost Equinor Source: IHS Markit USD/boe, 3-year weighted average. Field of the future - facility capex reduction ~30 Percent New concept compared to conventional facility Unit production cost 2020 aon Level USD per boe E
Slide 9: Consistent value creation
Consistent value creation First quartile corporate RoOACE Equinor ¢:Borclays:~ ROACE Rolling 12-month at end of 3G Leading TSR last five years Equinor Source: FactSet. As of 31 December 2018. TSR: Total Shareholder Return In USD. Peers include: Anadarko, Eni, BP, Shell, ConocoPhillips, Repsol, Chevr
Slide 10: Continuing to add high value barrels
2018 Continuing to add high value barrels bn boe 19 (0.8) a ca — (1) | GI) Non-sanctioned 3 Unconventional Producing, sanctioned & IOR 7? — (0.0) 2017 Production _Divestments __ Discoveries, 2018 Acquisitions, Revisions ™Provedreserves(SEC) m™ Reserves and resources Reserve replacement ratio (RRR) 2
Slide 11: Strong cash flow and production growth
2018-2025 Strong cash flow and production growth Equity production kboe per day ~3% CAGR! 2500 Around f same level | on 2017 2018 2019 2021 2025 ™Norway International conventional US onshore 1. Compound Annual Growth Rate adjusted for portfolio measures Strong cash flow from operations? bn USD. 2019
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Slide 13: Non-sanctioned portfolio continues to improve
2019 Non-sanctioned' portfolio continues to improve Increased value since CMU 2017 Break-even Break-even 2017 USD per bbl — 2018 7 4 O —2019 > < rT 00 bn USD USD per bbl Based on USD 70 per bbl. Volume weighted, 80 60 40 Internal rate of return Resources a ro > ~ 20 F . Percent bn boe - Volume weigh
Slide 14: Growing returns, increasing dividend and strengthening balance sheet
2019-2021 Growing returns, increasing dividend and strengthening balance sheet Improving ROACE Strengthening balance sheet 2* World class portfolio enhances returns Long term net debt ambition 15-30% 14% 30% 25% 12% 20% 15% 9% 10% 5% 70 USD/bbI . 0% 2017 2018 2021 2017 2018 2021 1. Based on USD 70 p
Slide 15: Guidance & outlook
equinor *° 2019 ee | | Guidance & outlook a = Px, Outlook 2019 = Organic capex ~l11 bn USD! = 2018-2019 Around same level = Production growth Mm \ 2019-2025 ~ S Percent? Exploration ~l 7 bn USD! 1 Based on USD/NOK exchange rate of 8.25. 2. Compound Annual Growth Rate. 15 | by Lars Christian Bacher,
Slide 16: Highlights
Highlights Growing cash flow and returns * RoACE >14% in 2021 * Free cash flow USD ~14 bn in 2019-21 * Organic free cash flow positive below USD 50 per bbl in 2019-21 Investing in high value projects * Break-even of USD ~30 per bbl for projects coming on stream + Average organic capex USD ~11 bn in
Slide 17: Supplementary information
Supplementary information
Slide 18: Long term debt maturity profile
equinor ** Long term debt maturity profile USD millions 3000 2500 2000 1500 link. bh! 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 mEUR ™GBP NOK =USD 18 |
Slide 19: Sensitivities - indicative effects on 2019 results
equinor 2019 Sensitivities! - indicative effects on 2019 results Oil/Condensate price: +10 USD/bbl Gas price: + 1,5 USD/mmBTU Currency: USD/NOK +050 "Net income effect = Net operating income effect 1. Based on USD/NOK of 8.25. 191 Open 06 February 2019
Slide 20: Investing for profitable growth
2019-2020 Investing for profitable growth + ~60% on the NCS + ~65% in operated assets + ~50% in new assets + ~90% in upstream 100% 80% 60% 40% 20% 0% Rest of the world Upstream by region MMP and other Non-operated Operated Operatorship equinor ** New assets US onshore and exploration Producing asset
Slide 21: IFRS 16 - Impact for Equinor
IFRS 16 - Impact for Equinor?! Impact of implementing IFRS 16 Leases to be reflected in the Other segment Net debt Nw nw ~4 bn Balance sheet effects Allleases, excluding short term leases and non- lease components, to be recognised on the balance sheet from 11.2019 Leases mainly related to driling r
Slide 22: Investor Relations in Equinor
equinor ** Investor Relations in Equinor E-mail: [email protected] Investor Relations Europe Peter Hutton Senior Vice President [email protected] +44 7881 918792 Lars Valdresbraten IR Officer [email protected] +47 40 281789 Erik Gonder IR Officer [email protected] +47 99 56 26 11 Ida Marie Fjellheim
Slide 23: Capital markets update
equinor Capital markets update February 06, 2019 © Equinor ASA This presentation, incading the contents and crrangement ofthe contents of each ncvual page or the colecton ofthe pages is ned by Equnor. Copyright to oll material ncucng, but nt iit to, writen material photographs drawings. mages, table