2018 RESULTS 3 April 2019
General & Disclaimer Except as the context otherwise indicates, “Neptune” or “Neptune Energy”, “Group”, “we,” “us,” and “our,” refers to the group of companies comprising Neptune Energy Group Midco Limited (the Company) and its consolidated subsidiaries and equity accounted investments. “EPI” refers to the business of ENGIE E&P International S .A. (now renamed Neptune Energy International S.A.) and its direct or indirect subsidiaries. This presentation includes the results of the acquired EPI business consolidated since 15 February 2018, which is the acquisition date as that is when Neptune acquired control over EPI. Equivalent data for Neptune for the corresponding reporting period ended 31 December 2017, starting when the Company was incorporated on 22 March 2017, are generally not informative, as the Company had minimal activity at the time, principally comprising only minor administration expenses. Therefore, in respect of certain measures, including production, EBITDAX and capital expenditure, we have provided additional approximate pro forma information relating to the acquired EPI business, to enable a comparison of the results for the full 12 months ended 31 December 2018 (including the period prior to our acquisition on 15 February) with those for the 12 months ended 31 December 2017. In this presentation, unless otherwise indicated, our production, reserves and resources figures are presented on a basis including our ownership share of volumes of companies that we account for under the equity accounting method, in particular, for the interest held in the Touat project in Algeria through a joint venture company. The discussion in this presentation includes forward looking statements which, although based on assumptions that we consider reasonable, are subject to risks and uncertainties which could cause actual events or conditions to materially differ from those expressed or implied by the forward looking statements. While these forward-looking statements are based on our internal expectations, estimates, projections, assumptions and beliefs as at the date of such statements or information, including, among other things, assumptions with respect to production, future capital expenditures and cash flow, we caution you that the assumptions used in the preparation of such information may prove to be incorrect and no assurance can be given that our expectations, or the assumptions underlying these expectations, will prove to be correct. Any forward-looking statements that we make in this presentation speak only as of the date of such statement or the date of this presentation. Unless otherwise indicated, all production figures are presented on a net entitlement basis. Where gross amounts are indicated, they are presented on a total basis — i.e., the actual interest of the relevant license holder in the relevant fields and license areas without deduction for the economic interest of our commercial partners, taxes or royalty interests or otherwise. This presentation presents certain production and reserves related information on an “equivalency” basis. Our conversion of oil and gas data into barrels of oil equivalent may differ from that data used by other companies. This presentation contains non-GAAP and non-IFRS measures and ratios that are not required by, or presented in accordance with, any generally accepted accounting principles (“GAAP”) or IFRS. These non-IFRS and non-GAAP 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 GAAP. Non-IFRS and non-GAAP measures and ratios are not measurements of our performance or liquidity under IFRS or GAAP and should not be considered as alternatives to operating profit or profit from continuing operations or any other performance measures derived in accordance with IFRS or GAAP or as alternatives to cash flow from operating, investing or financing activities. 2
Introduction Sam Laidlaw – Executive Chairman 3
Understanding our results This presentation includes the results of Neptune Energy from 15 February 2018 to 31 December 2018. This reflects the period from when Neptune acquired control over EPI. From 28 th September 2018, the results of VNG Norge are also consolidated. In respect of certain measures, including production, EBITDAX, capex and realised prices, we have provided additional approximate pro forma information relating to the acquired EPI business. This enables a comparison of the results for the full 12 months ended 31 December 2018 with those for the 12 months ended 31 December 2017. Results from VNG Norge are included in the pro forma information from 28 th September 2018. 4
Strong financial and operating results for 2018 Demonstrating track record Opex (6) HSE Production EBITDAX 2P reserves +3% (1) +38% (5) - 2.27 -3% +15% TRIR (8) 2.60 159 kboepd (1) $10.2/boe (3) $2,056m (1) 638 mmboe (7) 2017 (2) 2017 (1) 2017 (1) 2017 (1) 2017 (4) 4.87 154 kboepd $1,485m $10.5/boe 555 mmboe 1. 12 month pro forma 6. Opex includes royalties 2. 12 month rolling average as of January 2018 7. Proven and probable reserves as at 31 December 2018 3. Relates to the post acquisition period only, from 15 February 2018 to 31 December 2018 8. Total Recordable Injury Rate (TRIR) is defined as the number of recordable injuries per 1 million hours worked. It is calculated on a 12 month rolling average as follows: TRIR = (fatalities + lost work day cases + restricted work day case + medical treatment cases) 4. Engie E&P estimate as at 31 December 2017 x 1,000,000 5. Calculated on a pro forma basis 𝑂𝑣𝑛𝑐𝑓𝑠 𝑝𝑔 ℎ𝑝𝑣𝑠𝑡 𝑥𝑝𝑠𝑙𝑓𝑒 5
Focused on organic growth and project delivery in 2019 Significant investment in growth Increased Project 2P Reserves Investment Progress Growth Investment to increase across the Touat commissioning underway, 2P reserves increased by 15% to portfolio in 2019; Development capex first gas out by end of H1 2019 638mmboe of c.$700 million Duva/Gjøa P1 and Seagull projects Production replacement ratio of 244% Disciplined approach to capital sanctioned since year end; both on Organic growth of 79mmboe allocation stream by 2021 achieved through positive operational Seven exploration wells planned Development projects progressing progress in the UK and Norway on target – five key projects due to Organic and inorganic growth VNG and Seagull acquisitions added start up between 2019 and 2021 opportunities continuously being 59mmboe >90 kboepd of net working interest evaluated production now in development 6
Operations Update Jim House - CEO 7
Production performance improving Strong operatorship capabilities Efficiency improving at key assets Pro forma production waterfall kboepd 100% 100% Neptune 2018: 88% 90% 90% 80% 80% Neptune 2017: 81% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 2017 2018 2017 2018 2017 2018 2017 2018 Norway Netherlands UK Germany 52% of net Net operated Neptune average production of 159.1 kboepd in 2018, up 3.1% YoY on a production is operated production by country pro forma basis Full year of production from Jangkrik added 13.4 kboepd 2018A: 159kboepd (1) 2018A: 83kboepd (1) Strong performance from key assets in Norway mitigated natural declines Germany Natural declines in the Netherlands reflect low past investment Norway 11% 37% Production guidance of 155-160 kboepd for the full year 2019; ending the year at Non-operated a higher rate Operated 48% 52% Netherlands 34% UK 1. Pro forma production for the 12 months to 31 December 2018 19% 8
Geographical diversity at scale EUROPE NORTH AFRICA ASIA PACIFIC Norway Algeria Egypt Indonesia United Kingdom Netherlands Australia Germany 9
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