Second Quarter 2020 Oslo, 21 August 2020
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Highlights for the Quarter ✓ • Successful execution of the Tyra 2020 Offshore Decommissioning Campaign Tyra Decommissioning 96 • Net result of USD 20m Adjusted EBITDA 1 USDm Strong Operating 78 • Strong liquidity position with a cash balance of USD 227m Cash Flow USDm • Completion of RBL redetermination – Significant increase in borrowing base Increase in RBL 188 borrowing base • Undrawn borrowing capacity available under the RBL supports liquidity USDm 27.9 • Production consistently in line with quarterly guidance Reliable production mboepd ✓ • Appointment of David B. Cook as Chief Executive Officer New Chief Executive Officer 1) Adjusted EBITDA, please see Q2 2020 report 4
Operational Review
Production consistently delivered in line with guidance - Stable cash generative production throughout the Tyra Redevelopment period Production mboepd (net) 1 41.6 Guiding 31.7 31.9 27-29 27.9 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Production Tyra Actual vs Guidance mboepd (net) 1 ✓ ✓ ✓ Actual 31,7 31,9 27,9 Guiding 31-33 31-33 27-29 27-29 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Guiding Range Actual 6 1) figures do not take into account the volume guarantee
Halfdan, Dan & Gorm Maintaining Stable Production Since mid-March, COVID-19 actions and precautions were put in place to Production by Hub 1 safeguard people's health and maintain production, whereas non-critical activities were put on hold or re-scheduled. 4,2 Halfdan 27.9 Dan With these precautions in place, outcomes were still strong: 7,5 16,2 Gorm ▪ Production delivered in line with guidance ▪ Overall operating efficiency at 81% for the quarter Operating Efficiency ▪ Successful execution of a five-day full-field shutdown for repair of the Gorm E oil export facility 81% Efficiency ▪ COVID-19 measures to protect people and ensure business continuity continued throughout the period Split by Product 24% Liquids 76% Liquids Outlook for Q3 24% Gas Gas ▪ COVID-19 measures continuing 76% ▪ Production guidance maintained at 27-29 mboepd (net) 1) mboepd 7
Tyra Redevelopment Milestone - Successful Decommissioning Campaign ▪ Safe execution of Offshore Decommissioning Campaign according to plan ▪ Wellhead and riser platforms removed with world’s largest crane vessel, Sleipnir ▪ Tyra East and Tyra West production platform topsides removed by Pioneering Spirit in August ▪ The Tyra Redevelopment project continues underway towards first gas in 2022 Outlook for Q3 ▪ Installation of the two new jackets for the accommodation and process platforms to complete the 2020 Offshore Campaign ✓ ✓ Removal of TYE and • Sail-away topsides • TYW topsides Installation of • • Installation of jackets topsides First gas FID 2017 2018 2019 2020 2021 2022 8
More than 95 percent of Tyra topsides to be recycled - Safety and Sustainability at the core of the Tyra Redevelopment project ▪ Advanced technology and engineering enabled platform topsides removal in one single lift, improving offshore safety ▪ Dismantling work onshore – easier and safer than offshore ▪ Tyra East and Tyra West topsides delivered at recycling yard M.A.R.S. (Modern American Recycling Services) in Frederikshavn ▪ More than 95 percent of the topsides are expected to be recycled Photo: Tyra East in Frederikshavn ▪ The recycling of Tyra East and Tyra West topsides is to date the largest offshore recycling project carried out in Denmark 9
Financial Review
Financial Summary: Q2 2020 Stable financial performance despite significantly lower oil prices during the period ▪ Robust financial performance during Q2 2020 Hydrocarbon Production 27.9 mboe/d ▪ Price and volume hedging give strong risk mitigation Total Revenue (1,2) USD 135 million – Oil realisations significantly above market Realised Liquids Price (1) – Material price hedging in place to the end of 2022 USD 66.5 per bbl ▪ DUC adapting to current commodity price levels Unit Field Opex Reported EBITDA USD 22.9 per boe USD 69 million ▪ No asset impairments necessary – Demonstrates remaining value of the DUC portfolio Liquids Protection Contribution Adjusted EBITDA (3) USD 24 million USD 96 million ▪ Liquidity position remains robust – Cash and cash equivalents: USD 227 million Cashflow from Operations Cash & Cash Equivalents – No debt maturities until post Tyra project completion USD 73 million USD 227 million 1) Includes other income attributable to accrued revenue related to the hedge impact of volumes lifted during the period 11 2) Excludes contribution from liquids protection agreement, which is recognized as a purchase price adjustment 3) Adjusted to include contribution from claims under the volume guarantee in the period and exclude exceptional costs (e.g. transaction, share-based payments)
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