Fourth Quarter 2019 25 February 2020 Disclaimer THIS PRESENTATION - PowerPoint PPT Presentation

Fourth Quarter 2019 25 February 2020

Disclaimer THIS PRESENTATION (THE “INFORMATION MATERIAL”) HAS BEEN PRODUCED AND PARTY SOURCES ARE SOLELY OPINIONS AND FORECASTS WHICH ARE SUBJECT DELIVERED BY NORWEGIAN ENERGY COMPANY ASA (THE “COMPANY”). THIS TO RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL INFORMATION MATERIAL DOES NOT CONSTITUTE AN OFFER, INVITATION OR EVENTS TO DIFFER MATERIALLY FROM ANY ANTICIPATED DEVELOPMENT. SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE OR SELL ANY SHARES IN THE NEITHER THE COMPANY NOR ANY OF ITS SUBSIDIARY UNDERTAKINGS OR ANY COMPANY. SUCH PERSON’S AFFILIATES, OFFICERS OR EMPLOYEES PROVIDES ANY ASSURANCE THAT THE ASSUMPTIONS UNDERLYING SUCH FORWARD-LOOKING THE COMPANY DOES NOT MAKE ANY UNDERTAKING, REPRESENTATION OR STATEMENTS ARE FREE FROM ERRORS, NOR DOES ANY OF THEM ACCEPT ANY WARRANTY (EXPRESS OR IMPLIED) AS TO THE ACCURACY OR COMPLETENESS RESPONSIBILITY FOR THE FUTURE ACCURACY OF THE OPINIONS EXPRESSED IN OF THE INFORMATION (WHETHER WRITTEN OR ORAL AND WHETHER INCLUDED THIS INFORMATION MATERIAL OR THE ACTUAL OCCURRENCE OF THE IN THIS INFORMATION MATERIAL OR ELSEWHERE) CONCERNING THE COMPANY FORECASTED DEVELOPMENTS. THE COMPANY ASSUME NO OBLIGATION TO OR OTHER MATTERS DESCRIBED HEREIN. NEITHER THE COMPANY NOR ANY OF UPDATE ANY FORWARD-LOOKING STATEMENTS OR TO CONFIRM THESE ITS PARENT OR SUBSIDIARY UNDERTAKINGS OR ANY SUCH PERSON’S FORWARD-LOOKING STATEMENTS TO OUR ACTUAL RESULTS. AFFILIATES, OFFICERS, EMPLOYEES OR ADVISERS ACCEPT ANY LIABILITY WHATSOEVER ARISING DIRECTLY OR INDIRECTLY FROM THE USE OF THIS BY ATTENDING OR RECEIVING THIS INFORMATION MATERIAL YOU INFORMATION MATERIAL OR OTHERWISE IN CONNECTION WITH THE MATTERS ACKNOWLEDGE THAT YOU WILL BE RESPONSIBLE FOR YOUR OWN ASSESSMENT DESCRIBED HEREIN. OF THE MARKET AND THE MARKET POSITION OF THE COMPANY AND THAT YOU WILL CONDUCT YOUR OWN ANALYSIS AND BE SOLELY RESPONSIBLE FOR THE DISTRIBUTION OF THIS INFORMATION MATERIAL IN CERTAIN JURISDICTIONS FORMING YOUR OWN VIEW OF THE POTENTIAL FUTURE PERFORMANCE OF THE IS RESTRICTED BY LAW. THIS INFORMATION MATERIAL IS NOT FOR DISTRIBUTION COMPANY’S BUSINESS AND A POTENTIAL INVESTMENT IN THE COMPANY. OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. THE CONTENTS OF THIS INFORMATION MATERIAL ARE NOT TO BE CONSTRUED AS FINANCIAL, LEGAL, BUSINESS, INVESTMENT, TAX OR OTHER PROFESSIONAL THIS INFORMATION MATERIAL MAY CONTAIN CERTAIN FORWARD-LOOKING ADVICE. THIS INFORMATION MATERIAL SPEAKS AS OF 17 OCTOBER 2018. STATEMENTS RELATING TO THE BUSINESS, FINANCIAL PERFORMANCE AND NEITHER THE DELIVERY OF THIS INFORMATION MATERIAL NOR ANY FURTHER RESULTS OF THE COMPANY AND/OR THE INDUSTRY IN WHICH IT OPERATES. DISCUSSIONS OF THE COMPANY WITH ANY OF THE RECIPIENTS SHALL, UNDER FORWARD-LOOKING STATEMENTS CONCERN FUTURE CIRCUMSTANCES AND ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO RESULTS AND OTHER STATEMENTS THAT ARE NOT HISTORICAL FACTS, CHANGE IN THE AFFAIRS OF THE COMPANY SINCE SUCH DATE. SOMETIMES IDENTIFIED BY THE WORDS “BELIEVES”, EXPECTS”, “PREDICTS”, “INTENDS”, “PROJECTS”, “PLANS”, “ESTIMATES”, “AIMS”, “FORESEES”, THIS INFORMATION MATERIAL IS SUBJECT TO NORWEGIAN LAW, AND ANY “ANTICIPATES”, “TARGETS”, AND SIMILAR EXPRESSIONS. THE FORWARD- DISPUTE ARISING IN RESPECT OF THIS INFORMATION MATERIAL IS SUBJECT TO LOOKING STATEMENTS CONTAINED IN THIS INFORMATION MATERIAL, INCLUDING THE EXCLUSIVE JURISDICTION OF NORWEGIAN COURTS WITH OSLO DISTRICT ASSUMPTIONS, OPINIONS AND VIEWS OF THE COMPANY OR CITED FROM THIRD COURT AS EXCLUSIVE LEGAL VENUE 2

Important Information AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS. SHOULD ONE PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD STATEMENTS AND INFORMATION IN THIS INVESTOR PRESENTATION, INCLUDING, UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY’S MATERIALLY FROM THOSE DESCRIBED IN THIS INVESTOR PRESENTATION. THE BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS INVESTOR GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN PRESENTATION. 3

Highlights for the Quarter  Successfully completed a USD 175 million senior unsecured bond issue - strong international interest and significantly oversubscribed Average Adjusted Production EBITDA 1 31.7 116  Improvement of the terms of its RBL facility, providing the Company with additional financial flexibility mboepd USD million  Net production of 31.7 mboepd in the quarter – in line with Company guiding Operating Net Profit Cash Flow x  Cash flow from operations of USD 87 million 87 44  Several planned workover activities and USD million USD million maintenance campaigns successfully executed on Dan, Gorm and Halfdan, bringing Gorm to a 96.8% operating efficiency in December.  “Safe state” reached for Tyra in January 2020, with fabrications related to the redevelopment project progressing according to plan and budget .1) Adjusted EBITDA, please see Q4 report 4

Operational Review

Production Delivered in Line with Guidance  Net production of 31.7 mboepd 1 delivered in line with guidance. Production mboepd (net) 1  Tyra shut-in as per plan since mid September 20 18,6 18,4  Several planned maintenance campaigns successfully executed  Continous workover and well intervention activity to unlock barrels, 15 optimize production and to maintain water injection capacity  Gorm operating efficiency of 96.8% in December following planned maintenance campaign in November 9,4 10 8,6 7,8 6,0 4,6 5 75% Liquids Liquids <0,1 <0,1 25% Gas Gas 0 Halfdan Dan Tyra Gorm Halfdan Dan Tyra Gorm Halfdan Dan Tyra Gorm Halfdan Dan Tyra Gorm Q1 2019 Q2 2019 Q3 2019 Q4 2019 1) Production figures reflect the contribution from the acquired DUC assets from 1 August 2019. Figures do not take into account the volume guarantee 6

Halfdan, Dan & Gorm Contributing to Stable Production Halfdan  Average hub production of 18.6 mboepd  Stimulation of key wells securing barrels  Water injection system temporarily suspended as part of a planned shutdown on Dan – successfully put back in operation Dan  Average hub production 8.6 mboepd Halfdan  Planned maintenance executed including compressor repair Gorm  Workover activities and well services according to plan, and wells successfully put back on stream Gorm  Average hub production 4.6 mboepd Dan  Comprehensive maintenance campaign completed in November, including wellheads, pipeline pigging, and water injection system Other D DUC fie ield lds repair. Half lfdan, D Dan & Go Gorm h hub  Operating efficiency of 96.8% in December Half lfdan, D Dan & Go Gorm s satellit llites

Tyra – Progressing Towards First Gas  Fabrication of the two jackets nearly completed at Dragados’ yard in Spain, sail away and installation in Q2 2020  Tyra «safe state» reached in January 2020.  Fabrication of new wellhead and riser modules subcontracted to Sembcorp progressing as planned (delivery 2021)  Fabrication of accommodation module in Ravenna progressing as planned (delivery 2021)  Fabrication of processing module in Batam progressing (delivery 2021) Photo: Total E&P Denmark A/S  Decommissioning of processing platforms during summer 2020 Removal of TYE and TYW topsides & installation of jackets Installation of topsides First gas FID 2017 2018 2019 2020 2021 2022

Maturing Resources to Reserves 1 several projects expected to add reserves in the near term 70 mmboe  Halfdan Project 130+  Project B – Oil Development mmboe  Project C – Gas Development ~3.8 bn boe Current 2P  Updated 2P figures to be 2 195 published together with annual report in April mmboe 395+ Contingent Current 2P Not yet classified mmboe 1) Company estimates 9 2) Independent estimate from Senergy (Lloyd’s Register) per YE2018