Neptune Energy H1 2018 Results Investor Call 6 th September 2018 - PowerPoint PPT Presentation

Neptune Energy – H1 2018 Results Investor Call – 6 th September 2018

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 30 June 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 six months ended 30 June 2018 (including the period prior to our acquisition on 15 February) with those for the six months ended 30 June 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

Outline Sam Laidlaw – Executive Chairman Introduction Highlights Jim House – CEO Operations Jim House – CEO Finance Peter Thomas – CFO Portfolio & Summary Sam Laidlaw – Executive Chairman 3

Introduction Strong start to 2018 Steady improvements Safety First half production above pre-closing expectations Production Strong cash flow generation; $487 mm pre-EPI acquisition costs Cash Flow Sustainable Development projects proceeding; announced two ‘bolt - on’ transactions Growth Organisation Significant capacity build and Systems 4

Highlights Consolidated results since acquisition of EPI on 15th Feb 2018  HSSE culture and performance improving  Strong production performance, averaging 165.6 kboepd production (1) Operations  Progressed developments across portfolio and successfully appraised Sigrun in Norway  Strengthened business through key senior management appointments and improved processes  $0.74 bn EBITDAX for period to 30 June 2018 and $0.94 bn for full H1 2018 (2) $598 mm operating cash flow (post-tax) (3) and operating costs of $10.0 /boe vs. $10.5 /boe in 2017  Finance  Successful inaugural $550 mm bond issue and long term issuer credit ratings of BB- and Ba3  0.65x net debt to EBITDAX (4)  VNG Norge – agreement to acquire oil-weighted assets with operated growth and synergies in Norway  Seagull & Isabella – agreement to acquire low-cost, near-term development and high impact exploration in UK Portfolio &  Full year production in line with previous guidance Summary  H2 focus on operational efficiency, further strengthening the organisation, cost reductions, integration of VNG and driving forward our developments 1. 1. For the post-acquisition period, 15 February 2018 to 30 June 2018, calculated over 2. Pro forma for EPI acquisition, compared with $709 mm for the first 6 months of 2017 136 days in order to provide data comparable with other periods. Production for the 3. Adjusted for EPI acquisition-related expenses six months to 30 June 2018 for EPI was 166.1 kboepd 4. 12 month pro forma EBITDAX 5

Operations Jim House - CEO 6

Production Strong performance since EPI acquisition closed +8% 180 166.1 (1) 165.6 (2) 7.6 +34% +37% +35% 7.5 69. 69. 7.3 153.1 160 7.1 9 4 24.5 24.7 Outside Europe 7.2 45.8 44.7 Liquids (3) 140 Germany 13.3 13.0 13.0 49.3 5.6 51. 18.8 UK 120 20.1 5.2 20.6 3 33.5 LNG 33.5 100 Netherlands 12.2 33.6 29.8 30.1 80 60 91.6 Gas 87.4 86.8 Norway 40 80.2 78.7 77.2 20 0 1 2 3 4 5 6 7 8 H1 H1 Feb - H1 H1 Feb - H1 H1 Feb - 2017 H1 2018 H1 15 Feb – 30 June 2017 2018 Jun '18 2017 2018 Jun '18 2017 2018 Jun '18 Production Production Production Realised Gas Realised LNG Realised Oil (kboepd) (kboepd) (kboepd) Price ($/mmbtu) Price ($/mmbtu) Price ($/bbl) (4) 1. Production for the six months to 30 June 2018 pro forma for EPI from 01 Jan 2018 2. Production for this period relates to the post acquisition period only, from 15 February 2018 to 30 June 2018. Average daily production is therefore calculated over 136 days, in order to provide data comparable with other periods. Production of Neptune for 2017 was nil 3. Liquids include oil, condensate and other natural gas liquids Realised other liquids (excluding oil) price of $45.4/bbl in H1 2017, $43.9/bbl in H1 2018 and $43.7/bbl in 15 Feb – 30 June 2018 4. 7

Capital Programme Targeted and disciplined capital deployment L5a-D Sierra Njord Touat Status: Onstream Status: 43.6% complete Status: 90% complete H1 2018 prod: 3.2 kboepd Onstream 2020, prod: 20.9 kboepd (1) Onstream H1 2019, prod: 13.9 kboepd (1) H1 ‘18 Sanctioned Infills H1 ‘18 Exploration Cara & P1 Snohvit – Askeladd development  $36.5 mm E&A expenditure (2)  3 wells + option for four future wells  2 small commercial discoveries in Dutch  Onstream 2020, ~34 mmscf/d at peak (1) sector  Maintains Snohvit production plateau  Successful Sigrun appraisal in Norway  Awarded four licences in Norway Fram – 3 wells   Onstream 2019-2021 2 preliminary licence awards in UK Status: FID expected early 2019  ~1.5 kboepd net per well (1)  Acquired $10.6 mm of seismic across Onstream 2021, prod: 9.6 kboepd (1)  Accelerates production from field new acreage 1. Peak full year net production to Neptune 2. H1 2018 of which $13 mm was exploration capex and $10.6 mm incurred on acquisition of new seismic data in areas where we have recently been awarded new licences and to refresh and revitalise our data library in support of new venture activity 8