Differential capabilities Deliver to deliver portfolio value De-lever Grow 2019 Capital Markets Day
Differential capabilities to deliver portfolio value Contents EnQuest at a glance - Operator of choice for maturing hydrocarbon assets Amjad Bseisu Chief Executive Investment proposition - Proven track record, improving balance sheet and differential capabilities to create value Bob Davenport Value creation Managing Director – North Sea - Portfolio opportunities Financial performance - Portfolio performance, cash flow generation and capital discipline driving down debt Jonathan Swinney Chief Financial Officer Concluding remarks 2 EnQuest PLC Capital Markets Day 2019
EnQuest at a glance
Operator of choice for maturing hydrocarbon assets Production breakdown 1 Production CAGR expected to be c.17% since IPO 80,000 Malaysia 8.4 kboepd 12% 60,000 40,000 20,000 UK 60.1 kboepd 88% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2 Actual/forecast Guidance range Sullom Voe Terminal 8 offshore hubs (14 fields in UK; 8 in Malaysia) Heather/ Thistle/ The Dons Kraken Broom Deveron Greater PM8/ Alma/ Kittiwake Magnus Seligi Galia Area 1 Year to date October 2019 2 2019 guidance range of 63,000 to 70,000 Boepd 4 EnQuest PLC Capital Markets Day 2019
Safety is at the heart of our performance EnQuest LTIF 1 Safe Results through continuous improvement 0.8 Lost Time Incident performance remains strong 0.7 across all assets 0.6 Proactive safety driven shutdowns carried out at Thistle and Heather 0.5 - Plans to return to safe operations in 0.4 the first half of 2020 0.3 - Heather: compressor repairs - Thistle: removal of redundant COS tanks; accelerated 0.2 partner-funded decommissioning programme 0.1 0 2015 2016 2017 2018 1 Lost Time Injury Frequency per million exposure hours 5 EnQuest PLC Capital Markets Day 2019
Focused on emissions Regulation EnQuest actions - 80% reduction planned at SVT UK - Invested in gas supply for power at Thistle and Northern - EU Emissions Trading System Producer installations - Flaring limits - Invested in tri-fuel generator at Kraken Malaysia - Flaring limits - Flaring c.45% below regulatory limits Aligning disclosure 6 EnQuest PLC Capital Markets Day 2019
Investment Proven track record proposition Improving strategic position Differential capability Significant value creation opportunities Tax advantage 7 EnQuest PLC Capital Markets Day 2019
Driving efficiencies and asset life extension Improving operational efficiencies Asset life extension - Targeting production efficiency of 80%+ Dons 16 years - Strong track record Thistle 16 years Driving costs down - Reduced unit opex by c.50% since 2014 to c.$20/boe 1 GKA 7 years PM8/Seligi 10 years Magnus 12 years 1 As of 30 June 2019 For illustrative purposes only Proven track record 8 EnQuest PLC Capital Markets Day 2019
Significant growth in reserves North Sea operation breakdown Malaysia operation breakdown c.89 c.12 7 14 MMboe MMboe Produced (net) produced (net) Operated operated production offshore hubs platforms 63 63 c.28 c.235 wells drilled and idle wells returned completed by to production MMboe of net 2P MMboe of net 2P EnQuest by EnQuest reserves added reserves added Information represents performance to end 2018 Proven track record 9 EnQuest PLC Capital Markets Day 2019
Progress on our strategic priorities Annual net production 1 - Production guidance unchanged (Boepd) - Kraken performance improving 70,000 80,000 - Industry leading drilling performance 60,000 68,501 63,000 40,000 55,447 - Best-in-class sub-sea project performance Deliver 37,405 20,000 0 2017 2018 YTD Oct 2019 FY 2019 Outlook Net debt - Net debt down $213 million since end 2018 ($ million) - Credit facility now $535 million; 2,000 $45 million early repayment 1,991 1,500 1,774 - LTM net debt: EBITDA c.1.7x; ahead of target 1,561 De-lever 1,000 - FCF yield of over 65%; rapid de-leveraging End Dec 2017 End Dec 2018 End Oct 2019 Existing 2C resources focused in 3 major assets (MMboe) - 198 MMboe low-cost, highly economic 2C resources 80 60 - Tax advantage 68 40 50 42 38 20 Grow 0 Magnus Kraken PM8/Seligi Other UK 1 Net working interest Improving strategic position 10 EnQuest PLC Capital Markets Day 2019
An industry leader in drilling: 46 of 104 wells in UKNS 1 UKNS well costs 1 (£ million) Per well 50 45 40 35 30 25 20 15 10 5 0 46 EnQuest wells drilled Industry median EnQuest 1 Between January 2015 to March 2019 Source: Company data; Rushmore Reviews (April 2019) Differential capability 11 EnQuest PLC Capital Markets Day 2019
An industry leader in drilling: 46 of 104 wells in UKNS 1 UKNS well costs 1 (£ million) Cumulative 2,000 Bottom quartile 1,600 Industry median 46 wells drilled saving c.£450 1,200 Top Quartile million EnQuest compared to industry median 800 400 0 46 EnQuest wells drilled 1 Between January 2015 to March 2019 Source: Company data; Rushmore Reviews (April 2019) Differential capability 12 EnQuest PLC Capital Markets Day 2019
In-house drilling capability Low-cost Technical and Culture of drilling commercial continuous Focus improvement capability Full project Standardise responsibility – design to and simplify completion Differential capability 13 EnQuest PLC Capital Markets Day 2019
Best-in-class sub-sea project performance EnQuest in-house capability Oil and Gas UK Efficiency Task Force study (2015-2018) - Greater scope - Schedule efficiency - Lower cost TIME – in comparison to optimum performance Upper quartile cost and schedule performance - Kraken multi-well development - Scolty/Crathes and Dunlin bypass pipelines EnQuest Optimum performance COST – in comparison to optimum performance Based on UK Oil and Gas data Differential capability 14 EnQuest PLC Capital Markets Day 2019
Unlocking the future High-grade value - High-grade and develop resources enhancing activity In-house Existing resources focused in 3 major assets (MMboe) capability 80 70 60 68 50 40 50 Wide 30 42 38 opportunity Repeatable 20 set performance 10 0 Magnus Kraken PM8/Seligi Other UK On time and low-cost - Short-cycle investment to generate cash flow drilling and sub-sea and returns project completion - Assess inorganic opportunities Differential capability 15 EnQuest PLC Capital Markets Day 2019
Investment Proven track record proposition Improving strategic position Differential capability Significant value creation opportunities Tax advantage 16 EnQuest PLC Capital Markets Day 2019
Magnus: value improvement Assets performance Driving down unit costs - Simplify - Lean operating model - Control systems; produced water debottlenecking - Right-sized workforce - Effective supply chain and contractor management - Improved reliability - Power, water injection and compression - Integrated work programme planning - Low-cost well interventions - Increased capacity - Produced water; low pressure capability - Revised reservoir management strategy Production efficiency Unit opex (%) ($/boe) 90 80 c.67% 80 60 c.35% 80 60 70 40 60 20 59 20 50 0 2017 2019 Fcst 2015 2019 Fcst Significant value creation opportunity 17 EnQuest PLC Capital Markets Day 2019
Magnus: maximising the opportunities TR1/TR2 Prospect A material asset with a long life NW Magnus - c.2 billion boe HIIP 1 - Current CoP 2 date 2035 Maximising the asset value - Material well programme over 4-5 years - 2019 2P drilling targets; c.$15m per well Legend M - Payback <10 months 2P Target - NPV(10) at $60/bbl: c.$50 million 2C Target - IRR >50% Magnus Sand - Multiple future 2C targets LKCF Exploration Target - Revised reservoir strategy Magnus Platform M - c.250 MMboe of additional movable oil Oil Producer Water Injector 2 Hydrocarbons initially in place 1 Cessation of production Significant value creation opportunity 18 EnQuest PLC Capital Markets Day 2019
Magnus: increasing reserves and resources Oil production profile NPV driven upwards >$450 million (Bopd) ($ million) 1000 25,000 800 >700 600 20,000 400 503 200 254 15,000 0 1 Acquisition case CPR1 case Latest forecast NPV(10) 1.1.17 NPV(10) 1.7.18 NPV(10) 1.1.20 10,000 $75/bbl $60/bbl $60/bbl Reserves and resources more than doubled 5,000 (MMboe) (14) 160 0 120 76 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 127 80 Latest forecast Acquisition case 2018 CPR 65 40 - Strong capabilities expected to deliver >40% increase 0 in produced oil 2 Acquired Additions Production 31.12.18 1.1.17 1 Competent Persons Report prepared by Gaffney, Cline & Associates included in prospectus in September 2018 2 Compared to Competent Persons Report Significant value creation opportunity 19 EnQuest PLC Capital Markets Day 2019
PM8/Seligi: strong, consistent performance Asset performance Driving down unit costs - Gas compression reliability >97% - Effective supply chain management - Process simplification - Low cost well interventions increasing production - Increased maintenance and inspection programme Production efficiency Unit opex (%) ($/boe) c.5% 100 40 c.42% 90 95 30 90 80 31 20 70 18 10 60 50 0 2014 2019 Fcst 2014 2019 Fcst Significant value creation opportunity 20 EnQuest PLC Capital Markets Day 2019
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