july 2020shah res iniu ri~3.e shar es siniiu ~3si shar es in iu~3. 6v shar es siniiu ~3si shar es...

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WF12520 p01 04.20 Corporate Presentation July 2020

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Page 1: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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20

CorporatePresentation

July 2020

Page 2: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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20

Lundin EnergyA Leading European Independent E&P Company

200 Mboepd

with upsides

Production targeting

2.80USD/boe 2020

guidance

Industry leading opex

15

USD/boe

Average 2020-2026FCF breakeven

oil price

1.00USD/share

Dividend

1/5of industry

average

Low carbon footprint1bn

barrels of reservesand resources

2Lundin Energy

Page 3: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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Coronavirus Crisis - Successfully Continuing OperationsLundin Energy

Main FocusSafeguarding well-being of our people

Minimise risk to operations

Normal Offshore Activity ResumedNo disruption to production

Mitigating ActionsDetailed contingency plans

Some Project DeferralsNo impact on production guidance

High

Low

3Lundin Energy

Page 4: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

Industry Leading Low Operating Costs

~15 USD/boe(average for next 7 years)

Low Cash Flow Breakeven

340 MUSD

Additional Corporate Debt Facility

Dividend Reduction

>300 MUSD(1)

Cost Reductions and Deferrals in 2020

High Quality, Low Cost Assets

-45%

Improved Liquidity >850 MUSD in 2020

Liquidity improvement from tax incentives

(1) Pre-tax

Resilient to Low Oil PricesLundin Energy

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4Lundin Energy

Page 5: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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Lundin EnergyOrganic Growth Strategy

Core areas (1) Source NPDCentral Graben

Sele High

Norwegian Sea

Southern Barents Sea

Utsira High Area

Alvheim Area

Northern North SeaHorda

Oslo

Significantyet to findresources

>15 Bn boe(1)

Multiple Organic GrowthOpportunities Norway Pure Play

Material Acreage Position7 Core Areas

MaximiseRecovery/Step-outs

MatureBasins

FrontierAreas

OpportunisticBusiness Development

5Lundin Energy

Page 6: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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07.

20 20 quarters running Delivering guidance or better for

Long-term Production Growth

Long-termguidance

170–180Mboepd

Target

>200 Mboepd

with upsidesTarget

157Mboepd(1)

20202019 2021 onwards

Lundin Energy

(1)Including Norwegian Government cut backs

93Mboepd

6Lundin Energy

Page 7: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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20

Financial PerformanceLundin Energy

>90% of reserves onstream

>90% oil - high quality

<3 USD/boe capex on remaining reserves

Portfolio

~15USD/boe FCF breakeven (1)

>90% EBITDA margin

Cash Generation

End Q2’20 net debt 3.8 Bn USD

Credit lines >5 Bn USD

Liquidity

2.8 USD/boe opex in 2020

3.2-4.2 USD/boe opex from 2021 onwards

Low Costs

Financialrobustness& liquidity

(1) 2020–2026 average pre-dividend

7Lundin Energy

Page 8: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

Shares in Issue(million shares)

(1)To March 2020

Lundin EnergyShareholder Returns - Track Record

2017IPC

2010EnQuest/

Etrion

2017Dividends

Paid

2019Share

Buy-back

2018Dividends

Paid

2019Dividends

2002 2006 2016 2020

Valkyriesacquisition

15%Edvard Griegacquisition 16% share

redemption

MUSD

410

720

153

460~3.6Bn USD

1520

249

314340

286

284

3,000

2,000

0

1,000

Value Returned to Shareholders

Total shareholder return 2001–2020(1) CAGR 26%

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20

8Lundin Energy

Page 9: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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Industry leading low carbon business

The Path to Carbon Neutrality

Investments in R&D

Car

bo

n E

mis

sio

ns

Car

bo

n R

edu

ctio

n M

easu

res

StartingPoint

EmissionsReduction/Energy

EfficiencyElectrificationusing Powerfrom Shore

Renewable EnergyInvestmentswith good

leveraged IRR’s

Natural CarbonCapture

Lundin EnergyIndustry Leading Decarbonisation Strategy Roadmap

2023onwards

<2

Lundin Energy's carbon intensity(kg CO2/boe)

~5 <4 <2

2019 2020-2022

2023 onwards

Target

Carbon Neutral 2030

(operational emissions)

9Lundin Energy

Page 10: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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Lundin EnergyKey Assets

Alvheim Area

Production

Alvheim

Production

Edvard Grieg

Norway

Production/Development

Johan Sverdrup

Development

Edvard Grieg Tie-backs

Utsira High Area

10Lundin Energy

Page 11: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

Phase 1

470 Mbopd

Full Field

690 Mbopd

PRODUCTION CAPACITY INCREASED BREAK EVEN PRICE

Full Field

<20 USD/boe

GROSS RESERVES

2.2–3.2 billion boe

(PDO 1.7 – 3.0 billion boe)

Capex

41 Bn NOK

First Oil

Q4 2022

PHASE 2 ON TRACK

(1) Life of field

>35%complete

Progressing to schedule

Phase 2

Lundin EnergyJohan Sverdrup - In a League of its Own

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OPEX

<2 USD/boe

Carbon Footprint

<0.7 kg CO2/boe(1)

11Lundin Energy

Page 12: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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470 Mbopd

Increased Plateau

Achieved in April 2020ahead of schedule

Further

capacity upsides to be tested in 2H

Reservoir Performance

Excellent

11 wells producingWell capacity exceeding

facilities capacity

Johan Sverdrup Phase 1Performance Above Expectations

12Lundin Energy

Page 13: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

Goddo

Solveig

Jorvik

Lille Prinsen

Ivar Aasen

Rolvsnes

Edvard Grieg

Tellus East

Edvard Grieg · 3 firm infill wells in 2021

· Reserves increase and plateau extension anticipated supported by reservoir outperformance and 4D seismic

Tie-backs · Solveig, Rolvsnes, Lille Prinsen and exploration opportunities

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Greater Edvard Grieg Area - Keeping the Facilities FullLundin Energy

Gross Reserves/Resources

EDVARD GRIEG

(MMboe)¹

Edvard Grieg PDO

End 2019

Upside Prospective(2)

186

360

539

+ 94%

755

2P

3P

2C

Produced

2P

2P

(1) Per SPE/PRMS definitions. Includes Edvard Grieg, Solveig, Rolvsnes (2) Unrisked best estimate prospective resources

13Lundin Energy

Page 14: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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Solveig Development40–100 MMboe (1)

Breakeven oil price <30 USD/bbl

Rolvsnes14–78 MMboe (1)

(2) Gross(1) Gross resources

Solveig First Oil

Rolvsnes EWTFirst Oil

2020 2021

Solveig Plateau Production

30 Mboepd(2)

Rolvsnes EWT ~65% complete

Greater Edvard Grieg AreaFurther Development Opportunities

Solveig >40% complete

Q3 2021

14Lundin Energy

Page 15: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

0

20

40

60

80

100

120

Gross (Mboepd)

20182016 20172015

Note: 2P/3P Reserves includes Edvard Grieg, Solveig Phase 1 and Rolvsnes EWT (1) Does not reflect impact of Norwegian Government imposed cutbacks in 2020

2019 20292020 2021 2022 2023 2024 2025 2026 2027 2028

Edvard Grieg PDO

2P Reserves (1)

Exploration and further upsides

3P Reserves

2C Contingent resources

>4 yrs Plateau Extension from PDO

Further Plateau Extension Anticipated

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Lundin EnergyGreater Edvard Grieg Area - Further Plateau Extension

15Lundin Energy

Page 16: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

+93%

Lundin Energy

Bøyla

Boa

Viper GekkoKobraVolund

Alvheim

Frosk

ALVHEIM FPSO

2 infill wells in 2020

Frosk and Kobra East/Gekko developments- project sanctions mid 2021

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Alvheim Area - Continuous Reserves Growth

PDO 2019 Upside

257

495

2P

Produced

2P

3P2C

Gross Reserves/Resources (MMboe)

16Lundin Energy

Page 17: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

(1) 2P proved plus probable remaining reserves, independently audited by ERCE (2) As per industry standards the reserve replacement ratio is defined as the ratio of reserve additions to production during the year, excluding asset transactions

(3) As at end 2019

133%

6,754%

242%

144%163%

150%

ReservesGrowth

Reserve Replacement Ratio (1,2)

Johan Sverdrup

2014 2015 2016 2017 2018 2019

100%

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Lundin EnergyTrack Record of Growing Reserves

2P Reserves

693.3 MMboe(3)

6th

consecutive year of reserves growthwhile growing production >4x

17Lundin Energy

Page 18: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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Organic GrowthLundin Energy

4 projects underway

8 potential new projects

targeting >120 MMboe(1)

accelerated by tax incentives

2020 E&A Programme

7 wells

3 drilled – 1 discovery

(1) Net resources (2) Net unrisked resources

Remaining 4 wells targeting

>350 MMboe(2)

18Lundin Energy

Page 19: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

Lundin EnergyLong-term Value Creation

Responsible operations

TargetCarbon Neutralby 2030

Retain material dividend1.0 USD/share in 2020

170–180 Mboepd long-termTarget >200 MboepdMultiple organic growth sources

Industry leading low OPEX3.2–4.2 USD/boe long-term

Resilient to low oil prices~15 USD/boe FCF breakeven oil price (1)

(1) Average 2020–2026

19Lundin Energy

Page 20: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

Further information available

onwww.lundin-energy.com

andthe Lundin Energy App

andSocial media

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Access Lundin Energy’slatest informationby downloading theLundin Energy App

20Lundin Energy

Page 21: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares

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Disclaimer

Forward-looking Statements Certain statements made and information contained herein constitute “forward-looking information” (within the meaning of applicable securities legislation). Such statements and information(together, “forward-looking statements”) relate to future events, including Lundin Energy’s future performance, business prospects or opportunities. Forward-looking statements include, but arenot limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and developmentactivities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yetdeterminable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed toconstitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that expressor involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrasessuch as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similarexpressions) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements involve known and unknown risks, uncertainties and other factors thatmay cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will proveto be correct and such forward-looking statements should not be relied upon. These statements speak only as on the date of the information and Lundin Energy does not intend, and does notassume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, amongother things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment, reliance on key personnel, reserve estimates, health, safetyand environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading“Risk management” and elsewhere in Lundin Energy’s Annual Report. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results maydiffer materially from those expressed or implied by such forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement.

Front cover photo: Ole Jørgen Bratland

PB

Page 22: July 2020Shah res inIu rI~3.e Shar es sinIiu ~3si Shar es in Iu~3. 6V Shar es sinIiu ~3si Shar es sinIiu ShhS Shha Shar ShSh Shares in hIu~ n 3 .6 Sha res ienIiu~3.6VuluRutd Shares