EnQuest PLC

And good morning, ladies and gentlemen, and welcome to our 2022 full year results presentation. My name is Amjad Pseiso and I'm the chief executive officer at Enquest. And joining me today at this presentation is our CFO, Salman Malik, and Richard Hall, our managing director, global operations and developments. Salman will present the financial results section with Richard covering

our global operations performance.

2022 saw our best financial performance since inception, driven by operations and higher prices in 2022. It was also a year of challenge and change, both globally as well as at Enquest. But with challenge comes opportunity, And it is the companies like Anquest that demonstrate resilience, creativity, and adaptability that will stand the test of times and challenges. Since we set our strategic priorities of deliver, deliver, and grow at the end of 2018, we've progressed on all fronts. Through our core capabilities, we've delivered strong production performance, controlled costs, and exercised strict capital discipline, as well as focusing on the most value accretive opportunities. We've also generated material cash flows, even with low oil prices during the COVID-19 pandemic, with record cash flows last year of around $520 million. We've also reduced our net debt by more than $1 billion during that period and delivered a net debt to EBITDA ratio of just under 0.7X, which is getting very close to our target. And from a growth perspective, since our 2018 strategic delivery option, we've added both Magnus and Golden Eagle producing assets. The low cost acquisitions of material resources also at Bressane Bentley provide us with future near field development opportunities linked to our core capabilities. Our enhanced business model has also noted that the cash flow generating upstream business at its core will be complemented by infrastructure, new energy and decommissioning. With infrastructure and new energy, we aim to repurpose our existing infrastructure to support delivery of our renewable energy and decarbonization ambitions. And in decommissioning, we will help manage late-life mature assets to save cost-effective and low-carbon decommissioning at the end of their useful lives. This also provides us an important capability for taking over late-life mature assets. With these trends, which all utilize our core capabilities, Enquest has the potential to be an important player in the just energy transition and sustainable energy future. When we talk about sustainability, it's important to recognize that this relates to how we work today and how we work in the future. We make the best use of our resources from assets that have already been developed and take them to responsible decommissioning. It is this precise area that we have a strong track record of delivery. Since our inception, we've extended the useful life of all nine assets we've operated, taking four of those into the decommissioning phase and decommissioning them as we speak. This has also seen us deliver strong reserve replacement ratio of 160% since our inception. We started with roughly 80 million barrels, we produced almost 200 million barrels since inception, and we still have around 200 million barrels left to access in our 2P reserve case. Upstream, we demonstrate our focus on cost control and capital discipline, which you can see in this slide, and our ability to lower costs when compared to the costs incurred by previous owners. We've delivered the initial field development, for example, at Kraken at $1 billion under budget, a 33% saving. We continue to target operational excellence as a key feature of our DNA. I'm pleased we've delivered upper quartile safety performance in 2022, and we always note that safety is our license to operate. We also recognize that we must always challenge ourselves to deliver better safety outcomes. We aim also for production efficiency above the sector, 80% across all assets. And at Kraken, we've seen exceptional performance at 93% last year, which is well ahead of UKCS average of 72% for floating hubs. You'll also hear from Richard later that we've carried our strong 22 performance into 2023 with both Magnus and Kraken delivering excellent uptime. We also strive to reduce our emission footprint, and with a 40% reduction from the 2018 baseline, our UK business already is close to achieving the 2030 target set out under the North Sea transition deal. The reserve base that I laid out earlier, along with our capability in drilling, underpins our confidence in delivering stable production and cashflow over the medium term. We will be drilling wells at Magnus, Golden Eagle this year, which will mitigate some of the declines expected elsewhere in the portfolio. In addition to the wells at Magnus and PMH Seligi, we have an extensive low cost intervention program to pursue. And these assets also have material 2C resources that could be matured into 2P reserves through further drilling opportunities. We're also continuing to explore options with Petronas, our great partner, on how to best unlock developments of material gas resources at Seligi. At Kraken, we continue to assess the seismic we've acquired last year, along with our ever increasing knowledge of the reservoir, to enable us to optimize future drilling, which will include new wells and sidetracks.