OKEA (OKEA) investor relations material

Executive summary

• Achieved high production efficiency of 96%, with production rising 13% year-over-year and quarter-over-quarter, driven by new wells such as Talisker East and stable operations across assets.

• Sold volumes reached 39.1 kboepd, and no serious incidents were recorded, with TRIF decreasing to 5.3 and no lost-time injuries.

• Significant progress on key projects, including Bestla and Power from Shore, with milestones reached and timelines maintained.

• Divestment of the Mistral discovery for $30 million strengthens the balance sheet, with a $25 million post-tax profit expected at closing and retained upside potential.

• Recoverable resource estimates for Talisker West increased to 23–44 mmboe, reducing expected break-even cost to below $10/boe.

Financial highlights

• Petroleum revenues rose to $264 million, more than doubling sequentially, mainly due to higher realized prices and overlift.

• Operating income was $239 million, with EBITDA at $129 million and net profit at $36 million, reversing a prior quarter loss.

• Realized liquids price rose to $79.5/boe, gas to $76.5/boe, and NGL to $65.7/boe.

• Reversal of previous impairments on Statfjord contributed $154 million, with a related post-tax income of $34 million.

• Cash and cash equivalents at quarter-end totaled $269 million, including $59 million in money market funds.

Outlook and guidance

• Production guidance for 2026 remains at 31,000–35,000 barrels per day, increasing to 37,000–41,000 for 2027.

• CapEx guidance unchanged at $300–$360 million for 2026 and $230–$290 million for 2027.

• Maintenance shutdowns in Q2 at Statfjord B and Brage will impact production but are included in annual guidance.

• Dividend payments remain on hold during this capital-intensive period, with reassessment expected after key project milestones.

• Expected tax payments for Q2 2026 are $25 million.