Prio (PRIO3) investor relations material

Strategic direction and capital allocation

• Focus remains on value creation, disciplined capital allocation, and maintaining a strong balance sheet, with flexibility for M&A or shareholder returns based on market conditions.

• A formal shareholder remuneration plan, including dividends and share buybacks, is being developed for announcement in early to mid-2026, contingent on cash position and market environment.

• Growth is pursued only for value-accretive opportunities at the right price and timing, with a preference for long-term returns.

• The company targets leverage below 1x net debt/EBITDA, with flexibility to temporarily increase for strategic acquisitions.

• Expansion beyond the Campos Basin is only considered if returns are attractive, with the Gulf of Mexico as a potential but currently unattractive option.

Operational performance and production outlook

• 2025 marked a turnaround year, resolving 2024's challenges and positioning for robust growth, with all major operational hurdles cleared.

• Production is expected to reach 200,000 barrels per day by 2026, with plans to sustain this level through infill drilling and asset optimization at Frade and Albacora Leste.

• Wahoo project is on track for first oil between March and April 2026, with phased tiebacks, subsea infrastructure installation, and a total investment of $720MM for phase 1 and $160MM for subsequent tiebacks and injectors.

• Peregrino integration is progressing with drilling of 3 new producers, 3 injectors, and conversion of 1 well in 2026, targeting production optimization and enhanced recovery.

• Lifting costs are projected to decline to $7–$8 per barrel as synergies and new production come online.

Asset development and technology

• Major investments in 4D seismic, infill drilling, and reservoir management are underway at Frade, Albacora Leste, and Peregrino to boost recovery and extend asset life.

• Wahoo field development leverages segmented project management and new technologies like Fishbone stimulation for high productivity and cost efficiency.

• Maintenance and integrity programs, including AI-based condition monitoring and advanced 3D scanning, are extending asset lifespans, with Frade now targeted for operation through 2049.

• Gas pipeline restoration at Peregrino is a key 2026 project, with insurance covering $100MM in repair costs, expected to reduce costs and improve operational flexibility.

• Trading and logistics innovations, including increased VLCC use and gas infrastructure access, are enhancing margins and market reach.