Prio (PRIO3) investor relations material

Strategic vision and capital allocation

• Focus on value creation, disciplined capital allocation, and long-term sustainability, maintaining a solid balance sheet and flexibility for M&A or shareholder returns as conditions allow.

• A formal shareholder remuneration plan, including dividends and share buybacks, is under development and expected to be announced in early to mid-2026, contingent on cash position and market conditions.

• Growth targets are ambitious but flexible, with production expected to reach 200,000 barrels/day in 2026 and a long-term aspiration of 300,000 barrels/day, prioritizing value over volume.

• Leverage is targeted below 1x net debt/EBITDA, with flexibility for strategic acquisitions and a focus on rapid deleveraging.

• M&A activity is selective, focusing on Campos Basin assets with strict return thresholds based on $60/bbl oil; Gulf of Mexico is monitored but not currently attractive.

Operational performance and project updates

• 2025 marked a turnaround year, resolving 2024's challenges and positioning for robust growth, with Peregrino integration and Wahoo project execution as key milestones.

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

• Peregrino development includes drilling of 3 new producers, 3 injectors, and conversion of 1 well in 2026, with IOR/EOR and 4D seismic acquisition from 2027 onward.

• Frade and Albacora Leste focus on infill drilling, reservoir management, and 4D seismic to boost recovery and maintain production at 200,000 barrels/day through 2027.

• Gas infrastructure upgrades, including Peregrino gas pipeline reconstruction, aim to reduce energy generation costs and enable asset balancing by 2026.

Financial guidance and cost management

• CapEx for 2026 is projected at $450–500 million, decreasing slightly in 2027, sufficient to sustain drilling and production at key fields.

• OPEX for Peregrino expected to decrease by 49% from $612MM in 2025 to $309MM in 2026 through administrative cost reduction, contract renegotiation, and logistics optimization.

• Lifting costs are expected to decline from $13/bbl in late 2025 to $7–8/bbl in 2026 as Wahoo and Peregrino synergies materialize.

• Trading and logistics optimizations, including increased VLCC usage and gas infrastructure integration, are driving higher netbacks and operational flexibility.

• $300 million in cost savings at Peregrino are being realized through SG&A cuts, logistics synergies, integrity projects, and fuel switching from diesel to gas.