Presentation

Aker BP is the largest listed independent oil producer on the Norwegian Continental Shelf (NCS) with a guided 2020 production of 205-220,000 boepd. The company has 906 mmboe of 2P reserves and 931 mmboe of 2C resources in Norway. Aker BP is listed on the Oslo Stock Exchange and has a market capitalization of USD ~7bn. The company’s largest shareholders are Aker ASA and BP with a 40% and 30% stake, respectively. At the end of Q2’20, the company had USD 3.8bn of net debt.

Aker BP has transformed itself from being an exploration driven company to a production and development focused company. This has been driven by the Sverdrup discovery (2010), the operated Ivar Aasen development, as well as the acquisitions of the production portfolios of Marathon Norway (2014), BP Norway (2016) and Hess Norway (2017). The company’s main producing assets are Johan Sverdrup, the Alvheim fields (Alvheim, Bøyla, Vilje, Volund), Valhall, Skarv and Ivar Aasen.

Aker BP offers exposure to a high-quality asset base and has the flexibility to pace growth in production and dividends going forward. Only considering current production and sanctioned developments, Aker BP will generate NOK 20/share in annual FCF in 2020-26e at Brent USD 40/bbl, whilst the development portfolio is estimated to realise an unlevered IRR of 23-30% in a Brent USD 50-60/bbl.