Operational and Financial Overview
ENSCOROWAN
$/bbl
80
60
60
60
60
40
40
20
20
Improving Market Conditions Have Led to
Free Cash Flow Breakeven Oil Prices for E&Ps
53
53
51
44
66
36
54
4
Higher Customer Cash Flows
71
69
41
38
69
■ More recently, lower free cash
flow breakeven oil prices for
E&Ps, coupled with higher oil
prices, have created a more
conducive environment for
new project investments
0
2015
2016
2017
2018
■Free cash flow breakeven oil price 1 ■Avg Brent crude price
Free Cash Flow of Major Offshore E&Ps¹
$ billions
140
120
100
80
60
40
20
0
-20
-11
2015
-3
2016
65
2017
2019E
119
110
2018
2019E
Expectations are that major
E&Ps continue to generate
significant free cash flow in
2019, giving large offshore
customers greater flexibility to
invest in future production
Source: SpareBank 1 Markets, FactSet as of April 2019
1 Free cash flow is calculated as analyst consensus estimates of operating cash flow less capital expenditures; major offshore E&P customers defined as Anadarko, BP, Chevron,
ConocoPhillips, Eni, Equinor, ExxonMobil, Petrobras, Repsol, Shell and Total
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