Operational and Financial Overview slide image

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 10
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