Investor Presentaiton
TMK
Which is Sustainable in the Long Term at Current Oil Price
Levels
Continental U.S. tight oil cost curve
120
Niobrara
Breakeven U.S.$/bbl Brent equivalent
100
80
60
Mid-
continent
40
40
20
Other
0
0
1
Wolfcamp
(Permian)
2
3
Eagle Ford
4
Cumulative liquids production 2026E (MMbpd)
â– Weighted average breakeven price based on 2026E production
Source: Wood Mackenzie
Bone Spring
(Permian)
Bakken
2018 YTD
WTI average
price
5
6
7
8
During the past 2 years, U.S. shale players have managed to decrease production costs
Drilling technology has evolved, driven by efficiency requirements
Key changes included higher intensity of drilling, longer laterals, significantly higher usage of proppants and equipment and well
string standardization
Despite a wide variation between plays, many U.S. shale producers are profitable at oil prices in the U.S.$50-60/bbl range in the long
term
A number of shale plays, incl. Permian and Eagle Ford basins as well as Mid-continent region of the U.S., are profitable at around
U.S.$45-50/bbl
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