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| Michael J. Harris | Page 1 of 11 |
October 30, 2014
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f a c t s h e e t “It comes down to this one choice—build a sustainable energy company with assets that create legacies like Yemen and Buzzard. Long Lake is next. Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY. We are uniquely positioned for growth in the North Sea, Western Canada (including the Athabasca oil sands of Alberta and unconventional gas resource plays such as coalbed methane and shale gas), deep-water Gulf of Mexico, offshore West Africa and the Middle East. We add value for shareholders through successful full-cycle oil and gas exploration and development and leadership in ethics, integrity, governance and environmental protection. Headquartered in Calgary, Alberta, Canada, Nexen employs approx. 3,500 people worldwide. defined growth In 2007, we began generating significant value from our invest- ment in Buzzard in the North Sea, which was the main contribu- tor to our net production growth of 33%. Our accomplishments in 2007 position us for solid growth in 2008 as we bring Long Lake and Ettrick on stream and gain a full year of production from Buzzard. After a year of operating experience, the Buzzard facility perfor- mance is now consistently exceeding our original design expec- tations of 200,000 boe/d (85,000 boe/d net to us) and generating significant value for shareholders. Buzzard is expected to gen- erate approximately $2.6 billion of annual pre-tax cash flow in 2008 assuming WTI of US$100/bbl. delivering results (Cdn $ millions) 2007 2006 2005 Production (mboe/d) (1) Before Royalties 254 212 242 After Royalties 207 156 173 Cash Flow from Operations (2) 3,458 2,669 2,403 Per Common Share ($/share) (6) 6.56 5.09 4.62 Net Income 1,086 601 1140 Per Common Share ($/share) (6) 2.06 1.15 2.19 Capital Investment, including Acquisitions (3) 3,401 3,408 2,638 Net Debt (4) 4,404 4,730 3,639 Common Shares Outstanding (millions) (6) 528.3 525.0 522.3 Closing Common Share Price ($/share) (5,6) 32.10 32.10 27.71 (1) Includes our share of Syncrude oil sands. (2) Includes discontinued operations. (3) Includes oil and gas development, exploration, and expenditures for other property, plant and equipment. (4) Defined as long-term debt and short-term borrowings less cash and cash equivalents. (5) Closing share price on the Toronto Stock Exchange (TSX) for the last day of trading in each year. (6) Common shares and per share amounts adjusted for 2 for 1 share split in May 2007 Our 2007 highlights include record cash flow, 33% growth in net production and the successful ramp up of Buzzard. What’s next? In 2008, we’ll bring on Long Lake and Ettrick, and drill up to 11 exploration wells. 0 75 150 225 300 Production (net of royalties) mboe/d 2006 2007 2008 ~24033% ~40 - 50% ~220 207 156