Overview Key strengths Key risks Low country risk, since most activities take place in developed Europe. Exposure to volatile hydrocarbon prices and the capital intensity of the oil and gas industry. Track record of reserve-life extension through organic development and acquisitions. The need for substantial capital expenditure (capex) to maintain and expand production due to the natural depletion of reserves. Prudent financial policy, with a target of reported net debt to EBITDA plus exploration expenses (EBITDAX) of 1.5x. Ownership by financial sponsors, who might elect to relax the financial policy. Supportive liquidity sources, with access to a sizable reserve-based lending (RBL) facility, and a comfortable debt maturity profile. The positive price effect will be somewhat muted by the company?s hedging
