Prio (PRIO3) Investor Day 2025 summary

Strategic vision and capital allocation

• Focus remains on value creation, disciplined capital allocation, and long-term sustainability, with growth only pursued when it makes economic sense and not for its own sake.

• A formal shareholder remuneration plan, including dividends and share buybacks, is being developed for announcement in early to mid-2026, contingent on cash position, balance sheet strength, and market conditions.

• M&A activity is guided by strict return criteria; recent years saw selective acquisitions (notably Peregrino), while some opportunities were declined due to timing or pricing.

• Leverage is targeted below 1x net debt/EBITDA, with flexibility to rise temporarily for strategic acquisitions, but always maintaining strong liquidity and safety margins.

• Growth targets are ambitious but flexible, with a medium-term goal to sustain 200,000 barrels/day and a long-term aspiration to reach 300,000 barrels/day, depending on market opportunities.

Operational performance and project updates

• 2025 marked a turnaround after a challenging 2024, with Peregrino integration completed, Wahoo project on track, and all major operational hurdles resolved.

• Wahoo’s first oil is expected between March and April 2026, with three wells ready and a fourth possible; innovative Fishbone technology is being applied to enhance productivity.

• Continued development of Peregrino includes drilling 3 new producers, 3 injectors, and converting 1 well in 2026, with IOR/EOR and 4D seismic acquisition from 2027 onward.

• Frade and Albacora Leste focus on infill drilling, reservoir management, and 4D seismic to increase recovery and maintain production at 200,000 barrels/day through 2027.

• Polvo field infill drilling completed with net pay and reservoir pressure exceeding expectations, supporting ongoing production.

Financial guidance and cost optimization

• OPEX for Peregrino expected to decrease by 49% from $612MM in 2025 to $309MM in 2026 through administrative cost reduction, contract renegotiation, and logistics optimization.

• Peregrino’s cost structure is being optimized, targeting $8–9/bbl lifting cost post-gas pipeline restoration, with $300 million in annualized savings from SG&A, logistics, and energy initiatives.

• Lifting costs are expected to fall to $7–8/bbl at 200,000 barrels/day, driven by Peregrino and Wahoo efficiencies.

• Insurance to cover $100MM in gas pipeline repair costs following a 2023 incident, minimizing financial impact.

• Trading strategy leverages VLCCs for crude exports, reducing shipping costs and improving netbacks, with increased VLCC utilization since 2023.