Standardized measure of discounted future net cash flows relating to proven oil and gas reserves (SMOG)

The following information has been prepared in accordance with SFAS 69 and the regulations of the Securities and Exchange Commission, which require the standardized measure of discounted future cash flows based on sales prices, costs and statutory interest rates. The proven reserves are valued at the average price calculated from the prices on the first day of the month. The values calculated in this way are subject to a 10% annual discount rate.

The projection should not be viewed as a realistic estimate of future cash flows. It does not take into account planned transactions such as the asset swap with Gazprom agreed upon for 2014 and the sale of selected shares in the British continental shelf in the North Sea to the Hungarian MOL Group. Furthermore, the total value of future net cash flows should not be interpreted as representing the current enterprise value.

Material revisions of estimates of proven reserves may occur in the future, development and production of the reserves may not occur in the period assumed, actual prices realized are expected to vary significantly from those used and actual costs may also vary.

The company’s investment and operating decisions are not based on the information presented below, but on a wide range of reserve estimates, and on different price and cost assumptions from those reflected in this information.

Beyond the above considerations, the “standardized measure of future net cash flows” is also not directly comparable with asset balances appearing elsewhere in the Consolidated Financial Statements because any such comparison would require a reconciling adjustment.

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Standardized measure of discounted future cash flows 2013 (million €)

 

Germany

Rest of Europe

Russia

North Africa, Middle East

South America

Total

Future revenues

4,537

6,059

11,021

9,246

2,879

33,742

Future production/development costs

2,231

3,114

2,045

2,499

1,179

11,068

Future income taxes

518

2,002

1,522

5,184

489

9,715

Future net cash flows

1,788

943

7,454

1,563

1,211

12,959

Discounted to present value at a 10% annual rate

713

185

3,063

477

446

4,884

Standardized measures of discounted future cash flows

1,075

758

4,391

1,086

765

8,075

Thereof equity-accounted companies

726

835

1,561

Total excluding equity-accounted companies

1,075

758

3,665

251

765

6,514

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Standardized measure of discounted future cash flows 2012 (million €)

 

Germany

Rest of Europe

Russia

North Africa, Middle East1

South America

Total

1

Restated as a result of amended IFRS

Future revenues

4,667

2,386

9,661

10,333

2,125

29,172

Future production/development costs

1,997

2,134

1,862

1,936

1,094

9,023

Future income taxes

625

131

1,295

6,891

245

9,187

Future net cash flows

2,045

121

6,504

1,506

786

10,962

Discounted to present value at a 10% annual rate

742

96

2,472

508

332

4,150

Standardized measures of discounted future cash flows

1,303

25

4,032

998

454

6,812

Thereof equity-accounted companies

933

733

1,666

Total excluding equity-accounted companies

1,303

25

3,099

265

454

5,146

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Summary of changes in standardized measure of discounted future net cash flows 2013 (million €)

 

Germany

Rest of Europe

Russia

North Africa, Middle East

South America

Total

Balance as of January 1

1,303

25

4,032

998

454

6,812

Sales and transfers of oil and gas produced, net of production costs

(416)

(221)

(826)

(734)

(188)

(2,385)

Net changes in price and in development and production costs

(130)

(217)

(207)

(776)

522

(808)

Extension, discoveries and improved recovery, less related costs

9

9

Revisions of previous quantity estimates

133

81

1,029

486

77

1,806

Development costs incurred during the period

68

343

152

27

67

657

Changes in estimated future development costs

(128)

83

(170)

(196)

(67)

(478)

Purchase/sale reserves

689

689

Net change in income taxes

92

(55)

(71)

783

(157)

592

Accretion of discounts

155

26

443

498

57

1,179

Other

(2)

4

2

Standardized measures of discounted future cash flows (SMOG)

1,075

758

4,391

1,086

765

8,075

Thereof equity-accounted companies

726

835

1,561

Total excluding equity-accounted companies

1,075

758

3,665

251

765

6,514

  (XLS:) Download (xls, 24 kB)

Summary of changes in standardized measure of discounted future net cash flows 2012 (million €)

 

Germany

Rest of Europe

Russia

North Africa, Middle East1

South America

Total

1

Restated as a result of amended IFRS

Balance as of January 1

1,327

155

3,444

1,035

548

6,509

Sales and transfers of oil and gas produced, net of production costs

(448)

(305)

(865)

(1,394)

(196)

(3,208)

Net changes in price and in development and production costs

140

120

971

563

(50)

1,744

Extension, discoveries and improved recovery, less related costs


(133)

37



(96)

Revisions of previous quantity estimates

89

131

332

(28)

236

760

Development costs incurred during the period

78

171

117

19

37

422

Changes in estimated future development costs

(62)

(187)

(235)

(26)

(83)

(593)

Purchase/sale reserves

Net change in income taxes

21

50

(144)

266

(94)

99

Accretion of discounts

159

28

375

563

56

1,181

Other

(1)

(5)

(6)

Standardized measures of discounted future cash flows (SMOG)

1,303

25

4,032

998

454

6,812

Thereof equity-accounted companies

933

733

1,666

Total excluding equity-accounted companies

1,303

25

3,099

265

454

5,146