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 calculation of discounted future cash flows based on the respective revenues, costs and income taxes. The proven reserves are valued at the average price calculated from the prices on the first day of the month. The values thus determined are discounted at a 10% annual discount rate.

The projected values should not be understood as a realistic estimate of future cash flows. Furthermore, the total value of future net cash flows should not be interpreted as representing the current enterprise value.

In the future, expected proven reserves may differ significantly from current estimates. Development and production of the reserves may not occur in the period assumed and actual prices and costs may vary considerably.

The company’s investment and operating decisions are not based on the information presented below, but on a wider range of reserve estimates, as well as on different price and cost assumptions.

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 reconciliation adjustment.

Standardized measures of discounted future net cash flows 2014 (in million €)

 

 

Germany

Rest of Europe

Russia

North Africa, Middle East

South America

Total

Future revenues

 

3,726

9,521

12,193

6,960

2,461

34,861

Future production/development costs

 

2,366

5,055

2,766

1,762

1,225

13,174

Future income taxes

 

273

2,722

1,663

4,564

294

9,516

Future net cash flows

 

1,087

1,744

7,764

634

942

12,171

Discounted to present value at a 10% annual rate

 

353

406

3,409

(289)

264

4,143

Standardized measures of discounted future net cash flows

 

734

1,338

4,355

923

678

8,028

Thereof equity-accounted companies

 

652

656

1,308

Total excluding equity-accounted companies

 

734

1,338

3,703

267

678

6,720

Standardized measures of discounted future net cash flows 2013 (in 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 net 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

Summary of changes in standardized measure of discounted future net cash flows 2014 (in million €)

 

 

Germany

Rest of Europe

Russia

North Africa, Middle East

South America

Total

Balance as of January 1

 

1,075

758

4,391

1,086

765

8,075

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

 

(304)

(718)

(782)

(202)

(207)

(2,213)

Net changes in price and in development and production costs

 

(402)

(751)

(623)

(466)

(245)

(2,487)

Extension, discoveries and improved recovery, less related costs

 

Revisions of previous quantity estimates

 

106

1,298

1,435

(376)

20

2,483

Development costs incurred during the period

 

97

503

183

13

207

1,003

Changes in estimated future development costs

 

(93)

(262)

(691)

79

(123)

(1,090)

Puchase/sale reserves

 

923

923

Net change in income taxes

 

130

(626)

(44)

363

109

(68)

Accretion of discounts

 

127

213

486

426

102

1,354

Other

 

(2)

50

48

Standardized measures of discounted future net cash flows (SMOG)

 

734

1,338

4,355

923

678

8,028

Thereof equity-accounted companies

 

652

656

1,308

Total excluding equity-accounted companies

 

734

1,338

3,703

267

678

6,720

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

Puchase/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 net 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