Vår Energi ASA

Investor Presentation • Oct 24, 2023

Third quarter 2023

Results presentation | 24 Oct 2023

Today's Vår Energi presenters

Nicholas Walker CEO

Stefano Pujatti

CFO

Ida Marie Fjellheim Head of Investor Relations

Third quarter 2023 highlights

Accelerating growth target to ~400 kboepd by end-2025

• Set for ~100% production growth from Q3 2023
• Breidablikk and Tommeliten A successfully on stream
• Remaining project portfolio progressing to schedule, five more than 50% complete
• 80% exploration success in 2023
• Neptune Energy Norge acquisition expected to close Q1 2024

Delivering production and improved opex

• Production of 210 kboepd in Q3, on track for exit rate of >230 kboepd by year-end
• Production cost of USD 14.0 per boe

Strong financial performance

• Strong realised gas price of USD 91 per boe, USD 27 per boe above spot price
• Cash flow from operations (CFFO) of USD 975 million, an increase from USD 231 million in the previous quarter

Attractive and predictable shareholder distribution

• Strong balance sheet with leverage ratio of 0.5x at end-Q3 2023
• Dividend guidance of USD 270 million for Q4 2023

Neptune acquisition progressing towards completion

Perfect strategic fit

• 12 producing assets, of which 3 operated, located in Vår Energi's hub areas
• Adding 66 kboepd of production¹ , ~265 mmboe of 2P reserves²
• Attractive commodity mix and strategic ownership in Snøhvit LNG
• Highly cash-generative portfolio with low cost, limited near-term capex and low emissions
• Strengthening future dividend capacity

Status

▪ Regulatory approvals obtained from the Norwegian Ministry of Petroleum and Energy and the Competition Authority³

electrification with Sleipner 1. H1 2023 production for Neptune Energy's Norwegian oil and gas assets 2. As at end-2022 (Neptune group ASR 2022)

1. Completion inter-conditional of approval of Eni's transaction with Neptune ⁴

Neptune Norway's high-quality NCS assets located near existing hub areas

The Barents Sea Operator of Goliat and partner in

Highly strategic long-life LNG

the Johan Castberg development

Snøhvit

asset

Hammerfest

Adds materiality and strengthens

Set to double production by end-2025

kboepd Production target including Neptune Energy Norge

Sustaining value creation beyond 2025

Infill drilling, improved recovery and extended lifetime

Maturing a high value project portfolio

World-class exploration capabilities and track record

Value accretive M&A

Key performance indicators

Q3 2023 vs. Q2 2023

Production

210 kboepd

(202)

(15.5)

Cash flow from operations USD 975m

(231)

Capex USD 650m

(687)

Production cost per boe

USD 14.0

(270) USD 270m Dividend for the quarter NIDB/EBITDAX 0.5x (0.4)

Major turnarounds completed

Production, production efficiency¹ and product mix kboepd

210-220 kboepd

Full-year 2023 guidance

230 kboepd Exit rate 2023²

• Breidablikk and Tommeliten A successful start up

Solid delivery on operated assets

Goliat

• Strong performance with 99% production efficiency
• Secured rig capacity for a two-year drilling program in the Barents sea together with Equinor

Balder/Ringhorne

• Production efficiency of 79% due to turnaround in the quarter
• Riser at Ringhorne successfully replaced
• High activity period at Balder FPU completed on time and schedule
• New well on Ringhorne started production

On target to beat full year opex guidance

Production cost per boe produced¹ USD per boe

• Quarterly production cost impacted by seasonal maintenance
• Full-year 2023 opex per boe guidance of USD 14.5 to 15.5
• Medium-term ambition of ~8 USD² per boe
  • Sanctioned projects coming on stream
  • Cost improvement programme
  • Active portfolio management and optimisation
• Neptune prodution cost supporting the end-2025 ambition

Recognised ESG leadership through responsible operations

Clear path to 50% emission reduction by 2030¹

10

1. 12 month rolling average

Quality project portfolio delivering on growth strategy

Existing production and sanctioned developments

500 mmboe

reserves in development portfolio

~170 kboped in added production

~30 USD/boe

average break-even in development portfolio

25% project IRR¹

Extending production from the Balder area towards 2045

Strong historic growth utilising hub strategy...

500 mmboe¹ produced in Balder/Ringhorne since start-up in 1999

4x of PDO estimate in 1995

... and future potential

Breidablikk on stream ahead of schedule and on budget

Cost-effective subsea tie-back to Grane

First oil achieved October 2023

188 mmboe

2P reserves¹, gross

at peak production¹, gross

~3 USD/bbl

production cost

13

Jotun FPSO the key Balder hub enabler

14

Johan Castberg on schedule

Revised capex estimate, schedule maintained

Progressing towards first oil in Q4 2024

190 kboepd vessel capacity production¹, ², gross

~4 USD/bbl

production cost

450-650 mmboe

2P reserves¹, ², gross

15 1. Operator's estimate 2. Vår Energi 30% WI

© Equinor

2023 exploration campaign

License	Prospect	Operator	Vår Energi share	Est. Recoverable resources mmboe1	Pre-drill Unrisked resources mmboe1	Status
PL 229	Countach	Vår Energi	65 %	482		Discovery
PL 554	Angulata	Equinor	30 %	-		Dry
PL 1005	Rondeslottet	Aker BP	40 %		871	Postponed
PL 185	Kim	OKEA	12 %	313		Discovery
PL 090	Crino	Equinor	25 %	9-354		Discovery
PL 984	Norma	DNO	20 %	13-1454		Discovery
PL 917	King 2 (Hubert)	Vår Energi	40 %		24	Q4
PL 917	King 2 (Magellan)	Vår Energi	40 %		30	Q4
PL 169	Svalin M Sør	Equinor	13%		5	Q4
PL 1025S	Venus	Vår Energi	30 %		313	Q1 2024
PL 956	Ringhorne N	Vår Energi	50 %		28	Q1 2024

1. Gross

16

1. Post drill evaluation, to be validated

2. Vår Energi estimate

3. Operator's estimate

Financial highlights

85 USD/boe

weighted average realised price

USD 975 million

CFFO after tax

0.5x NIBD / EBITDAX

USD 3.1 billon

Available liquidity¹

USD 270 million

Q3 dividend payment

Continued high realised gas price

1 339 589 522 1 092 788 1 035 Q3 2022 Q2 2023 Q3 2023 2 520 1 432 1 616 Oil Gas NGL USD million

Total petroleum revenues

150 200 250 Realised prices USD per boe 108 87 204 98 91 62 37 43 Q3 2022 78 Q2 2023 Q3 2023

Oil Gas NGL

Realised gas price above spot price year-to-date¹

~47 USD/boe

Indicative gas sales portfolio² Gas sales split (%)

High cash flow generation

1.5x Q3 2023 capex coverage

USD 2.4 – 2.7bn

Capex guidance for 2023

Cash taxes

Tax payments – sensitivities for 1H 2024¹

USD million

NOK ~6.1bn

Q4 2023 tax payments (USD ~600m)1,2

Taxes paid in 1H 2024 related to 2023 results

Continued strong liquidity position

Cash flow development Q3 2023 USD million

Available liquidity USD million

Optimising the long-term financing structure

1. Net interest-bearing debt (NIBD) is shown at end of period, 22 including lease commitments. EBITDAX is rolling 12-months

9

10

11 12

8

7

13

2

1

4 3

5

BBB Baa3

Attractive and predictable dividends

Dividends declared

USD million

• Dividend guiding for Q4 2023 of USD 270 million (~0.11 USD per share)
• Expected total dividend for 2023 of USD 1.080 million, approximately 30% of CFFO after tax
• Dividend for Q3 2023 of USD ~0.11 per share to be paid 16 November 2023
  • Paid in NOK at exchange rate of USD/NOK 11.1338

2023 guidance

Production	210-220 kboepd
Production cost	USD 14.5-15.5 per boe
Capex	USD 2.4-2.7 billion excl. exploration and abandonment Exploration USD ~200 million Abandonment USD ~50 million
Other	Cash tax payments of USD ~600¹ million in Q4 2023
Dividends	Q4 dividend of USD 270 million (~0.11 USD per share) For 2023, the plan is to distribute approximately 30% of CFFO after tax

One of the fastest growing E&P companies in the world

Accelerating growth target to ~400 kboepd by end-2025

Delivering production and improved opex

Strong financial performance

25

Attractive and predictable shareholder distribution

Disclaimer

The Materials speak only as of their date, and the views expressed are subject to change based on a number of factors, including, without limitation, macroeconomic and equity market conditions, investor attitude and demand, the business prospects of the Group and other specific issues. The Materials and the conclusions contained herein are necessarily based on economic, market and other conditions, as in effect on, and the information available to the Company as of, their date. The Materials comprise a general summary of certain matters in connection with the Group. The Materials do not purport to contain all information required to evaluate the Company, the Group and/or their respective financial position. The Materials should among other be reviewed together with the Company's Annual Report 2022 and other public disclosures by the Company. The Materials contain certain financial information, including financial figures for and as of 30 September 2023 that is preliminary and unaudited, and that has been rounded according to established commercial standards. Further, certain financial data included in the Materials consists of financial measures which may not be defined under IFRS or Norwegian GAAP. These financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS or Norwegian GAAP.

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