Vår Energi ASA

Investor Presentation • Apr 27, 2022

First quarter 2022

Results presentation | 27 April 2022

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 do not purport to contain all information required to evaluate the Company, the Group and/or their respective financial position. The Materials should be reviewed together with the Company's Annual Report 2021. The Materials contain certain financial information, including financial figures for and as of March 31, 2022 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.

The Company strongly suggests that each Recipient seeks its own independent advice in relation to any financial, legal, tax, accounting or other specialist advice; no such advice is given by the Materials. Nothing herein shall be taken as constituting the giving of investment advice and the Materials are not intended to provide, and must not be taken as, the exclusive basis of any investment decision or other valuation and should not be considered as a recommendation by the Company (or any of its affiliates) that any Recipient enters into any transaction. The Materials comprise a general summary of certain matters in connection with the Group. The Materials do not purport to contain all the information that any Recipient may require to make a decision with regards to any transaction. Any decision as to whether to enter into any transaction should be taken solely by the relevant Recipient. Before entering into such transaction, each Recipient should take steps to ensure that it fully understands such transaction and has made an independent assessment of the appropriateness of such transaction in the light of its own objectives and circumstances, including the possible risks and benefits of entering into such transaction.

The Materials may constitute or include forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "plans", "targets", "aims", "believes", "expects", "projects", "anticipates", "intends", "estimates", "will", "may", "continues", "should" and similar expressions. Any statement, estimate or projections included in the Materials (or upon which any of the conclusion contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projection with respect to the condition (financial or otherwise), prospects, business strategy, plans or objectives of the Group and/or any of its affiliates) reflect, at the time made, the Company's beliefs, intentions and current targets /aims and may prove not to be correct. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. The Company does not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.

To the extent available, the industry, market and competitive position data contained in the Materials come from official or third-party sources. Third-party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source, none of the Company, its affiliates or any of its or their respective representatives has independently verified the data contained therein. In addition, certain of the industry, market and competitive position data contained in the Materials come from the Company's own internal research and estimates based on the knowledge and experience of the Company in the markets in which it has knowledge and experience. While the Company believes that such research and estimates are reasonable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change and correction without notice. Accordingly, reliance should not be placed on any of the industry, market or competitive position data contained in the Materials.

The Materials are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation of such jurisdiction or which would require any registration or licensing within such jurisdiction. Any failure to comply with these restrictions may constitute a violation of the laws of any such jurisdiction. The Company's securities have not been registered and the Company does not intend to register any securities referred to herein under the U.S. Securities Act of 1933 (as amended) or the laws of any state of the United States. This document is also not for publication, release or distribution in any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction nor should it be taken or transmitted into such jurisdiction and persons into whose possession this document comes should inform themselves about and observe any such restrictions.

Today's Vår Energi presenters

Torger Rød CEO

Stefano Pujatti CFO

Ida Marie Fjellheim

Head of Investor Relations

Diversified portfolio with a hub strategy enabling long-term value creation

Material and diversified production base with longevity, in partnership with world-class operators

Maximising value creation with hub-centred strategy on the NCS

World-class capabilities, with tangible growth and track record of successful development and exploration

Disciplined approach to M&A, with strong track record of value-accretive acquisitions

Material cash flow generation and Investment grade balance sheet supporting attractive and resilient distributions

Path to net zero (Scope 1 and 2) by 2030 with strong HSEQ credentials

Robust portfolio positioned for production growth

Production target >350 kboepd by end 2025 Growth levers

kboepd

Material, long-lived resources

~1.1 bnboe 2P reserves and 550 mmboe 2C resources, with R/P of ~13 years1

Improved recovery

Leading subsurface technology and infill drilling

Project development

Development of robust pipeline of sanctioned and unsanctioned projects

Exploration

New commercial discoveries leveraging best-in-NCS exploration capability

M&A

Accretive M&A in hub areas driving value and synergies

Raising 2022 dividend guidance to USD 1 billion

Note: Company estimates, assuming forward Brent and NBP prices for the first six months of 2022, where oil price levels refer to Brent 2022 real prices. Assumed NOK/USD 8.50. Gas price assumed 65% of Brent Assuming implementation of proposed petroleum tax regime ¹ Assuming a stable commodity price environment 6

First quarter 2022 highlights

Robust operational performance

• Production within the 2022 guided range
• Cost of operations reduced due to seasonal lower maintenance
• Subsea leak at the Balder field led to one actual serious incident

Exceptional cash flow generation

• Average volume-weighted realised price of USD 119.8/boe
• Dividend of USD 0.09 per share declared for Q1 totalling USD 225 million to be distributed 12 May
• Guidance of USD 260 million for the second quarter
• 2022 dividend guidance raised to USD 1 billion under current market conditions

Strong financial position

• USD 3 799 million in available liquidity at the end of the quarter
• Leverage ratio reduced to 0.6x from 1.1x at year-end 2021

On track to deliver on YE 2025 production target

• Main development projects progressing according to schedule
• Increased macro and supply chain uncertainties

Key performance indicators

Q1 2022 vs. Q4 2021

Operational review

HSSE is the number one priority

TRIF1 and SIF2

CO2 emission intensity for operated assets

kg CO2/boe

11 12

• One Actual SIF incident subsea leak at the Balder field
• Positive TRIF development 3 low potential personnel injuries
• Continued focus on Always Safe program and implementation of IOGP Life-Saving rules

CO2 intensity slightly improving quarter on quarter

¹ Total recordable incident frequency per million hours worked, 12 months rolling average ² Total serious incident frequency per million hours worked, 12 months rolling average 10

Awarded carbon storage license in the Barents Sea

• The awarded Polaris CO2 storage license is planned to be used to permanently store CO2 captured from the Barents Blue facility to be developed with partners Equinor and Horisont Energi
• The planned facility will produce carbon neutral (blue) ammonia and is an important step towards Vår Energi becoming a net-zero producer (scope 1 and 2) within 2030
• The first stage of the development includes capture, transport and storage of up to two million tonnes of CO2 per year

Robust production performance in line with guiding

Production, production efficiency operated assets and product mix

• Reduced gas production of ~5 kboepd from previous quarter due to technical adjustment of gas conversion factor
• Minor operational events and natural depletion impacting production
• Continued material gas share
• 2022 production guidance of 230-245 kboepd maintained

0,0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

1,0

Operational update on operated assets

Balder /Ringhorne Resumed full Balder production in April

• Balder production efficiency of 74% reflects a subsea leak causing shut-in of some production templates; production fully restored in April. Impact of 3.7 kboepd in Q1
• Ringhorne infill drilling program progressing per plan
• Two week turnaround activity planned in Q3

Goliat High operational efficiency

• Operational efficiency increased from 94% to 96%
• Production slightly down in quarter due to natural well decline
• Efficiency and opex improvement program progressing to plan
• Preparing for three week turnaround commencing late May

Declining unit production cost

Production cost per boe produced1

USD/boe

• Lower unit production cost mainly due to low maintenance activities in the quarter
• 2022 opex per boe guidance maintained at USD 12.5 to 13.5
• Opex and unit cost improvement programs progressing according to plan
• Medium term production cost ambition of 8 USD/boe

On track to deliver on end-2025 production target

First oil field extension First oil new field development Producing Balder 216 Ekofisk 102 Grane 109 Goliat / J. Castberg ²²² Tampen 148 Åsgard 178 Other 162 Key Areas Op. 2P mmboe 2021 2022 2023 2024 2025 Ringhorne Phase III Balder X Åsgard LWP Subsea compression II Tommeliten A Breidablikk Johan Castberg Snorre Expansion Project Statfjord East IOR Tor II Fenja OL Subsea Compression Bauge Frosk Kristin South SMBN LPP3 Eldfisk North

Existing production and sanctioned developments

• Generally good progress on major projects
• Increased macro and supply chain uncertainties
• Continued Covid-19 impact on certain projects
• Eldfisk North FID Q1 2022, PDO submission planned end-April
• Halten East FID in Q2 2022

Balder X on track to support medium-term production target

Highly profitable project targeting 143 mmboe in net recoverable reserves

• Leveraging existing Balder hub infrastructure
• Field production expected to increase to >70 kboepd annual net at peak with attractive break-even
• Significant additional upside potential

Progressing on schedule for planned first oil in Q4 2023

• The inspection program on Jotun FPSO is concluded and results are incorporated into the integrated plan
• Drilling programme under way
• Final equipment orders to be placed in Q2 2022
• SURF 2022 campaign progressing according to plan

Continuous focus on mitigating project risks

• Drilling progress impacted by challenging weather
• Additional engineering hours and increased procurement scope
• Continued impact from Covid-19

Johan Castberg FPSO arrived in Norway

Positioned to be a Barents Sea giant

• Second oil field development with high perspectivity in the Barents Sea
• Large additional potential through infill drilling, tie-back of discoveries and exploration drilling after project completion
• On track for planned first oil in Q4 2024
  • FPSO hull and living quarter arrived at Aker Stord, Norway in early April
  • Heavy lift campaign and turret installation planned during summer
  • Phase 1 drilling campaign completed ahead of time and below budget
  • SURF activities progressing according to plan

Breidablikk ready for Q2 drilling program

One of the largest ongoing developments on the NCS

• Highly attractive and cost-effective development leveraging on existing Grane infrastructure
• Four subsea templates tied back to the Grane platform
• Possibility to extend production plateau through installation of a fifth template
• On track for planned first oil in Q1 2024
  • All four subsea templates successfully installed in Q1
  • Drilling program to commence in May 2022
  • Breidablikk project scope incorporated in Grane high activity period that started in April

2022 campaign targeting more high-value barrels

License	Prospect	Operator	Vår Energi share	Pre-drill unrisked mmboe	Pre-drill unrisked mmboe VE	Timing	Status
PL 057	Statfjord Kile	Equinor	18.6%	6	1	Q1	Dry
PL 532	Snøfonn	Equinor	30%	44	13	Q2	Drilling
PL 532	Skavl Stø	Equinor	30%	20	6	Q2
PL 209	Ormen Lange Deep	Equinor	10%	290	29	Q1/Q2	Drilling
PL 124	Othello North	Equinor	10%	43	4	Q2/Q3
PL 554	Angulata	Equinor	30%	58	17	Q3
PL 938	Calypso	Neptune	20%	34	7	Q4
PL 229E	Lupa	Vår Energi	50%	85	43	Q4
PL 229	Countach	Vår Energi	65%	41	27	Q4/Q1 23'

2022 work programme Continued hub-focused exploration

Key financials

USD million	Q1 2022	Q4 2021	Q1 2021	FY 2021
Petroleum revenues	2 483	2 282	1 039	6 043
EBIT	1 674	1 235	553	2 910
Profit before taxes	1 651	1 124	499	2 498
Production cost (USD/boe)	12.1	13.4	9.9	12.0
Operating CF before tax	2 366	1 495	696	4 274
CFFO	2 182	923	930	4 438
CAPEX	622	710	546	2 584
NIBD / EBITDAX	0.6x	1.1x	2.1x	1.1x
Available liquidity	3 799	2 304	1 291	2 304

Average weighted realised price of USD 120/boe driving revenues

Total petroleum revenues

USDm

Sold volumes

Realised prices

USD/boe

mmboe

Lower cost of operations due to seasonal low maintenance

Production cost (sold volumes)

USDm

• Cost of operations down on low maintenance activities
• Fourth quarter production cost included one-off own restructuring costs, restructuring costs billed from partners and revised bonus provisions
• Seasonally higher maintenance activity planned in Q2/Q3
• Over/underlift position impacted by product prices

Record-high CFFO driven by higher prices and lower tax payments

Exceptional cash flow generation

Strong cash flow generation supports continued deleveraging

Net interest-bearing debt and leverage ratio1

¹ Net interest-bearing debt (NIBD) is shown at end of period, including lease commitments. EBITDAX used is a LTM figure. NIBD includes final payment to Exxon of USD 300-350 million 26

Dividend guidance of USD 1 billion for 2022

Dividend distribution

USDm

• Dividend for Q1 2022 of USD 0.09 per share to be paid 12 May 2022
  • Dividend paid in NOK at exchange rate of NOK/USD 9.1758
• Dividend guiding for Q2 of USD 260 million (0.10 USD per share)
• Dividend policy of 20-30% of cashflow from operations after tax from 2023 onwards

Outlook

Production	Production target in 2022 of 230-245 kboepd 
Production cost	Targeting USD 12.5 - USD 13.5 in 2022   Expected to improve over the medium term towards USD 8/boe as new projects come onstream and cost savings are achieved
Capex	2022 capex guidance of USD 2.3 – USD 2.6 billion excluding exploration and abandonment (exploration USD  ~150 million and abandonment USD ~50 milllion)  Limited cash outflow on decommissioning in the next ten years
Other	 Final payment to ExxonMobil of ~USD 300-350 million due in 2022 as part of the 2019 acquisition
Leverage	Conservative through-the-cycle leverage target of 1.3x net debt / EBITDAX 
Dividends	Dividend guidance for 2022 raised to USD 1 billion (USD 0.40 per share) under current market conditions, paid  on a quarterly basis Q2 dividend guidance of USD 260 million (USD 0.10 per share)  From 2023 onwards plan to distribute around 20-30% of cash flow from operations (after tax) across the cycle 

Concluding remarks

Summary

• Robust operational performance
• Exceptional cash flow generation
• Strong financial position
• On track to deliver on YE 2025 production target
• Raising dividend guidance for 2022 to USD 1 billion

First quarter 2022

Results presentation | 27 April 2022