Vår Energi ASA

Earnings Release • Jan 28, 2025

Vår Energi: Fourth quarter and full year 2024 trading update

Vår Energi: Fourth quarter and full year 2024 trading update

Sandnes, Norway, 28 January 2025: Vår Energi ASA (OSE: VAR, the "Company") will

publish its financial report for the fourth quarter and full year 2024 on

Tuesday 11 February. Today, the Company provides an update on production, sales

volumes and other relevant items.

Vår Energi's net production of oil, liquids and natural gas averaged 278 kboepd

in the fourth quarter of 2024, an increase of 8% from the third quarter and an

increase of 23% compared to the fourth quarter of 2023. The total production for

the full year averaged 280 kboepd, within the guided range for the year.

The production split in the fourth quarter was 64% oil and NGLs (liquids) and

36% gas. Total volumes produced were 25.6 mmboe whereas volumes sold in the

quarter amounted to 22.7 mmboe. The underlift position is mainly due to timing

of crude liftings in the quarter. Vår Energi obtained an average realised price

(volume-weighted) of USD 73 per boe in the quarter. The realised crude price was

USD 73 per barrel. The realised gas price of USD 78 per boe is below the spot

market reference price, mainly due to a portion of the gas being sold on a month

-ahead basis in a rising price market, whereas the impact will be the opposite

in a falling price market.  In addition, fixed price contracts represented

approximately 6% of fourth quarter gas volumes sold at an average price of

approximately USD 73 per boe.

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Production (kboepd)[1] Q4 2024 Q3 2024 Q4 2023 FY 2024 FY 2023

Crude oil 159 154 138 161 124

Gas 101 86 74 100 75

NGL 18 16 13 19 14

Total 278 256 225 280 213

Realised prices (USD/boe)

Crude oil price 73 81 85 81 84

Gas price 78 76 89 73 115

NGL price 48 46 47 47 44

Average (volume weighted) 73 76 84 75 91

Sales volumes (mmboe)

Crude oil 12.4 14.2 12.7 56.3 45.2

Gas 8.6 7.7 6.1 33.4 24.4

NGL 1.7 2.0 1.2 8.0 5.0

Total 22.7 24.0 20.0 97.7 74.5

Total production (mmboe) 25.6 23.6 20.7 102.5 77.7

¹ Produced figures are including fuel gas not for sale

Other items

Vår Energi Norge AS is consolidated as of 1 January 2024.

Vår Energi's functional currency is NOK, whilst interest bearing loans are

mainly in USD. The weakening of the NOK in the fourth quarter of 2024 led to a

net unrealised (non-cash) exchange rate loss of approximately USD 300 million.

As a result of the company history of mergers and acquisitions, Vår Energi has

several assets where the carrying value is close to estimated fair value in the

balance sheet. Changes in assumptions, cost and production profiles can result

in impairments and reversals.

Non-cash impairment reversal in the fourth quarter is estimated to be around USD

410 million pre-tax (around USD 90 million post tax) related to reversal on

Balder field mainly due to changes in production profiles. In addition, there

are impairments on Njord area and Snøhvit area of around USD 100 million (around

USD 100 million post tax) due to impairment of technical goodwill. The

impairments were triggered by changes in reserves.

Impairment of goodwill and exchange rate loss results in a significantly higher

tax rate in the quarter, compared to previous quarters.

As previously communicated, the following items impacted the free cash flow in

the quarter: cash tax payment totaling approximately NOK 8.4 billion (USD 0.77

billion) and a dividend payment for the third quarter of USD 270 million, paid

in November.

The information above is based on a preliminary assessment of the Company's

fourth quarter 2024 financial results and may be subject to change until the

financial statements have been finally approved and published by the Company.

Q4 2024 and Capital Markets Update webcast

Vår Energi will release its quarterly results on 11 February at 07:00 CET. A

presentation and webcast including an update on the Company's growth strategy

and plan will take place in Oslo at 14:00 CET, as part of the Company's Capital

Markets Update. You can follow the webcast with supporting slides, available on:

https://event.plaii.no/cmu

Contact

Investor relations

Ida Marie Fjellheim, VP Investor Relations

+47 90509291

ida.fjellheim@varenergi.no

Media relations

Liv Jannie Omdal

VP Communications

+47976 67 137

liv.omdal@­varenergi.no

About Vår Energi

Vår Energi is a leading independent upstream oil and gas company on the

Norwegian continental shelf (NCS). We are committed to deliver a better future

through responsible value driven growth based on over 50 years of NCS

operations, a robust and diversified asset portfolio with ongoing development

projects, and a strong exploration track record. Our ambition is to be the

safest operator on the NCS, the partner of choice, an ESG leader with a tangible

plan to reduce emissions from our operations by 50% within 2030. Vår Energi has

around 1400 employees and equity stakes in 40 producing fields. We have our

headquarters outside Stavanger, Norway, with offices in Oslo, Hammerfest and

Florø. To learn more, please visit varenergi.no.

This information is subject to disclosure requirements pursuant to section 5-12

of the Norwegian Securities Trading Act.