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ER - Vår Energi reports strong results in the second quarter 2025 - Attachment: 250722_Va_r_Energi_Q2_Presentation_WEB.pdf

Company: Vår Energi ASA Date: 2025-07-22 Language: English Register to download
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# Second quarter 2025

Results presentation 22 July 2025

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### Today's presenters

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Nick Walker CEO

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Carlo Santopadre CFO

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Ida Marie Fjellheim VP Investor Relations

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### Second quarter 2025 highlights

Production

Production cost

**288** kboepd

**12.7** USD/boe

CFFO

2

**766** USD million

2025 and 2026 dividend guidance

**1.2** USD billion

### Production on-track for the mid-point of full year guidance

- Jotun FPSO successfully on stream, peak expected during September
- Johan Castberg producing at plateau
- Current production above 350 kboepd
- Major turnarounds completed by end July

### Strengthened financial position

- Unit production cost on track to meet USD ~10 per boe by Q4
- 25% of gas volumes locked in at USD 92 per boe
- Successful issuance of USD 1.5 billion senior notes
- Increased liquidity through refinancing of credit facilities
- Utilising flexibility to reduce spend by USD ~500 million in 2025/26

#### Demonstrating growth and unlocking future value

- Adding ~180 kboepd at peak from new fields in 2025
- Progressing project portfolio with four project sanctions year to date
- Exploration successes adding high value barrels

#### Delivering predictable and attractive dividends

- Q2 dividend of USD 300 million confirmed
- Full year dividend guidance for 2025 and 2026 of USD 1.2 billion

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### Maintaining resilience in volatile markets

| Resilience                                                 | Refinanced                                               | High gas prices                                     | High flexibility                    | Reduced spend                       |
|------------------------------------------------------------|----------------------------------------------------------|-----------------------------------------------------|-------------------------------------|-------------------------------------|
| ~40<br>USD per boe<br>Free cash flow<br>neutral, 2025-2030 | 5.2<br>USD billion<br>strengthened<br>financial capacity | 90<br>USD per boe<br>~20% volumes for<br>Q2/Q3 2025 | 65<br>Percent<br>capex uncommitted1 | ~500<br>USD million<br>in 2025/2026 |

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### A leading pure-play E&P

#### 3 rd largest oil and gas producer in Norway

- High quality portfolio
- Diversified asset base
- Interests in ~50% of all producing assets
- Balanced commodity mix, ~30% gas<sup>1</sup>

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### Delivering significant production growth

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### On track to meet 2025 guidance

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1. Vår Energi operated assets, incl. turnarounds

6 2. Before re-start of Snøhvit following completion of turnaround expected end July and with low volumes from the startup of Jotun FPSO

**>350** kboepd Current production²

**330-360** kboepd Full-year guidance unchanged

**~430** kboepd Expected production in Q4 2025

**4 of 9** Projects on-stream

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### Jotun FPSO started up

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#### Peak production Expected during September

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1. Gross, Vår Energi 90% working interest Photo: Jotun FPSO moored at field,

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### **150** mmboe 2P reserves<sup>1</sup>

**<sup>~</sup>5** USD/bbl Production cost<sup>2</sup>

Adding 45 – 50 mmboe<sup>1</sup> Balder phase V start-up Q4 2025 Balder phase VI start-up Q4 2026

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### Johan Castberg at plateau

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**220** kboepd Plateau production2,3

## **450-650** mmboe

Recoverable reserves2,3

### **~4** USD/bbl

Production cost

## 250-550 mmboe

Additional unrisked recoverable resources2,3

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1. Final investment decision 2. Operator's estimate, gross

8 3. Vår Energi 30% working interest

### Continuous operational improvement

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1. SIF: Number of incidents with actual or potential serious consequence per million hours worked. 12 months rolling average

2. Net 3. Operated assets, including turnarounds

9

#### Becoming carbon neutral by 2030 ¹

#### Carbon emissions intensity

kg CO<sup>2</sup> /boe<sup>2</sup>

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#### Near Zero methane intensity4,5

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#### Inclusion in OSEBX ESG index

1. Net equity operational emissions

- 2. Equity share Scope 1
- 3. Source: Rystad Energy

4. Key performance indicator for Oil and Gas Climate Initiative (OGCI) 2025 upstream methane target is well below 0.2%

10 5. Operational control

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#### Developing a material resource base 9 projects on stream in 2025 ~30 early phase projects Drill-out ~50% next 4 years **1.2 0.9 >1** ~20 exploration wells in 2025 >10 project sanctions in 2025 **~60%**  yet to be developed **>3** billion boe<sup>1</sup> resource base

2P reserves<sup>2</sup> 2C resources<sup>3</sup> Prospective

resources<sup>4</sup>

1. Net

2. 2024 Annual statement of reserves - Proved plus probable (2P) reserves, net

3. Year-end 2024 2C contingent resources, net

11 4. Net risked exploration resources

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### Flexible and resilient early phase project portfolio

**<sup>~</sup>30** early phase projects

### **<sup>~</sup>600** mmboe<sup>1</sup> to be developed

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IRR2,3 **>25%**

#### Breakeven<sup>3</sup>

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6. Previously Producing Fields 7. Low Pressure Production 8. Flow Conditioning Unit

Targeting sanction in 2025

9. Part of scope will be sanctioned in 2025 Sanctioned in 2025

1. Net Vår Energi 2C contingent resources

- 2. Average portfolio internal rate of return 12Vår Energi licences
- 12 3. Volume-weighted average across portfolio 4. Improved Oil Recovery

5. Subsea Compression

### Fram Sør Subsea tieback to Troll C delivering high value barrels

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More than 200 mmboe potential in the area for future developments<sup>1</sup>

**57** kboepd Peak production<sup>2</sup>

**116** mmboe Recoverable reserves<sup>2</sup>

**2.2** USD billion Capex<sup>2</sup>

**<8** USD per boe Production cost

1. Gross unrisked additional recoverable resources

First oil End 2029

13 2. Gross, Vår Energi 40% working interest 13

### Balder Phase VI 18 months from sanction to production

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**<35** USD/bbl Break-even price

**>35** percent Internal rate of return

**15** mmboe Recoverable reserves<sup>3</sup>

**260** USD million Capex<sup>3</sup>

#### First oil End 2026

#### Balder Next maturing towards FID1,2 70-80 kboepd towards 20303

1. Balder Next consists of the Balder Floating Production Unit (FPU) decommissioning, well transfer to Jotun FPSO, debottlenecking at Jotun FPSO to increase

- production capacity and new production wells.
- 14 2. Final Investment Decision
	- 3. Gross., Vår Energi 90% working interest

### Leading exploration results

**3** commercial discoveries<sup>1</sup>

**40-60** mmboe net discovered resources<sup>2</sup>

**9** wells remaining targeting **>110** mmboe<sup>3</sup>

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15

1. 11 wells drilled YTD 2025 2. Recoverable 3. Net unrisked resource potential 4. Gross etimated recoverable resources 5. VE interest 30%

6. VE interest 65% 7. VE interest 75%

#### Drivis Tubåen

Tie-back to Johan Castberg

**9-15** mmboe4,5

Goliat Ridge 2 appraisal wells 2025

**>200** mmboe4,6 potential

Vidsyn Ridge Tie-back to Njord/Fenja Up to **100** mmboe potential4,7

- Vår Energi licences
- Discoveries
- Remaining wells in 2025

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### Financial highlights

**70** USD per boe weighted average realised price **766** USD million CFFO after tax

**300** USD million Dividend Q2 confirmed

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Successful issuance of senior notes

**3.5** USD billion Available liquidity<sup>1</sup>

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1. Cash, cash equivalents and undrawn facilities

16 2. Net interest-bearing debt excluding lease commitments per 30 June 2025 over 12-months rolling EBITDAX

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### Robust realised prices

![](_page_17_Figure_2.jpeg)

**<sup>~</sup>70** USD/boe

Q2 2025<sup>1</sup>

Average realised price

#### Realised prices

**USD per boe**

**USD million**

![](_page_17_Figure_5.jpeg)

17 1. Volume weighted 2. Contracted fixed price based on average exchange through Q2 2025

#### Total petroleum revenues Locked-in high gas prices in summer 2025

**92** USD per boe² 25% of gas volumes for Q2 2025

**90** USD per boe² 18% of gas volumes for Q3 2025

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### Solid cash flow generation

**766** USD million

Q2 2025 cash flow from operations (CFFO)

## **2.3-2.5** USD billion

2025 development capex guidance maintained

1. Including expenditures on property, plants and equipment (PP&E) and exploration

18

#### CFFO and Capex

USD million

![](_page_18_Figure_9.jpeg)

CFFO Capex**<sup>1</sup>**

![](_page_18_Picture_11.jpeg)

**0.0**

**0.5**

**1.0**

**1.5**

**2.0**

**2.5**

**3.0**

**3.5**

## Strong liquidity and financial position

#### Cash flow development Q2 2025

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![](_page_19_Figure_3.jpeg)

USD 3.5 billion

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Diversified long-term capital structure aligned with business needs

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## Strengthened financial position

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#### Committed to maintaining Investment Grade rating

1. Net interest-bearing debt (NIBD) is shown at end of period, excluding lease commitments and including accrued interest. EBITDAX is rolling 12 months 2. Based on EURO/USD of 1.17

3. First reset date 15 February 2029

20 4. Refinancing completed 1H 2025

**5**

**Baa3 BBB**

![](_page_20_Picture_10.jpeg)

### Cash tax sensitivities

### Tax payments – sensitivities for 1H 2026<sup>1</sup>

USD million²

![](_page_21_Figure_3.jpeg)

Taxes paid in 1H 2026 related to 2025 results

**~13** NOK billion

2H 2025 tax payments

(USD ~1.2 billion)<sup>2</sup>

1. Price assumptions reflects average for the year

2. Based on NOK/USD 10.5

3. Agreed tax payments for September, October and November can be adjusted upwards within 1 September 21

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### Attractive and predictable dividends

![](_page_22_Figure_1.jpeg)

### Dividend guidance 2025 and 2026 **1.2** USD billion

Dividend for Q2 of USD ~0.12 per share to be paid 26 August 2025

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### Guidance and outlook

| 2025            |                                                                                                                        | Longer-term                                                                                                                                     |  |  |
|-----------------|------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|--|--|
| Production      | 330-360<br>kboepd<br>Q4 2025: ~430 kboepd                                                                              | 2026: ~400 kboepd<br>2027-2030: 350-400<br>kboepd                                                                                               |  |  |
| Production cost | USD 11-12 per boe, USD ~10 per boe in Q4                                                                               | Sustain<br>USD ~10 per boe¹                                                                                                                     |  |  |
| Capex           | USD 2.3-2.5<br>billion ex. exploration and abandonment<br>Exploration USD ~380 million<br>Abandonment USD ~100 million | 2026-30:<br>USD 2-2.5 billion ex. exploration and abandonment p.a.<br>Exploration USD 200-300 million p.a.<br>Abandonment USD ~150 million p.a. |  |  |
| Dividends       | Q2 dividend of USD 300 million<br>(~0.12 USD per share)<br>Full year 2025 dividend guidance<br>USD 1.2 billion         | 2026 dividend guidance USD 1.2 billion<br>Dividend of 25-30% of CFFO after tax over the cycle                                                   |  |  |
| Other           | Cash tax payments of USD ~1.2 billion in 2H<br>2025                                                                    |                                                                                                                                                 |  |  |

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### Delivering strong results

Key growth projects delivered

Production expected at the mid-point of full year guidance

Demonstrating growth and unlocking future value

Strengthened and more resilient financial position

Delivering predictable and attractive dividends

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### Exploration program 2025

| Licence  | Prospect       | Operator   | Vår<br>Energi<br>share | Pre-drill<br>unrisked<br>resources<br>mmboe1 | Estimated<br>recoverable<br>resources<br>mmboe1 | Status              |
|----------|----------------|------------|------------------------|----------------------------------------------|-------------------------------------------------|---------------------|
| PL 1131  | Elgol          | Vår Energi | 40 %                   |                                              |                                                 | Minor gas discovery |
| PL 1110  | Njargasas      | Aker BP    | 30 %                   |                                              |                                                 | Dry                 |
| PL 229   | Zagato         | Vår Energi | 65 %                   |                                              | 15-43                                           | Discovery           |
| PL 1090  | Kokopelli      | Vår Energi | 50 %                   |                                              |                                                 | Dry                 |
| PL 1005  | Rondeslottet   | Aker BP    | 40 %                   |                                              |                                                 | Dry                 |
| PL 169   | Lit            | Equinor    | 13 %                   |                                              |                                                 | Dry                 |
| PL 554   | Garantiana NW  | Equinor    | 30 %                   |                                              |                                                 | Dry                 |
| PL 532   | Skred          | Equinor    | 30 %                   |                                              |                                                 | Minor gas discovery |
| PL 586   | Vidsyn         | Vår Energi | 75 %                   |                                              | 25-40                                           | Discovery           |
| PL 532   | Drivis Tubåen  | Equinor    | 30 %                   |                                              | 9-15                                            | Discovery           |
| PL 1194  | Hoffmann       | OMV        | 30 %                   |                                              |                                                 | Dry                 |
| PL 1238  | Deimos         | Equinor    | 20 %                   | 245                                          |                                                 | Ongoing             |
| PL 090   | F Sør          | Equinor    | 40 %                   | 25                                           |                                                 | Q3                  |
| PL 229   | Goliat North   | Vår Energi | 65 %                   | 10                                           |                                                 | Q3                  |
| PL 554 C | Narvi Brent    | Equinor    | 30 %                   | 20                                           |                                                 | Q3                  |
| PL 057   | Camilla Nord   | Harbour    | 3.3%                   | 20                                           |                                                 | Q3/Q4               |
| PL 248B  | Omega Alfa Sør | Equinor    | 5%                     | 30                                           |                                                 | Q4                  |
| PL 1121  | Tyrihans Øst   | Equinor    | 30 %                   | 20                                           |                                                 | Q4                  |
| PL 554   | Avbitertang    | Equinor    | 30 %                   | 25                                           |                                                 | Q4                  |
| PL 229   | Zagato North   | Vår Energi | 65%                    | 18                                           |                                                 | Q4                  |
| PL 1236  | Vikingskipet   | Equinor    | 30%                    | 190                                          |                                                 | Q4 2025/Q1 2026     |
| PL 027   | Prince Updip   | Vår Energi | 90%                    | 45                                           |                                                 | Q1 2026             |

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### 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 market conditions, investor attitude and demand, the business prospects of the Group and other 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 previously issued periodic financial reports and other public disclosures by the Company The Materials contain certain financial information, including financial figures for and as of 30 June 2025 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 urges each reader and recipient of the Materials to seek its own independent advice in relation to any financial, legal, tax, accounting or other specialist advice. No such advice is given by the Materials and 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 reader enters into any transaction. Any investment or other transaction decision should be taken solely by the relevant recipient, after having ensured that it fully understands such investment or transaction and has made an independent assessment of the appropriateness thereof in the light of its own objectives and circumstances, including applicable risks.

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", "ambitions", "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.

To the extent available, 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 may 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.

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