Vår Energi ASA

Earnings Release • Oct 10, 2024

Vår Energi: Third quarter 2024 trading update

Vår Energi: Third quarter 2024 trading update

Sandnes, Norway, 10 October 2024: Vår Energi ASA (OSE: VAR, the "Company") will

publish its financial report for the third quarter 2024 on Tuesday 22 October.

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 256 kboepd

in the third quarter of 2024, a decrease of 11% from the second quarter and an

increase of 22% compared to the third quarter of 2023. The production in the

quarter was affected by planned seasonal maintenance and turnaround activity on

several assets which is now mostly complete. The average production of 281

kboepd in the first nine months of 2024 is in line with expectations for the

period. The Company is narrowing the 2024 full year production guidance range to

between 280 to 290 kboepd, with the upside level dependent upon the timing of

the start-up of Johan Castberg, which is expected towards the end of the fourth

quarter.

The production split in the third quarter was 66% oil and NGLs (liquids) and 34%

gas. Total volumes produced was 23.6 mmboe whereas volumes sold in the quarter

amounted to 24.0 mmboe. Vår Energi obtained a strong average realised price

(volume-weighted) of USD 76 per boe in the quarter. The realised crude price was

USD 81 per barrel. The realised gas price of USD 76 per boe is a result of fixed

price contracts and flexible gas sales agreements, allowing for optimisation of

indices. The fixed price contracts represented 18% of third quarter gas volumes

sold at an average price of approximately USD 135 per boe, substantially above

spot market reference price.

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Production (kboepd)[1] Q3 2024 Q2 2024 Q3 2023 YTD  2024 YTD  2023

Crude oil 154 162 126 162 120

Gas 86 103 71 100 75

NGL 16 22 13 19 14

Total 256 287 210 281 209

Realised prices (USD/boe)

Crude oil price 81 85 87 83 83

Gas price 76 70 91 71 124

NGL price 46 44 43 47 43

Average (volume weighted) 76 77 85 76 94

Sales volumes (mmboe)

Crude oil 14.2 15.1 11.9 43.9 32.5

Gas 7.7 7.9 5.8 24.8 18.4

NGL 2.0 2.1 1.4 6.3 3.7

Total 24.0 25.1 19.0 74.9 54.5

Total production (mmboe) 23.6 26.1 19.3 76.9 57.0

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 in

USD. The strengthening of the NOK in the third quarter of 2024 led to a net

exchange rate gain of approximately USD 47 million.

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

several assets valued at fair value in the balance sheet. Changes in

assumptions, cost and production profiles can result in impairments and

reversals.

Non-cash impairment charges are estimated to be around USD 314 million pre-tax

(around USD 90 million post tax) for the third quarter, mainly related to the

Balder field. The impairment was triggered by increased costs and delayed start

-up as communicated in August.

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

the quarter: one cash tax payment totaling approximately NOK 3.5 billion

(approximately USD 0.3 billion) and a dividend payment for the second quarter of

USD 270 million, paid in August.

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

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

financial statements

Third quarter webcast and conference call

Vår Energi will release its quarterly results on 22 October at 07:00 CEST. A

webcast and conference call followed by Q&A will be held at 10:00 CEST, hosted

by CEO Nick Walker and CFO Stefano Pujatti.

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

https://events.webcast.no/vaar-energi/quarterly-reports/rcuKmpSizv0pTKIqywej

Contact

Investor relations

Ida Marie Fjellheim, Head of Investor Relations

+47 90509291

ida.fjellheim@varenergi.no

Media relations

Andreas Wulff, VP Public Affairs

+47 92616759

andreas.wulff@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 43 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