Vår Energi ASA

Investor Presentation • Jul 25, 2023

Second quarter and first six months 2023

Results presentation | 25 July 2023

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Today's Vår Energi presenters

Torger Rød CEO

Stefano Pujatti

CFO

Ida Marie Fjellheim Head of Investor Relations

Second quarter 2023 highlights

Solid performance on operated assets

• 88% production efficiency on operated fields and improved drilling performance
• Production impacted by maintenance, turnarounds and unplanned downtime at partner-operated fields

Continued high gas price realisation

• Gas sales strategy realising strong gas price of USD 98 per boe in the quarter
• CFFO impacted by lower revenues and higher tax payments
• Maintaining a strong balance sheet with leverage ratio of 0.4x at end-Q2 2023
• Debut issue of EUR 600 million senior notes in the Euro bond market
• Dividend guidance of USD 270 million for Q3 2023

Project portfolio progressing per schedule

• Jotun FPSO re-float and installation of the turret safely completed
• On track for >50% production growth by end-2025

Accelerating growth and value creation

• Announced the acquisition of Neptune Energy's Norwegian oil and gas assets
• Adding scale, robustness, diversification and longevity to Vår Energi's portfolio

Neptune acquisition summary

Key terms and conditions

• Vår Energi to acquire 100% of the shares of Neptune Energy Norge AS
• Cash consideration based on agreed enterprise value of USD 2.275 billion
• Locked box date 1 January 2023

Perfect strategic fit

• 12 producing assets, of which 3 operated, located in Vår Energi's hub areas
• Adding 67 kboepd of daily production¹ , ~265 mmboe of 2P reserves² and several near- and medium-term growth opportunities
• Attractive commodity mix and strategic ownership in Snøhvit LNG, amplifying the position in the Barents Sea
• Highly cash-generative portfolio with low cost, limited near-term capex and low emissions, strengthening future dividend capacity

Indicative timeline

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

The Barents Sea

Operator of Goliat and partner in the Johan Castberg development

Snøhvit Highly strategic long-life LNG asset

Hammerfest

Key performance indicators

Q2 2023 vs. Q1 2023

Actual serious incidents frequency¹

0.0 (0.0) (214) (1 358)

Production 202 kboepd

Cash flow from operations

USD 231m

CO emissions intensity 2	Production cost per boe	Dividend for the quarter
11.5 kg/boe	USD 15.5	USD 270m
(13.0)	(13.1)	(270)

Operational review

Continuous work on safe and responsible operations

• No serious incidents in the quarter
• Stable trend on SIF reflecting continuous implementation of safety initiatives and strengthened safety culture
• Positive trend on TRIF driven by proactive safety work in both yard activities and on operated assets

SIF¹ and TRIF² CO² emission intensity for operated assets kg CO² /boe

• Reduced emission intensity due to less exploration activity in the quarter and effects from emission improvement initiatives
• Ranked as 12th out of 300 oil and gas companies in new ESG rating from Sustainalytics³
• Exploring carbon capture and storage opportunities through acquisition of Feistein CCS

1. Rating as of 16 June 2023 8

Turnarounds and seasonal maintenance in the quarter

Production, production efficiency¹ and product mix kboepd

• Developments coming on stream
  • Hyme, Bauge and Fenja on stream in April
  • Volumes lower than expected due to start-up challenges at the Njord host
• Stable performance from operated fields with 88% production efficiency
• Major turnarounds completed at partneroperated fields
  • Turnaround on Ormen Lange extended into Q3
• Expected impact of 12-15 kboepd from turnarounds in Q3

0,0

0,1

0,2

0,3

0,4

57%

202

36%

7% Q2 2023 0,5

0,6

0,7

0,8

0,9

1,0

▪ 2023 production guidance of 210-230 kboepd maintained

North Sea

Solid performance on operated assets

Goliat

• Continued stable performance on Goliat with 93% production efficiency
• Three-day planned maintenance stop completed on plan

Balder/Ringhorne

• Production efficiency of 83% with planned maintenance in the quarter
• Restart of the riser at Ringhorne in May with permanent replacement scheduled in Q3
• Planned turnaround in Q3 and high-activity period at Balder FPU ongoing
• Improved drilling performance with increased drill speed and reduced costs

Quarterly production cost impacted by seasonal maintenance

Production cost per boe produced¹

USD per boe

• Impact from lower production, higher maintenance activity and currency effects
• Full-year 2023 opex per boe guidance maintained at USD 14.5 to 15.5
• Medium-term ambition of ~8 USD² per boe driven by sanctioned projects coming on stream and cost improvement programme

Jotun FPSO refloated and turret successfully installed

Major heavy-lift installations completed High construction activity

Key milestones met: Drilling and SPS/SURF progressing well: On critical path, key focus areas:

Seven of 15 producing wells completed

Front-loading subsea campaign to optimise project schedule

Increase productivity

Execute remaining construction and commissioning

Optimise schedule towards planned sail away and production start-up

Project portfolio progressing according to schedule

Breidablikk

• The High Activity Period (HAP) on Grane topside has been completed and flotel demobilised
• Drilling operations remain ahead of plan

Johan Castberg

▪ Construction activities progressing on plan

Other

▪ Five projects coming on stream during first half, combined representing ~12 kboepd for 2023

High activity level at NCS, adding supply chain constraints

• Increased prices and rates for certain products and services
• Risk of reduced capacity and productivity

Updated 2023 exploration

License	Prospect	Operator	Vår Energi share	Pre-drill unrisked mmboe	Pre-drill unrisked mmboe VE	Status
PL 229	Countach	Vår Energi	65 %			Discovery
PL 554	Angulata	Equinor	30 %			Dry
PL 1005	Rondeslottet	Aker BP	40 %	871	348	Postponed
PL 185	Kim	OKEA	12 %	8	1	Drilling
PL 090	Crino	Equinor	25 %	8	2	Drilling
PL 984	Norma	DNO	20 %	63	13	Drilling
PL 917	King 2 (Hubert)	Vår Energi	40 %	24	13	Q4
PL 917	King 2 (Magellan)	Vår Energi	40 %	30	12	Q4
PL 1025S	Venus	Vår Energi	30 %	313	94	Q1 2024
PL 956	Ringhorne N	Vår Energi	50 %	28	14	Q1 2024

High-value exploration near existing hubs

Financial review

Key financials

USD million	Q2 2023	Q1 2023	Q2 2022	1H 2023	1H 2022
Petroleum revenues	1 432	2 089	2 423	3 521	4 906
EBIT	778	1 432	1 725	2 210	3 475
Profit before taxes	701	1 276	1 265	1 977	2 992
Production cost (USD/boe)	15.5	13.1	14.7	14.3	13.3
Operating CF before tax	1 285	1 935	1 864	3 220	4 248
CFFO	231	1 358	1 535	1 589	3 735
CAPEX	687	642	573	1 330	1 195
NIBD / EBITDAX	0.4x	0.3x	0.3x	0.4x	0.3x
Available liquidity1	3 111	3 769	4 492	3 111	4 492

Continued high realised gas price

Total petroleum revenues

Realised prices

USD per boe

Oil Gas NGL

Q2 2023 gas revenues

• Month and day ahead sales weighted towards France and Germany with ~36% of volumes exposed to high Month ahead prices
• Fixed price sales included contracts with Gas Year Ahead pricing starting 1 Oct 2022 and forward sale contracts entered into during Q4 2022

Indicative gas sales portfolio – current year¹

1. Based on average exchange rates through Q2 2023

2. Estimate based on pricing period 1 Oct 2022 – 30 Sept 2023, reflecting actual quotations for the Gas Year Ahead at TTF/THE for the period 1 Oct 2022- 30 June 2023 and the futures prices for the remaining pricing period

17

High cash tax payments in Q2 related to 2022 results

CFFO Capex

(1 631)

1H 2022 1H 2023

Continued strong liquidity position

1.. Revolving Credit Facility 2. Investments include payments for decommissioning 19

Optimising the long-term financing structure

Net interest-bearing debt and leverage ratio¹ USD billion

Maturity profile

-2.6 -2.4 -2.2 -2.0 -1.8 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0

5

Maintaining attractive and resilient distributions

Dividends

USD million

Declared Planned

• Dividend guiding for Q3 2023 of USD 270 million (~0.11 USD per share)
• Expected dividend for 2023 of approximately 30% of CFFO after tax
• Dividend for Q2 2023 of USD ~0.11 per share to be paid 14 August 2023
  • Paid in NOK at exchange rate of USD/NOK 10.087

Guidance for 2023 maintained

2023 outlook Actual 1H 2023 Production 210-230 kboepd 208 kboepd Production cost USD 14.5-15.5 per boe USD 14.3 per boe USD 2.4-2.7 billion excl. exploration and abandonment Exploration USD ~200 million Abandonment USD ~50 million Capex USD 1.3 billion Exploration USD 95 million Abandonment USD 16 million Other Cash tax payments of USD ~800¹ million in 2H 2023 USD 1 631 million paid Through-the-cycle leverage target of <1.3x net interest-bearing debt / EBITDAX Leverage 0.4x end-Q2 2023 Dividends Q3 dividend of USD 270 million (USD ~0.11 per share) For 2023, the plan is to distribute approximately 30% of CFFO after tax USD 540 million in dividends confirmed ~30% of CFFO after tax distributed in dividends

Summary

Solid performance on operated assets

Continued high price realisation

Project portfolio progressing per schedule

Accelerating growth and value creation

Second quarter and first six months 2023

Results presentation | 25 July 2023