Sandnes, Norway, 13 March 2024: Today, Vår Energi (OSE: VAR, the "Company") hosts the 2024 Capital Markets Update (CMU). The Company demonstrates it is on track for doubling production by end-2025 and presents a tangible plan for sustaining high value production of 350-400 thousand barrels of oil equivalent per day (kboepd) towards 2030.

The plan is supported by 10 development projects in execution, more than 20 early phase projects being matured, a doubling of exploration activity ​with participation in approximately 60 wells planned the next four years and a solid foundation of more than 3 billion boe of resource potential.

“Vår Energi is a leading pure play E&P company with deep and unique knowledge of the Norwegian Continental Shelf (NCS) through a robust and diversified portfolio of assets, including ownership in about 200 licenses, 47 producing fields and key infrastructure. Following the Neptune transaction, the Company cements its role as the second largest exporter of natural gas from Norway”, said Nick Walker, CEO of Vår Energi.

“We have a clear strategy for growth and value creation as one of the fastest growing E&P companies globally. We are on track to deliver around 400 kboepd by end-2025 and have a clear plan for organically sustaining production at 350-400 kboepd towards 2030. Vår Energi will deliver high-margin and low-emissions barrels from more than 20 new early phase, low risk tie back projects, all of which are close to existing infrastructure. These are targeted to be developed towards the end of the current high project development activity period on the NCS. This combination gives increased flexibility, short development time and low breakeven cost and payback time. As a result, we expect to unlock a free cash flow potential in a range of USD 4.5-8^¹ billion over 2024-2028, underpinning attractive and predictable dividends”, Mr Walker continued.

“Oil and gas will remain an essential part of world energy supply for decades to come. We are a reliable provider of energy to Europe from the attractive NCS with stable framework conditions, combined with a significant resource base, low emissions and low costs”, Mr Walker ends.

 Highlights

A clear strategy for growth and value creation

• Established track record with USD ~2.2 billion returned to shareholders since IPO
• A stronger pure play E&P company with an enhanced NCS gas position and strengthened future dividend capacity following the Neptune Energy Norge acquisition
• Identified synergy potential from the acquisition increased to approximately USD 500 million post tax over time, USD 200 million higher than initially guided
• More than 3 billion boe of reserves, resources and prospects provide a unique foundation for long-term value creation  

Unlocking future value

• On track for around 400 kboepd by end-2025 from de-risked development projects coming on stream, including Balder X and Johan Castberg
• A tangible plan for sustaining 350-400 kboepd towards 2030 supported by flexible and robust portfolio with over 20 early phase projects targeting over 400 mmboe with short time to market
• Accelerated exploration activity with around 60 wells over the next four years
• Delivering more than 100 wells in 2024, including development, infill and exploration wells
• Clear plan for reducing production cost to approximately USD 10² per boe by end-2025

Accelerated decarbonisation

• Strong starting point in the top quartile of the industry
• Clear path to emission reductions through electrification of assets and portfolio optimisation and energy management
• Targeting near zero methane emissions in 2024, over 50% reduction of scope 1 emissions by 2030 and near zero by 2050

Long-term foundation for sustainable shareholder returns

• Sustained production of high-margin barrels with approximately USD 45 per boe free cash flow neutral over 2024-2028
• Free cash flow generation potential in a range of USD 4.5-8 billion over 2024-2028^¹
• Dividend policy of 20-30% of cash flow from operations (CFFO) after tax over the cycle, with 2024 guidance at approximately 30% of CFFO

¹ Scenario Brent USD 70 per boe and USD 90 per boe. Excluding net risked exploration resources and net Neptune consideration of USD 1.2 billion

² Equivalent to previous guidance of USD 8 per boe, inflation-adjusted

Presentation and webcast today at 14:00 CET

The CMU presentation followed by Q&A will be transmitted via live webcast from 14:00 CET hosted by CEO Nick Walker, COO Torger Rød and CFO Stefano Pujatti.

The presentation material and webcast will be available at www.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 1300 employees and equity stakes in 47 producing fields. We have our headquarters outside Stavanger, Norway, with offices in Oslo, Hammerfest and Florø. To learn more, please visit www.varenergi.no

Contact

Investor relations

Ida Marie Fjellheim, Head of Investor Relations

+47 90509291

Ida.fjellheim@varenergi.no

Media relations

Andreas Wulff, VP Communications

+47 92616759

andreas.wulff@varenergi.no

This announcement may include projections and other "forward-looking" statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of Vår Energi AS ("Var Energi") about further events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections. Vår Energi ASA undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement.