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Third quarter 2023

Results presentation | 24 Oct 2023

Today's Vår Energi presenters

Nicholas Walker	Stefano Pujatti	Ida Marie Fjellheim
CEO	CFO	Head of Investor Relations

2

Third quarter 2023 highlights

Accelerating growth target to ~400 kboepd by end-2025

• Set for ~100% production growth from Q3 2023
• Breidablikk and Tommeliten A successfully on stream
• Remaining project portfolio progressing to schedule, five more than 50% complete
• 80% exploration success in 2023
• Neptune Energy Norge acquisition expected to close Q1 2024

Delivering production and improved opex

• Production of 210 kboepd in Q3, on track for exit rate of >230 kboepd by year-end
• Production cost of USD 14.0 per boe

Strong financial performance

• Strong realised gas price of USD 91 per boe, USD 27 per boe above spot price
• Cash flow from operations (CFFO) of USD 975 million, an increase from USD 231 million in the previous quarter

Attractive and predictable shareholder distribution

• Strong balance sheet with leverage ratio of 0.5x at end-Q3 2023
• Dividend guidance of USD 270 million for Q4 2023

3

Neptune acquisition progressing towards completion

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

Perfect strategic fit

• 12 producing assets, of which 3 operated, located in Vår Energi's hub areas
• Adding 66 kboepd of production1, ~265 mmboe of 2P reserves2
• Attractive commodity mix and strategic ownership in Snøhvit
  LNG
• Highly cash-generative portfolio with low cost, limited near-term capex and low emissions
• Strengthening future dividend capacity

Status

• Regulatory approvals obtained from the Norwegian Ministry of Petroleum and Energy and the Competition Authority³

	1. H1 2023 production for Neptune Energy's Norwegian oil and gas assets
	2. As at end-2022 (Neptune group ASR 2022)
4	3. Completion inter-conditional of approval of Eni's transaction with Neptune

Njord Area

Multiple infill and ILX opportunities, Vår Energi already present in tie-backs

The Norwegian Sea

Includes the Åsgård hub area

The North Sea Area

Includes the Tampen hub

Gjøa Area

Low-emission and partly electrified assets

The Balder Area

Operator of Balder and the Balder Future development

Gudrun

Shared infrastructure and joint electrification with Sleipner

The Barents Sea

Operator of Goliat and partner in the Johan Castberg development

Snøhvit

Highly strategic long-life LNG asset

Stavanger

Hammerfest

Fram

Adds materiality and strengthens existing position, numerous upsides to be targeted

Set to double production by end-2025

Production target including Neptune Energy Norge

kboepd

		~100%
		~400¹
		Neptune Norge
		Acquisition
		11 development projects.:
		Johan Castberg
210-220	Breidablikk
Balder X

Sustaining production from a strong base portfolio

2023						End-2025E
guiding
		Base		Sanctioned projects		Neptune

Sustaining value creation beyond 2025

Infill drilling, improved recovery and extended lifetime

Maturing a high value project portfolio

World-class exploration capabilities and track record

Value accretive M&A

5	1. After disposal of non-core assets

Key performance indicators

Q3 2023 vs. Q2 2023

Production	Cash flow from operations	Capex
210 kboepd	USD 975m	USD 650m
(202)	(231)	(687)

Production cost per boe	Dividend for the quarter	NIDB/EBITDAX
USD 14.0	USD 270m	0.5x
(15.5)	(270)	(0.4)

6

Major turnarounds completed

Production, production efficiency1 and product mix

kboepd

89%

88%

89%

214	202	210
28
27	31
18
18	18
83	73	71

85		84	90
Q3 2022	Q2 2023		Q3 2023
			Production efficiency		Barents Sea
			Norwegian Sea		Balder Area
			North Sea

6%

34%

60%

YTD 2023

Oil Gas NGL

210-220 kboepd

Full-year 2023 guidance

> 230 kboepd

Exit rate 2023²

• Breidablikk and Tommeliten A successful start up

1. Vår Energi operated assets

7 2. December 2023 average

Solid delivery on operated assets

Goliat

• Strong performance with 99% production efficiency
• Secured rig capacity for a two-year drilling program in the Barents sea together with Equinor

Balder/Ringhorne

• Production efficiency of 79% due to turnaround in the quarter
• Riser at Ringhorne successfully replaced
• High activity period at Balder FPU completed on time and schedule
• New well on Ringhorne started production

8

On target to beat full year opex guidance

	Production cost per boe produced1
	USD per boe
18
17				▪ Quarterly production cost impacted by seasonal
16		15,5		maintenance
15			14,0
14
13.1
13				▪ Full-year 2023 opex per boe guidance of USD 14.5 to 15.5
12
11				~82
10
			▪ Medium-term ambition of ~8 USD2 per boe
9
8				▪ Sanctioned projects coming on stream
7				▪	Cost improvement programme
6				▪ Active portfolio management and optimisation
5
4
3				▪ Neptune prodution cost supporting the end-2025 ambition
2
1
0	Q1 2023	Q2 2023	Q3 2023	End-2025
				ambition

1. Measured as production costs including transportation costs and accounting for tariffs

9 2. In real 2021 terms

Recognised ESG leadership through responsible operations

Clear path to 50% emission reduction by 2030¹

tCO2-eg

400

2005 Baseline

-50%

	Jotun FPSO &
	Ringhorne
	electrification
Jotun
FPSO			Energy
on field		Balder FPU
	mgmt.

off field	R&D
	GHG
	removals

11.1 kg/boe

CO2 emission intensity Q3 2023²

0.0

Actual SIF Q3 2023³

Top 5%	Sustainalytics
in the industry
ESG rating
A+ rating
ESG100

2022

2030

1. Scope 1 and 2, baseline 2005, operational control

10 2. Operational control

3. 12 month rolling average