Slide 1: First quarter 2023
First quarter 2023 Results presentation | 24 April 2023
Slide 2: Disclaimer
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 equity market conditions, investor attitude and demand, the business prospects of the Group and other specific issues. Th
Slide 3: Today’s Vår Energi presenters
Today’s Vår Energi presenters Torger Rød Stefano Pujatti Ida Marie Fjellheim CEO CFO Head of Investor Relations 3
Slide 4: First quarter 2023 highlights
First quarter 2023 highlights Safe and stable production Production of 214 kboepd, full-year production guidance of 210-230 kboepd maintained Gas share of 38% in the quarter Frosk, Hyme and Bauge successfully on stream, with Fenja expected in Q2 Strong gas price realisation Gas sales strateg
Slide 5: Key performance indicators
Key performance indicators Q1 2023 vs. Q4 2022 Actual serious incidents frequency1 Production Cash flow from operations 0.0 214 kboepd USD 1 358m (0.1) (214) (443) CO 2 emissions intensity Production cost per boe Dividend for the quarter 13.0 kg/boe USD 13.1 USD 270m (10.2) (14.1) (300) 5 1. 12 mont
Slide 6: Operational review
Operational review
Slide 7: Safe and responsible operations at the core
Safe and responsible operations at the core SIF1 and TRIF2 18 CO2 emission intensity for operated assets kg CO2/boe 16 3.8 14 13.0 3.2 12 10.2 2.5 10 8 7.6 1.6 6 1.0 4 0.5 2 0 Q1 2022 Q4 2022 Q1 2023 Q1 2022 Q4 20223 Q1 2023 SIF TRIF No serious incidents in the quarter Increase in emission inten
Slide 8: Maintained stable production with material gas share
Maintained stable production with material gas share Production, production efficiency1 and product mix kboepd 1,0 Developments coming on stream 87% 87% 89% Frosk started-up in March 0,9 Hyme and Bauge on stream in April, 0,8 Fenja expected later in Q2 0,7 242 0,6 Mixed operational performan
Slide 9: Production efficiency improved for operated assets
Production efficiency improved for operated assets Goliat Production efficiency increased to 97%, second consecutive quarter above 95% - following improvement program Positive contribution from Q1 well intervention program mitigating natural decline Balder/Ringhorne Production efficiency of 80
Slide 10: Lower unit production cost, guidance for 2023 maintained
Lower unit production cost, guidance for 2023 maintained Production cost per boe produced1 USD per boe 17 Production cost improved on less maintenance and 16 15.5 in the quarter 15 14.7 2023 guidance 14.1 14 13.4 14.5 13.1 13 12 12.1 Full-year 2023 opex per boe guidance maintained 11 at USD 14.5
Slide 11: Project portfolio progressing according to plan
Project portfolio progressing according to plan Existing production and sanctioned developments Balder X First oil field extension First oil new field development Progressing on plan with improved safety performance Focus on high construction volume and optimising Key Areas Operator 2P 2023 2024
Slide 12: Continued exploration success with high potential
Continued exploration success High-value exploration near existing hubs with high potential Venus – Q4 Countach - Q1 Discovery Est. recoverable resources: Oil discovery in the operated Countach well Pre-drill unrisked mmboe1,2: 94 3-13 mmboe 3-13 mmboe 23 mmboe estimated recoverable resources total
Slide 13: Financial review
I fee, Var energ Financial review
Slide 14: Key financials
Key financials USD million Q1 2023 Q4 2022 Q1 2022 Petroleum revenues 2 089 2 354 2 483 EBIT 1 432 1 531 1 750 Profit before taxes 1 276 1 793 1 727 Production cost (USD/boe) 13.1 14.1 12.1 Operating CF before tax 1 935 2 094 2 384 CFFO 1 358 443 2 201 CAPEX 642 800 621 NIBD / EBITDAX 0.3x 0.3x 0.5x
Slide 15: Strong gas price realisation
Strong gas price realisation Total petroleum revenues Q1 2023 gas revenues USD million Oil Gas NGL Month and day ahead sales weighted towards France and Germany with ~24% of volumes exposed to high Month ahead prices 2 483 2 423 2 520 2 354 Fixed price sales included contracts with Gas Year Ahea
Slide 16: CFFO positively impacted by lower tax payments
CFFO positively impacted by lower tax payments CFFO and CAPEX Income tax paid USD million 1 000 USD million 3.5 2 201 500 3.0 0 2.5 1 535 1 503 (183) 1 358 (329) 2.0 -500 (524) (577) 1.5 800 -1 000 621 642 1.0 573 599 (1 180) 1 443 -1 500 0.5 (1 650) -2 000 0.0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 202
Slide 17: Continued strong cash generation
Continued strong cash generation Cash flow development Q1 2023 Available liquidity USD million USD million 28 26 24 600 119 22 20 18 16 (577) 3 000 14 1 816 3 000 12 1 358 10 (650) (48) 769 8 (300) (36) 6 445 4 769 2 445 0 Cash at end- CFFO Working Taxes paid CFFO after tax Cash flow Net financing D
Slide 18: Leverage ratio below target
Leverage ratio below target Net interest-bearing debt and leverage ratio1 USD billion 13 1.0 Leverage ratio at 0.3x, well below over-the-cycle target of 1.3x 0.6x 0.8 12 0.6 11 0.3x 0.3x 0.4 10 0.2 0.0 9 8.5 8.1 -0.2 Committed to maintaining an Investment Grade rating 8 -0.4 7 -0.6 6.1 -0.8 6 -1
Slide 19: Attractive and resilient distributions
Attractive and resilient distributions Dividends USD million Dividend guiding for Q2 2023 of USD 270 million (~0.11 USD per share) 300 290 270 270 260 Expected dividend for 2023 of approximately 30% of CFFO after tax Dividend for Q1 2023 of USD ~0.11 per share to be paid 10 May 2023 – Paid in
Slide 20: 2023 outlook
2023 outlook Production 210-230 kboepd Production cost USD 14.5-15.5 per boe USD 2.4-2.7 billion excl. exploration and abandonment Capex Exploration USD ~200 million Abandonment USD ~50 million Other Cash tax payments of USD ~1.2¹ billion in Q2 2023 Through-the-cycle leverage target of 1.3x net inte
Slide 21: Summary
Summary Safe and stable production Strong gas price realisation Main development projects progressing on plan Continued exploration success with high potential 21
Slide 22: First quarter 2023
First quarter 2023 Results presentation | 24 April 2023