Var Energi Asa · OSL:VAR
Var Energi Asa — Q1 2025 Earnings Presentation
27 slides from Var Energi Asa's earnings presentation, Apr 23, 2025
Slide 1: First quarter 2025 results presentation
First quarter 2025 Results presentation 23 April 2025
Slide 2: Today’s presenters
Today’s presenters Nick Walker Carlo Santopadre Ida Marie Fjellheim CEO CFO VP Investor Relations
Slide 3: First quarter 2025 highlights
First quarter Production in-line with expectations • Continued strong performance on operated assets 2025 highlights • Successful start-ups of Halten East and Johan Castberg Strong financial performance • Material cash flow from operations of USD 1.3 billion Production Production cost • Unit product
Slide 4: A leading pure-play E&P
A leading pure-play E&P Barents Sea Hammerfest 3rd largest oil and gas producer in Norway ▪ High quality portfolio ▪ Diversified asset base ▪ Interests in ~50% of all producing assets ~190 licences Norwegian Sea ~1/3rd operated ▪ Balanced commodity mix, ~30% gas1 North Sea 42 fields Florø 6 operated
Slide 5: Delivering significant production growth
Delivering significant production growth kboepd ~100% >400 ~400 330-360 9 new projects 280 213 Base 2023 2024 2025 guidance Q4 2026E 2025 Gas 37% 36% ~30% ~30% share 4 Photo: Jotun FPSO sail-away
Slide 6: On track to meet 2025 guidance
On track to meet 2025 guidance Production outlook kboepd Upper range 272 kboepd Lower range Q1 2025 production 272 330-360 kboepd Full-year guidance unchanged >400 kboepd Q4 2025 Q1 25 Q2 25 Q3 25 Q4 25 35% 97% 9 project >30 Gas share Q1 Production efficiency Q11 startups2 infill wells 1. Vår Energi
Slide 7: Opex within guidance
Opex within guidance USD/boe 14.1 12.8 11-12 11.6 ~10 Average unit cost new projects on stream2 ~4 USD/boe Sustaining ~10 USD/boe long-term1 Cost synergies and improvements 2023 2024 2025 guiding Q1 2025 Q4 2025E 1. Real 2025 and NOK/USD at 10.5 6 2. Projects starting up in 2025
Slide 8: Safe and responsible
Safe and responsible Serious incident frequency1 Total recordable injury frequency3 3.5 3.3 Zero actual serious incidents2 1.9 0.4 0.3 0.3 2023 2024 Q1 2025 2023 2024 Q1 2025 Near Zero methane intensity4,5 Carbon emissions intensity kg CO2 /boe6 <0.20% Inclusion in 17 OSEBX ESG index 10 10 <6 0.018%
Slide 9: Halten East on time and on budget
Halten East on time and on budget ~80 kboepd Peak production2 ~100 mmboe Recoverable reserves2 ~3 kg/boe CO2 intensity First oil 100-200 mmboe potential Subsea tieback delivering March 2025 in the area for future developments1 high value barrels 1. Gross unrisked additional recoverable resources 8 2
Slide 10: Johan Castberg ramping up
Johan Castberg ramping up 220 kboepd Plateau production2,3 450-650 mmboe Recoverable reserves2,3 ~4 USD/bbl Production cost First oil March 2025 Infill drilling from 2027 Isflak FID1 within a year Exploration ongoing 250-550 mmboe Additional unrisked recoverable resources2 1. Final investment decisi
Slide 11: Jotun FPSO moored at field
Jotun FPSO moored at field ~80 kboepd Peak production1 ~150 mmboe 2P reserves1 ~5 USD/bbl Production cost2 Adding 45 – 50 mmboe1 Successful sail-away Start-up on track Balder phase V start-up Q4 2025 March 2025 End Q2 2025 Balder phase VI start-up Q4 2026 1. Gross, Vår Energi 90% working interest 10
Slide 12: Developing a material resource base
Developing a material resource base >1 Billion boe, net Drill-out ~50% 0.9 next ~60% >3 4 years yet to be developed ~30 1.2 early phase projects billion boe4 9 projects on stream in 2025 2P reserves1 2C resources2 Prospective resources3 1. 2024 Annual statement of reserves - Proved plus probable (2P
Slide 13: Flexible and resilient early phase project portfolio
Flexible and resilient early Barents Sea Goliat Ridge Goliat Gas phase project portfolio Johan Castberg Isflak Johan Castberg cluster 1 & 2 Johan Castberg IOR4 Snøhvit SSC5 Norwegian Sea Calypso Heidrun Extension Project Njord northern area Tyrihans North Åsgard projects Capex North Sea Beta and Dug
Slide 14: Goliat ridge exploration success
Goliat ridge Zagato discovery Goliat Ridge marks third exploration success structure Countach exploration success in a row Drilling 2H 2025 Reserves and resources mmboe¹ Zagato North New 3D seismic >545 Drilling 2H 2025 Zagato Summer 2025 Prospective Goliat North >200 Discovered2 Goliat FPSO 345 240
Slide 15: Financial highlights
Financial highlights 79 USD/boe 1.3 USD billion weighted average realised price CFFO after tax 0.8x 2.7 USD billion Leverage ratio1 Available liquidity2 300 USD million 1 EUR billion Dividend Q1 and Q2 2025 guidance Successful issuance of senior notes 1. Net interest-bearing debt including lease com
Slide 16: Strong realised prices
Strong realised prices Total petroleum revenues Locked-in high gas prices in summer 2025 USD million 90 USD per boe² ~20% of gas volumes for Q2 and Q3 2025 Realised prices USD per boe ~79 USD/boe Average realised price Q1 20251 1. Volume weighted 15 2. Contracted fixed price based on average exchang
Slide 17: High cash flow generation
High cash flow generation CFFO and Capex 3.5 USD million 3.0 1.3 USD billion 2.5 1 322 Q1 2025 cash flow from operations (CFFO) 2.0 1 009 1.5 2.3-2.5 USD billion 694 690 595 1.0 2025 development capex 378 guidance maintained 0.5 0.0 Q1 2024 Q4 2024 Q1 2025 CFFO Capex1 1. Including expenditures on pr
Slide 18: Solid liquidity and financial position
Solid liquidity and financial position Cash flow development Q1 2025 USD million 2.7 USD billion USD 2.7 Available liquidity billion 49 Undrawn ~5 years credit Average debt maturity1 (213) facilities 1 486 1 322 (628) 35 (79) (270) Diversified long-term capital 279 661 structure aligned with busines
Slide 19: Continued strong financial position
Continued strong financial position Net interest-bearing debt and leverage ratio1 Maturity profile USD billion USD million 1 First Reset Date 15 13 Issued March 2025 February 2029 12 0.9 11 0.8x 0.8x 0.8 10 0.7x 9 0.7 1 286 8 0.6 7 5.9 5.8 0.5 6 5.3 5.0 4.8 0.4 5 3.9 10802 1 250 1 000 1 000 4 0.3 81
Slide 20: Cash tax sensitivities
Cash tax sensitivities Tax payments – sensitivities for 2H 20251 USD million² 1 400 1 200 ~7 NOK billion 1H 2025 tax payments 1 000 (USD ~0.7 billion)2 800 600 Taxes paid in 1H 2025 related to 2024 results 400 $80/90 boe oil/gas price 200 $70/80 boe oil/gas price $60/70 boe oil/gas price 0 Q1 2025 Q
Slide 21: Attractive and predictable dividends
Attractive and predictable dividends Dividends USD million Dividend guidance Q2 2025 25-30% of CFFO after tax¹ 300 USD million 1 075 1 080 1 080 Dividend for Q1 2025 of USD ~0.12 per share paid 8 May 2025 Q2 300 Paid in NOK at exchange rate of USD/NOK 10.3594 Q1 300 2022 2023 2024 20252 1. Illustrat
Slide 22: Guidance and outlook
Guidance and outlook 2025 Longer-term 330-360 kboepd 2026: ~400 kboepd Production Q4 2025: >400 kboepd 2027-2030: 350-400 kboepd Production cost USD 11-12 per boe, USD ~10 per boe in Q4 Sustain USD ~10 per boe¹ 2026-30: USD 2.3-2.5 billion ex. exploration and abandonment USD 2-2.5 billion ex. explor
Slide 23: Strong financial results and performance
Strong financial results and performance Operational performance in-line with expectations Maintaining resilience and flexibility in a volatile market High available liquidity Delivering on transformational growth Attractive and predictable dividend continued 22
Slide 24: Q&A
Q&A 4 var energi
Slide 25: Appendix
Appendix 4 var energi
Slide 26: Exploration program 2025
Exploration program 2025 Barents Sea Pre-drill 8 wells Estimated Vår unrisked recoverable Licence Prospect Operator Energi Status resources resources share mmboe1 mmboe1 Minor gas PL 1131 Elgol Vår Energi 40 % discovery PL 1110 Njargasas Aker BP 30 % Dry PL 229 Zagato Vår Energi 65 % 15-43 Discovery
Slide 27: 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 market conditions, investor attitude and demand, the business prospects of the Group and other issues. The Materials and