Var Energi Asa · OSL:VAR
Var Energi Asa — Investor Presentation (November 2024)
20 slides from Var Energi Asa's investor presentation, November 2024
Slide 1: Delivering growth and value
Delivering growth and value Company presentation
Slide 2: Fastest growing E&P
Fastest growing E&P Barents Sea 3rd largest oil and gas producer in Norway 181 Diversified asset base licenses Hammerfest 1/3 operated Interests in ~50% of all producing assets on the NCS 2nd largest exporter of gas from Norway 42 fields 6 operated Norwegian Sea Production ~400 kboepd 4 hub North Se
Slide 3: Oil and gas essential for world energy supply
Oil and gas essential Stated Policies Scenario (EJ)2 for world energy supply 700 600 Renewables/other Oil demand Gas critical 500 Nuclear above 95 Mb/d1 transition fuel towards 2050 400 Coal 300 APS3 Natural gas 200 APS4 100 Oil 0 2022 2030 2035 2040 2050 1. Million barrels per day 2. IEA World Ener
Slide 4: Highly competitive NCS
Highly competitive NCS1 Reliable framework Significant resources2 Low cost Low emissions and fiscal regime Opex 2023 (USD/boe)3 Carbon intensity 2023 Score “Transparency International’s” (kg CO2/boe produced)3 Corruption Perception Index, 2023 Undiscovered 23 21 21 20 84 resources 71 69 15 14 58 13
Slide 5: Clear strategy for growth and value creation
Clear strategy for growth and Resilient value creation returns Reliable and secure supplier of energy to Europe Pure play oil and gas company on the NCS Safe and responsible 4
Slide 6: Track record of value creation
Track record of value creation Production 2P reserves1 kboepd 213 billion boe 1.2 169 0.9 2018 2023 2018 2023 USD ~3 billion returned to shareholders since IPO4 ROACE2 EBITDAX3 22 5.6 % USD billion 16 2.7 Built on strong heritage 2018 2023 2018 2023 1. Proved plus probable (2P) reserves, including N
Slide 7: Entrepreneurs and value creators
Entrepreneurs and value creators Clear strategy High Deep and Leading Leveraging and common performing unique NCS exploration strong values team expertise track record partnerships 6
Slide 8: 2nd largest exporter of gas from Norway
2nd largest exporter of gas Melkøya LNG facility from Norway Access to key gas markets and LNG Åsgard hub Flexible gas sales 36% strategy to capture gas share of production1 Long-term offtake Ormen upsides agreements Lange Statfjord Fram Sleipner St. Fergus Image: Norsea Gas Terminal in Emden, Germa
Slide 9: Growing production with high value barrels
Growing production with high value barrels kboepd ~400 New projects 280-290 213 Base production 2023 2024 guiding End-2025E Gas share 37% 35% ~30% 8 Image: Jotun FPSO at Worley Rosenberg yard in Stavanger, Norway
Slide 10: Creating value and growth
Creating value and growth Reserves1 Contingent resources2 Prospective resources3 1.24 billion boe 0.75 billion boe >1 billion boe >3 billion boe 7 projects coming >20 early phase ~60 exploration on stream and high projects wells next four years quality assets 1. 2023 Annual statement of reserves - P
Slide 11: De-risked projects in execution
De-risked projects in execution Barents Sea Johan Castberg Snøhvit Future 7 projects developing >400 mmboe1 Adding ~150 kboepd by Q3 2025 Norwegian Sea Smørbukk North Halten East Ormen Lange Ph.3 Åsgard LPP3 USD ~35 per boe ~2 years Breakeven Pay-back Balder Area Balder X >25% >80% complete IRR acro
Slide 12: Sustaining 350-400 kboepd towards 2030
Sustaining 350-400 kboepd towards 2030 Production outlook Maximise recovery and infill drilling kboepd 40-50 kboepd annually towards 2030 Exploration1 Efficient project maturation and sanctioning 3P reserves2 Over 20 early phase projects targeting >400 mmboe5 350 Early phase projects3 Near-field and
Slide 13: Flexible and robust early phase projects
Flexible and robust early phase Barents Sea projects Goliat gas Countach Johan Castberg cluster 1 & 2 Norwegian Sea Calypso Njord North >20 projects targeting ~400 mmboe1 Åsgard projects Heidrun Tyrihans North North Sea Ofelia Gjøa North Dugong Internal rate of return Breakeven Garantiana Beta >25%
Slide 14: ~60 exploration wells next four years
~60 exploration wells next four years Near-field wells High-impact wells 11-14 per year Up to 3 per year Extend production plateau Play openers of existing hubs High margin barrels Deliver new core close to existing infrastructure assets/areas Drilling campaigns 2024-2027 13
Slide 15: Safe and responsible
Safe and responsible Safety metrics Serious incident frequency1 Total recordable injury frequency2 1.0 3.2 3.1 1.9 0.4 0.3 2022 2023 YTD3 2024 2022 2023 YTD3 2024 Inclusion in YTD3 2024 performance OSEBX Top 5% B ESG index Zero Zero in the industry1 rating2 Process safety Material environmental inci
Slide 16: Accelerated decarbonisation
Accelerated decarbonisation Top quartile of industry1 Scope 1 Scope 2 Scope 3 >50% Zero emissions Offsetting emission reduction by 20302,3 Vår Energi use in the value chain4 Near zero 100% methane emissions in 20244 of electricity consumption certified renewable4 1. 2023 net carbon intensity 2. Equi
Slide 17: Long-term foundation for sustainable returns
Long-term foundation for sustainable returns 350-400 Sustained high production High margin barrels ~45 USD/boe kboepd end-2025 to 2030 FCF neutral, 2024-2028 Value creation and shareholder return 20-30% Attractive and predictable dividends Strong FCF generation 4.5-8 of CFFO after tax USD billion, 2
Slide 18: Our investment proposition
Our investment proposition Growth Value Returns Production target end-2025 High value projects Free cash flow potential 2024-282 ~400 kboepd USD ~35/boe breakeven USD 4.5-8 billion Sustaining towards 2030 Emission reduction by 20301 Dividend guidance 350-400 kboepd >50% 20-30% of CFFO (after tax) 1.
Slide 19: 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
Slide 20: % var energi
% var energi