Vår Energi's net production of oil, liquids and natural gas averaged 256 kboepd in the third quarter of 2024, a decrease of 11% from the second quarter and an increase of 22% compared to the third quarter of 2023. The production in the quarter was affected by planned seasonal maintenance and turnaround activity on several assets which is now mostly complete. The average production of 281 kboepd in the first nine months of 2024 is in line with expectations for the period. The Company is narrowing the 2024 full year production guidance range to between 280 to 290 kboepd, with the upside level dependent upon the timing of the start-up of Johan Castberg, which is expected towards the end of the fourth quarter.

The production split in the third quarter was 66% oil and NGLs (liquids) and 34% gas. Total volumes produced was 23.6 mmboe whereas volumes sold in the quarter amounted to 24.0 mmboe. Vår Energi obtained a strong average realised price (volume-weighted) of USD 76 per boe in the quarter. The realised crude price was USD 81 per barrel. The realised gas price of USD 76 per boe is a result of fixed price contracts and flexible gas sales agreements, allowing for optimisation of indices. The fixed price contracts represented 18% of third quarter gas volumes sold at an average price of approximately USD 135 per boe, substantially above spot market reference price.

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Production (kboepd)[1] Q3 2024 Q2 2024 Q3 2023 YTD  2024 YTD  2023
Crude oil 154 162 126 162 120
Gas 86 103 71 100 75
NGL 16 22 13 19 14
Total 256 287 210 281 209

Realised prices (USD/boe)
Crude oil price 81 85 87 83 83
Gas price 76 70 91 71 124
NGL price 46 44 43 47 43
Average (volume weighted) 76 77 85 76 94

Sales volumes (mmboe)
Crude oil 14.2 15.1 11.9 43.9 32.5
Gas 7.7 7.9 5.8 24.8 18.4
NGL 2.0 2.1 1.4 6.3 3.7
Total 24.0 25.1 19.0 74.9 54.5

Total production (mmboe) 23.6 26.1 19.3 76.9 57.0

¹ Produced figures are including fuel gas not for sale

Other items

Vår Energi Norge AS is consolidated as of 1 January 2024.

Vår Energi's functional currency is NOK, whilst interest bearing loans are in USD. The strengthening of the NOK in the third quarter of 2024 led to a net exchange rate gain of approximately USD 47 million.

As a result of the company history of mergers and acquisitions, Vår Energi has several assets valued at fair value in the balance sheet. Changes in assumptions, cost and production profiles can result in impairments and reversals.

Non-cash impairment charges are estimated to be around USD 314 million pre-tax (around USD 90 million post tax) for the third quarter, mainly related to the Balder field. The impairment was triggered by increased costs and delayed start-up as communicated in August.

As previously communicated, the following items impacted the free cash flow in the quarter: one cash tax payment totaling approximately NOK 3.5 billion (approximately USD 0.3 billion) and a dividend payment for the second quarter of USD 270 million, paid in August.

The information above is based on a preliminary assessment of the Company's third quarter 2024 financial results and may be subject to change until the financial statements

Third quarter webcast and conference call

Vår Energi will release its quarterly results on 22 October at 07:00 CEST. A webcast and conference call followed by Q&A will be held at 10:00 CEST, hosted by CEO Nick Walker and CFO Stefano Pujatti.

You can follow the webcast with supporting slides, available on:
https://events.webcast.no/vaar-energi/quarterly-reports/rcuKmpSizv0pTKIqywej

Contact

Investor relations

Ida Marie Fjellheim, Head of Investor Relations

+47 90509291

ida.fjellheim@varenergi.no

Media relations

Andreas Wulff, VP Public Affairs

+47 92616759

andreas.wulff@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 1400 employees and equity stakes in 43 fields. We have our headquarters outside Stavanger, Norway, with offices in Oslo, Hammerfest and Florø. To learn more, please visit varenergi.no.

This information is subject to disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act