Delivering growth and value
Capital Markets Update
13 March 2024
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 the conclusions contained herein are necessarily based on economic, market and other conditions as in effect on, and the information available to the Company as of, their date. The Materials comprise a general summary of certain matters in connection with the Group. The Materials do not purport to contain all information required to evaluate the Company, the Group and/or their respective financial position. The Materials should among other be reviewed together with the Company's previously issued periodic financial reports and other public disclosures by the Company. The Materials contain certain financial information, including financial figures for and as of 31 December 2023 that is preliminary and unaudited, and that has been rounded according to established commercial standards. Further, certain financial data included in the Materials consists of financial measures which may not be defined under IFRS or Norwegian GAAP. These financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS or Norwegian GAAP.
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Capital Markets Update
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Creating value Delivering growth Sustaining production Break
Accelerating decarbonisation Ensuring resilient returns Concluding remarks
Q&A
Leadership team presenting today
Nick Walker | Stefano Pujatti | Torger Rød | Ellen W. Hoddell | Rune Oldervoll |
CEO | CFO | COO | EVP Safety & | SVP Production |
Sustainability |
Moderators
Ida Marie Fjellheim | Stian Seipæjærvi |
Head of Investor | Investor Relations |
Relations | Analyst |
Oil and gas essential for world energy supply
Oil demand | Gas critical |
above 95 Mb/d1 | transition fuel |
towards 2050 |
3 Image: Frankfurt, Germany
Stated Policies Scenario (EJ)2
700
600
Renewables/other
500Nuclear
400Coal
300 | APS3 |
Natural gas
200
APS4
100Oil
0
2022 | 2030 | 2035 | 2040 | 2050 |
- Million barrels per day
- IEA World Energy Outlook 2023, EJ = Exajoule, 1018 Joule
3. IEA Announced Pledges Scenario, gas supply
4. IEA Announced Pledges Scenario, natural oil supply
Highly competitive NCS1
Significant resources2
Undiscovered | |
resources | |
~100 | Contingent |
billion boe | |
resources | |
Produced | |
Reserves |
Stable and reliable provider of energy to Europe
- Norwegian Continental Shelf
- Source: Norwegian Offshore Directorate, Reserves report 2023 4 3. Source: Rystad Energy estimates
Reliable framework | |||||||||||||||||
Low cost | Low emissions | and fiscal regime | |||||||||||||||
Opex 2023 (USD/boe)3 | Carbon intensity 2023 | Score "Transparency International's" | |||||||||||||||
(kg CO /boe produced)3 | Corruption Perception Index, 2023 | ||||||||||||||||
2 | |||||||||||||||||
23 | 21 | 20 | 84 | ||||||||||||||
21 | |||||||||||||||||
71 | 69 | ||||||||||||||||
15 | 13 | 14 | 13 | 58 | |||||||||||||
11 | |||||||||||||||||
10 | 36 | 33 | |||||||||||||||
7 | |||||||||||||||||
6 | |||||||||||||||||
Angola UK Brazil USA Qatar NCS | UK Brazil USA Angola Qatar NCS | Norway UK USA Qatar Brazil Angola |
Image: Hammerfest LNG facility, Norway
Resilient
returns
Clear strategy for growth and value creation
Reliable and secure supplier of energy to Europe
Pure play oil and gas company on the NCS
Safe and responsible
5
Track record of value creation
Production | |
kboepd | 213 |
169 | |
2018 | 2023 |
ROACE2
% | 22 |
16 | |
2018 | 2023 |
2P reserves1
billion boe
1.2 | |
0.9 | |
2018 | 2023 |
EBITDAX3
USD billion | 5.6 |
2.7 | |
2018 | 2023 |
USD ~2.2 billion
returned to shareholders since IPO
Built on strong heritage
- Proved plus probable (2P) reserves, including Neptune portfolio end-2023, from Annual statement of reserves
- Return On Average Capital Employed
6 3. Earnings Before Interest, Taxes, Depreciation, Amortisation and Exploration Expense
Entrepreneurs and value creators
Clear strategy | High | Deep and | Leading | Leveraging |
and common | performing | unique NCS | exploration | strong |
values | team | expertise | track record | partnerships |
7
A stronger pure-play E&P
Neptune a perfect fit
Adds scale, diversification and longevity Cash-generative portfolio from day one Strengthening future dividend capacity Additional synergies identified post announcement
Increased identified synergy potential
USD ~500 million1
(up from USD >300 million)
8 1. Net present value, post-tax
Barents Sea | ||
~200 | Hammerfest | |
licenses |
68 operated
47 fields
7 operated | Norwegian Sea | |||
4 hub | North Sea | Florø | ||
areas | ||||
Balder Area | Oslo | |||
Stavanger | ||||
3rd largest |
NCS producer
Vår Energi licenses
Strengthened gas position
2nd largest | 35% |
exporter of gas from Norway1 | gas share of production2 |
Flexible gas sales | USD ~1 billion |
strategy to capture | additional gas revenues |
upsides | above spot price in 20233 |
1. 2023 production of gas and natural gas liquids (NGL), including Neptune portfolio
2. | 2023 production, including Neptune portfolio | Image: Norsea Gas Terminal in Emden, Germany |
3. | Compared to average spot price for THE, TTF, NBP and PEG in 2023 | |
Long-term offtake agreements
St. Fergus
Easington
Access to key gas markets and LNG
Åsgard hub
Ormen
Lange
Statfjord
Fram
Sleipner
Melkøya LNG facility
Dunkerque
Dornum
Emden
Zeebrugge
9
Main gas producing assets
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Disclaimer
Var Energi AS published this content on 14 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 09:19:01 UTC.