Var Energi ASA

Energy, the foundation for development and prosperity. Connecting people, powering industries, driving progress everywhere, every day, making oil and gas essential for decades to come. Roar Energy, a pure play oil and gas company, delivering reliable access to affordable energy to millions of households and businesses across Europe. A safe and responsible partner generating high returns and long-term value for all stakeholders. We explore, develop and produce from a high quality diverse portfolio with production hubs across the attractive Norwegian continental shelf. Known for low cost and emissions, a significant resource base and political stability. Our highly competent people, collaborating with strategic partners, have delivered transformational growth, doubling production in just two years, de-risking the company, while driving operational excellence, strong cost discipline, and leading ESG performance. With an entrepreneurial mindset, we are stepping up the pace, doing more faster. developing a pipeline of highly profitable standardized near-field subsea tieback projects from our significant discovered resource base across the norwegian shelf and exploring for more delivering higher production well beyond 2030 creating more value for longer

Good afternoon, everyone. It's a pleasure to welcome you all to Var Energy's 2026 Capital Markets Update and presentation of our fourth quarter 2025 results. It's great to see so many people here in the room and also joining us on the webcast. 2025 has been a transformational year for the company, and today we will present an updated plan. for how we will be delivering higher production and more value for longer, with material cash flow generation and attractive dividends. Our CEO, Nick Walker, will lead the way, followed by presentations held by several members of our leadership team. In addition to Nick, Torgir, Carlo and Ellen, we will have our head of projects, Oddgar Dalarna, that will walk us through our high-value project portfolio, and our head of exploration, Luca Dragonetti, who will take us through how we will continue to deliver value through our exploration activities. Following the presentations, we will open up for questions. With that, I'd like to invite Nick to the stage.

Well, thank you, Ida, and good afternoon, everyone, and welcome to Vore Energy's 2026 Capital Markets Update, together with a review of our full year 2025 results. And it's really great to see you all here again in Oslo, and also a warm welcome to all of you who are joining us online. I'm pleased to report that we delivered on our plan for transformational growth in 2025, delivering record-high production, strong financial performance, and significant value creation. And I'm excited for the outlook for Vore Energy. We have fantastic assets, a tremendous team, and you'll see today that we have strong momentum improving the outlook for the company, and as we say, to create more value for longer. And there's four key messages we want to get across today. Firstly, we significantly de-risked the company with our major projects now complete, as you can see in this beautiful photograph today. Buoneggi has never been in a stronger position. And secondly, we will deliver higher production for longer with more growth opportunities. Thirdly, we're incrementally improving for increased resilience and flexibility. And finally, we have higher value creation, ensuring long-term attractive shareholder returns. I think these are the drivers for significant value creation and are the themes that will run through everything that we talk about today. But first, I want to provide some context to the business environment, as I think it informs how we see our strategy and the decisions that we make every day for the future of the company. I think it's incredible that world population has doubled over my lifetime from four to eight billion people. And at the same time, you can see that global energy demand has tripled and will continue to grow as the developing world wants the same living standards that we all enjoy. And this continued energy growth is despite significant improvements in energy efficiency. And it's going to be interesting to see the impact of AI and data centers and what that will have on the future demand for energy. And of course, affordable and reliable energy is vital for economic growth and prosperity. And all credible outlooks show oil and gas will be required for decades, in addition to an increased share of renewable energy. In reality, what is happening is energy addition. It's not either or. The world needs both hydrocarbons and renewable energy sources. And to provide affordable and reliable energy to all and meet the demand for gas, which is a critical transition fuel, it's clear the world needs significant new investments in oil and gas to offset declines, as you can see on the chart. This requires long-term investment horizons. And we're seeing increased volatility and significant uncertainties in the world. And this can lead to a lower-for-longer price scenario. And we need to take this into account as we make investment decisions for Vore Energy. To be able to invest through the cycles requires a focus on high-quality, low-break-even projects. And you'll see that Vore Energy is doing just that. And our view is that in any scenario, oil and gas will be essential for world energy supply for decades. And those that can produce with low break-even prices and with as little emissions as possible will have competitive advantage. And as many of you have heard me say before, I believe that Norway is one of the best places to invest in oil and gas. And the reasons for this are really very clear. It's low cost. It's low emissions. In fact, it's world leading. And that is why Norway should be the last oil and gas region to be shut in. There's large remaining resources with continued access to new acreage. There's been long term reliable framework conditions and supportive fiscal regime. And the NCS is a key supplier of energy to Europe. And oil and gas is key to Norway as a major source of industrial activity and employment across the country. This has all been driven by long-term government and public support for the industry. And our assessment is this support is strengthening. And all of these factors have resulted in strong competitive advantage for Norway. It attracts the investment needed to develop the shelf and because Norway is seen as a reliable producer with low emissions. And so in this context, our strategy is really very simple. It's also consistent, and you'll see this is the same slide we've used for a few years. And our strategy is to ensure growth and value creation for all stakeholders over time. It's to be a pure-play Norwegian oil and gas company for the reasons that I've set out. And it's to be a reliable and secure supplier of affordable energy to Europe. And finally, it's to be safe and responsible about how we conduct our business. And we're delivering on our strategy and targets, as we will demonstrate today. And as you can see here, the company has a strong track record of value creation, incrementally improving how we perform. From 2018, when the company was established, we've increased production by almost two and a half times. building the third largest producer on the NCS. And it's quite possible that this quarter will become the second largest producer. And we've significantly improved efficiency and costs, whilst at the same time materially growing reserves and resources. This is combining to deliver strong financials and returns. And you can see we achieved a total shareholder return since the IPO four years ago of 115%. And as we all show today, we continue to improve the outlook for the company, creating material value for longer. And we continue to transform as a company to deliver more value and faster, incrementally improving every day to realize the opportunities in our portfolio. This is what I think about every morning when I wake up. How do we make it better and better? It's all about harnessing the entrepreneurial energy in the company where everyone can make a difference and contribute to value creation. And our heritage means we have deep and unique NCS expertise and we are leveraging this. And I think technology is also key, but it's also about implementing to create value. Of course, we don't deliver alone. We rely on partnerships and collaboration. Our licensed partners, in particular Equinor, and key suppliers amongst the best in their fields to help us deliver. And we also draw on the capabilities and expertise of our major shareholder, E&I. And as much of our value will be delivered through subsea tiebacks, we've established our subsea project factory approach, with more on that later. This is how we all create value, and you'll see many examples of this from my colleagues today. And safe and responsible operations are key to our license to operate. And we have high ambition to be the safest operator. I think overall, we've had good safety and environmental trend from our operations. And you can see in 2025, we had zero actual serious incidents, material process safety events, and accidental spills to sea. But however, we're continuing to have too many low-level incidents, which is a strong improvement focus across our organizations. And we continue to decarbonise our operations to ensure relevance and investability long term. And you can see we're already in the top 15% globally on emissions intensity and our methane emissions are at the near zero level. So we're already doing very well, but our aim is to reduce our emissions further. And in addition to emissions reductions, Bore Energy aims to become carbon neutral in our net equity operational emissions by 2030 through removals in the voluntary carbon market. And we continue to be recognized for our ESG leadership, ranked by both Sustainalytics and S&P Global in the top 15% of global oil and gas industry. I think this is leveraging to how the company is viewed, and you'll hear more from all of this later today from Ellen. And now looking at the business. Vol Energy has a high quality diversified asset base in all areas of the NCS. And you can see we have interest in around 50% of all producing assets and the associated infrastructure. And with a large exploration footprint. Only Equinor has a bigger and more diverse portfolio than we do. And we also have a balanced commodity mix with gas being around one third of our production volumes, making us one of the largest gas exporters from Norway. And we've stepped up the pace to maximize the value from our portfolio. With our major projects completed, the outlook for the company is de-risked. And what is ahead of us is a series of low-risk, high-value, predictable tieback projects with short time to market. We will invest more to deliver higher production for longer from our material resource base, which is opportunity rich. And we continue to incrementally improve the outlook for the company, making it better and better. And we're increasing resilience and flexibility, which is important for navigating this period of lower prices. And we're investing in high return projects, delivering higher value creation and ensuring long term attractive dividends. So this is how we will deliver more value for longer. So now let us look at the highlights for 2025. I'm pleased to report to you that strong results for 2025, having delivered transformational growth in the year. We delivered record high production in the fourth quarter of 397,000 barrels oil equivalent per day. and 332,000 barrels per day for the year. Our major projects, Johan Casberg and Boulder X, were completed on schedule. And in total, nine new growth projects started up during the year as planned, adding around 180,000 barrels per day at peak. And we're making good progress unlocking the future value of our portfolio. You can see we sanctioned 10 high-value projects in 2025, These are developing around 160 million barrels of net reserves, with average break-even price of $30 per barrel. And we continue to create value from exploration, with six commercial successes in the year. And we're already turning this into value. And bringing this together, we increase reserves, with two pre-reserve replacements of 185%. And we delivered strong financial performance last year, with cash flow from operations post-tax of $4.6 billion for the full year. Production costs for the year were at $11.1 per barrel, at the lower end of our guidance range. And for the fourth quarter, we reduced further to $10 per barrel, as we had guided. And we have strong available liquidity of $3.5 billion. And we maintain a strong investment-grade balance sheet. And lastly, we continue to provide attractive dividends. We will pay a dividend of $300 million for the fourth quarter of last year. This will be distributed in February. This means total 2025 dividend payout is $1.2 billion, which is 26% of CFFO post-tax. So in summary, we deliver strong results in 2025 in line with expectations. And now looking forward to 2026. And we're set for record production levels. With 2026 production expected in the range of 390 to 410,000 barrels per day, in line with how we've previously guided. And you'll see we're accelerating the pace of new growth opportunities that will support higher production for longer. We have 13 projects in execution. These are developing 210 million barrels of net reserves with low operating costs and break-evens on average around $30 a barrel. And we expect to sanction up to eight new projects this year, targeting around 140 million barrels of net reserves. And we're continuing to drill out our exciting exploration portfolio with 12 wells planned, targeting approximately 75 million barrels of net risk resources. And we continue to drive efficiency, delivering incremental improvements across the whole value chain. And you'll see many examples of this today. 2026 production costs will be around $10 per barrel, and we aim to sustain at this level long term. And we continue to reduce emissions with the long term aim to be carbon neutral in our operations by 2030. And the key focus of management is to deliver long term attractive dividends to our shareholders, as our track record demonstrates. We're seeing increased volatility and significant uncertainties in the world. And this can lead to a lower for longer price scenario. And so we will take a prudent approach, guiding dividends on a quarterly basis. And we continue the attractive dividend level and provide guidance for the first quarter of 2026 of $300 million. This is the same run rate as we had for 2025. And for the full year 2026, we will continue guiding on a quarterly basis in line with our long-term dividend policy of 25% to 30% of CFFO after tax over the cycles. And now let us look at how we will deliver higher production and value for longer. And VoEnergy has an amazing portfolio with lots of optionality and growth opportunities. I think you will see that. We have a track record of continually growing reserves and resources organically. And you can see here that our 2P reserves stand at 1.3 billion barrels. This underpins our current production levels. But as a company, we are much, much more than that. We have 2C contingent resources of around 900 million barrels. These resources are undeveloped. And we're moving forward around 30 early phase projects to develop around two-thirds of these volumes. And we also have an exciting exploration portfolio of about a billion barrels of net risk resources. So when you put this together, we have around 3 billion barrels of resource potential, with around 1.7 billion barrels, or 60%, yet to be developed. Delivering this opportunity is how we will deliver higher production for longer. And as I said earlier, Vore Energy has delivered transformational production growth in 2025. And you can see we doubled production from just two years ago. And in 2026, we expect to produce between 390 and 410,000 barrels per day. During the year, we will bring online a material program of infill wells and some new project startups that will keep production at current levels beyond the end of this year. And long term, we're targeting over 400,000 barrels per day, a step up from the 350 to 400,000 barrels per day towards 2030 that we guided at last year's CMU. And these are the levers that will drive higher production for longer. Firstly, it's through maximising recovery from our high-quality producing assets. we see a continuous infill drilling program developing net resources of more than 300 million barrels over time. And these are the best barrels we can develop, with break-evens of well less than $30 per barrel. And secondly, as I've mentioned already, we have 13 high-value projects in execution, developing net 2P reserves of 210 million barrels. And this portfolio has average break-evens of around $30 a barrel. And thirdly, we're progressing around 30 early phase projects. These are all tieback developments with short time to market, targeting net resources of 550 million barrels. This portfolio will create material value with average break-evens of less than $35 a barrel, and our aim is to do better than that. And finally, we're unlocking more value with our focused exploration program. And we have a strong track record of creating value from our exploration, as you'll see later. And we plan to drill 50 to 60 wells over the next five years. This program is targeting net risk resources of around 500 million barrels. And when you put all this together, we're progressing activity to create value from around 70% or 1.2 billion barrels of the 1.7 billion barrels undeveloped upside in our portfolio. So we're after and developing a material part of the upside opportunity. And development of this portfolio of high value, low risk, short cycle projects will increase returns from our business. with return on capital employed projected to increase from the current level of around 20%, so up to 25% to 30% by 2030. This adds significant value, and Carlo will come back to this later. And additionally, we continue to take an opportunistic approach to further M&A, where there is a strategic fit and we can create value. It is top of mind to seek the next step change in the company's outlook. We're also targeting to optimize our portfolio, where we have some high working interests and can reduce our capital requirements for new growth projects. What we have in mind will have limited short-term production impact, and we will move this process forward during the first half of the year. And this program delivers higher production for longer, targeting over 400,000 barrels per day long-term. It's driven by material long life resource base, which, as you can see, is opportunity rich. And we will invest more over a longer time horizon into a series of high value, low risk short cycle projects. And we are using this lower price environment to improve the economic resilience of our investments. And importantly, we have the people, the equipment and contracts in place to deliver this improved outlook for the company. Now, Vought Energy's high quality business provides a strong foundation to deliver attractive long term value to shareholders. As outlined, we will deliver higher production for longer, targeting over 400,000 barrels per day long term. And our high margin barrels means that the business is free cash flow neutral at around $40 per barrel over the period 2026 to 2032. This means that above $40, we generate cash to pay dividends or to pay down debt. And we're covering all of our costs. And this means we generate strong fee cash flow in the range of $5 to $10 billion over the same period. And we have a strong investment grade balance sheet and a lot of flexibility with 60% of our capital uncommitted. We can manage through the lower commodity price cycles with a lot of flexibility. And this combines to allow us to pay attractive dividends within our long-term dividend policy of 25% to 30% of cash flow from operations post-tax over the cycles. And this is the key focus of management to maintain long-term attractive shareholder returns. And we have a resilient and flexible business that will allow us to navigate this lower price environment. And to summarize, I want to leave you with the following messages. First of all, Vore Energy is a stronger de-risk company positioned to generate more value for longer. Our material resource base of around 3 billion barrels is the foundation for this. And we have increased the outlook with higher production for longer, targeting over 400,000 barrels per day long term. And we're opportunity rich. We're increasing investments in a series of high value, low risk short cycle projects that will increase returns. This adds significant value. And we continue to incrementally improve the business for increased resilience and flexibility with a low free cash flow break even of around $40 a barrel. And we'll generate more value for longer, supporting long-term attractive returns in line with our dividend policy of 25% to 30% of CFFO post-tax over the cycles. I think these are the reasons to be invested in Vore Energy. And with that, I'm going to hand over to my colleagues who will provide further details on how we will deliver this exciting outlook for the company, with first up being Torga. But before Torga comes to the stage, please enjoy this film on the further development of the Boulder area. Thank you very much.