Vår Energi delivered as planned in the first quarter of 2026, with record high production and strong financial results.

Record high production

• Average production of 406 kboepd in the quarter
• Strong performance on operated assets with 97% production efficiency

Strong financial performance

• Significant CFFO post tax of USD 1.1 billion in the quarter
• Available liquidity stable at USD 3.5 billion and leverage ratio reduced to 0.7x at quarter end

Well-positioned in volatile markets

• Security of supply from Norway
• No disruptions to operations following the Middle East war
• North Sea premium differentials to be realised in second quarter

Unlocking long-term future value

• Two project sanctions developing around 80 mmboe net 2P reserves
• Three commercial exploration discoveries

Delivering attractive dividends

• First quarter dividend of USD 300 million will be distributed 12 June(1)
• Dividend guidance of USD 300 million for the second quarter of 2026(2)
• Long term dividend policy of 25-30% of CFFO after tax over the cycles

Nick Walker, CEO of Vår Energi, commented:
“We are pleased to report strong financial and operational results for the first quarter of 2026. As planned Vår Energi delivered record high production of 406 thousand barrels of oil equivalent per day (kboepd) within guidance, an increase of around 50% compared to a year ago.

The Company is strongly leveraged to the current high price environment, while maintaining our strategy and commitment to being a long-term reliable and responsible supplier of oil and gas to Europe from the Norwegian Continental Shelf. Norway demonstrates low political risk and continues to be a key provider of energy to Europe as geopolitical tension remains high.

With our high quality portfolio of early phase projects, we are targeting to deliver long-term production of over 400 kboepd, which will sustain high shareholder returns over time.   

Underpinned by strong performance and cash flow generation, the Company continues to deliver attractive returns and confirms shareholder distributions of USD 300 million for the first quarter of 2026. Dividend guidance for the second quarter of 2026 continues at USD 300 million, in line with our stated dividend policy of 25 to 30% of cash flow from operations after tax over the cycles.”

(1) Subject to 31.03.26 audited interim balance sheet with sufficient free equity and Annual General Meeting approval of dividend
(2) Subject to a subsequent audited interim balance sheet with sufficient free equity and Extraordinary General Meeting approval of dividend

Operational review 

Vår Energi’s production of oil, liquids and natural gas averaged 406 kboepd in the first quarter of 2026, within the guidance range, and at record high levels. The Company is significantly derisked, as major projects were completed in 2025. The long term target is to maintain production above 400 kboepd.  

Vår Energi’s net production of oil, liquids and natural gas averaged 406 kboepd in the first quarter 2026, an increase of 2% from the previous quarter. Strong operational performance continues to be achieved on operated assets, with a production efficiency ahead of target at 97% in the quarter. The Company has a production guidance range of 390 to 410 kboepd for the full year 2026, with start-up of four projects and a significant portfolio of infill wells coming on stream during the year. 

For the first quarter, production costs were USD 10.4 per boe, an increase from previous quarter due to strengthening of the NOK/USD exchange rate. The Company expects production costs to be relatively stable during the year, however somewhat impacted by planned maintenance activity in the second and third quarters. The production cost guidance of approximately 10 USD per boe for the full year remains unchanged.  

The Company’s significant resource base sustain production of more than 400 kboepd longer term. Vår Energi has a total of 15 projects in execution, developing around 290 mmboe proved plus probable (2P) net reserves, with strong economics with average breakeven economics of around USD 30 per boe. Additionally, the Company plans to develop more than 30 early phase projects accounting for 2C contingent resources of around 500 mmboe and expects to sanction up to 8 new projects during 2026. In first quarter the King Development and Goliat Gas Export projects have been sanctioned, developing around 120 mmboe gross proved and probable (2P) reserves. 

Vår Energi plans to start-up four new projects during the second half of 2026; Eldfisk North Extension, King Development, Balder Next – Jotun Debottlenecking and Balder Phase VI. 

Exploration Activity in 2026

In 2026 Vår Energi plans to participate in 13 exploration wells targeting net risked prospective resources of approximately 75 mmboe. The expected exploration spend for 2026 is in the range of USD 250 to 300 million.  

The Company’s exploration success continues, with three commercial discoveries out of six wells drilled in the first quarter.  

The Polynya discovery in licence PL532, contributes to grow the resources in the surrounding areas of Johan Castberg. The estimated gross recoverable resources encountered in the well are between 14 to 24 mmboe(1). The close proximity to Johan Castberg FPSO provides opportunity for an efficient subsea tie-back development adding high value barrels. The Johan Castberg area holds a substantial resource potential, there are expected to be between 250 and 550 mmboe gross additional unrisked recoverable resources in the area, and the licence is targeting to unlock more than one billion barrels over the asset’s lifetime. 

Vår Energi also participated in a commercial discovery at Omega Sør in licence PL057. The discovery is situated near the Snorre facilities, operated by Equinor, with estimated gross recoverable resources encountered are between 25 to 89 mmboe(2). The project is targeting sanction by the end of 2026. 

The Frida Kahlo discovery in licence PL046, located northwest of the Sleipner Vest field, will be brought on stream in the second quarter 2026 and has estimated gross recoverable resources of between 5 to 9 mmboe(3). The Vår Energi operated Prince Updip exploration well in licence PL027, the Equinor operated Vikingskipet exploration well in licence PL1236 and the Equinor operated Othello South exploration well in licence PL124B were drilled in the quarter and are all dry or non-commercial. 

(1) Vår Energi working interest 30% 
(2) Vår Energi working interest 4.9% 
(3) Vår Energi working interest 17.2% 

Outlook 

The Company’s full year production guidance for 2026 is 390410 kboepd.  

For 2026, the Company expects development capex between USD 2 500 and 2 700 million, USD 250-300 million in exploration spend and around USD 200 million in abandonment spend. Production cost is expected to be around USD 10 per boe in 2026.  

In the current macro and operating environment Vår Energi’s material cash flow generation and investment grade balance sheet support attractive dividend distributions. Vår Energi’s long-term dividend policy is 25-30% of CFFO after tax over the cycle. 

To ensure continuous access to capital at competitive cost, retaining investment grade credit ratings is a priority for Vår Energi. As such, the Company targets a NIBD/EBITDAX of below 1.3x through the cycle. 

KeyFacts Energy: Vår Energi Norway country profile