Vår Energi will publish its financial report for the second quarter and first half 2024 on Tuesday 23 July. Today, the Company provides an update on production, sales volumes and other relevant items.
The average production of 293 kboepd in the first half of 2024 is in the upper end of the guided range for the period and the Company is on track to meet the full year production guidance of 280 to 300 kboepd.
Net production of oil, liquids and natural gas averaged 287 kboepd for the second quarter of 2024, a decrease of 4% from previous quarter due to planned maintenance activities. Compared to the second quarter of 2023, production increased by 42% due to inclusion of production from the Neptune Energy Norge assets and start-up of new projects.
The production split in the second quarter was 64% oil and NGLs (liquids) and 36% gas. Total volumes produced were 26 mmboe whereas volumes sold in the quarter amounted to 25 mmboe. Vår Energi obtained a strong average realised price (volume-weighted) of USD 77 per boe in the quarter. The realised crude price was USD 85 per barrel. The realised gas price of USD 70 per boe is a result of fixed price contracts and flexible gas sales agreements, allowing for optimisation of indices. The fixed price contracts represented approximately 20% of second quarter gas volumes sold at an average price of USD 127 per boe, substantially above spot market reference price.
| Production (kboepd)1 | Q2 2024 | Q1 2024 | Q2 2023 | 1H 2024 | 1H 2023 | |
| Crude oil | 162 | 169 | 115 | 166 | 117 | |
| Gas | 103 | 96 | 73 | 107 | 78 | |
| NGL | 22 | 19 | 15 | 20 | 14 | |
| Total | 287 | 299 | 202 | 293 | 208 | |
| Realised prices (USD/boe) | ||||||
| Crude oil price | 85 | 84 | 78 | 85 | 81 | |
| Gas price | 70 | 67 | 98 | 68 | 139 | |
| NGL price | 44 | 51 | 37 | 52 | 44 | |
| Average (volume weighted) | 77 | 75 | 82 | 77 | 99 | |
| Sales volumes (mmboe) | ||||||
| Crude oil | 15 | 15 | 10 | 30 | 21 | |
| Gas | 8 | 9 | 6 | 17 | 13 | |
| NGL | 2 | 2 | 1 | 4 | 2 | |
| Total | 25 | 26 | 17 | 51 | 36 | |
| Total production (mmboe) | 26 | 27 | 18 | 53 | 38 | |
¹ Produced figures are including fuel gas not for sale
Other items
Vår Energi’s functional currency is NOK, whilst interest bearing loans are in USD. The strengthening of the NOK in the second quarter of 2024 led to a net unrealised (non-cash) exchange rate gain of approximately USD 65 million.
As previously communicated, the following items impacted the free cash flow in the quarter: two cash tax payments totaling approximately NOK 10 billion (approximately USD 1 billion) and a dividend payment for the first quarter of USD 270 million, paid in May.
The information above is based on a preliminary assessment of the Company's second quarter 2024 financial results and may be subject to change until the financial statements have been finally approved and published by the Company.
Second quarter webcast and conference call
Vår Energi will release its quarterly results on 23 July 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/flfrQrJ8fHjBty4IRq6Y
Note: Vår Energi has subsequerntly issued the following correction to the above figures:
Reference is made to the released issued 11 July 2024 related to Vår Energi second quarter and first half trading update. The previous release contained a typo in the average realised price for NGLs in first half of 2024, resulting in a volume weighted realised price of USD 77 per boe for the first half. The correct number is USD 47 per boe for NGLs resulting in a volume weighted realised price of USD 76 per boe for the first half 2024. There are no changes to the numbers reported for Q2 2024.
Source: Vår Energi
