Vår Energi plans IPO on Oslo Børs

Vår Energi plans IPO on Oslo Børs

SANDNES, NORWAY: Vår Energi AS, one of the largest independent upstream oil and gas companies on the Norwegian Continental Shelf, announced its intention to launch an initial public offering (IPO) of its shares and to apply for a listing on Oslo Børs.

With more than 50 years of successful NCS operations, Vår Energi has established a robust and diversified portfolio with material oil and gas production.

The Group’s average net production for the three months ended 30 September 2021 was 247,000 boepd, with gas accounting for 37%, making Vår Energi the second largest natural gas exporter from the NCS. Net 2P reserves as of 30 September 2021 were estimated at 1,144 MMboe. EBITDA and free cash flow for the nine months ending 30 September 2021 were USD 2.7 billion and USD 1.6 billion respectively.

The Company has a differentiated hub strategy, world-class exploration capabilities and strong organic production growth outlook targeting net production of 350,000 boepd by the end of 2025. This is supported by an investment grade balance sheet and strong focus on shareholder returns.

The Company’s current shareholders, Eni S.p.A, through Eni International B.V. (“Eni”) and HitecVision, through Point Resources Holding AS (“HitecVision” and, together with Eni, the “Selling Shareholders”), consider the listing to be an important step in the development of the Company.

The IPO will provide access to the Norwegian and international capital markets and is intended to allow the Company to diversify its ownership structure and create a strong long-term shareholder base, including employee-engagement.

The Selling Shareholders intend to remain active and committed owners following the IPO, with Eni intending to retain a majority stake while preserving equity accounting. The Selling Shareholders are committed to continue to strengthen Vår Energi’s position as a leading player on the NCS.

Francesco Gattei, Eni CFO, commented: “Vår Energi represents Eni’s more than five decades of engagement on the NCS and our contribution to creating a leading energy company with a clear growth strategy and strong partnerships in a very attractive region. This provides a solid foundation for long-term value creation and shareholder returns, and we look forward to continuing to support Vår Energi as a majority shareholder in this ongoing success story”.

Tor Espedal, Senior Partner in HitecVision, commented: “This is a great milestone for Vår Energi, and the realization of our ambitions when we started building it to become one of the leading E&P companies in Norway. We are proud of the company’s achievements so far, and I would like to thank both our partners in Eni, Vår Energi’s management, and in particular all employees of Vår Energi.”

Torger Rød, the CEO of Vår Energi, commented: “Our leading NCS position is founded on a unique track record, scale, operational excellence and strong partnerships. We believe oil and gas will continue to be part of the energy mix for decades to come, and the current gas market developments in Europe confirm our view that a reliable and safe supply of natural gas from Norway to Europe will be crucial. The NCS will remain one of the most attractive regions for exploration and production globally due to cost competitiveness, a stable regulatory environment and low emissions. This is reflected in our target of becoming a net zero producer by 2030 (scope 1 and scope 2). With a robust and diversified portfolio of operations and assets across all parts of the NCS we have set ambitious growth targets. An initial public offering and listing is a natural next step for Vår Energi in realizing our full potential and delivering long-term value creation to a wider group of stakeholders.”

The IPO follows an announcement made by the Selling Shareholders on 26 October 2021 of their intention to initiate a strategic review regarding the future ownership structure of Vår Energi, to better pursue future growth and maximize value creation.

The IPO is expected to consist of a private placement and public offering to investors in Norway, Sweden, Finland and Denmark and a private placement to institutional investors outside Norway and the USA. The IPO is expected to consist of a sale of existing shares by Vår Energi’s existing shareholders, Eni and HitecVision, who currently own 69.85% and 30.15%, respectively, of Vår Energi’s outstanding shares.

The IPO is subject to receipt of the relevant approvals from Oslo Børs and the Norwegian Financial Supervisory Authority, as well as prevailing equity capital market conditions.

www.varenergi.no

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