Vår Energi: Production growth and 12% divi yield - an attractive combination

Research evidence excerpt

Vår Energi: Production growth and 12% divi yield - an attractive combination

Equity Research

European Integrated Energy

21 July 2026

Vår Energi

Production growth and 12% divi

yield - an attractive combination

Var Energi's acquisition of BlueNord dominated the Q2 results VAR.OL/VAR NO OVERWEIGHT

call, with management highlighting the transaction's Unchanged

potential to increase scale, strengthen cash generation and European Integrated Energy UnchangedPOSITIVE

enhance shareholder returns. We see Var Energi's production Price Target NOK 50.00

growth combined with its 12% dividend yield as attractive. Unchanged

Price (21-Jul-26) NOK 46.70

Potential Upside/Downside +7.1%

Var Energi's proposed combination with BlueNord (link) was the focus on the Q2 conference Source: Bloomberg, Barclays Research

call, which the company sees as an opportunity to increase "scale, cash generation and

dividend capacity". Market Cap (NOK mn) 116582

• Var Energi reiterated its 2026 production guidance of 390-410 kboe/d, with management Shares Outstanding (mn) 2496.41

Free Float (%) 36.64 expecting higher production in 2H26 than in 1H26, driven by completed turnarounds, new

52 Wk Avg Daily Volume (mn) 7.2 project start-ups and well ramp-ups. Following the proposed BlueNord acquisition, the

Dividend Yield (%) 10.46 company has increased its long-term production target to ~450 kboe/d, from the previous

Return on Equity TTM (%) 230.95 >400 kboe/d target.

Current BVPS (NOK) 0.09

• Var Energi raised its Q2 2026 dividend to $350m and guided for a further $350m dividend in Source: Bloomberg

Q3 2026, versus the prior level of $300m per quarter. In addition, management did not rule

out an extraordinary dividend for Q4 2026, noting that the decision will be assessed at year- Price Performance Exchange-OL