Vår Energi (VAR) Q2 2026 & Acquisition earnings summary

Executive summary

• Announced a transformative combination/merger with BlueNord, creating Europe's largest independent oil and gas producer with a long-term production target of approximately 450,000 boe/d and reserves/resources of about 2.4 billion boe.

• Record Q2 2026 financial results, driven by high realized prices and strong operational performance, with significant cash flow from operations of USD 2.1 billion post-tax and reduced net debt to USD 3.4 billion.

• Production for H1 2026 averaged 391,000 boe/d, on track to meet full-year guidance of 390,000–410,000 boe/d, with higher production expected in H2 2026 as new projects and wells come online.

• Boards of both companies unanimously approved the transaction, structured as a share and cash deal, with BlueNord shareholders receiving 248.4 million new shares and USD 204 million in cash.

• The transaction is expected to be accretive to production, reserves, cash flow, and dividend capacity per share.

Financial highlights

• Record Q2 2026 revenue of USD 3.7 billion, net profit of USD 839 million, and EBIT of USD 2,242 million, driven by higher production and prices.

• Average realized price of USD 101/boe; oil at USD 110/bbl and gas at USD 91/boe.

• Cash flow from operations after tax reached USD 2.1 billion, free cash flow was USD 1.4 billion, and CapEx for the quarter was USD 645 million.

• Net debt reduced to USD 3.4 billion, leverage ratio down to 0.4x net debt/EBITDAX.

• BlueNord shareholders will receive 248.4 million new shares and USD 204 million in cash; post-tax synergies estimated at USD 250–300 million for 2027–2032.

Outlook and guidance

• Full-year 2026 production guidance reaffirmed at 390,000–410,000 boe/d, with higher H2 2026 production expected.

• CapEx guidance unchanged at USD 2.5–2.7 billion for 2026; average annual CapEx expected to remain at USD 2.5 billion post-combination.

• Dividend guidance of USD 350 million for Q2 and Q3 2026; long-term dividend policy of 25%-30% of CFFO after tax remains.

• Production cost guidance for 2026 is around USD 10–11 per boe.