Skip to main content FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. Investor Presentation | Shale Experts
Loading...
Pm

FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc.

Vermilion Energy Inc. · Mar 7, 2012 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 1
    Vermilion Energy Inc. Steady Growth Stable Dividends March 2012 A World of Energy 1
  2. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 2
    Vermilion at a Glance TSX Listed VET (TSX) Feb 29 48.65 Monthly Dividend 0.19 per share Yield 4.7% CANADA (Alberta) Market Capitalization C4.7 billion 15,163 boe/d (52% Oil) Focus: Management ownership and control 8% Cardium oil /…
  3. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 3
    Why Invest in Vermilion Steady, Reliable Growth Visible production growth (35%) to 50,000 boe/d in 2015 Estimated cash flow growth of 50% by 2015* Premium Commodity Focus 83% of production linked to oil price 60% of production…
  4. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 4
    Focus on Premium Commodities 2012 Production (E)** France and Australia production priced against North Brent crude American US11.38*/bbl premium over WTI in 2012 Gas Brent 17% Netherlands gas priced Crude primarily off a…
  5. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 5
    Dated Brent Premium to WTI 30 12 month moving average 25 20 15 10 5 Average differential Average differential Average differential (2011) (2012) (2013-2016) US16.15/boe US12.40/boe US6.27/boe 0 60% of VET…
  6. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 6
    Reserves Growth 2011 Reserves 200 (mmboe) Proved % P+P % 180 Brent 36,824 38 53,425 37 160 WTI 15,972 17 30,010 21 140 NGL 3,409 4 5,127 3 120 European gas 20,893 21 28,514 19 CDN Gas 19,401 20 29,156 20 100 Total 96,499 146,232…
  7. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 7
    Production Growth 50,000 2011 2012 Growth 45,000 Oil & NGL (bbls/d) 22,333 12%-15% European Gas (mcf/d) 33,829 10%-12% 40,000 CDN Gas (mcf/d) 43,378 (8%-10%) 35,000 Total (boe/d) 35,202 37-38,000 6%-8% 30,000 25,000 20,000…
  8. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 8
    Funds Flow Growth Strong volume driven funds flow growth 800 Funds Flow From Funds Flow Production, boe/d Operations, M Per Share(1) 700 2011 35,202 474 5.22 600 2012E* 37,000 38,000 524 - 544 5.38-5.58 500 2015E* 50,000 750…
  9. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 9
    Stable and Growing Dividends One of only two high-yield peers that has never reduced dividend since inception 9 years ago Anticipated 50%* cash flow increase by 2015 will provide capacity for stable and reliable dividend growth…
  10. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 10
    Balance Sheet Strength Net debt to funds flow 2.5 Balance sheet will support growth initiatives and dividend 2.0 Peer Average 800 MM revolving credit facility (syndicated 3-yr term to 2014) 1.5 225 MM 5-year (6.5%) notes due…
  11. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 11
    Value Creation 1994 through 2011 6,000 4,691 5,080 5,000 Total Current 4,000 Market Value Capitalization Creation millions 3,000 2,000 1,000 1,325 936 0 Equity Dividends Issued(1) Paid(2) -1,000…
  12. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 12
    Prospects Overview 13
  13. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 13
    2012 Capital Overview (M) Canada France Netherlands Australia Ireland Total % Drilling, completions & production activities 111 10 16 66 - 203 54 Infrastructure, facilities & maintenance 6 20 7 15 92 140 38 Land / Seismic 8 4 3 1 -…
  14. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 14
    West Pembina Cardium Overview Dominant position in the higher quality reservoir 55% of VETs total 2012 drilling budget Contingent capital in 2012 also targeting Cardium Booked reserves on 208 (net) wells through 2011 Average 163 mboe…
  15. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 15
    Cardium Results to date Vermilion Operated Production Rates vs. Peer Production Rates 400 60 Q4/11 IP30 (20 wells) = 288 boe/d Vermilion Well Count VET Average Daily Prod Q4/11 IP60 (9 wells) = 236 boe/d Industry Average Daily…
  16. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 16
    Cardium Development Plan Cardium Prospect Inventory Drilled 68 Drillable Contingent Inventory 120+ 300 Developing selectively between 3 to 6 Based on strong production performance wells per section VET booked upward…
  17. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 17
    Well Costs and Economics 2010/11 Operated well costs (DCET) Target Avg. 2012 2012 Cardium Program Well Cost (MM) (MM) Drill 1.5 - 1.7 7 Complete (Water Frac) 1.3 - 1.5 Equip & Tie-in 0.55 Total Well Costs (DCET) 3.5 - 3.7…
  18. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 18
    W. Pembina Liquids-Rich Gas Overview Land and opportunity held by conventional production no land expiry issues Underexploited stacked Cretaceous and Jurassic sands Multi-zone, liquids-rich gas Several wells drilled to date…
  19. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 19
    Netherlands Activity Completing preparations to tie-in De Hoeve-1 during 1H Middelburen 2 2012 Drilling 2-3 new wells in 2012 Legend Vermilion Concessions Producing Gas Fields Permitting successful wells Drilling Prospects…
  20. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 20
    Australia Activity 2008 Wells Highly successful drilling programs in 2008 2010 Wells and 2010 with RORs estimated at 66% after tax New wells used deviated sidetracks off existing well bores Complete preparations and planning…
  21. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 21
    France Acquisition 2012E Average Production INTERESTS ACQUIRED IN PROPERTIES 2,200 boe per day PARIS BASIN Acquired Closing W.I. W.I.* 86% Brent crude oil (increases Brent weighting) Vert-le-Petit 100% 100% La Croix Blanche 100%…
  22. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 22
    France Activity 2012 Paris Basin Aquitaine Basin Planned 2012 Capital Activities Workovers and recompletions Waterflood tracer and subsurface studies Facilities and subsurface maintenance Development of Vic Bihl gas handling…
  23. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 23
    Asset Overview - Ireland Corrib Partnership Interests 45.5% Shell (Operator) 36.0% Statoil 18.5% Vermilion (acquired 2009) Corrib Status Wells drilled and tested Subsea manifold installed Offshore pipeline installed Gas…
  24. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 24
    Corrib Timeline Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 25
  25. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 25
    2020 Vision - New Growth Focused New Growth Initiative Seeking to build a portfolio of organic resource plays to supplement growth post 2015 Two focused teams of technical professionals spanning various disciplines Canada team…
  26. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 26
    2020 Vision - New Growth Canada Vermilion establishing key exposure to three new emerging oil and liquids-rich gas resource plays Invested 65 million to acquire 197 net sections of land in Canada with exposure to potential…
  27. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 27
    Why Invest in Vermilion Visible Growth to approximately 50,000 boe/d Premium Commodity Exposure Stable, Reliable Dividends Balance Sheet to Fund Growth New Growth Opportunities Driving Towards 2020 Vision 28
  28. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 28
    Vermilion Energy Inc. Steady Growth Stable Dividends www.vermilionenergy.com 29
  29. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 29
    Appendix 30
  30. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 30
    Relative Performance Total Return Performance by Period 60% 40% 20% 0% Vermilion Energy -20% S&P TSX Composite Index S&P 500 Composite Index -40% S&P 500 Energy Index MSCI World (Devevloped Country) Index -60%…
  31. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 31
    Historical Financial Summary Financial Summary (MM CDN except per unit amounts) 2003 2004 2005 2006 2007 2008 2009 2010 Revenue 314.1 354.5 529.9 618.1 707.3 1,001.9 639.8 727.8 Royalties (74.7) (63.6) (88) (92.2) (97.5) (130.8)…
  32. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 32
    Consolidated Netbacks Operating Netbacks, /boe (Gas converted at 6:1) 2003 2004 2005 2006 2007 2008 2009 2010 Price 39.90 43.21 57.94 61.80 61.86 83.61 55.83 65.38 Realized hedging gain (loss) (2.38) (3.73) (4.46) (0.02) (0.25)…
  33. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 33
    Top Quartile Cash Netbacks NETBACKS BY COUNTRY TOTAL (Q3-2011) CDN/boe 1 Canada France Netherlands Australia Company Revenue 51.81 108.40 58.11 102.98 77.85 Royalties (6.99) (6.88) - - (4.23) Operating cost (11.28) (19.15) (7.76)…
  34. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 34
    Total Payout 180% Corrib Development Phase Vermilions long term strategy targets free cash flow in 2015 162% 160% following Corrib development phase 140% Total Expenditures /EBITDA 120% 119% 116% 115% 100% 87% 80% 80%…
  35. FIRSTENERGY SOCIETE GENERALE EAST COAST ENERGY CONFERENCE – Vermilion Energy Inc. – slide 35
    Analysts Firm Analyst Phone Email BMO Nesbitt Burns Gordon Tait, CFA 403-515-1501 gordon.taitbmo.com CIBC Jeremy Kaliel 403-260-8657 jeremy.kalielcibc.com Desjardins Securities Allan Stepa, P.Eng, MBA 403-532-6613…

From the store

Browse maps, data & reports in the Shale Experts store