Skip to main content August 2018 Enercom Conference – Vermilion Energy Inc. Investor Presentation | Shale Experts
Loading...
Pm

August 2018 Enercom Conference – Vermilion Energy Inc.

Vermilion Energy Inc. · Aug 21, 2018 · 53 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. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 1
    INTERNATIONALLY DIVERSIFIED SUSTAINABLE GROWTH AND INCOME 2018 ENERCOM OIL & GAS CONFERENCE DENVER, AUGUST 20, 2018
  2. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 2
    VERMILIONS KEY ATTRIBUTES Global independent E&P with leading positions in high netback businesses in Europe, North America and Australia Self-funded growth-and-income model supported by high margins, low decline rates and strong…
  3. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 3
    CAPITAL MARKETS SUMMARY Market Summary Trading Price (July 26, 2018) 47.70 (TSX), 36.49 (NYSE) Ticker Symbol (TSX & NYSE) VET Shares Outstanding (June 30, 2018) 152.4 million Average Daily Trading Volume (shares) 0.9 million…
  4. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 4
    CORE OPERATING AREAS 2018E PRE-SPARTAN 2018E POST-SPARTAN ACQUISITION ACQUISITION (ANNUALIZED) NORTH PRODUCTION* AMERICA EUR N.A. EUR 35% N.A. 47% 46% 60% AUS AUS 5% 7% EUROPE N.A. EUR FFO* EUR 34% 37% N.A.…
  5. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 5
    PRODUCTION GROWTH AND CAPEX ANNUAL PRODUCTION VS E&D CAPITAL EXPENDITURES 13% CAGR PRE-SPARTAN 100 800 17% CAGR 700 80 600 MBOE / D 500 MM 60 400 40 6% CAGR 300 200 20 100 0 0 2003 2004 2005 2006…
  6. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 6
    PRODUCTION AND RESERVES PER SHARE PRODUCTION PER SHARE RESERVES PER SHARE 250 3.5 H2 2018E Annualized** 3.0 2P RESERVES (MBOE) PER SHARE 200 BOE PER THOUSAND SHARES 2.5 150 2.0 1.5 100 1.0 50 0.5 0 0 2012…
  7. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 7
    PRODUCTION GROWTH PER SHARE DEBT-AND-DIVIDEND-ADJUSTED INDEXED PRODUCTION PER SHARE (BASE VALUE = 100)* (INCLUDES PARTIAL YEAR IMPACT OF SPE ACQUISITION) COMPANY 250 (% OF PRODUCTION FROM N.A. GAS)** PXT (0%) TOU (84%) 200 VET…
  8. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 8
    FFO / FCF FFO FCF (CORPORATE ERA) 1,200 ANNUALIZED WITH ANNUALIZED WITH 500 SPARTAN SPARTAN 1,000 400 FFO LESS E&D CAPEX* (MM) PRE-SPARTAN PRE-SPARTAN 800 300 FFO (MM) 600 200 400 100 200 0 0 -100 2010…
  9. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 9
    FFO AND FCF PER SHARE FFO PER SHARE FCF PER SHARE 8.00 120 4.00 120 H2 2018E Annualized H2 2018E Annualized 7.00 3.50 100 100 FCF PER SHARE (/SHARE)** FFO PER SHARE (/SHARE) 6.00 3.00 80 80 WTI (US/BBL) WTI…
  10. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 10
    COST REDUCTION OPERATING EFFICIENCY CAPITAL EFFICIENCY 14.00 24% Reduction 40.00 (40% in USD) 12.00 35.00 70% Reduction 30.00 (77% in USD) 10.00 49% Reduction 25.00 8.00 / BOE from 2014 Peak / BOE 20.00 (57% in…
  11. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 11
    FREE CASH FLOW YIELD 2019E DEBT-ADJUSTED FREE CASH FLOW (DAFCF) TO ENTERPRISE VALUE (EV) 11% 10% 9% 8% 2019E DAFCF YIELD * 7% 6% 5% 4% 3% 2% 1% 0% VET FRU WCP TOG ERF RRX TVE OBE BTE CPG AAV PGF ECA POU VII PEY TOU…
  12. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 12
    DIVIDENDS 12
  13. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 13
    RELIABLE AND GROWING DIVIDENDS CUMULATIVE DIVIDENDS PAID PER SHARE (2003 THRU Q2 2018) = 35.49 0.25 8% 0.23 7% 0.215 6% MONTHLY DIVIDENDS 0.20 0.20 DIVIDEND YIELD 0.19 5% 0.17 4% 3% 0.15 2% 1% 0.10 0% 2003…
  14. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 14
    SUSTAINABILITY RATIO 200% 175% 162% 150% TOTAL EXPENDITURES / FFO* 140% 125% 121% 117% 121% 111% 109% 111% 100% 108% 88% 92% 75% 81% 74% 73% 70% 50% 59% 25% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  15. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 15
    ELEMENTS OF SUSTAINABLE MODEL 15
  16. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 16
    ELEMENTS OF SUSTAINABLE MODEL SELF-FUNDED GROWTH-AND-INCOME MODEL 1. High Margins 2. Low Base Production Decline Rates 3. Strong Capital Efficiencies Profitability on a per boe basis Required production replacement before growth…
  17. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 17
    RELATIVE NETBACKS 2018E FIELD NETBACKS (EXCLUDING HEDGING) 50 45 40 35 30 25 20 15 10 5 0 CPG NVA ECA VET PSK HSE ERF BTE CVE DEE KEL FRU SPE SU MEG OBE PXX ATH BIR…
  18. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 18
    BASE PRODUCTION DECLINE RATES Effective Natural Country Decline Decline 50% Rate* Rate* VET CANADA VET ONLY CORPORATE France 8% 8% 40% DECLINE NATURAL DECLINE VET Netherlands 1% 19% CORPORATE 30% EFFECTIVE Germany 7% 7%…
  19. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 19
    DRILLING PROJECTS DCET Economics at US55 WTI IP365 EUR Prod. Efficiency Net Well 2018E Net Investment Well Cost (BOE/D) (MBOE) (IP365 /BOED) ATAX Recycle ATAX Payout Inventory* Wells Planned (CM) ROR Ratio (Years) European Gas…
  20. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 20
    RELATIVE PDP RECYCLE RATIOS 3-YEAR PROVED DEVELOPED PRODUCING (PDP) FD&A RECYCLE RATIOS* 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x VET BNE ARX BIR AAV PEY TOU SRX YGR CR WCP NVA RRX CPG VII BTE PONY SPE TVE KEL GXE ERF LXE TOP…
  21. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 21
    INTERNATIONAL DIVERSIFICATION 21
  22. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 22
    VERMILIONS INTERNATIONAL ADVANTAGE Focused in three core areas (Europe, North America and Australia) with stable, well-developed fiscal and regulatory regimes Global asset portfolio provides commodity diversification and premium…
  23. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 23
    COMMODITY MIX PRODUCTION (2018E)* ESTIMATED FFO CONTRIBUTION (2018E)* ESTIMATED FCF CONTRIBUTION (2018E)** France United Australia France Australia 13% States 10% 17% Germany France 6% 2% Australia Germany United 4% 17% 4% 2%…
  24. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 24
    EUROPEAN NATURAL GAS PRICING SUMMARY Futures markets continue to reflect a significant premium NATURAL GAS* for European natural gas versus AECO and Henry Hub 12 LNG-BUILD CEILING Realized forward prices are influenced by a number…
  25. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 25
    BALANCE SHEET 25
  26. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 26
    CONSERVATIVE BALANCE SHEET CREDIT CAPACITY C2.0 BILLION NET DEBT-TO-FFO RATIO* AS AT JUNE 30, 2018 4.0 0.4 B 3.0 0.4 B 2.0 1.2 B 1.0 Q4 2018E ANNUALIZED REVOLVING CREDIT FACILITY 0.0 US Senior Notes 2003 2004 2005…
  27. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 27
    RELATIVE LEVERAGE 2018E DEBT TO CASH FLOW 6.0x 5.0x 4.0x 3.0x CANADIAN AVERAGE US AVERAGE 2.0x 1.0x 0.0x FANG FANG VET BXE OAS PPR DEE CRZO CPE MEG PXX CQE ATH BTE ECR CPG…
  28. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 28
    RISK MANAGEMENT 28
  29. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 29
    QUARTERLY COMMODITY HEDGE POSITION OIL HEDGES NATURAL GAS HEDGES (/bbl) (/mmbtu) 65.66- Q1 2018 69.83 62.32- 77.03 74.12 European Gas North American Gas 70.23 Q1 2018 7.64 7.21-8.47 Q1 2018 2.65 2.67-3.06 Q2 2018 70.9770.51-…
  30. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 30
    EUROPEAN ASSETS 30
  31. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 31
    EUROPEAN CORE AREA NETHERLANDS GERMANY 2 onshore gas producer Establishing production operations and IRELAND Large and growing inventory of drilling opportunities substantial exploratory land position in Corrib field constitutes 95%…
  32. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 32
    EUROPEAN PRODUCTION 35,000 30,000 25,000 20,000 BOE/D 15,000 10,000 5,000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018E E&D CAPEX AS % OF FFO**…
  33. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 33
    FRANCE OPERATING PERFORMANCE VALUE CREATION (2P RESERVES)* MMBOE Acquired Reserves Initial acquisition (1997) 22.6 14,000 2006 Acquisition 15.0 2012 Acquisition 1 6.7 2012 Acquisition 2 6.3 2006 ACQUISITION 12,000 15.0 MMBOE (2P)…
  34. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 34
    NETHERLANDS OPERATING PERFORMANCE VALUE CREATION (2P RESERVES)* MMBOE Acquired Reserves Initial acquisition (2004) 16.5 14,000 2013 Acquisition 2.3 2016 Acquisition (Drenthe WI) 0.6 12,000 INITIAL ACQUISITION Total Acquired…
  35. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 35
    GERMAN LAND POSITION Initial Non-Operated DUMMERSEE-UCHTE ACQUISITION (2014) Acquisition First entry into Germany, non-operated interest Farm-In Agreement 2016 production 2,400 boe/d Awarded Licenses Member of 4 party consortium…
  36. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 36
    IRELAND OVERVIEW Vermilion currently holds an 18.5% non-operated interest in the Corrib gas field, offshore Ireland On July 12, 2017 Vermilion and Canada Pension Plan Investment Board (CPPIB) announced a strategic partnership At…
  37. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 37
    CENTRAL AND EASTERN EUROPE (CEE) EXTENSION OF EUROPEAN GROWTH STRATEGY Modest back-loaded capital commitments Prospective for both oil and gas Under-invested basin that can benefit from new technology HUNGARY Awarded South…
  38. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 38
    NORTH AMERICAN ASSETS 38
  39. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 39
    NORTH AMERICA CANADA Production and assets are focused in West Central Alberta and SE Saskatchewan In West Pembina, potential for three significant development projects sharing surface infrastructure with a land position of…
  40. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 40
    NORTH AMERICAN PRODUCTION 60,000 INCLUDES PARTIAL YEAR IMPACT OF SPARTAN ACQUISITION* 50,000 40,000 BOE/D 30,000 20,000 10,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E* E&D…
  41. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 41
    ATAX IRR 20% 40% 60% 80% 0% 100% Woodenhouse ** Ellerslie ** Frobisher/Alida Montney Eagle Ford Woodford Marcellus Eagle Ford Woodford Lloydminster Mannville Eagle Ford Ellerslie Condy Wasatch…
  42. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 42
    SOUTHEAST SASKATCHEWAN Entered area through acquisition of Elkhorn Resources Inc. in April 2014, with further land added subsequent to acquisition Acquired Spartan Energy May 2018, adding over 400,000 net acres to our SE SK land…
  43. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 43
    EXPANSION OF SE SASKATCHEWAN POSITION SPARTAN ACQUISITION Approximately 480,000 net acres (750 net sections) 457,000 net acres, 714 net sections in SK 20,000 net acres, 17 net sections in AB 3,000 net acres, 4 net sections in MB…
  44. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 44
    AUSTRALIAN ASSETS 44
  45. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 45
    AUSTRALIA Entered Australia in 2005 Offshore oil field 80 km N.W. of Australia (55 m water depth) Horizontal well development with 18 wellbores and five lateral sidetracks Wells 600m below sea bed with 1,500 - 3,700 m measured…
  46. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 46
    AUSTRALIA ACTIVITY Oil is trapped above and between the existing wells, creating opportunity to drill to a higher structural elevation and between existing wells to capture attic, flank and undrained oil 12 additional identified…
  47. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 47
    GOVERNANCE / CORPORATE CITIZENSHIP 47
  48. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 48
    GOVERNANCE Vermilions external awards and recognition provide important benchmarks for our strong performance The Globe and Mail, Report on Business, Board Games In 2017, Vermilion ranked 4th within the oil and gas sector, and among…
  49. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 49
    CDP (CARBON DISCLOSURE PROJECT) CDP (formerly Carbon Disclosure Project) is an international environmental organization that collects information about carbon emissions and energy use Vermilion was named to the CDP Climate…
  50. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 50
    RECORD OF VALUE CREATION 50
  51. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 51
    VALUE CREATION 1994 2018 8,000 7,268 7,303 6,000 4,000 MARKET TOTAL VALUE CAPITALIZATION(2) CREATION MILLIONS 2,000 0 EQUITY DIVIDENDS (2,000) ISSUED(1) PAID(2) (3,100) 3,135 (4,000) MORE THAN 20-YEAR RECORD OF…
  52. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 52
    RETURN ON CAPITAL EMPLOYED 10 YEAR TOTAL RETURN VERSUS 10 YEAR AVERAGE ROCE 150% VET FRU 100% TOTAL RETURN (%) PEY CNQ 50% POU ARX SU 0% BIR ERF CPG IMO SPE NVA AAV -50% ECA CR BTE OBE PGF -100% -15% -10% -5% 0%…
  53. August 2018 Enercom Conference – Vermilion Energy Inc. – slide 53
    RELATIVE MARKET PERFORMANCE CUMULATIVE TOTAL RETURN SINCE BEGINNING OF GROWTH AND INCOME ERA 16 14 12 10 8 6 4 2 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 VET S&P/TSX…

From the store

Browse maps, data & reports in the Shale Experts store