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Annual General Meeting – Vermilion Energy Inc.

Vermilion Energy Inc. · Apr 25, 2019 · 39 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. Annual General Meeting – Vermilion Energy Inc. – slide 1
    ANNUAL GENERAL MEETING APRIL 25, 2019
  2. Annual General Meeting – Vermilion Energy Inc. – slide 2
    AGENDA Q1 2019 Review Vermilion Energy Overview Sustainability Strategy 2
  3. Annual General Meeting – Vermilion Energy Inc. – slide 3
    Q1 2019 REVIEW 3
  4. Annual General Meeting – Vermilion Energy Inc. – slide 4
    Q1 2019 HIGHLIGHTS % % Q1 2019 Q4 2018 Q1 2018 Change Change Average Production (boe/d) 103,404 101,621 2% 70,167 47% Production per share (boe/d per million basic shares) 2% 18% Fund Flows from Operations (MM)* 254 222 14% 160…
  5. Annual General Meeting – Vermilion Energy Inc. – slide 5
    VERMILION ENERGY OVERVIEW 5
  6. Annual General Meeting – Vermilion Energy Inc. – slide 6
    CAPITAL MARKETS SUMMARY Market Summary Trading Price (April 24, 2019) 35.91 (TSX), 26.61 (NYSE) Ticker Symbol (TSX & NYSE) VET Shares Outstanding (March 31, 2019) 153.2 million Average Daily Trading Volume (shares) 1.3 million…
  7. Annual General Meeting – Vermilion Energy Inc. – slide 7
    CORE OPERATING AREAS 2019E PRODUCTION* EUR NORTH 33% N.A. AMERICA 62% AUS 5% EUROPE EUR FFO* 38% N.A. 53% AUS 9% AUSTRALIA EUR N.A. FCF* 45% 45% AUS 10% VERMILION IS FOCUSED IN THREE STABLE…
  8. Annual General Meeting – Vermilion Energy Inc. – slide 8
    PRODUCTION GROWTH AND CAPEX ANNUAL PRODUCTION VS E&D CAPITAL EXPENDITURES 120 800 105 15% CAGR 700 90 600 MBOE / D 75 500 MM 60 400 45 6% CAGR 300 30 200 15 100 0 0 2003 2004 2005 2006 2007 2008…
  9. Annual General Meeting – Vermilion Energy Inc. – slide 9
    PRODUCTION AND RESERVES PER SHARE PRODUCTION PER SHARE RESERVES PER SHARE 250 3.5 8% CAGR 3.0 2P RESERVES (BOE) PER SHARE 200 11% CAGR BOE PER THOUSAND SHARES 2.5 150 2.0 1.5 100 1.0 50 0.5 0 0.0 2003 2004…
  10. Annual General Meeting – Vermilion Energy Inc. – slide 10
    MONTHLY PRODUCTION HISTORY 120,000 100,000 MONTHLY PRODUCTION (BOE / D) 80,000 60,000 40,000 20,000 0 2012 2013 2014 2015 2016 2017 2018 2019 CONSISTENT PRODUCTION GROWTH WHILE PAYING OUR DIVIDEND 10
  11. Annual General Meeting – Vermilion Energy Inc. – slide 11
    FFO / FCF FFO FCF (CORPORATE ERA) 1,200 600 1,000 500 FFO LESS E&D CAPEX* (MM) 400 800 FFO (MM) 300 600 200 400 100 200 0 0 -100 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E* 2003…
  12. Annual General Meeting – Vermilion Energy Inc. – slide 12
    COST REDUCTION CAPITAL EFFICIENCY RECYCLE RATIO (F&D incl. FDC) 40.00 6.0x 35.00 76% Reduction 5.0x 30.00 (82% in USD) 153% Increase 25.00 4.0x / BOE 20.00 3.0x 15.00 2.0x 10.00 5.00 1.0x 0.00 2P F&D (Including…
  13. Annual General Meeting – Vermilion Energy Inc. – slide 13
    RELIABLE AND GROWING DIVIDENDS CUMULATIVE DIVIDENDS PAID OF 3.3B (37.56 PER SHARE) FROM 2003 THROUGH Q1 2019 0.25 10% 0.23 9% 0.215 8% MONTHLY DIVIDENDS 0.20 7% 0.20 DIVIDEND YIELD 0.19 6% 0.17 5% 4% 0.15 3% 2%…
  14. Annual General Meeting – Vermilion Energy Inc. – slide 14
    TOTAL PAYOUT RATIO 200% 175% 150% 162% TOTAL EXPENDITURES / FFO* 140% 125% 121% 117% 121% 104% 108% 111% 109% 111% 100% 88% 88% 75% 81% 74% 73% 70% 50% 59% 25% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  15. Annual General Meeting – Vermilion Energy Inc. – slide 15
    CONSERVATIVE BALANCE SHEET CREDIT CAPACITY C2.5 BILLION LEVERAGE RATIOS* AS AT MARCH 31, 2019 4.0 0.6 B 3.0 0.4 B 2.0 1.5 B 1.0 0.0 REVOLVING CREDIT FACILITY 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  16. Annual General Meeting – Vermilion Energy Inc. – slide 16
    QUARTERLY COMMODITY HEDGE POSITION OIL HEDGES NATURAL GAS HEDGES (/bbl) (/mmbtu) Q1 2019 71.38- 74.75 82.63 92.40 89.26- European Gas North American Gas 99.08 Q1 2019 8.50 7.58-10.42 Q1 2019 5.21 71.06- 88.87- Q2 2019 82.31…
  17. Annual General Meeting – Vermilion Energy Inc. – slide 17
    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 2018 2019E E&D CAPEX AS % OF…
  18. Annual General Meeting – Vermilion Energy Inc. – slide 18
    NORTH AMERICAN PRODUCTION 70,000 60,000 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 2018 2019E E&D CAPEX AS % OF FFO* 21% 36% 67% 58% 31% 76%…
  19. Annual General Meeting – Vermilion Energy Inc. – slide 19
    NORTH AMERICAN PROJECT RANKING Mannville Ellerslie Condy PROJECT RANKING BY ATAX IRR 100% (2019E - 17 Net Wells) WY Turner Sand Unfracked Frobisher / Alida (2019E - 8 Net Wells) (2019E - 64 Net Wells) 80% SE Sask Bakken SE Sask…
  20. Annual General Meeting – Vermilion Energy Inc. – slide 20
    AUSTRALIA PRODUCTION 12,000 10,000 8,000 6,000 BOE/D 4,000 2,000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E E&D CAPEX AS % OF FFO* 19% 15% 43% 7% 48% 16% 40% 51% 34% 75% 81% 42% 96%…
  21. Annual General Meeting – Vermilion Energy Inc. – slide 21
    RETURN ON CAPITAL EMPLOYED 10 YEAR TOTAL RETURN VERSUS 10 YEAR AVERAGE ROCE 100% SU VET CNQ 50% FRU TOTAL RETURN (%) TVE PEY 0% POU IMO KEL TOU ERF PSK ARX BIR VII -50% NVA CVE CPG ECA TOG MEG BTE -100% -20% -15%…
  22. Annual General Meeting – Vermilion Energy Inc. – slide 22
    SUSTAINABILITY 22
  23. Annual General Meeting – Vermilion Energy Inc. – slide 23
    ENVIRONMENTAL SUSTAINABILITY We recognize the energy transition is occurring, and we are playing a meaningful role in the transition At the same time, we are realistic that oil and gas consumption will continue during the transition,…
  24. Annual General Meeting – Vermilion Energy Inc. – slide 24
    PARENTIS SUSTAINABILITY PARTNERSHIP Vermilion was the recipient of Frances Circular Economy Award for our project to supply geothermal heat from our oil operation to local greenhouses The award recognizes economically successful…
  25. Annual General Meeting – Vermilion Energy Inc. – slide 25
    LA TESTE ECO-NEIGHBOURHOOD Our operations in La Teste, France now support an eco-neighborhood of 550 homes that are heated the same way as the tomato greenhouses, using recycled geothermal energy from our oil operation 30-year…
  26. Annual General Meeting – Vermilion Energy Inc. – slide 26
    MIDDENMEER GEOTHERMAL PROJECT Vermilion is planning to convert the Middenmeer gas field to a geothermal project as part of a newly created partnership with local groups The project will be our flagship renewable project in the…
  27. Annual General Meeting – Vermilion Energy Inc. – slide 27
    CDP (CARBON DISCLOSURE PROJECT) CO2e EMISSIONS INTENSITY PER BOE CDP (formerly Carbon Disclosure 0.04 Project) is an international environmental tCO2e per BOE organization that collects data about 0.03 carbon emissions and…
  28. Annual General Meeting – Vermilion Energy Inc. – slide 28
    HEALTH, SAFETY AND ENVIRONMENT (HSE) PHILOSOPHY Safety, environmental protection, and regulatory compliance go hand-in-hand with VERMILIONS PRIORITIES maximizing profitability WE CONDUCT ALL ACTIVITIES TO: These priorities should…
  29. Annual General Meeting – Vermilion Energy Inc. – slide 29
    STRATEGIC COMMUNITY INVESTMENT Vermilion is committed to giving back Canada France Netherlands Australia Ireland to the communities in which we operate We assess the critical needs in each community, and determine where our…
  30. Annual General Meeting – Vermilion Energy Inc. – slide 30
    GLOBAL RESPONDER PROGRAM The Netherlands Rescue and Help on Water In 2017, Vermilion established our Global Emergency Responder Program to support critical equipment and training needs for emergency medevac and similar services in…
  31. Annual General Meeting – Vermilion Energy Inc. – slide 31
    GLOBAL ENVIRONMENTAL STEWARDSHIP PROGRAM Canada Nature Conservancy Canada In 2018, Vermilion established the Global Environmental Stewardship Program to support community-based conservation initiatives in all of our business units…
  32. Annual General Meeting – Vermilion Energy Inc. – slide 32
    CORPORATE CULTURE GREAT PLACE TO WORK INSTITUTES ANNUAL RANKING Great Place to Work Institute evaluates companies by analyzing results of a confidential Trust Index survey provided to employees and evaluating the workplace through a…
  33. Annual General Meeting – Vermilion Energy Inc. – slide 33
    GOVERNANCE & SUSTAINABILITY Vermilions external awards and recognition provide important benchmarks for our strong performance The Globe and Mail, Report on Business, Board Games In 2018, Vermilion ranked 2nd within the oil and gas…
  34. Annual General Meeting – Vermilion Energy Inc. – slide 34
    ESG AND SHAREHOLDER RETURNS Sustainability performance is integral to our business and is positively correlated to our strong shareholder returns 5-Yr Total Return vs. Sustainalytics Rank 5-Yr Total Return vs CDP Score 5-Yr Total…
  35. Annual General Meeting – Vermilion Energy Inc. – slide 35
    VALUE CREATION 1994 2019 8,000 TOTAL VALUE 5,502 CREATION OF 5,842 6,000 4,000 MARKET CAPITALIZATION(2) MILLIONS 2,000 3,444 0 EQUITY DIVIDENDS ISSUED(1) PAID(2) (2,000) (3,104) (4,000) MORE THAN 20-YEAR…
  36. Annual General Meeting – Vermilion Energy Inc. – slide 36
    VERMILION OVER 25 YEARS Geographic Diversification Production Market People Value NORTH AMERICA EUROPE AUSTRALIA 100,000+ 730 2019 5.5B Employees BOE / D 300 IPO 4 1994 AB BOE / D 1.5MM Employees 36
  37. Annual General Meeting – Vermilion Energy Inc. – slide 37
    TO OUR EMPLOYEES AND SHAREHOLDERS . . . THANK YOU FOR 25 GREAT YEARS Vielen Dank Ta Go raibh maith agat Merci Ksznm Thank you Hvala ti Dank je 37
  38. Annual General Meeting – Vermilion Energy Inc. – slide 38
    TO OUR EMPLOYEES AND SHAREHOLDERS . . . THANK YOU FOR 25 GREAT YEARS Proost na zdravie Slinte Sant Cheers ivjeli Prost Egszsgre 38
  39. Annual General Meeting – Vermilion Energy Inc. – slide 39
    ADVISORY ON RESERVES AND RESOURCE DISCLOSURE Reserves & Resource Definitions All Vermilion reserves and resources estimates in this presentation are derived from evaluation reports (dated February 1, 2018 with an effective date of…

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