JUNE 2020 VERMILION ENERGY INVESTOR PRESENTATION INTERNATIONALLY DIVERSIFIED FREE CASH FLOW FOCUSED ESG LEADERSHIP
VERMILIONS KEY ATTRIBUTES International oil and natural gas producer with high quality assets in Europe, North America and Australia Industry leader in sustainability and ESG performance Free cash flow-focused business model with…
CORE OPERATING AREAS 2020E PRODUCTION* EUR 29% N.A. 66% AUS 5% EUR 29% FFO* N.A. AUS 58% 13% VERMILION IS FOCUSED IN THREE STABLE REGIONS * Company estimates as at June 1, 2020. 2020 FFO estimate based on…
ESG LEADERSHIP We are committed to Environmental, Social and Governance matters Environmental Social Governance We reduce environmental impacts of We are committed to the care of our We demonstrate strong corporate traditional…
CAPITAL MARKETS SUMMARY Market Summary Trading Price (June 1, 2020) 6.97 (TSX), 5.14 (NYSE) Ticker Symbol (TSX & NYSE) VET Shares Outstanding (March 31, 2020) 157.0 million Average Daily Trading Volume (shares) 2.2 million (TSX),…
RECENT LEADERSHIP CHANGES Lorenzo Donadeo appointed Executive Chairman VERMILION EXECUTIVE COMMITTEE Co-founder and former President and CEO of Vermilion, 39-years experience in E&P industry, significant shareholder Executive…
VERMILIONS CORE BUSINESS PRINCIPLES Maintain a strong balance sheet with low financial leverage Manage total payout ratio at less than 100% Consistently deliver results that meet or exceed expectations Protect equity and…
VERMILIONS NEAR-TERM PRIORITIES Continue to navigate the Company through the COVID-19 pandemic with a primary focus on HSE and business continuity CASH OUTFLOW REDUCTIONS Continuing to find additional operational efficiencies and…
RESPONSE TO COVID-19 PANDEMIC We are committed to the care of our people and their families, the environment and the communities in which we live and work Health and safety of our employees and contractors are prioritized above…
GLOBAL COMMODITY DIVERSIFICATION PRODUCTION (2020E)* ESTIMATED FFO CONTRIBUTION (2020E)* OIL (BRENT) OIL (BRENT) 15% 23% EUROPEAN GAS 19% OIL / OIL / EUROPEAN GAS CONDENSATE / CONDENSATE / 19% NGL NORTH AMERICAN NGL (WTI)…
GLOBAL COMMODITY PRICING ADVANTAGE OIL BENCHMARKS NATURAL GAS BENCHMARKS Q1 2020 VET Premium 12 2020E VET / (Discount) to WTI Crude Oil Mix (US/bbl)* 10 GAS PRICE (C/MMBTU)**** Brent 34% 9.00 8 C5+ (AB Condy) 6% 0.00 6…
COMMODITY HEDGE POSITION 2020 2021 100% 100% PERCENTAGE OF PRODUCTION HEDGED (%) PERCENTAGE OF PRODUCTION HEDGED (%) 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% WTI Brent European N.A…
BALANCE SHEET 16
BALANCE SHEET COMPOSITION CURRENT CREDIT CAPACITY C2.5 BILLION 4-Year Covenant-based Credit Facility Covenant YE 2019 Q1 2020 AS AT MARCH 31, 2020 Financial Covenants Total debt / Consolidated EBITDA* Less than 4.0 1.94 2.19 0.5 B…
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 90%…
NORTH AMERICA CANADA Targeting light oil and condensate-rich natural gas in West Central Alberta and light oil in SE Saskatchewan Over 400,000 net acres in West Pembina targeting the Mannville (2,400 2,700m depth) and Cardium…
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 2019 2020E E&D CAPEX AS % OF FFO* 21% 36% 67% 58% 31%…
AUSTRALIA Entered Australia in 2005 Offshore oil field 80 km N.W. of Australia (55m water depth) Horizontal well development with 20 wellbores, five dual laterals and 10 additional drilling opportunities identified* New wells…
SUMMARY Vermilion provides a compelling investment opportunity as we re-focus on our core business principles and reduce debt levels in a recovering global commodity price environment We continue to act in accordance with our core…
SUPPLEMENTAL INFORMATION 27
2020 RESULTS TO-DATE 2020 Q1 2020 Guidance Average Production boe/d 94,000 98,000 97,154 % Crude oil, condensate and NGLs % 55% 54% % Natural gas % 45% 46% Capital Expenditures MM 350 370 234 Petroleum and natural gas sales MM…
ENVIRONMENTAL SUSTAINABILITY We are playing a meaningful role in the energy transition by reducing the environmental impact of our traditional energy production and developing renewable energy projects We deploy energy and emissions…
ENVIRONMENTAL PERFORMANCE CDP (FORMERLY CARBON DISCLOSURE PROJECT) CDP is an international environmental organization that collects data about carbon emissions and energy use; its rankings are based on emissions disclosure and…
SOCIAL PERFORMANCE Committed to the care of our people and the enrichment of the communities where we live and work Give back through strategic community investment In the past five years, Vermilion has invested more than 9.2…
GOVERNANCE & ESG PERFORMANCE Vermilion demonstrates strong corporate governance, with leadership that sets an example of the highest standards of ethics and integrity and a commitment to the responsible development of our diverse…
ANALYST COVERAGE FIRM ANALYST PHONE EMAIL AltaCorp Capital Patrick J. ORourke, CFA 403-539-8615 porourkealtacorpcapital.com Bank of America Merrill Lynch Asit Sen, CFA 646-855-2602 asit.senbaml.com BMO Nesbitt Burns Ray Kwan, P.Eng.…
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