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April 2021 Corporate Presentation – Vermilion Energy Inc.

Vermilion Energy Inc. · Apr 1, 2021 · 34 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. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 1
    APRIL 2021 VERMILION ENERGY INVESTOR PRESENTATION INTERNATIONALLY DIVERSIFIED FREE CASH FLOW FOCUSED ESG LEADERSHIP
  2. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 2
    VERMILIONS KEY ATTRIBUTES Unique portfolio of internationally diversified assets o Exposure to global commodity price benchmarks reduces cash flow volatility o Will support the return to a dividend capital markets model (over…
  3. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 3
    CAPITAL MARKETS SUMMARY Market Summary Trading Price (March 31, 2021) 9.13 (TSX), 7.28 (NYSE) Ticker Symbol (TSX & NYSE) VET Shares Outstanding (December 31, 2020) 158.7 million Average Daily Trading Volume (shares) 2.5 million…
  4. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 4
    ESG LEADERSHIP Environmental Vermilion is committed to reducing the environmental impact of traditional energy production, the enrichment and care of the communities in which we live and work, and maintaining our strong corporate…
  5. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 5
    INTERNATIONAL DIVERSIFICATION 5
  6. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 6
    CORE OPERATING AREAS 2021E PRODUCTION* INT 33% N.A. 67% N.A. INT FFO* 55% 45% INT FCF* N.A. 46% 54% VERMILION IS FOCUSED IN STABLE CORE AREAS * 2021 production and FFO based on March 15, 2021 strip…
  7. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 7
    GLOBAL COMMODITY DIVERSIFICATION PRODUCTION (2021E)* ESTIMATED FFO CONTRIBUTION (2021E)* OIL (BRENT) OIL (BRENT) 16% 23% EUROPEAN GAS 17% OIL / OIL / EUROPEAN GAS CONDENSATE / CONDENSATE / 22% NGL NGL NORTH AMERICAN…
  8. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 8
    GLOBAL CRUDE OIL PRICING ADVANTAGE OIL BENCHMARKS Vermilion has significant leverage to oil prices 2021E VET Premium / 2021E VET An increase of US1/bbl generates approximately (Discount) to WTI o Crude Oil Mix (US/bbl)* 17MM of…
  9. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 9
    EUROPEAN NATURAL GAS PRICING Vermilion has significant leverage to European natural gas GLOBAL NATURAL GAS PRICES prices (+1/mmbtu = +28MM incremental FCF) 14 European natural gas forward prices are currently in the 6 12 to…
  10. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 10
    FOCUS ON FREE CASH FLOW & PROFITABILITY 10
  11. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 11
    FREE CASH FLOW FREE CASH FLOW GENERATION 1,000 2,000 900 1,800 800 1,600 CUMULATIVE FCF (MM)** 700 1,400 600 1,200 MM* 500 1,000 400 800 300 600 200 400 100 200 0 0 2016 2017 2018 2019 2020 2021E* E&D CAPEX FCF…
  12. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 12
    FREE CASH FLOW YIELD 2021E FCF YIELD 40% 35% 30% 2021E FCF YIELD (%)* 25% 20% 15% 10% 5% 0% BTE MEG CPG VET ERF BIR CNQ CVE WCP TOU IMO SU PEY POU NVA VERMILION TRADES AT ONE OF THE HIGHEST FCF YIELDS AMONGST…
  13. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 13
    OPERATING NETBACKS 2021E OPERATING NETBACKS 35.00 100% 90% 2021E OPERATING NETBACK (/BOE)* 30.00 2021E LIQUIDS WEIGHTING (%)* 80% 25.00 70% 60% 20.00 50% 15.00 40% 10.00 30% 20% 5.00 10% 0.00 0% CPG VET BTE…
  14. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 14
    COST REDUCTION OPERATING EFFICIENCY ORGANIC CAPITAL EFFICIENCY 14.00 20.00 7% Reduction 12.00 40% Reduction 16.00 10.00 12.00 8.00 / BOE / BOE 49% Reduction 6.00 8.00 4.00 49% Reduction 17% Reduction 4.00 2.00…
  15. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 15
    FFO SENSITIVITY ANNUAL 2021 UNHEDGED FFO SENSITIVITY (CMM)* COMMODITY PRICES** 2021E Change FFO Impact (C) Brent (US/bbl) 64.30 WTI (US/bbl) 61.35 WTI & Brent US1/bbl 17.0MM LSB = WTI less (US/bbl) 4.40 MSW = WTI less (US/bbl)…
  16. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 16
    BALANCE SHEET 16
  17. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 17
    BALANCE SHEET COMPOSITION CURRENT CREDIT CAPACITY 2.5B No near-term maturities AS AT DECEMBER 31, 2020 2,250 o Covenant-based credit facility termed out to May 2024 2,000 o US Senior Notes termed out to March 2025 1,750 1,500…
  18. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 18
    FINANCIAL LEVERAGE LEVERAGE RATIOS 4.5x 4.0x 3.5x 3.0x 2.5x 2.0x VERMILION TARGETED LEVERAGE RANGE 1.5x 1.0x 0.5x 0.0x 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016…
  19. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 19
    2021 LEVERAGE SENSITIVITY 2021E DEBT-TO-CASH FLOW AT VARIOUS FORWARD OIL PRICES 800 4.0x 700 3.5x 2021E FREE CASH FLOW* (MM) 2021E YEAR-END D/FFO* (x) 600 3.0x 500 2.5x 400 2.0x 300 1.5x 200 1.0x 100 0.5x 0 0.0x…
  20. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 20
    COMMODITY HEDGE POSITION 2021 2022 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…
  21. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 21
    SUMMARY Unique portfolio of internationally diversified assets o Exposure to global commodity price benchmarks reduces cash flow volatility o Will support the return to a dividend capital markets model (over 40/share of dividends…
  22. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 22
    ASSET OVERVIEW 22
  23. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 23
    VERMILION PRODUCTION 105,000 90,000 75,000 60,000 BOE/D 45,000 30,000 15,000 0 2003 2004 2005 2006 2007 2008 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2020 2021E E&D CAPEX AS % OF FFO** 50% 36%…
  24. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 24
    EUROPE NETHERLANDS GERMANY IRELAND 2 onshore gas producer Established production operations 20% operated interest in the Corrib Large and growing inventory of drilling opportunities and substantial exploratory land Natural Gas…
  25. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 25
    CEE EXPLORATION POTENTIAL VERMILION HAS BUILT A HIGHLY PROSPECTIVE EXPLORATION PORTFOLIO ACROSS CEE Approximately 3.4 million net acres of undeveloped land across three countries (Hungary, Croatia and Slovakia) Focused on…
  26. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 26
    AUSTRALIA 100% operated interest in Wandoo, an offshore oil field approximately 80 km N.W. of Australia (55m water depth) Horizontal well development with 20 producing wellbores and five dual lateral sidetracks tied into two…
  27. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 27
    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…
  28. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 28
    ESG PERFORMANCE 28
  29. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 29
    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 o We deploy energy and…
  30. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 30
    ENVIRONMENTAL PERFORMANCE CDP (FORMERLY CARBON DISCLOSURE PROJECT) CDP is a not-for-profit that provides a global disclosure system for investors and companies to manage their environmental impacts, including Climate (results at…
  31. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 31
    SOCIAL PERFORMANCE Give back through strategic community investment o In the past five years, Vermilion has invested more than 9.2 million and 11,100 hours of volunteer time in our communities Demonstrate excellent results in…
  32. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 32
    PARENTIS SUSTAINABILITY PARTNERSHIP Vermilion received Frances Circular Economy Award for our project to supply geothermal heat from our oil operation to local greenhouses The award recognizes economically successful enterprises that…
  33. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 33
    LA TESTE ECO-NEIGHBOURHOOD Our operations in La Teste, France now support an eco-neighborhood heated the same way as the tomato greenhouses, using recycled geothermal energy from our oil operation 30-year partnership to provide 80%…
  34. April 2021 Corporate Presentation – Vermilion Energy Inc. – slide 34
    ANALYST COVERAGE FIRM ANALYST ATB Capital Markets Patrick J. ORourke, CFA BMO Nesbitt Burns Ray Kwan, P.Eng. Canaccord Genuity Anthony Petrucci CIBC Capital Markets Dave Popowich Credit Suisse Manav Gupta Eight Capital Phil…

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