JUNE 2021 VERMILION ENERGY INVESTOR PRESENTATION INTERNATIONALLY DIVERSIFIED FREE CASH FLOW FOCUSED ESG LEADERSHIP
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…
CAPITAL MARKETS SUMMARY Market Summary Trading Price (May 28, 2021) 9.29 (TSX), 7.70 (NYSE) Ticker Symbol (TSX & NYSE) VET Shares Outstanding (March 31, 2021) 159.3 million Average Daily Trading Volume (shares) 2.2 million (TSX),…
ESG LEADERSHIP Environmental Vermilion is committed to reducing the environmental impact of traditional energy production, enriching and caring for the communities in which we live and work, and maintaining our strong corporate…
INTERNATIONAL DIVERSIFICATION 5
CORE OPERATING AREAS 2021E PRODUCTION* E&D CAPEX* INT 33% INT N.A. N.A. 45% 67% 55% FFO* FCF* INT INT N.A. N.A. 47% 50% 53% 50% VERMILION IS FOCUSED IN STABLE CORE AREAS * 2021 production and FFO based on May 25,…
GLOBAL COMMODITY DIVERSIFICATION PRODUCTION (2021E)* ESTIMATED FFO CONTRIBUTION (2021E)* OIL (BRENT) OIL (BRENT) 16% 25% EUROPEAN GAS 17% OIL / OIL / CONDENSATE / CONDENSATE / EUROPEAN GAS NGL NGL NORTH AMERICAN 22%…
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…
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 trading in 12 the 7…
FREE CASH FLOW YIELD 2021E FCF YIELD 40% 35% 30% 2021E FCF YIELD (%)* 25% AVERAGE = 21% 20% 15% 10% 5% 0% BTE VET CPG ERF MEG CVE ARX BIR CNQ SU WCP IMO TOU PEY POU NVA VERMILION TRADES AT ONE OF THE HIGHEST…
BALANCE SHEET COMPOSITION CURRENT CREDIT CAPACITY 2.5B No near-term maturities AS AT MARCH 31, 2021 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…
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…
SUMMARY Unique and defensive portfolio of internationally diversified assets with exposure to global commodity price benchmarks Long history of strong profitability and free cash flow generation with a focus on return on capital…
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…
CEE EXPLORATION POTENTIAL VERMILION HAS BUILT A HIGHLY PROSPECTIVE EXPLORATION PORTFOLIO ACROSS CEE Approximately 3.0 million net acres of undeveloped land across three countries (Hungary, Croatia and Slovakia) Focused on…
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…
NORTH AMERICA CANADA Targeting light oil and condensate-rich natural gas in West Central Alberta and light oil in SE Saskatchewan Approximately 400,000 net acres in West Pembina targeting the Mannville (2,400 2,700m depth) and…
ESG PERFORMANCE 27
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 have set two new…
EMMISSION REDUCTION TARGETS We are progressing the development of our comprehensive, long-term ESG strategy, based on the leadership position we have established in sustainability for more than a decade This progress is reflected…
EMMISSION REDUCTION TARGETS Our new targets are supported by our track record o Achieving flaring reduction targets set after acquisitions in southeast Saskatchewan in 2014 and 2018 o Innovative use of geothermal energy from produced…
SOCIAL PERFORMANCE Give back through strategic community investment o Since 2015, Vermilion has invested more than 9.8 million and 11,700 hours of volunteer time in our communities Demonstrate excellent results in annual employee…
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…
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%…
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