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January 2022 Corporate Presentation – Vermilion Energy Inc.

Vermilion Energy Inc. · Jan 1, 2022 · 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. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 1
    JANUARY 2022 VERMILION ENERGY INVESTOR PRESENTATION INTERNATIONALLY DIVERSIFIED FREE CASH FLOW FOCUSED ESG LEADERSHIP
  2. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 2
    VERMILIONS KEY ATTRIBUTES PRODUCITON (2022E PRO FORMA CORRIB ACQUISITION)*** Compelling investment with growing free cash flow, accelerated deleveraging and OIL (BRENT) return of capital 16% EUROPEAN GAS o Trading at one of the…
  3. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 3
    VERMILIONS KEY ATTRIBUTES Financially disciplined with a focus on balance sheet strength and returning capital to shareholders o 2022E year end net debt of 1.0B* with a net debt to trailing FFO ratio of 0.6x* o Return of capital…
  4. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 4
    CAPITAL MARKETS SUMMARY Market Summary Trading Price (January 4, 2022) 16.03 (TSX), 12.62 (NYSE) Ticker Symbol (TSX & NYSE) VET Shares Outstanding (September 30, 2021) 162.0 million Average Daily Trading Volume (shares) 1.9 million…
  5. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 5
    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…
  6. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 6
    BUILDING A SUSTAINABLE FUTURE VERMILION RECOGNIZED BY BMO AS AN INDUSTRY LEADER IN ESG Vermilion continues to rank in the top quartile in emissions intensity Relative to its peers, Vermilion ranks well on total fresh water use…
  7. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 7
    VALUE DRIVEN ACQUISTION STRATEGY Target underexploited consolidation opportunities and new development within existing core areas o Accretive while minimizing equity dilution to maximize per share value o Generates strong free cash…
  8. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 8
    INVENTORY AND RESERVE LIFE OPTIMIZATION 16 Vermilion actively manages its inventory and 14 acquisition strategy to optimize reserve life and maximize shareholder value 12 10 Our conventional and semi-conventional asset…
  9. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 9
    CORRIB CONSOLIDATION ACQUISITION (NOV / 2021) Acquisition of an incremental 36.5% interest, increases our operated ownership to 56.5% o 7,700 boe/d of 2022E production expected to generate FFO of 365MM* and FCF** of 361MM* o Total…
  10. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 10
    PRO FORMA CORRIB ACQUISITION Base Corrib 2022E Vermilion* Acquisition* Pro Forma** % Change FFO 1.32B 0.44B 1.76B 33% FCF 0.90B 0.43B 1.33B 48% FCF/Share 3.35 4.73 8.08 141% Net Debt*** 0.85B 0.18B 1.03B 21% Net Debt to Trailing…
  11. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 11
    EXPOSURE TO EUROPEAN GAS ENHANCES NETBACKS PRODUCTION FFO OIL (BRENT) OIL (BRENT) 18% EUROPEAN 22% GAS 15% EUROPEAN GAS 2022E VET BASE* OIL / CONDENSATE / OIL / CONDENSATE / 29% NGL NORTH NGL (WTI) AMERICAN (WTI) 39% GAS…
  12. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 12
    POWDER RIVER BASIN CONSOLIDATION ACQUISITION Strategic bolt-on acquisition adjacent to our existing Hilight field o 20,000 net acres of land with multizone potential o 1,500 boe/d of high netback oil production with 13.7 mmboe of 2P…
  13. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 13
    INTERNATIONAL DIVERSIFICATION 13
  14. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 14
    THREE CORE OPERATING AREAS 2022E PRO FORMA CORRIB ACQUISITION* PRODUCTION E&D CAPEX INT N.A. 39% N.A. INT 61% 50% 50% FFO FCF N.A. N.A. 37% INT 33% 63% INT 67% VERMILION FOCUSED IN THREE CORE AREAS NORTH AMERICA,…
  15. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 15
    GLOBAL CRUDE OIL PRICING ADVANTAGE OIL PRICES In aggregate, Vermilions global crude oil portfolio has 100 sold at an average 5.00/bbl premium to the Canadian 90 light oil benchmark (MSW) over the past 7 years 80 Approximately…
  16. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 16
    PREMIUM EUROPEAN NATURAL GAS PRICING European natural gas forward prices currently GLOBAL NATURAL GAS PRICES C37/ trading at C36.00/mmbtu for 2022 and mmbtu C21.00/mmbtu for 2023, supported by: 35 o Low domestic storage levels…
  17. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 17
    EUROPEAN GAS MARKET FUNDAMENTALS Declining European domestic production results in higher /ton EMISSION ALLOWANCES (EUA CARBON CREDITS) PRICE HISTORY* dependence on imports 100.00 o Groningen field will cease production in October…
  18. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 18
    ENHANCED OPERATING NETBACK 2022E OPERATING NETBACKS 80.00 100% 70.00 90% 2022E OPERATING NETBACK (/BOE)* 2022E LIQUIDS WEIGHTING (%)* 80% 60.00 70% 50.00 60% 40.00 50% AVERAGE = 31.38 30.00 40% 30% 20.00 20% 10.00…
  19. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 19
    FOCUS ON FREE CASH FLOW & PROFITABILITY 19
  20. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 20
    FUND FLOWS FROM OPERATIONS 1,800 12.00 1,600 10.00 1,400 ANNUAL FFO (MM) 1,200 8.00 C/SHARE 1,000 6.00 800 600 4.00 400 2.00 200 0 0.00 2018 2019 2020 2021E* 2022E** E&D CAPEX FCF PRO FORMA CORRIB ACQ. FCF/Share…
  21. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 21
    FREE CASH FLOW YIELD 2022E FCF YIELD* 2022E DAFCF YIELD* 70% 40% 60% 35% 30% 50% 25% 40% AVERAGE = 19% 20% 30% AVERAGE = 24% 15% 20% 10% 10% 5% 0% 0% 2022E PRO FORMA CORRIB ACQ. AVERAGE 2022E PRO FORMA CORRIB ACQ.…
  22. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 22
    DISCOUNTED EV/DACF MULTIPLE 2022E EV/DACF (UNHEDGED)* 6.0x 5.0x 4.0x AVERAGE = 3.6 x 3.0x 2.0x 1.0x 0.0x VET CPG NVA BTE ERF ARX WCP PEY TOU BIR POU MEG AAV SU CVE CNQ 2022E EV/DACF PRO FORMA CORRIB ACQ. (HEDGED)…
  23. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 23
    BALANCE SHEET 23
  24. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 24
    BALANCE SHEET COMPOSITION CURRENT CREDIT CAPACITY 2.5B No near-term maturities AS AT SEPTEMBER 30, 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…
  25. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 25
    DEBT REDUCTION NET DEBT AND NET DEBT TO TRAILING FFO RATIO 2,500 5.0x Corrib acquisition provides 8% leverage reduction versus VET base plan 2,000 4.0x Net Debt to Trailing FFO 1,500 3.0x MM 1,000 2.0x 500 1.0x…
  26. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 26
    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…
  27. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 27
    COMMODITY HEDGE POSITION 2022 2023 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% Crude Oil European…
  28. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 28
    SUMMARY Compelling investment with growing free cash flow, accelerated deleveraging and return of capital, currently trading at the lowest valuation compared to our peers Unique portfolio of internationally diversified assets that…
  29. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 29
    ASSET OVERVIEW 29
  30. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 30
    VERMILION PRODUCTION HISTORY 105,000 90,000 75,000 60,000 BOE/D 45,000 30,000 15,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E* 2022E** E&D CAPEX 119% 103% 81% 81% 85% 94% 47% 53% 62% 58% 73%…
  31. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 31
    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…
  32. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 32
    CEE EXPLORATION POTENTIAL VERMILION HAS BUILT A HIGHLY PROSPECTIVE EXPLORATION PORTFOLIO ACROSS CEE Approximately 2.0 million net acres of undeveloped land in the Pannonian basin across three countries Focused on under-invested…
  33. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 33
    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…
  34. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 34
    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…
  35. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 35
    APPENDIX 35
  36. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 36
    FFO SENSITIVITY COMMODITY PRICES* 2021E 2022E 2022 ANNUAL FFO SENSITIVITY (CMM)** (Includes Impact of Corrib Acquisition) Brent (US/bbl) 70.73 77.26 FFO Impact (C) FFO Impact (C) Change Hedged Unhedged WTI (US/bbl) 67.92 74.30…
  37. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 37
    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 near-term and…
  38. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 38
    EMISSIONS REDUCTION TARGETS In April 2021, Vermilion introduced near-term and long-term emission reduction targets o Aspirational target of net zero emissions in our operations, including Scope 1 and Scope 2 emissions, by 2050 o…
  39. January 2022 Corporate Presentation – Vermilion Energy Inc. – slide 39
    SUSTAINABILITY PROJECTS Vermilion is committed to advancing environmental sustainability, economic inclusivity and creating partnerships within the communities in which we live and work PARENTIS SUSTAINABILITY PARTNERSHIP LA TESTE…

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