MARCH 28, 2022 VERMILION ENERGY ACQUISITION OF LEUCROTTA CONFERENCE CALL INTERNATIONALLY DIVERSIFIED FREE CASH FLOW FOCUSED ESG LEADERSHIP
LEUCROTTA ACQUISITION OVERVIEW Vermilion to acquire Leucrotta Exploration Inc. for total cash consideration of 477 million Enhances North American depth and quality of inventory: o Multi-zone, inventory-rich Montney land base of…
ALIGNMENT WITH ACQUISITION 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…
FULLY FUNDED WITH 2022 FREE CASH FLOW FREE CASH FLOW ALLOCATION 2022 Budgeted FCF of 680MM 2,500 Excess FCF Options: based on Nov 2021 pricing Debt Repayment Increase Base Corrib acquisition and improved 2,000 Dividend Share…
MAINTAINING GEOGRAPHIC DIVERSIFICATION 2023E PRO FORMA CORRIB & Combination of the Corrib and Leucrotta acquisition LEUCROTTA ACQUISITION(1) maintains our geographical mix, including 20% of our PRODUCTION production base exposed to…
ENHANCED VALUE ON A PER SHARE BASIS ACCRETIVE PRODUCTION GROWTH Announced in excess of 1.2 billion of strategic PRODUCTION PER SHARE (BOE/D PER MM SHARES) acquisitions in 2021 and 2022 100,000 600 Acquisitions were done…
MONTNEY EVALUATION PROCESS Vermilion team has extensive experience in the Montney o VP Geosciences and multi-disciplined technical team with direct and proven experience in the Montney NEBC o Identified Peace River Arch as a…
LEUCROTTA ASSET DETAILS Primary asset is the Mica property in the Peace River Arch straddling the Alberta and British Columbia borders Upper Target Tier 1 Comprised of 81,000 gross (77,000 net) contiguous acres of 15 years…
MICA DEVELOPMENT PLANS Forecast to produce approximately 13,000 boe/d in 2023 4-30 BC AB 5-19 Infrastructure plan is in place to achieve a production base of 28,000 boe/d with the option to expand 8-4 A13-7 13-7 Longer-term…
UPDATED 2022 BUDGET AND GUIDANCE 2022 Original Guidance 2022 Revised Guidance Production 83,000 85,000 boe/d 86,000 88,000 boe/d E&D Capital Expenditures 425MM 500MM 2022 E&D Capital Budget increased to 500MM o Plan to invest…
PRO FORMA FINANCIAL OUTLOOK Base Corrib Pro Forma Pro Forma Continue to anticipate reaching 1.2B 2022E Vermilion(1,2) Acquisition(2,3) w/ Corrib w/ Corrib & LXE (2,4) debt target in 2H 2022 FFO (unhedged) 2.3B 0.9B 3.2B 3.3B YE…
DEBT REDUCTION AND FCF ALLOCATION Reinstated quarterly dividend of 0.06/share in Q1 NET DEBT AND NET DEBT TO TRAILING FFO RATIO 2022, payable April 18, 2022 2,500 5.0x o…
KEY STRATEGIC OBJECTIVES Vermilions 2030 strategic plan developed in early 2021 included the following key near term objectives: o Reduce absolute debt from YE 2020 levels by 600MM by YE 2023, and 1.0B by YE 2025, with a net debt to…
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