VERMILION ENERGY INTERNATIONALLY DIVERSIFIED FREE CASH FLOW FOCUSED INVESTOR PRESENTATION ESG EXPERTISE APRIL 2025
VERMILION AT A GLANCE Market Summary VET Trading Price (Mar. 31, 2025) 11.65 (TSX), US8.10 (NYSE) Shares Outstanding (Mar. 31, 2025) 154.2 MM Average Daily Trading Volume (shares) 0.8 MM (TSX), 1.1 MM (NYSE) Quarterly Dividend 0.13/share…
VERMILION ADVANTAGE Global gas producer with 30 years operating in Europe and North America Diversified portfolio delivers outsized FCF(1) through exposure to global commodity pricing and enhanced capital allocation optionality…
KEY UPDATES Westbrick Energy Acquisition Closed acquisition of Westbrick Energy Ltd. in February 2025 Currently integrating Westbrick assets, on track to deliver annualized 50,000 boe/d of production Plan to invest 120MM of E&D…
WESTBRICK ACQUISITION OVERVIEW Vermilion acquired Westbrick Energy Ltd. for total consideration of 1.075 billion Contiguous land and infrastructure footprint is complementary to Vermilions legacy Deep Basin assets o 1.1 million…
SIGNIFICANT EUROPEAN GAS DISCOVERY Wisselshorst well (64% WI) o Significant discovery of 68 Bcf (43 Bcf net)(1) o High potential for material follow-up wells o Two zones tested at a combined 41 mmcf/d(2) and 6,200 psi o Vermilions…
CAPITAL ALLOCATION 7 7
NON-CORE ASSET DIVESTMENT Launched formal sales process for Southeast Saskatchewan and Wyoming assets High-quality assets with strong retention values o Saskatchewan 10,000 boe/d (85% liquids) with moderate declines and…
CAPITAL ALLOCATION PRIORITIES Provide Target long-term Maintain Strong Maintain Robust Compounding value-add acquisition Balance Sheet Asset Base Shareholder Returns opportunities Rolling 10+ year Sustainable base dividend Focus…
STRONG BALANCE SHEET LIQUIDITY HISTORICAL NET DEBT TO FFO CURRENT CREDIT CAPACITY(2) 4.0x 3.5x 572MM 3.0x Available Liquidity NET DEBT TO FFO RATIO(1) of 1,000MM 2.5x Committed to 572MM 2.0x returning to 1.0x leverage…
STRONG BALANCE SHEET FFO GENERATION NET DEBT VS FFO(1) 125 130 2,000 mboe/d 150 125 PRODUCTION (000 BOE/D) 1,500 100 MM 1,000 75 50 500 25 0 0 2023 2024 2025e Net Debt to Trailing FFO 0.9x 0.8x 1.5x FFO (/basic…
STRONG BALANCE SHEET HEDGE POSITION 2025 2026 PERCENTAGE OF PRODUCTION HEDGED (%)* PERCENTAGE OF PRODUCTION HEDGED (%)* 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Crude…
ROBUST ASSET BASE RESERVES RESERVE LIFE INDEX 18 16 14 RLI (YEARS) 12 10 8 6 4 2 - 2015 2016 2017 2018** 2019 2020 2021 2022 2023 2024 PDP - RLI* 1P - RLI* 2P - RLI* PDP Average 1P Average 2P Average Proved Developed…
ROBUST ASSET BASE PORTFOLIO HIGH-GRADING Acquired Leucrotta Exploration, adding strategic Montney asset 2022 INCREASED OPERATIONAL SCALE and significantly enhancing drilling inventory Closed acquisition of Equinors 36.5% interest in…
SHAREHOLDER RETURNS BASE DIVIDEND ANNUAL DIVIDEND PER SHARE VS. SHARE COUNT 0.80 165 SHARES OUTSTANDING (MM) DIVIDENDS PER SHARE 0.60 160 0.40 155 0.20 150 0.00 145 2022 2023 2024 2025e Annualized Dividend per…
VALUE DRIVEN A&D STRATEGY Target underexploited consolidation opportunities and new development within existing core areas Accretive while minimizing equity dilution to maximize per share value Generates strong free cash flow in a…
INTERNATIONAL A&D ACQUIRED 2P RESERVES VS. POST-ACQUISITION PRODUCTION AND 2P RESERVES 350,000 300,000 250,000 MBOE 200,000 150,000 100,000 50,000 - 1 2 ACQUIRED RESERVES RESERVE ADDITIONS PRODUCTION 2024 RESERVES**…
GLOBAL GAS PRODUCER ADVANTAGE 19
ADVANTAGES OF DIVERSIFIED PORTFOLIO 2025E PRODUCTION(1) European EXPOSURE TO PREMIUM COMMODITY BENCHMARKS DRIVES TOP REALIZED PRICES Gas 14% Int'l Oil 10% Deep Basin / ASSET DIVERSIFICATION REDUCES RISK AND CASHFLOW VOLATILITY…
INTERNATIONAL OPERATING NETBACKS VERMILION 2025E OPERATING NETBACK 120 100 80 / BOE* 60 40 20 0 Ireland Netherlands Croatia Australia Germany France International assets generate strong netbacks on premium…
EUROPEAN GAS PRICE ADVANTAGE HISTORICAL AND FORWARD PRICING OF EUROPEAN GAS 60 50 Euro Gas 2025 2026 TTF GAS PRICES (C/MMBTU) % Hedged 54% 42% 40 Average Floor 17 13 30 20 10 0 2017 2018 2019 2020 2021 2022 2023 2024…
STRUCTURAL DRIVERS FOR EUROPEAN GAS EUROPEAN SUPPLY/DEMAND BALANCE HISTORY** Europe* consumes an average of 40 Bcf/d per annum, with 80 Winter 2023 demand down 10 Bcf/d 30 Bcf/d swing between summer and winter due to 2nd warmest…
WESTERN CANADIAN NATURAL GAS LANDSCAPE West Coast Canadian LNG(1) North American Power Demand Natural gas demand for Canadian LNG is expected to Increased power associated with datacenter development increase notably by end of decade…
GAS MARKETING SUMMARY GAS PRODUCTION BY REGION* NATURAL GAS PRICE EXPOSURE** Europe Europe 22% 22% AECO 40% North America 78% N.A. FINANCIAL HEDGES ALLIANCE N.A. PHYSICAL HEDGES SASKATCHEWAN WYOMING EUROPE…
NORTH AMERICAN LIQUIDS-RICH GAS ADVANTAGE REALIZED PRICING (DEEP BASIN + MONTNEY) 60 Vermilions liquids-rich gas assets offer Over the past decade, Vermilions Deep Basin and Montney assets significantly higher realized price and…
GLOBAL CRUDE OIL PRICING ADVANTAGE OIL PRICES 140 14 Vermilions global crude oil portfolio sells at an 120 12 average 5/bbl premium to the Canadian light oil benchmark (MSW) VET PREMIUM TO MSW (C/BBL) 100 10 Approximately…
VERMILION REALIZED PRICES Q4 2024 PF REALIZED NATURAL GAS PRICE Q4 2024 PF REALIZED OIL PRICE 6 100 5 REALIZED NATURAL GAS PRICE (/MCF) AVERAGE = 94.41 95 REALIZED OIL PRICE (/BBL) 4 3 90 AVERAGE = 2.18 2 85…
ASSET OVERVIEW 29
EUROPE NETHERLANDS 2 onshore gas producer IRELAND 700,000 net acres of undeveloped land 56.5% operated interest in the Corrib Natural Gas Project Q4 2024 production = 4,078 boe/d (99% gas) Corrib represents 100% of Irelands…
AUSTRALIA 100% operated interest in Wandoo, an offshore oil field approximately 80 km N.W. off the coast of Australia (55m water depth) Horizontal well development with 23 producing wellbores and five dual lateral sidetracks tied…
NORTH AMERICA MONTNEY CANADA SOUTHEAST SASKATCHEWAN Targeting liquids-rich gas in the Q4 2024 production = 47,982 boe/d (44% liquids) Targeting light oil in conventional Peace River Arch straddling the reservoirs AB and BC border…
GROWTH ASSETS 33
DOMINANT DEEP BASIN POSITION Prominent Deep Basin producer, over 1.1 million net acres of land with 15+ years of inventory Source: Land information sourced from XI Technologies Asset Book. 34
IMPROVED DEEP BASIN DRILLING ECONOMICS Improved operational scale of Vermilion's core Deep Basin asset enables lower costs and improved full-cycle margins Upper Cretaceous o Acquisition lands attract capital within pro forma…
PREMIUM MONTNEY ACREAGE VET owns 22% of CEI.V* Oil Wet Gas Dry Gas A significant and contiguous premium acreage block in the oil window of the Montney Source: Land information sourced from XI Technologies Asset Book *…
MONTNEY DEVELOPMENT Focus is building out BC infrastructure, construction of 16,000 boe/d battery completed in Q2 2024 o Battery and water hub infrastructure has achieved 99% run time since starting up 4-3 Battery o New battery…
MONTNEY DCET OPTIMIZATION Continue to optimize Montney development BC MONTNEY AVERAGE WELL COST to improve half-cycle returns 14 o Tighter well spacing and landing point selection 12 o Modernized drilling approach 10 Per…
GERMANY EXPLORATION SUCCESS Wisselshorst well (64% WI) o Significant discovery of 68 Bcf (43 Bcf net)(1) o High potential for material follow-up wells o Two zones tested at a combined 41 mmcf/d(2) and 6,200 psi o Vermilions largest…
ESG & SUSTAINABILITY 40
ENVIRONMENT, SOCIAL AND GOVERNANCE EMISSIONS INTENSITY TREND Vermilions Purpose: 0.030 Scope 1&2 tCO2e per BOE To responsibly produce essential energy 0.025 while delivering long-term value to our people, shareholders, customers,…
SUSTAINABILITY PROJECTS Advancing environmental projects in communities where we live and work PARENTIS SUSTAINABILITY PARTNERSHIP LA TESTE ECO-NEIGHBOURHOOD Our geothermal energy tomato greenhouse Our oil operations provide 1MW of…
SUMMARY Global gas producer with 30 years operating in Europe and North America Diversified portfolio delivers outsized FCF(1) through exposure to global commodity pricing and enhanced capital allocation optionality Robust asset…
Loading...
