Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Q4 2024 Earnings Presentation
17 slides from Vermilion Energy's earnings presentation, Mar 6, 2025
Slide 1: Vermilion Energy Q4 2024 Conference Call
VERMILION ENERGY INTERNATIONALLY DIVERSIFIED FREE CASH FLOW FOCUSED Q4 2024 CONFERENCE CALL ESG EXPERTISE
Slide 2: 2024 Summary
2024 SUMMARY • Production exceeded the mid-point of initial 2024 2023 %∆ guidance North America (boe/d) 53,542 56,257 (5%) • Generated $1.2 Billion of FFO ($7.63/share) and International (boe/d) 31,001 27,737 12% $583MM of FCF ($3.69/share) Total(1) (boe/d) 84,543 83,994 1% o Second strongest year o
Slide 3: 2024 Reserves
2024 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 Producing Proved Proved Plus Probable North America (mboe)(1) 114,376 210,670 330,612 Internatio
Slide 4: Q4 2024 Summary
Q4 2024 SUMMARY Q4 2024 Q3 2024 %∆ • Q4 2024 production included planned third-party turnaround activity and partial shut-in of some North America (boe/d) 52,293 53,936 (3%) Canadian gas in response to weak AECO prices International (boe/d) 31,243 30,237 3% Total(1) (boe/d) 83,536 84,173 (1%) • Gene
Slide 5: Q4 2024 Operational Highlights
Q4 2024 OPERATIONAL HIGHLIGHTS Q4 2024 • International production averaged 31,243 boe/d PRODUCTION o Progressed facility construction and tie-in operations on the successful Osterheide well in INTL Germany 37% N.A. 63% o Completed testing operations for the second deep gas exploration well in German
Slide 6: Significant European Gas Discovery
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 Vermilion’s largest European gas discovery in over a decade • Weissenmoor well
Slide 7: Westbrick Acquisition Overview
WESTBRICK ACQUISITION OVERVIEW • Vermilion acquired Westbrick Energy Ltd. for total consideration of $1.075 billion • Contiguous land and infrastructure footprint is complementary to Vermilion’s legacy Deep Basin assets o ~1.1 million (770,000 net) acres(1) and four operated gas plants (see right) w
Slide 8: Improved Deep Basin Drilling Economics
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 portfolio with higher half-cycle returns compared to Vermilion’s existing
Slide 9: Financial Leverage
FINANCIAL LEVERAGE 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 1.5x $350MM $450MM 1.0x 0.5x Undrawn Capacity on Revolving Credit Facility 0.0x Revolving C
Slide 10: Non-Core Asset Divestments
NON-CORE ASSET DIVESTMENTS • 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 multi-lateral development upside o Wyoming – ~5,000 boe/d (80% liquids)
Slide 11: Financial Outlook
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Slide 12: Global Gas Producer
GLOBAL GAS PRODUCER Q3 2024 PF REALIZED NATURAL GAS PRICE • Vermilion is a global gas producer, with $5 liquids-rich gas in Western Canada and premium-priced European gas REALIZED NATURAL GAS PRICE ($/MCF) $4 • Direct exposure to premium global gas pricing strengthens realized gas price $3 o Growing
Slide 13: Outlook
OUTLOOK Category 2024 Actuals(1) 2025 Guidance(1) • Updated 2025 production and capex guidance following close of Westbrick acquisition Production (boe/d) 84,543 125,000 - 130,000 • 2025 capital budget of $730 to $760 million E&D capital expenditures ($MM) $623 $730 - 760 (68% North America, 32% Int
Slide 14: Strong Financial Position
STRONG FINANCIAL POSITION NET DEBT VS FFO(1) $2,000 125 – 130 150 mboe/d 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 share) $ 6.98 $ 7.63 ~$ 7.50 Unhedged FFO ($/basic share) $ 6.05 $ 5.61 ~$ 7.50 WTI (US$/
Slide 15: Impactful Return of Capital
IMPACTFUL RETURN OF CAPITAL 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 Share Share Count 15
Slide 16: Q&A
Q&A 16
Slide 17: Advisory
ADVISORY This presentation is for information purposes only and is not intended to, and should not be construed to constitute, an offer to sell or possibility that government policies or laws may change or governmental approvals may be delayed or withheld; uncertainty in the solicitation of an offer
Vermilion Energy Inc. Common (Canada) — Q4 2024 Earnings Presentation on 6ix