Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Q1 2025 Earnings Presentation
30 slides from Vermilion Energy's earnings presentation, May 7, 2025
Slide 1: Vermilion Energy Annual General Meeting
VERMILION ENERGY GLOBAL GAS PRODUCER FREE CASH FLOW FOCUSED ANNUAL GENERAL MEETING ESG EXPERTISE
Slide 2: Agenda
AGENDA • Formal Business • Presentation from the President & CEO • Q1 2025 Results and Operational Update • 2025 Outlook 2
Slide 3: Vermilion Energy Board of Directors
VERMILION ENERGY BOARD OF DIRECTORS Myron M. Dion Hatcher James J. Carin S. Knickel Stadnyk Kleckner Jr. Stephen P. Larke William B. Roby Manjit K. Sharma Judy A. Steele 3
Slide 4: Vermilion Energy Executive Committee
VERMILION ENERGY EXECUTIVE COMMITTEE Dion Hatcher President & Chief Executive Officer Lars Glemser Darcy Kerwin Randy McQuaig Vice President & Vice President Vice President Chief Financial Officer International & HSE North America 4
Slide 5: Meeting Matters
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Slide 6: Annual Business: Receipt of financial statements
ANNUAL BUSINESS • Meeting Matter • Receipt of financial statements and the respective auditor’s report for the year ended December 31, 2024 6
Slide 7: Annual Business: Fixing number of directors
ANNUAL BUSINESS • Meeting Matter • Fixing the number of directors of Vermilion Energy Inc. to be elected at eight (8) 7
Slide 8: Annual Business: Election of directors
ANNUAL BUSINESS • Meeting Matter • Election of the directors of Vermilion for the ensuing year 8
Slide 9: Annual Business: Appointment of auditors
ANNUAL BUSINESS • Meeting Matter • Appointment of Deloitte LLP as auditors for the ensuing year 9
Slide 10: Annual Business: Advisory vote on executive compensation
ANNUAL BUSINESS • Meeting Matter • Advisory vote to accept Vermilion’s approach to executive compensation disclosed in the 2025 Information Circular 10
Slide 11: Annual Business: Omnibus Incentive Plan
ANNUAL BUSINESS • Meeting Matter • Approval of the Omnibus Incentive Plan 11
Slide 12: Annual Business: Preliminary voting results
ANNUAL BUSINESS • Meeting Matter • Preliminary voting results 12
Slide 13: Presentation by President & CEO
PRESENTATION BY PRESIDENT & CEO 13
Slide 14: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS • Production increased 23%, primarily due to the Q1 2025 Q4 2024 %∆ close of the Westbrick acquisition in Feb. 2025 North America (boe/d) 73,760 52,293 41% • Integration of Westbrick assets and personnel International (boe/d) 29,355 31,243 (6%) progressing ahead of plan Total(1) (
Slide 15: Q1 2025 Operational Highlights
Q1 2025 OPERATIONAL HIGHLIGHTS Q1 2025 PRODUCTION • North American production averaged 73,760 boe/d INTL 28% o Significant increase over the prior quarter driven by close of the Westbrick acquisition in late N.A. February 2025 72% o In Canada, drilled eleven (11.0 net) wells, completed sixteen (16.0
Slide 16: Westbrick Synergies
WESTBRICK SYNERGIES • Closed Westbrick acquisition in February 2025, integration progressing ahead of plan • Identified ~$100 million (NPV10)(1) of operational and development synergies to date o Anticipate additional synergies may be identified and realized as acquired assets are further integrated
Slide 17: Montney Development
MONTNEY DEVELOPMENT • Long-term development plans target production base of 28,000 boe/d with majority of future development occurring in BC • Infrastructure largely in place 4-3 Battery o Construction of 16,000 boe/d 8-33 battery in Q2/24 8-33 Battery o Phase two expansion in Q1/25, adding compress
Slide 18: Montney Cost Optimization
MONTNEY COST OPTIMIZATION • Lowered target DCET(1) cost to $9.0MM (from BC MONTNEY AVERAGE WELL COST $9.0-9.5MM), line of sight to further cost $14 improvements $12 o Lower target cost improves project economics, represents ~$50 million (NPV10)(2) in future development costs $10 Per Well Cost ($MM)
Slide 19: Germany Exploration Potential
GERMANY EXPLORATION POTENTIAL Identified 9 structures to date and Deep Gas Exploration have drilled 3, potential for up to Type Well (1.0 Net) 30 total locations with success Vertical Depth (m) ~5,000 DCET Cost ($MM) $40 – 50 EUR (Bcf)(1) ~30 Gas % of Reserves(2) 100% IRR(3) 40% Payout (years)(4) 1.
Slide 20: Germany Exploration Success
GERMANY EXPLORATION SUCCESS PRODUCTION FROM CURRENT DISCOVERIES 2024 Exploration Program Results 6,000 • Three prospects drilled to date: 5,000 o Wisselshorst (64% WI) – tested at 41 mmcf/d(1) from two zones BOE/D ( NET)(4) 4,000 o Osterheide (100% WI) - tested at 17 mmcf/d(1) 3,000 o Weissenmoor (1
Slide 21: Wisselshorst Development Upside
WISSELSHORST DEVELOPMENT UPSIDE • Wisselshort is the largest structure Vermilion has discovered in Europe o Estimated to contain 380 Bcf gas in place (240 Bcf net)(1) Discovery well • Multi-year development plan with 2P reserves 68 Bcf (44 Bcf net)(2) up to 6 follow-up locations offsetting discovery
Slide 22: 2025 Outlook
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Slide 23: Outlook
OUTLOOK • Capital activity will continue to be focused on Category 2025 Guidance(1) our global gas assets Production (boe/d) 125,000 - 130,000 • No changes to previously announced capital budget range of $730 to $760 million E&D capital expenditures ($MM) $730 - 760 o Continue to monitor macro and c
Slide 24: Financial Liquidity
FINANCIAL LIQUIDITY HISTORICAL NET DEBT TO FFO CURRENT CREDIT CAPACITY(2) 4.0x 3.5x $575MM 3.0x Available Liquidity NET DEBT TO FFO RATIO(1) of $1,021MM 2.5x Committed to returning to 1.0x leverage $575MM 2.0x 1.5x $329MM $445MM 1.0x 0.5x Undrawn Capacity on Revolving Credit Facility 0.0x Revolving
Slide 25: FFO Generation, Net Debt vs FFO
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 $0 0 2023 2024 2025e Net Debt to Trailing FFO 0.9x 0.8x 1.8x FFO ($/basic share) $ 6.98 $ 7.63 ~$ 6.80 Unhedged FFO ($/basic share) $ 6.05 $ 5.61 ~$ 6.20 WTI (US$/bbl) $77.63
Slide 26: Hedge Position
HEDGE POSITION 2025 2026 PERCENTAGE OF PRODUCTION HEDGED (%)(1) PERCENTAGE OF PRODUCTION HEDGED (%)(1) 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Crude Oil European N.A. Corporate Crude Oil European N.A. Corporate Natural Gas Natural Gas Total Natural Gas
Slide 27: Advancing Our Global Gas Strategy
ADVANCING OUR GLOBAL GAS STRATEGY Deep Basin • 4th largest Deep Basin producer • Westbrick synergies to date $100MM (NPV10)(1) (15+ years of inventory) • Inventory to grow production to 80,000 boe/d, maintain for 15+ years Montney • Infrastructure expansion nearly complete • Reduced DCET costs to $9
Slide 28: Advantages of Global Gas
ADVANTAGES OF GLOBAL GAS Q4 2024 PF REALIZED NATURAL GAS PRICE(1) $6 TOP DECILE REALIZED PRICES REALIZED NAT. GAS PRICE ($/MCF) $5 $4 COMBINATION OF SHORT CYCLE PROJECTS, DIRECT EXPOSURE TO PREMIUM PRICING $3 AVERAGE (EXCL VET) = $2.18 $2 POTENTIAL TO ACQUIRE EUROPEAN GAS ASSETS $1 FROM MAJORS $0 VE
Slide 29: Q&A
Q&A 29
Slide 30: 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 and natural gas deposits; risks inherent in Vermilion's marketing operations, including credit risk; the uncertainty of reserves or the solicitation of an o
Vermilion Energy Inc. Common (Canada) — Q1 2025 Earnings Presentation on 6ix