Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Investor Presentation (June 2025)
47 slides from Vermilion Energy's investor presentation, June 2025
Slide 1: Vermilion Energy Investor Presentation
VERMILION ENERGY GLOBAL GAS PRODUCER FREE CASH FLOW FOCUSED INVESTOR PRESENTATION FINANCIAL DISCIPLINE JUNE 2025
Slide 2: Vermilion at a Glance
VERMILION AT A GLANCE H2/25E PRODUCTION(2) Market Summary VET Trading Price (June 5, 2025) $9.55 (TSX), US$6.97 (NYSE) Oil 9% Shares Outstanding (May 31, 2025) 154.2 MM Average Daily Trading Volume (shares) 0.8 MM (TSX), 1.2 MM (NYSE) Quarterly Dividend $0.13/share Global Gas Capital Structure 91% M
Slide 3: Global Gas Advantage
GLOBAL GAS ADVANTAGE Global gas producer with 30 years operating in Europe and North America Diversified portfolio delivers outsized FCF(1) through direct exposure to global commodity prices and enhanced capital allocation optionality Robust asset base combining low-decline conventional assets with
Slide 4: Key Updates
KEY UPDATES Deep Basin • Closed Westbrick acquisition in Q1/25, adds 50,000 boe/d of production and 0.8 million net acres o Identified $100MM NPV10(1) of incremental synergies post-acquisition, anticipate further synergies Montney • DCET costs reduced from $9.6 million to $9.0 million per well o Rep
Slide 5: Divestment Update
DIVESTMENT UPDATE • Announced sales of Saskatchewan and Wyoming assets for total cash proceeds of $535 million o Assets consist of ~16,000 boe/d (84% liquids) with 40 mmboe of PDP reserves • Net proceeds from the divestments to be allocated to debt reduction following Q3/25 close o Expect to exit 20
Slide 6: Updated Guidance
UPDATED GUIDANCE ORIGINAL 2025 POST-WBE 2025 CURRENT 2025 CATEGORY GUIDANCE(1) GUIDANCE(1) GUIDANCE(1) Production (boe/d) 84,000 – 88,000 125,000 – 130,000 117,000 – 122,000 % Natural gas 56% 62% 65% E&D capital expenditures ($MM) $600 – 625 $730 – 760 $630 – 660 Royalty rate (% of sales) 8 – 10% 9
Slide 7: Global Gas Producer: Growth Assets
GLOBAL GAS PRODUCER: GROWTH ASSETS 7
Slide 8: Advancing Our Global Gas Strategy
ADVANCING OUR GLOBAL GAS STRATEGY Deep Basin • 4th largest Alberta Deep Basin producer • Incremental Westbrick synergies post-close ~$100MM (NPV10)(1) (15+ years of inventory) • Inventory to grow production to 80,000 boe/d, maintain for 15+ years Montney • Infrastructure expansion nearly complete •
Slide 9: Dominant Alberta Deep Basin Position
DOMINANT ALBERTA DEEP BASIN POSITION Prominent Deep Basin producer, over 1.1 million net acres of land with 15+ years of inventory Source: Land information sourced from XI Technologies Asset Book. 9
Slide 10: Robust Deep Basin Economics
ROBUST DEEP BASIN ECONOMICS Upper Cretaceous Upper Spirit Lower Cretaceous River Mannville Lateral Length (m) 2,800 2,900 2,800 DCET Cost ($MM) $5.0 – 5.5 $6.0 – 6.5 $5.5 – 7.5 Spirit River IP365 (boe/d)(1) 450 750 475 EUR (mboe)(2) 770 1,050 610 Liquids % of Reserves(3) 32% 14% 47% Lwr Mnvl/ Jurass
Slide 11: Westbrick Synergies
WESTBRICK SYNERGIES • Closed Westbrick acquisition in February 2025, integration progressing ahead of plan • Identified incremental ~$100 million (NPV10)(1) of operational and development synergies to date o Anticipate additional synergies may be identified and realized • Synergies include: o Extend
Slide 12: Premium Montney Acreage
PREMIUM MONTNEY ACREAGE VET owns ~22% of CEI.V* Oil Wet Gas Dry Gas A significant and contiguous premium acreage block in the oil window of the Montney Source: Land information sourced from XI Technologies Asset Book * Vermilion has ownership of, or control and direction over, approximately 22% of t
Slide 13: Montney Well Economics
MONTNEY WELL ECONOMICS BC Middle Montney Lateral Length (m) 3,000 DCET Cost ($MM) $9.0 IP365 (boe/d)(1) 950 EUR (mboe)(2) 1,500 Liquids % of Reserves(3) 38% IRR(4) 85% Payout (years) 1.2 NPV10 ($MM) $9.6 (1) Production rates presented above are for a limited timeframe only and may not be indicative
Slide 14: 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 8-33 Battery o Constructed 16,000 boe/d 8-33 battery in Q2/24 o Phase two expansion in Q1/25 added compression an
Slide 15: Montney Cost Optimization
MONTNEY COST OPTIMIZATION BC MONTNEY AVERAGE WELL COST • DCET(1) cost reduced to $9.0MM (from $14 $9.6MM), line of sight to further cost improvements $12 o Improves project economics, represents ~$50 $10 million (NPV10)(2) in future development costs Per Well Cost ($MM) • 8-4 BC pad, completed in Q1
Slide 16: 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 17: Germany 2024 Exploration Success
GERMANY 2024 EXPLORATION SUCCESS PRODUCTION FROM CURRENT DISCOVERIES 2024 Exploration Program Results 6,000 • Three prospects drilled to date: 5,000 o Osterheide (100% WI) - tested at 17 mmcf/d(1), currently on BOE/D ( NET)(4) 4,000 production o Wisselshorst (64% WI) – tested at 3,000 41 mmcf/d(1) f
Slide 18: Osterheide Production
OSTERHEIDE PRODUCTION • Osterheide well was brought on stream at the end of Q1/25 • Produced at restricted rate of ~1,200 boe/d(1) during the first month on production o Above original constrained expectations • Expect production to moderate through the summer months, increase with winter demand (1)
Slide 19: Wisselshorst Development Upside
WISSELSHORST DEVELOPMENT UPSIDE • Wisselshorst 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 discover
Slide 20: Capital Allocation
CAPITAL ALLOCATION 20 20
Slide 21: Capital Allocation Priorities
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 on increased Targeting net debt to FFO development plan supplemented by
Slide 22: 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 $575MM 2.0x Committed to returning to 1.5x 1.0x leverage $329MM $445MM 1.0x 0.5x Undrawn Capacity on Revolving Credit Facility 0.0x Revolving
Slide 23: FFO Generation
FFO GENERATION NET DEBT VS FFO(1) $1,500 150 117 – 122 mboe/d $1,250 125 PRODUCTION (‘000 BOE/D) $1,000 100 $MM $750 75 $500 50 $250 25 $0 0 2023 2024 2025e Net Debt to Trailing FFO 0.9x 0.8x 1.3x FFO ($/basic share) $ 6.98 $ 7.63 ~$ 6.50 Unhedged FFO ($/basic share) $ 6.05 $ 5.61 ~$ 6.00 WTI (US$/b
Slide 24: Strong Hedge Position
STRONG 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 Natu
Slide 25: Compounding Return of Capital
COMPOUNDING 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 Decreasing share count contributes to ratable dividend increases and va
Slide 26: Global Gas Producer Advantage
GLOBAL GAS PRODUCER ADVANTAGE 26
Slide 27: Advantages of Global Gas
ADVANTAGES OF GLOBAL GAS Q1 2025 PF REALIZED NATURAL GAS PRICE(1) $6 TOP DECILE REALIZED PRICES REALIZED NAT. GAS PRICE ($/MCF) $5 $4 AVERAGE (EXCL VET) = $3.24 DIRECT EXPOSURE TO PREMIUM PRICING $3 $2 OPPORTUNITY TO ACQUIRE EURO GAS ASSETS $1 $0 VET Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer
Slide 28: European Gas Operating Netbacks
EUROPEAN GAS OPERATING NETBACKS VERMILION 2025E OPERATING NETBACK $100 $80 $60 $/ BOE* $40 $20 $0 Ireland Netherlands Croatia Germany (100% Gas) (99% Gas) (100% Gas) (69% Gas) European gas assets generate strong netbacks due to direct exposure to premium pricing * Source: Based on company 2025 estim
Slide 29: European Gas Price Advantage
EUROPEAN GAS PRICE ADVANTAGE HISTORICAL AND FORWARD PRICING OF EUROPEAN GAS $60 $50 Euro Gas 2025 2026 TTF GAS PRICES (C$/MMBTU) % Hedged 54% 49% $40 Average Floor $17 $14 $30 $20 $10 $0 2017 2018 2019 2020 2021 2022 2023 2024 2025e* 2026e* European natural gas prices trade at a significant premium
Slide 30: European Gas Fundamentals
EUROPEAN GAS FUNDAMENTALS EUROPEAN SUPPLY/DEMAND BALANCE HISTORY** 80 Winter 2023 demand down ~10 Bcf/d • Europe* consumes ~40 Bcf/d per annum, with ~30 Bcf/d due to 2nd warmest winter, government policy, and extremely high prices swing between summer and winter 60 40 BCF/D • Russian supply has decr
Slide 31: Canadian Gas Fundamentals
CANADIAN GAS FUNDAMENTALS 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 (>6.0 bcf/d) is underpinning long-term natural gas demand o Strong momentum
Slide 32: Gas Marketing Summary
GAS MARKETING SUMMARY GAS PRODUCTION BY REGION* NATURAL GAS PRICE EXPOSURE** Europe Europe 23% 23% AECO 34% Alliance 7% North America 77% N.A. Hedges 36% AECO N.A. HEDGES ALLIANCE EUROPE (TTF/THE/NBP) Global gas diversification balances gas exposure and improves netbacks * Based on company 2025 esti
Slide 33: North American Liquids-Rich Gas Advantage
NORTH AMERICAN LIQUIDS-RICH GAS ADVANTAGE REALIZED PRICING (DEEP BASIN + MONTNEY) $60 • Vermilion’s liquids-rich gas assets offer Over the past decade, Vermilion’s Deep Basin and Montney assets significantly higher realized price and $50 have realized pricing more than double the average AECO price
Slide 34: Asset Overview
ASSET OVERVIEW 34
Slide 35: Europe
EUROPE NETHERLANDS • #2 onshore gas producer IRELAND • ~700,000 net acres of undeveloped land • 56.5% operated interest in the Corrib Natural Gas Project • Q1 2025 production = 4,020 boe/d (99% gas) • Corrib represents 100% of Ireland’s domestic gas production GERMANY • Q1 2025 production = 8,820 bo
Slide 36: Australia
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 into two platforms • New wells drilled every 2-4 years • Q1 2025 p
Slide 37: North America
NORTH AMERICA CANADA • Q1 2025 production = 69,721 boe/d (38% liquids) • Q1 2025 PF production = 104,236 boe/d (33% liquids) MONTNEY DEEP BASIN • Targeting liquids-rich gas in the • Targeting light oil and Peace River Arch straddling the condensate-rich natural gas AB and BC border • ~1.1 million ne
Slide 38: ESG & Sustainability
ESG & SUSTAINABILITY 38
Slide 39: Environment, Social and Governance
ENVIRONMENT, SOCIAL AND GOVERNANCE EMISSIONS INTENSITY TREND Vermilion’s 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, partners 0.020 and communities 0.015 2019 2020 2021 2022 2023 • Reduc
Slide 40: Reduced Well Count
REDUCED WELL COUNT TOTAL WELL COUNT 6,000 5,000 • Total well count has been reduced by 50% since 2022 through asset high-grading and WELL COUNT (NET)(1) 4,000 asset retirement obligation expenditures • Average production per well has more than 3,000 doubled since 2022 2,000 • Annual ARO spend of $50
Slide 41: Sustainability Projects
SUSTAINABILITY PROJECTS Advancing environmental projects in communities where we live and work PARENTIS SUSTAINABILITY PARTNERSHIP LA TESTE ECO-NEIGHBOURHOOD • Our oil operations provide 40 GWh of • Our oil operations provide 1.2 GWh of geothermal energy annually to a tomato geothermal energy to an
Slide 42: Summary
SUMMARY Global gas producer with 30 years operating in Europe and North America Diversified portfolio delivers outsized FCF(1) through direct exposure to global commodity prices and enhanced capital allocation optionality Robust asset base combining low-decline conventional assets with long-life gro
Slide 43: Appendix
APPENDIX 43
Slide 44: Pricing and FFO Sensitivity
PRICING AND FFO SENSITIVITY COMMODITY PRICES(1) 2025e 2025 ANNUAL FFO SENSITIVITY (C$MM)(2) FFO Impact FFO Impact Change TTF ($/mmbtu) $18.01 (Hedged) (Unhedged) NBP ($/mmbtu) $17.81 TTF & NBP $1.00/mmbtu $14MM $32MM AECO ($/mcf) $ 2.23 NA Gas Prices $0.25/mmbtu $22MM $34MM Henry Hub (US$/mmbtu) $ 3
Slide 45: Updated Budget and Guidance
UPDATED BUDGET AND GUIDANCE CATEGORY 2025 GUIDANCE(1) 2025 DRILLING PROGRAM WELL COUNT Production (boe/d) 117,000 - 122,000 Germany 5 gross (5.0 net) % Natural gas 65% Netherlands 2 gross (1.2 net) E&D capital expenditures ($MM) $630 - 660 Croatia 1 gross (1.0 net) Royalty rate (% of sales) 8 - 10%
Slide 46: Reserves Growth
RESERVES GROWTH PDP RESERVES 2P RESERVES DECEMBER 31, 2024 DECEMBER 31, 2024 400 800 350 700 300 600 250 500 MMBOE MMBOE 200 400 150 300 100 200 50 100 - - Reported Westbrick SE Sask/USA Pro Forma Reported Westbrick SE Sask/USA Pro Forma Reserves* Acquisition** Divestment* Reserves Reserves* Acquisi
Slide 47: 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 the gas liquids, and natural gas prices, foreign currency exchange rates, interest rates and inflation; health, safety, and environmental risks; solicita