Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Q1 2019 Earnings Presentation
11 slides from Vermilion Energy's earnings presentation, Apr 25, 2019
Slide 1: Front Cover Theme and Disclaimer
FRONT COVER THEME As illustrated by the front cover photo of our operations in Germany, Vermilion’s integration of sustainability throughout our business recognizes that we are part of a larger whole: the environments and communities in which we operate. We are therefore committed to conducting our
Slide 2: Q1 2019 production, capex and fund flows by business unit
Qt 2019 production of 103,404 boe/d by business unit Australia: 6% Ireland: 8% Germany: 4% Netofands 8% BN France: 11% Canada: 59% United States: 496 Q1 2019 capital expenditures of $202MM by business unit Australia: 9% Germany, 2% Netherlands: 3% France: 11% Corporate: 2% United States: 10% Canada:
Slide 3: Net earnings Q1 2019 vs Q4 2018
• We recorded net earnings for Q1 2019 of $39.5 million ($0.26/basic share) compared to net earnings of $323.4 million ($2.12/basic share) in Q4 2018. This quarter-over-quarter decrease in net earnings was primarily attributable to lower net gains on unrealized derivatives and foreign exchange, as w
Slide 4: Fund flows from operations Q1 2019
• We generated fund flows from operations of $253.6 million during Q1 2019, an increase of 14% from Q4 2018. This quarter-over-quarter increase was primarily due to higher Canadian realized oil prices and increased sales volumes during the current period. Q1 2019 vs. Q1 2018
Slide 5: Net earnings Q1 2019 vs Q1 2018
• We recorded net earnings for Q1 2019 of $39.5 million ($0.26/basic share) compared to net earnings of $24.7 million ($0.20/basic share) in Q1 2018. The net earnings growth was the result of a 58% increase in fund flows from operations driven by increased sales volumes in Q1 2019 as compared to Q1
Slide 6: 58% increase from Q1 2018 to Q1 2019
st604 58% increase in fund flows from operations from Q1 2018 to Q1 2019 Stet oe 7 ms $615) (162) T T ww” so — aoe ore! on? 7 ovale oe “Other contains general and administration, corporate income taxes, interest, realized FX, and realized other
Slide 7: Capital expenditures Q1 2019
• For the three months ended March 31, 2019, capital expenditures of $202.1 million primarily related to activity in Canada, France, the United States and Australia. In Canada, capital expenditures of $128.1 million included the drilling of 58.0 (54.9 net) wells, including 45 (41.9 net) wells in Sas
Slide 8: Crude oil prices recovered throughout Q1 2019
• Crude oil prices recovered throughout Q1 2019 relative to the end of 2018, driven by lower global supply and an easing of macroeconomic concerns. Despite stronger prices by the end of Q1 2019, quarter-over-quarter WTI and Brent each decreased by 6% in Canadian dollar terms. For the three months en
Slide 9: European and AECO natural gas prices
• European natural gas prices (TTF and NBP) declined by approximately 25% and 15% in Q1 2019 compared to Q4 2018 and Q1 2018 due to warmer than normal winter weather and growth in LNG imports. • Natural gas prices at AECO in Q1 2019 increased by 68% and 26% compared to Q4 2018 and Q1 2018, respectiv
Slide 10: Canadian dollar exchange rates
• For the three months ended March 31, 2019, the Canadian dollar weakened by 1% against the US dollar quarter-over-quarter. • For the three months ended March 31, 2019, the Canadian dollar remained flat versus the Euro quarter-over-quarter. Vermilion Energy Inc.
Slide 11: Values and contact information
EXCELLENCE We aim for exceptional results in everything we do, TRUST {At Vermilion, we operate with honesty 1888, and can be counted on to. what we say we wil RESPECT ty, value our people ry employee and busines associate worldwide deserves to be treated with the utmost dignity and respect, RESPONSI