Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Q2 2024 Earnings Presentation
13 slides from Vermilion Energy's earnings presentation, Aug 1, 2024
Slide 1: Vermilion Energy Q2 2024 Conference Call
VERMILION ENERGY INTERNATIONALLY DIVERSIFIED FREE CASH FLOW FOCUSED Q2 2024 CONFERENCE CALL ESG LEADERSHIP
Slide 2: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS • Production at the upper end of our Q2 2024 Q2 2024 Q1 2024 %∆ guidance range North America (boe/d) 54,987 52,959 4% o Primarily due to early start-up of the 8-33 BC International (boe/d) 29,987 32,546 (8%) battery on our Mica Montney asset, which Total(1) (boe/d) 84,974 85,505 (
Slide 3: International Operational Highlights
INTERNATIONAL OPERATIONAL HIGHLIGHTS Q2 2024 PRODUCTION • International production averaged 29,987 boe/d, reflecting scheduled maintenance on several of our assets during the quarter INTL 35% • Continued to advance our deep gas exploration and development program in Germany o Currently equipping our
Slide 4: Germany Gas Exploration Program
GERMANY GAS EXPLORATION PROGRAM • Targets are on trend and analogous to Netherlands plays where we have drilled 29 gas wells with an average success rate over 70% • Successfully drilled the Osterheide well (100% WI) and discovered gas within the targeted zone, anticipate on-stream date of early 2025
Slide 5: Croatia Gas Development
CROATIA GAS DEVELOPMENT • Successfully drilled four (2.4 net) exploration wells on the SA-7 block o All four wells discovered hydrocarbons in multiple zones, representing 100% success rate on our 2024 drilling program o Testing operations on the first two wells completed during Q2 2024, first well t
Slide 6: North America Operational Highlights
NORTH AMERICA OPERATIONAL HIGHLIGHTS Q2 2024 PRODUCTION • North American production averaged 54,987 boe/d in Q2 2024, an increase of 4% over the N.A. prior quarter 65% • In Canada we drilled three (3.0 net) wells, completed one (1.0 net) well, and brought on production six (6.0 net) wells FFO(1) • I
Slide 7: Montney Battery Progress
MONTNEY BATTERY PROGRESS • Construction on 16,000 boe/d oil battery was completed and battery was started in Q2 2024 o Additional capacity allows us to nearly double our Montney production to 14,000 boe/d in 2025, provides platform for future expansion to 28,000 boe/d in the coming years o Successfu
Slide 8: BC Montney Well Results
BC MONTNEY WELL RESULTS • Successfully completed first six (6.0 net) BC 16-28 AVERAGE CUMULATIVE PRODUCTION Montney wells of our 2024 program on 16-28 400,000 Wells produced 30+% liquids pad, results are in line with expectations (majority oil) over the first reflecting infrastructure constraints 35
Slide 9: Shareholder Returns & Outlook
SHAREHOLDER RETURNS & OUTLOOK 9 9
Slide 10: Compounding Shareholder Returns
COMPOUNDING SHAREHOLDER RETURNS CUMULATIVE SHAREHOLDER RETURNS CUMULATIVE NCIB ACTIVITY $12.00 16 EFCF Payout Target ~50% 14 $10.00 CUMULATIVE RETURN ($/SHARE)* Vermilion returned over SHARES REPURCHASED (MM)** $40/share to shareholders from 12 2003 to 2020 via base dividend $8.00 EFCF Payout 33% 10
Slide 11: Outlook
OUTLOOK • Full-year production guidance increased to 83,000 - 86,000 boe/d while maintaining our capital budget Category 2024 Guidance(1) guidance of $600 to $625 million Production (boe/d) 83,000 - 86,000 • Our Q3 2024 capital program includes: E&D capital expenditures ($MM) $600 - 625 o Completing
Slide 12: Q&A
Q&A 12
Slide 13: Advisory
ADVISORY This presentation is for information purposes only and is not intended to, and should not be construed to constitute, an Disclosures, and the Sustainability Accounting Standards Board. Vermilion has used best efforts to align with the most offer to sell or the solicitation of an offer to bu
Vermilion Energy Inc. Common (Canada) — Q2 2024 Earnings Presentation on 6ix