Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Q2 2018 Earnings Presentation
13 slides from Vermilion Energy's earnings presentation, Jul 30, 2018
Slide 1: Front Cover Theme
Front Cover Theme Sustainability is integrated into every facet of Vermilion’s business. This 15-hectare greenhouse is an example of how Vermilion reduces greenhouse emissions with geothermal energy. At Vermilion’s production facility in Parentis-en-Born, France, heat from our produced water is tran
Slide 2: 2018 YTD capital expenditures, production and fund flows by business unit
2018 YTD capital expenditures of $209MM by business unit 2018 YTD production of 75,425 boeld by business unit Australia 8% Germany: 2% Austalia 6% Netnerands: 5% Irland: 19% Germany: 5% France: 23% France: 15% United Stales: 13% United Stales: 1% 2018 YTD fund flows from operations of $350MM by busi
Slide 3: Net loss for Q2 2018 compared to Q1 2018
• We recorded a net loss for Q2 2018 of $60.2 million ($0.45/basic share) compared to net earnings of $25.1 million ($0.21/basic share) in Q1 2018. The net loss in Q2 2018 resulted from a $105.3 million unrealized loss on derivative instruments and a $12.5 million unrealized loss on foreign exchange
Slide 4: Fund flows from operations of $193.0 million in Q2 2018
• Generated fund flows from operations of $193.0 million during Q2 2018, an increase of 23% from Q1 2018. This quarter-over-quarter increase was due to the contribution of $27.6 million in fund flows from operations from Spartan Energy Corp. ("Spartan") from May 28, 2018 to the end of Q2 2018 along
Slide 5: Net loss for Q2 2018 compared to Q2 2017
• We recorded a net loss for Q2 2018 of $60.2 million ($0.45/basic share) compared to net earnings of $48.3 million ($0.40/basic share) in Q2 2017 . The net loss in Q2 2018 resulted from a $105.3 million unrealized loss on derivative instruments and a $12.5 million unrealized loss on foreign exchang
Slide 6: Fund flows increased by 31% versus Q2 2017
• Fund flows from operations increased by 31% in Q2 2018 versus Q2 2017 due to the acquisition of Spartan and higher crude oil and European prices. Vermilion Energy Inc.
Slide 7: Six months ended June 30 net loss
• For the six months ended June 30, 2018, the net loss of $35.1 million compared to net earnings of $92.8 million for the comparative year-to-date ("YTD") period in the prior year. The net loss primarily related to an unrealized loss on derivative instruments of $87.9 million (compared to an unreali
Slide 8: Fund flows increased 21% for six months
• Fund flows from operations increased 21% for the six months ended June 30, 2018 versus the comparable period in the prior year. The increase in fund flows from operations was due to the acquisition of Spartan and higher crude oil and European gas prices. Vermilion Energy Inc.
Slide 9: Capital expenditures, dividends and net debt
• For the three months ended June 30, 2018, capital expenditures of $80.1 million primarily related to activity in Canada and France. In Canada, capital expenditures of $28.7 million included the drilling of 18.0 (16.2 net) wells in southeast Saskatchewan. In France, capital expenditures of $17.1 mi
Slide 10: Realized crude oil and condensate price at 9% premium to Edmonton Sweet
Realized crude oil and condensate price was a 9% premium to the Edmonton Sweet index during Q2 2018 Dated Brent (48% of 2 2018, sales volumes) WTI (2% of 2 2018 sales volumes) Edmonton Sweet index (49% of 222018 sales volumes) Hardisty Heavy {0% of Q2 2018 sales volumes) tude oiland condensate reali
Slide 11: European natural gas markets retained winter gains
• European natural gas markets managed to retain most of the winter weather-driven gains as depleted gas-in-storage, warm weather, and strong Asian demand for LNG combined to boost European gas markets • For the three months ended June 30, 2018, NBP averaged $9.42/mmbtu, down 5% versus Q1 2018, but
Slide 12: US dollar gains and CAD/USD exchange rate
• Early Q2 2018 US dollar gains led CAD/USD to average 1.29, a gain of 2% versus Q1 2018, but down 4% versus the same period last year. • While the US dollar posted gains, the CAD/EUR cross remained stable over the quarter, averaging 1.54 versus 1.55 in Q1 2018. Vermilion Energy Inc.
Slide 13: Excellence, Trust, Respect, Responsibility
EXCELLENCE We aim for exceptional results in everything we do. TRUST ‘At Vermilion, we operate with honesty. ‘and fairness, and can be counted on to do what we say we will RESPECT We embrace diversity, value our people and believe every employee and business associate worldwide deserves to be treate