Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Investor Presentation (January 2026)
44 slides from Vermilion Energy's investor presentation, January 2026
Slide 1: Vermilion Energy Investor Presentation
VERMILION ENERGY GLOBAL GAS PRODUCER FREE CASH FLOW FOCUSED INVESTOR PRESENTATION FINANCIAL DISCIPLINE JANUARY 2026 1
Slide 2: What Vermilion Offers Investors
WHAT VERMILION OFFERS INVESTORS Repositioned Global Gas Portfolio o Profitable, long-life assets delivering top decile realized gas price Dominant Deep Basin o Depth and quality of inventory with infrastructure in place drives profitable growth Montney Momentum o Excess free cash flow(1) inflection
Slide 3: Vermilion at a Glance
VERMILION AT A GLANCE Market Summary VET Trading Price (January 2, 2026) $11.71 (TSX), US$8.54 (NYSE) Shares Outstanding (December 31, 2025) 152.9 MM Average Daily Trading Volume (shares) 0.8 MM (TSX), 1.3 MM (NYSE) Quarterly Dividend (2026 planned) $0.135/share Capital Structure Market Capitalizati
Slide 4: 2026 Budget
2026 BUDGET E&D CAPITAL ALLOCATION(2) PRODUCTION WEIGHTING(2) • Announced 4% dividend increase effective Q1 2026(1) 8% 15% • 30% improvement in 2026 capital intensity and unit operating costs 14% compared to 2024 $600 – 630MM 118 – 122 mboe/d • E&D capital investment in: 18% 67% Canada 70% Natural G
Slide 5: Updated 2025 Guidance & 2026 Budget
UPDATED 2025 GUIDANCE & 2026 BUDGET CATEGORY 2025 CURRENT(1) 2026 CURRENT(1) Production (boe/d) 119,500 118,000 - 122,000 % Natural gas 65% 70% E&D capital expenditures ($MM) $630 - 640 $600 - 630 ↓ 3% Operating ($/boe) $13.00 - 13.50 $12.25 - 13.25 ↓ 4% General and administration ($/boe)(2) $2.25 -
Slide 6: Repositioned Global Gas Portfolio
REPOSITIONED GLOBAL GAS PORTFOLIO 6
Slide 7: Repositioned Portfolio: More Efficient
REPOSITIONED PORTFOLIO: MORE EFFICIENT HIGHER PRODUCTION LOWER UNIT COSTS IMPROVED CAPITAL INTENSITY (MBOE/D) (OPEX + G&A/BOE) (CAPEX/FLOWING BOE) $21.41 120 $7,400 $14.65 $5,100 85 2024 2026e 2024 2026e 2024 2026e >40% increase in boe/d >30% decrease in cost structure >30% decrease in capex/flowing
Slide 8: Repositioned Portfolio: Key Growth Assets
REPOSITIONED PORTFOLIO: KEY GROWTH ASSETS High-return, multi-zone development Generating EFCF(2) 25+ Years Deep Basin with existing infrastructure to through efficient Drilling Inventory(1) support production growth development Lower capital and unit OPEX, Pivoting to EFCF Montney 20+ Years progress
Slide 9: Inventory for the Future
INVENTORY FOR THE FUTURE DEEP BASIN MONTNEY GERMANY & NETHERLANDS GAS 7% 16% 20% 14% 29% ~1,450 . ~250 . ~31 . Locations(1) Locations Accumulations BOOKED LOCATIONS EVALUATION LOCATIONS UNBOOKED LOCATIONS Vermilion’s growth assets have decades of development ahead that is not reflected in our reserv
Slide 10: Top Decile Realized Gas Price
TOP DECILE REALIZED GAS PRICE GAS PRODUCTION BY REGION(2) Q3 2025 REALIZED NATURAL GAS PRICE(1) $6 Europe 18% $5 REALIZED NATURAL GAS PRICE ($/MCF) $4 Canada 82% $3 AVERAGE (EXCL VET) = $2.63 $2 NATURAL GAS PRICE EXPOSURE(3) Europe $1 18% Alliance 5% AECO $0 43% Canadian Gas Hedges REALIZED GAS PRIC
Slide 11: Direct Exposure to European Gas Prices
DIRECT EXPOSURE TO EUROPEAN GAS PRICES HISTORICAL AND FORWARD PRICING OF EUROPEAN GAS $50 Euro Gas 2025 2026 $40 % Hedged 59% 52% TTF GAS PRICES (C$/MMBTU)(1) 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 p
Slide 12: Canada Liquids-Rich Gas Advantage
CANADA LIQUIDS-RICH GAS ADVANTAGE HALF-CYCLE PAYOUT PERIOD 1.8 Canadian Plays (Median 1.1 Years) U.S. Plays (Median 1.4 Years) 1.6 1.4 PAYOUT (YEARS)(1) 1.2 1.0 0.8 0.6 0.4 0.2 - Liquids Rich Montney Permian Haynesville Deep Basin Delaware Duvernay Midland Montney Oil Marcellus Permian Dry Gas Kaybo
Slide 13: Key Asset Overview
KEY ASSET OVERVIEW sh.
Slide 14: Deep Basin: Overview
DEEP BASIN: OVERVIEW Overview Key Statistics Production: 70,000 boe/d (Q3 2025)(1) Acreage: 1.1 million net acres(2) Infrastructure: >100,000 boe/d nameplate capacity(3) History Vermilion has operated in the Deep Basin since 1995 and has grown to be one of the largest producers in this prolific basi
Slide 15: Profitable Growth: Operational Excellence
PROFITABLE GROWTH: OPERATIONAL EXCELLENCE DRILLING COST – VET VS. PEERS $3,000 Longer laterals at a lower per-metre cost $2,500 $ / HORIZONTAL METRE(1) $2,000 Shallower target depths $1,500 $1,000 Consistent three-rig drilling program 2023 2024 2025 DEEP BASIN PEERS VERMILION Culture of continuous i
Slide 16: Robust Deep Basin Economics
ROBUST DEEP BASIN ECONOMICS Upper Spirit Jurassic/Lwr Cretaceous Cretaceous River Cretaceous Upper Lateral Length (m) 2,800 2,900 2,800 DCET Cost ($MM) $5.0 – 5.5 $6.0 – 6.5 $5.5 – 7.5 Spirit River IP365 (boe/d)(1) 450 750 475 2P Reserves (mboe)(2) 770 1,050 610 Liquids % of Reserves(3) 32% 14% 47%
Slide 17: Montney: Overview
MONTNEY: OVERVIEW Overview Key Statistics Production: 16,000 boe/d (Q3 2025)(1) Acreage: 80,000 acres(2) Infrastructure: >30,000 boe/d nameplate capacity (H2/2027 Est.)(3) History Entered the Montney in 2022, grew production from ~4,000 boe/d to ~16,000 boe/d currently Reduced DCET capital by >30% s
Slide 18: Premium Montney Acreage
PREMIUM MONTNEY ACREAGE VET owns ~10% of CEI.V(1) (~$45 million) Source: Land information sourced from EVA A significant and contiguous premium acreage block in the oil window of the Montney 18
Slide 19: Montney Cost Optimization
MONTNEY COST OPTIMIZATION BC MONTNEY AVERAGE WELL COST $14 • DCET(1) cost reduced to $8.5MM (from $9.6MM) $12 o Improves project economics, represents ~$100 million (NPV10)(2) in future $10 PER WELL COST ($MM) development costs $8 o DCET cost savings are repeatable $6 • Water hub and disposal infras
Slide 20: Montney Well Economics
MONTNEY WELL ECONOMICS BC Middle Montney Lateral Length (m) 3,000 DCET Cost ($MM) $8.5 IP365 (boe/d)(1) 950 2P Reserves (mboe)(2) 1,500 Liquids % of Reserves(3) 38% IRR(4) 120% Payout (years)(5) 0.8 NPV10 ($MM)(6) $12.9 Leading DCET costs in the oil window of the Montney 20
Slide 21: Montney Pivots to EFCF in 2028
MONTNEY PIVOTS TO EFCF IN 2028 PRODUCTION TIMELINE(1) 35,000 30,000 Build infrastructure and reduce DCET costs Excess Free Cash Flow(2) generation 25,000 BOE/D (NET) 20,000 15,000 10,000 5,000 - 2022 2023 2024 2025 2026 2027 2028 2029 2030+ 2022-2025 Execution 2026-2028 Plan Pivot to Excess Free Cas
Slide 22: European Gas Assets: Germany & Netherlands
EUROPEAN GAS ASSETS: GERMANY & NETHERLANDS Overview Key Statistics Gas Production: 46 mmcf/d (57% Germany / 43% Netherlands)(1) Acreage: 1.45 million acres (50% Germany / 50 % Netherlands)(2) History Proven track record of development with 30+ exploration wells at 70% success rate over 20 years Sign
Slide 23: Germany Exploration Potential
GERMANY EXPLORATION POTENTIAL Deep Gas Exploration Type Well (1.0 Net) Identified 9 structures to date and have drilled 3; potential for up to Vertical Depth (m) ~5,000 30 total locations with success DCET Cost ($MM) $40 – 50 2P Reserves (Bcf)(1) ~30 Gas % of Reserves(2) 100% IRR(3) 35% Payout (year
Slide 24: Size of the Prize
SIZE OF THE PRIZE NORTH GERMAN BASIN Discovery Well 2P Reserves 68 Bcf Property Gross(1) 44 Bcf Gross to Vermilion Source: Petroleum Geological Atlas of the Southern Permian Basin Areas (2010), LBEG - “Erdgastabellen 1949-2024”, ESRI Vermilion’s largest discovery in over a decade is the latest signi
Slide 25: Germany Outlook: Organic Growth
GERMANY OUTLOOK: ORGANIC GROWTH DEEP GAS PROGRAM PRODUCTION TIMELINE(1) 14,000 Drilling and facility investment Excess free cash flow generation 12,000 10,000 Legacy Germany BOE/D (NET) 8,000 Deep Gas Success To-Date (1.6 net) Additional Wells 6,000 4,000 2,000 - 2023 2024 2025 2026 2027 2028 2029 2
Slide 26: Capital Allocation
CAPITAL ALLOCATION 26
Slide 27: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Target long-term Maintain Strong Maintain Robust Provide Compounding value-add acquisition Balance Sheet Asset Base Shareholder Returns opportunities o Targeting net debt to FFO o Repositioned global gas o 40% return of EFCF ratio(1) less than 1.0x portfolio o Focus on
Slide 28: Financial Liquidity
FINANCIAL LIQUIDITY HISTORICAL NET DEBT TO FFO CURRENT CREDIT CAPACITY(2) 2.0x $0.56B 1.5x NET DEBT TO FFO RATIO(1) Available Liquidity of $1.12B 1.0x Committed to $0.53B returning to 1.0x leverage 0.5x $0.23B Undrawn Capacity on Revolving Credit Facility Revolving Credit Facility 2029 Maturity 0.0x
Slide 29: FFO & Capital Allocation
FFO & CAPITAL ALLOCATION FFO ALLOCATION(1) $1,400 140 $1,200 120 PRODUCTION (‘000 BOE/D) $1,000 100 $MM $800 80 $600 60 $400 40 $200 20 $0 0 2024 2025e 2026e Net Debt to Trailing FFO(1) 0.8x 1.4x 1.5x FFO ($/basic share) $ 7.63 ~$ 6.50 ~$ 5.70 Unhedged FFO ($/basic share) $ 5.61 ~$ 5.60 ~$ 5.60 WTI
Slide 30: Strong Hedge Position
STRONG HEDGE POSITION 2025 2026 PERCENTAGE OF PRODUCTION HEDGED (%)(1) PERCENTAGE OF PRODUCTION HEDGED (%)(1) 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Crude Oil European N.A. Corporate Crude Oil European N.A. Corporate Natural Gas Natural Gas Total Natural Gas Natural Gas Total WTI Brent Euro
Slide 31: Compounding Return of Capital
COMPOUNDING RETURN OF CAPITAL ANNUAL DIVIDEND PER SHARE SHARE COUNT $0.80 165 Announced 2026 dividend payout is <10% of FFO $0.60 160 DIVIDENDS PER SHARE(1) SHARE COUNT (MM)(2) $0.40 155 $0.20 150 $0.00 145 2022 2023 2024 2025 2026e 2022 2023 2024 2025e 2026e Decreasing share count with ratable divi
Slide 32: Additional Information
ADDITIONAL INFORMATION 32
Slide 33: Pricing & FFO Sensitivity
PRICING & FFO SENSITIVITY COMMODITY PRICES(1) 2025e 2026e 2026 FFO SENSITIVITY (C$MM)(2) FFO Impact FFO Impact Change TTF ($/mmbtu) $16.98 $14.66 (Hedged) (Unhedged) NBP ($/mmbtu) $16.68 $14.41 TTF & NBP $1.00/mmbtu $23MM $28MM AECO ($/mcf) $ 1.86 $ 3.26 NA Gas Prices $0.25/mmbtu $23MM $34MM Henry H
Slide 34: Global Gas Assets
GLOBAL GAS ASSETS Canada Liquid-Rich Gas Europe Premium-Priced Gas GERMANY IRELAND DEEP BASIN MONTNEY NETHERLANDS CROATIA • Q3 2025 production = 85,698 boe/d (29% liquids) • Q3 2025 production = 19,795 boe/d (91% gas) (Continuing operations) Global gas portfolio pairs long duration, liquids-rich Can
Slide 35: Canadian Gas Fundamentals
CANADIAN GAS FUNDAMENTALS West Coast Canadian LNG(1) North American Power Demand • Natural gas demand for Canadian LNG is expected to increase • Increased power associated with datacenter development is notably by end of decade (>6.0 bcf/d) underpinning long-term natural gas demand o Strong momentum
Slide 36: European Gas Fundamentals
EUROPEAN GAS FUNDAMENTALS EUROPEAN SUPPLY/DEMAND BALANCE HISTORY(2) • Europe(1) consumes ~40 Bcf/d per annum, with ~30 Bcf/d 80 Winter 2023 demand down ~10 Bcf/d due to 2nd warmest winter, government swing between summer and winter policy, and extremely high prices 60 • Russian supply has decreased
Slide 37: Legacy Oil Assets
LEGACY OIL ASSETS FRANCE • #1 domestic oil producer with two-thirds of the domestic industry • Extensive inventory of workovers, recompletions, and infill drilling • Q3 2025 production = 6,811 boe/d (100% oil) AUSTRALIA • Offshore oil field approximately 80 km N.W. off the coast of Australia (55m wa
Slide 38: Environment, Social & Governance
ENVIRONMENT, SOCIAL & GOVERNANCE EMISSIONS INTENSITY TREND Scope 1&2 tCO2e per BOE Vermilion’s Purpose: 0.030 To responsibly produce essential energy while 0.025 delivering long-term value to our people, 0.020 shareholders, customers, partners and communities 0.015 2019 2020 2021 2022 2023 2024 • Ac
Slide 39: Reduced Well Count
REDUCED WELL COUNT TOTAL WELL COUNT 6,000 • Total well count has been reduced by 50% 5,000 since 2022 through asset high-grading and asset retirement obligation expenditures WELL COUNT (NET)(1) 4,000 • Average production per well has more than 3,000 doubled since 2022 • Annual ARO spend of $50-55MM
Slide 40: 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 41: 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 solicitation of an offer References to Vermilion or the Company in this document include Westbrick Energy Inc. which amalgamated with Vermilion Energ
Slide 42: Slide Notes
SLIDE NOTES Disclaimer: Estimates of drilling locations Slide 7 Drilling inventory reflects company estimates of future drilling locations and expected pace of future development, and includes locations evaluated by McDaniel (1) Production, unit costs and capital intensity for 2024 reflects actuals
Slide 43: Slide Notes
SLIDE NOTES Slide 16 Slide 21 (1) Production rates presented above are for a limited timeframe only and may not be indicative of future performance or the ultimate recovery for a given (1) 2022-2024 reflects actual production, 2025 based on company estimates as of December 9, 2025. Company 2026-2030
Slide 44: Slide Notes
SLIDE NOTES Slide 28 Slide 33 (1) Reflects period-end net debt to four quarter trailing fund flows from operations, for further information refer to the "Non-GAAP Financial Measures and (1) Commodity price assumptions listed have been reflected throughout this presentation using the October 27, 2025
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