Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Q1 2026 Earnings Presentation
52 slides from Vermilion Energy's earnings presentation, May 6, 2026
Slide 1: Vermilion Energy Investor Presentation
VERMILION ENERGY GLOBAL GAS PRODUCER FREE CASH FLOW FOCUSED INVESTOR PRESENTATION FINANCIAL DISCIPLINE MAY 2026 1
Slide 2: What Vermilion Offers Investors
WHAT VERMILION OFFERS INVESTORS Repositioned Global Gas Portfolio o Long-life assets delivering top decile realized gas price and cash flow resilience from liquids exposure Dominant Deep Basin o Depth and quality of inventory with infrastructure in place drives profitable growth Montney Momentum o E
Slide 3: Vermilion at a Glance
VERMILION AT A GLANCE Market Summary VET Trading Price (May 5, 2026) $18.56 (TSX), US$13.63 (NYSE) Shares Outstanding (April 30, 2026) 153.2 MM Average Daily Trading Volume (shares) 1.0 MM (TSX), 1.6 MM (NYSE) Quarterly Dividend $0.135/share Capital Structure Market Capitalization $2.8 B Enterprise
Slide 4: Key Updates
KEY UPDATES Deep Basin Montney European Gas Corporate • Continued outperformance • Completed and brought online • Continued strong production • Acquired assets in Germany, from recent drilling program, six (6.0 net) wells in Q1/26, from the Osterheide well currently producing ~1,000 numerous wells r
Slide 5: Germany Asset Acquisition & Land Expansion
GERMANY ASSET ACQUISITION & LAND EXPANSION Gas-weighted, producing assets o Acquired ~1,000 boe/d (85% natural gas) of production and land adjacent to Osterheide well from Exxon affiliate Increased infrastructure control o Strategic value through increased control over gathering infrastructure surro
Slide 6: Maintain Strong Balance Sheet
MAINTAIN STRONG BALANCE SHEET NET DEBT Historic Debt Reduction $2,000 Closed Deep Basin acquisition for $1.1B, funded Q1 2025 primarily with balance sheet Announced divestment of non-core assets, $1,500 Q2 2025 reduced net debt by $650MM NET DEBT ($MM)(1) Organic deleveraging, improved cost structur
Slide 7: Repositioned Global Gas Portfolio
REPOSITIONED GLOBAL GAS PORTFOLIO 7
Slide 8: Repositioned Portfolio: More Efficient
REPOSITIONED PORTFOLIO: MORE EFFICIENT HIGHER PRODUCTION LOWER UNIT COSTS IMPROVED CAPITAL INTENSITY (MBOE/D)(1) (OPEX + G&A/BOE)(1) (CAPEX/FLOWING BOE)(1) $21.41 120 $7,400 $14.65 $5,100 85 2024 2026e 2024 2026e 2024 2026e >45% increase in production/share >30% decrease in cost structure >30% decre
Slide 9: 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 10: Inventory for the Future
INVENTORY FOR THE FUTURE DEEP BASIN MONTNEY GERMANY & NETHERLANDS GAS 10% 20% 20% 37% ~1,450 . ~250 . ~31 . Locations(1) Locations Accumulations BOOKED LOCATIONS UNBOOKED LOCATIONS Vermilion’s growth assets have decades of development ahead that is not reflected in our reserves 10
Slide 11: Profitable Per Share Reserves Growth
PROFITABLE PER SHARE RESERVES GROWTH RESERVES GROWTH PER SHARE 4.50 Organic and inorganic reserves growth o 2P FD&A(2) of $7.71/boe drives recycle ratio of 3.5x(3) 4.00 o 2P reserves replacement of over 450%(4) 3.50 3.00 BOE/SHARE(1) 2.50 Significant upside to reserves bookings o 77% of Deep Basin a
Slide 12: Top Decile Realized Gas Price
TOP DECILE REALIZED GAS PRICE GAS PRODUCTION BY REGION(2) Q4 2025 REALIZED NATURAL GAS PRICE(1) $6 Europe 18% $5 REALIZED NATURAL GAS PRICE ($/MCF) $4 Canada AVERAGE (EXCL VET) = $3.44 82% $3 $2 NATURAL GAS PRICE EXPOSURE(3) Europe $1 AECO 18% Alliance 31% 5% $0 Canadian Gas REALIZED GAS PRICE REALI
Slide 13: Product & Revenue Resilience
PRODUCT & REVENUE RESILIENCE 2026E PRODUCTION BY PRODUCT(1) 2026E REVENUE BY PRODUCT(1) Canada Natural Gas 16% Liquids 30% Liquids 55% Europe Natural Gas Natural Gas 70% 29% Global Gas Producer with strong WTI and Brent-linked liquids contribution provides cash flow resilience 13
Slide 14: Direct Exposure to European Gas Prices
DIRECT EXPOSURE TO EUROPEAN GAS PRICES HISTORICAL AND FORWARD PRICING OF EUROPEAN GAS $50 Euro Gas 2026 2027 $40 % Hedged 59% 28% TTF GAS PRICES (C$/MMBTU)(1) Average Floor $14 $13 $30 $20 $10 Since February 23, 2026(2): 2026 TTF strip up 40% 2027 TTF strip up 40% $0 2017 2018 2019 2020 2021 2022 20
Slide 15: 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 16: 2026 Capital Allocation
2026 CAPITAL ALLOCATION E&D CAPITAL ALLOCATION(1) PRODUCTION WEIGHTING(1) 2026E FFO ALLOCATION(2) $1,500 Unhedged DACF 7% of ~$8.00/basic 15% share $1,250 14% $1,000 $600 – 630MM 118 – 122 mboe/d $MM 18% 67% Canada 70% Natural Gas $750 33% International 30% Liquids $500 67% 79% $250 $0 CANADA EUROPE
Slide 17: Compounding Return of Capital
COMPOUNDING RETURN OF CAPITAL ANNUAL DIVIDEND PER SHARE SHARE COUNT $0.80 165 2026 dividend payout is <10% of FFO $0.60 160 DIVIDENDS PER SHARE SHARE COUNT (MM)(1) $0.40 155 $0.20 150 $0.00 145 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026e Decreasing share count with ratable dividend increases
Slide 18: Five-Year Outlook: Growing EFCF
FIVE-YEAR OUTLOOK: GROWING EFCF 2026E PRODUCTION(1) 2030E PRODUCTION(2) 8% 5-7% 8-10% Annual production per share growth(2) 14% 14-16% $600-630MM annual capex(2,3) ~130 mboe/d ~120 mboe/d Target capital: Australia drill year ($700MM) ~40% increase in 13% production per share(5) 54-60% 65% 21-23% $1.
Slide 19: Five-Year Outlook: Capital Allocation
FIVE-YEAR OUTLOOK: CAPITAL ALLOCATION $1.7 Billion Cumulative EFCF(1,2) NET DEBT(1,3) CUMULATIVE DIVIDENDS PER SHARE(1) SHARE COUNT(1) Room to grow $1.4B $2.70/share 153MM at current $0.6-0.9B 100-125MM dividend 2025E 2030E 2026E-2030E 2025E 2030E Shifting enterprise value to shareholders Material E
Slide 20: Key Asset Overview
KEY ASSET OVERVIEW sh.
Slide 21: Deep Basin: Overview
DEEP BASIN: OVERVIEW Overview Key Statistics Production: 85,000 boe/d (26% liquids) (Q1 2026)(1) Acreage: 1.2 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
Slide 22: 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 $1,000 Consistent three-rig drilling program 2023 2024 2025 DEEP BASIN PEERS VERMILION Culture of continuous i
Slide 23: Profitable Growth: Stronger Well Results
PROFITABLE GROWTH: STRONGER WELL RESULTS DEEP BASIN PRODUCTION BY DRILL YEAR 1,200 1,000 Vermilion’s H2/25 drilling program has produced some 800 of the best wells in Alberta BOE/D(1) 600 400 200 0 0 6 12 18 24 30 PRODUCTION MONTH 2022-2025 AVG (39 TOTAL) 2026 BUDGET (43 TOTAL) POST-CLOSE 2025 (19 T
Slide 24: Robust Deep Basin Economics
ROBUST DEEP BASIN ECONOMICS Upper Spirit Jurassic/Lwr Cretaceous Cretaceous River Cretaceous Upper Lateral Length (m) 2,800 2,900 2,800 DCET Cost ($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 25: Montney: Overview
MONTNEY: OVERVIEW Overview Key Statistics Production: 15,000 boe/d (27% liquids) (Q1 2026)(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 cap
Slide 26: Premium Montney Acreage
PREMIUM MONTNEY ACREAGE VET owns ~9% 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 26
Slide 27: Montney Cost Optimization
MONTNEY COST OPTIMIZATION BC MONTNEY AVERAGE WELL COST $14 • DCET(1) cost reduced to $8.2MM (from $8.5MM) $12 o Improves project economics, represents >$100 million (NPV10)(2) in future $10 PER WELL COST ($MM) development cost savings to-date $8 o DCET cost savings are repeatable $6 • Water hub and
Slide 28: Montney Well Economics
MONTNEY WELL ECONOMICS BC Middle Montney Lateral Length (m) 3,000 DCET Cost ($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) $12.9 Leading DCET costs in the oil window of the Montney 28
Slide 29: Montney Pivots to EFCF in 2028
MONTNEY PIVOTS TO EFCF IN 2028 PRODUCTION TIMELINE(1) 35,000 30,000 Build infrastructure and reduce DCET costs Excess Free Cash Flow(2) generation 25,000 BOE/D (NET) 20,000 15,000 10,000 5,000 - 2022 2023 2024 2025 2026 2027 2028 2029 2030+ 2022-2025 Execution 2026-2028 Plan Pivot to Excess Free Cas
Slide 30: European Gas Assets: Germany & Netherlands
EUROPEAN GAS ASSETS: GERMANY & NETHERLANDS Overview Key Statistics Gas Production: 49 mmcf/d (53% Germany / 47% Netherlands)(1) Acreage: 2.1 million acres (67% Germany / 33% Netherlands)(2) History Proven track record of development with 30+ exploration wells at 70% success rate over 20 years Signif
Slide 31: Germany Exploration Potential
GERMANY EXPLORATION POTENTIAL Deep Gas Exploration Type Well (1.0 Net) Identified 9 structures to date and have drilled 3; potential for up to Vertical Depth (m) ~5,000 30 total locations with success DCET Cost ($MM) $40 – 50 2P Reserves (Bcf)(1) ~30 Gas % of Reserves(2) 100% IRR(3) 35% Payout (year
Slide 32: Size of the Prize
SIZE OF THE PRIZE NORTH GERMAN BASIN Discovery Well 2P Reserves 67 Bcf Property Gross(1) 43 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 33: Germany Outlook: Organic Growth
GERMANY OUTLOOK: ORGANIC GROWTH DEEP GAS PROGRAM PRODUCTION TIMELINE(1) 2.9 Net 80 Drilling and facility investment EFCF generation 70 60 Wells MMCFE/D (NET) Legacy Germany 50 Deep Gas Success To-Date (1.6 net) Additional Wells 40 Doubles German 30 Production 20 Grows VET European 10 Gas Production
Slide 34: Capital Allocation
CAPITAL ALLOCATION 34
Slide 35: 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 Global gas portfolio with o 40% return of EFCF ratio(1) less than 1.0x strong liquids expo
Slide 36: Financial Liquidity
FINANCIAL LIQUIDITY HISTORICAL NET DEBT TO FFO CURRENT CREDIT CAPACITY(2) 2.0x $0.52B 1.5x NET DEBT TO FFO RATIO(1) Available Liquidity of $1.08B 1.0x $0.52B Committed to operating at 1.0x leverage 0.5x $0.27B Undrawn Capacity on Revolving Credit Facility Revolving Credit Facility 2030 Maturity 0.0x
Slide 37: Additional Information
ADDITIONAL INFORMATION 37
Slide 38: Pricing & FFO Sensitivity
PRICING & FFO SENSITIVITY COMMODITY PRICES(1) 2026e 2027e H2/2026 FFO SENSITIVITY (C$MM)(2) FFO Impact FFO Impact Change TTF ($/mmbtu) $21.24 $17.99 (Hedged) (Unhedged) NBP ($/mmbtu) $20.16 $16.91 TTF & NBP $1.00/mmbtu $5MM $13MM AECO ($/mcf) $ 2.01 $ 2.49 NA Gas Prices $0.25/mmbtu $9MM $16MM Henry
Slide 39: 2026 Guidance
2026 GUIDANCE CATEGORY 2026 GUIDANCE(1) Y/Y CHANGE Production (boe/d) 118,000 - 122,000 % Natural gas 70% E&D capital expenditures ($MM) $600 - 630 ↓ 3% Operating ($/boe) $12.25 - 13.25 ↓ 4% General and administration ($/boe)(2) $1.65 - 2.15 ↓ 24% Transportation ($/boe) $3.00 - 3.50 – Royalty rate (
Slide 40: Hedge Position
HEDGE POSITION 2026 2027 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 Gas N.
Slide 41: Global Gas Assets
GLOBAL GAS ASSETS Canada Liquid-Rich Gas Europe Premium-Priced Gas GERMANY IRELAND DEEP BASIN MONTNEY NETHERLANDS CROATIA • Q1 2026 production = 99,746 boe/d (26% liquids)(1) • Q1 2026 production = 18,096 boe/d (91% gas)(1) Global gas portfolio pairs long duration, liquids-rich Canadian gas with pre
Slide 42: 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 43: 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 swing between summer and winter due to 2nd warmest winter, government policy, and extremely high prices 60 • Russian supply has decreased
Slide 44: European Gas Inventories
EUROPEAN GAS INVENTORIES HISTORICAL NATURAL GAS INVENTORY 4,000 EU storage at lowest levels since Russia invasion of Ukraine 3,000 INVENTORY (BCF)(1) Reaching 80% storage by November requires 2 Tcf of gas 2,000 Europe has to fill >2Tcf of storage over Summer 2026 Legislation passed to not allow 1,00
Slide 45: 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 • Q1 2026 production = 6,729 boe/d (100% oil)(1) AUSTRALIA • Offshore oil field approximately 80 km N.W. off the coast of Australia (55m
Slide 46: 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 47: 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 48: 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 49: 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 to buy, ESG Data securities of Vermilion Energy Inc. ("Vermilion", the "Company", "we", or "us"). This presentation and its
Slide 50: Slide Notes
SLIDE NOTES Disclaimer: Multi-year estimates Slide 11 Elements of company 2026-2030 forecast derived by utilizing, among other assumptions, historical Vermilion production performance and current cost assumptions, (1) Reserves per share represents estimated gross proved, developed and producing, tot
Slide 51: Slide Notes
SLIDE NOTES Slide 18 Slide 24 (1) Based on company estimates as of December 9, 2025. (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 well or (2) Based on company 2026-2030 forecast as of Decemb
Slide 52: Slide Notes
SLIDE NOTES Slide 29 Slide 38 (1) 2022-2025 reflects actual production. Company 2026-2030 forecast as of December 9, 2025, refer to the disclaimer on multi-year estimates. (1) Commodity price assumptions listed have been reflected throughout this presentation using the May 4, 2026 strip, unless othe
Vermilion Energy Inc. Common (Canada) — Q1 2026 Earnings Presentation on 6ix