Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Investor Presentation (July 2025)
46 slides from Vermilion Energy's investor presentation, July 2025
Slide 1: Vermilion Energy Investor Presentation July 2025
VERMILION ENERGY GLOBAL GAS PRODUCER FREE CASH FLOW FOCUSED INVESTOR PRESENTATION FINANCIAL DISCIPLINE JULY 2025
Slide 2: Vermilion at a Glance
VERMILION AT A GLANCE H2/25E PRODUCTION(2) Market Summary Legacy VET Trading Price (July 2, 2025) $10.38 (TSX), US$7.64 (NYSE) Oil 9% Shares Outstanding (June 30, 2025) 154.0 MM Average Daily Trading Volume (shares) 0.8 MM (TSX), 1.3 MM (NYSE) Quarterly Dividend $0.13/share Global Gas Assets Capital
Slide 3: Global Gas Advantage
GLOBAL GAS ADVANTAGE Global gas producer with 30 years operating in Europe and North America Diversified portfolio delivers outsized FCF(1) through direct exposure to global commodity prices and enhanced capital allocation optionality Robust asset base combining low-decline conventional assets with
Slide 4: Key Updates
KEY UPDATES Deep Basin • Closed Westbrick acquisition in Q1/25, adds 50,000 boe/d of production and 0.8 million net acres o Identified $100MM NPV10(1) of incremental synergies post-acquisition, anticipate further synergies Montney • DCET costs reduced from $9.6 million to $9.0 million per well o Rep
Slide 5: Updated Guidance
UPDATED GUIDANCE ORIGINAL 2025 POST-WBE 2025 CURRENT 2025 CATEGORY GUIDANCE(1) GUIDANCE(1) GUIDANCE(1) Production (boe/d) 84,000 – 88,000 125,000 – 130,000 117,000 – 122,000 % Natural gas 56% 62% 65% E&D capital expenditures ($MM) $600 – 625 $730 – 760 $630 – 660 Royalty rate (% of sales) 8 – 10% 9
Slide 6: Global Gas Producer: Growth Assets
GLOBAL GAS PRODUCER: GROWTH ASSETS 6
Slide 7: Advancing Our Global Gas Strategy
ADVANCING OUR GLOBAL GAS STRATEGY Deep Basin • 4th largest Alberta Deep Basin producer • Incremental Westbrick synergies post-close ~$100MM (NPV10)(1) (15+ years of inventory) • Inventory to grow production to 80,000 boe/d, maintain for 15+ years Montney • Infrastructure expansion nearly complete •
Slide 8: Dominant Alberta Deep Basin Position
DOMINANT ALBERTA DEEP BASIN POSITION Prominent Deep Basin producer, over 1.1 million net acres of land with 15+ years of inventory Source: Land information sourced from XI Technologies Asset Book. 8
Slide 9: Robust Deep Basin Economics
ROBUST DEEP BASIN ECONOMICS Upper Cretaceous Upper Spirit Lower Cretaceous River Mannville Lateral Length (m) 2,800 2,900 2,800 DCET Cost ($MM) $5.0 – 5.5 $6.0 – 6.5 $5.5 – 7.5 Spirit River IP365 (boe/d)(1) 450 750 475 EUR (mboe)(2) 770 1,050 610 Liquids % of Reserves(3) 32% 14% 47% Lwr Mnvl/ Jurass
Slide 10: Westbrick Synergies
WESTBRICK SYNERGIES • Closed Westbrick acquisition in February 2025, integration progressing ahead of plan • Identified incremental ~$100 million (NPV10)(1) of operational and development synergies to date o Anticipate additional synergies may be identified and realized • Synergies include: o Extend
Slide 11: Premium Montney Acreage
PREMIUM MONTNEY ACREAGE VET owns ~22% of CEI.V* (~$95 million) A significant and contiguous premium acreage block in the oil window of the Montney Source: Land information sourced from EVA. * Vermilion has ownership of, or control and direction over, approximately 22% of the issued and outstanding c
Slide 12: Montney Overview
MONTNEY OVERVIEW • Contiguous 80,000 acres of land with only 14,000 acres developed to date • Multi-year development program based on long 4-3 Battery reach wells 8-33 Battery • Owned and operated oil infrastructure, utilize third-party gas infrastructure • Diversified gas transportation via Allianc
Slide 13: Montney Well Economics
MONTNEY WELL ECONOMICS BC Middle Montney Lateral Length (m) 3,000 DCET Cost ($MM) $9.0 IP365 (boe/d)(1) 950 EUR (mboe)(2) 1,500 Liquids % of Reserves(3) 38% IRR(4) 85% Payout (years) 1.2 NPV10 ($MM) $9.6 (1) Production rates presented above are for a limited timeframe only and may not be indicative
Slide 14: Montney Development
MONTNEY DEVELOPMENT PRODUCTION TIMELINE(1) 35,000 Third-party West Doe Achieve 28,000 boe/d gas plant construction target rate, transition 30,000 complete to sustaining capital Ph. 2 expansion, achieved DCET of Ph. 3 expansion BOE/D ( NET) 25,000 $9.0MM/well Commissioned 8-33 20,000 battery, achieve
Slide 15: Montney Cost Optimization
MONTNEY COST OPTIMIZATION BC MONTNEY AVERAGE WELL COST • DCET(1) cost reduced to $9.0MM (from $14 $9.6MM), line of sight to further cost improvements $12 o Improves project economics, represents ~$50 $10 million (NPV10)(2) in future development costs Per Well Cost ($MM) • 8-4 BC pad, completed in Q1
Slide 16: Germany Exploration Potential
GERMANY EXPLORATION POTENTIAL Identified 9 structures to date and Deep Gas Exploration have drilled 3, potential for up to Type Well (1.0 Net) 30 total locations with success Vertical Depth (m) ~5,000 DCET Cost ($MM) $40 – 50 EUR (Bcf)(1) ~30 Gas % of Reserves(2) 100% IRR(3) 40% Payout (years)(4) 1.
Slide 17: Germany 2024 Exploration Success
GERMANY 2024 EXPLORATION SUCCESS POTENTIAL PRODUCTION FROM CURRENT DISCOVERIES 2024 Exploration Program Results 6,000 • Three prospects drilled to date: 5,000 o Osterheide (100% WI) – tested at 17 mmcf/d(1), currently on BOE/D ( NET)(4) 4,000 production at 1,000 boe/d o Wisselshorst (64% WI) – teste
Slide 18: Wisselshorst Exploration Upside
WISSELSHORST EXPLORATION UPSIDE • Wisselshorst is the largest structure Vermilion has discovered in Europe o Estimated to contain 380 Bcf gas in place (240 Bcf net)(1) • Identified up to 6 follow-up Discovery well locations offsetting discovery well(2) 2P reserves 68 Bcf (44 Bcf net)(3) • Potential
Slide 19: Capital Allocation
CAPITAL ALLOCATION 19 19
Slide 20: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Provide Target long-term Maintain Strong Maintain Robust Compounding value-add acquisition Balance Sheet Asset Base Shareholder Returns opportunities Rolling 10+ year Sustainable base dividend Focus on increased Targeting net debt to FFO development plan supplemented by
Slide 21: Financial Liquidity
FINANCIAL LIQUIDITY HISTORICAL NET DEBT TO FFO CURRENT CREDIT CAPACITY(2) 4.0x 3.5x $575MM 3.0x Available Liquidity NET DEBT TO FFO RATIO(1) of $1,021MM 2.5x $575MM 2.0x Committed to returning to 1.5x 1.0x leverage $329MM $445MM 1.0x 0.5x Undrawn Capacity on Revolving Credit Facility ("RCF") 0.0x RC
Slide 22: FFO Generation
FFO GENERATION NET DEBT VS FFO(1) $1,500 150 117 – 122 mboe/d $1,250 125 PRODUCTION (‘000 BOE/D) $1,000 100 $MM $750 75 $500 50 $250 25 $0 0 2023 2024 2025e Net Debt to Trailing FFO 0.9x 0.8x 1.3x FFO ($/basic share) $ 6.98 $ 7.63 ~$ 6.50 Unhedged FFO ($/basic share) $ 6.05 $ 5.61 ~$ 6.00 WTI (US$/b
Slide 23: Strong Hedge Position
STRONG HEDGE POSITION 2025 2026 PERCENTAGE OF PRODUCTION HEDGED (%)(1) PERCENTAGE OF PRODUCTION HEDGED (%)(1) 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Crude Oil European N.A. Corporate Crude Oil European N.A. Corporate Natural Gas Natural Gas Total Natu
Slide 24: Compounding Return of Capital
COMPOUNDING RETURN OF CAPITAL ANNUAL DIVIDEND PER SHARE VS. SHARE COUNT $0.80 165 SHARES OUTSTANDING (MM) DIVIDENDS PER SHARE $0.60 160 $0.40 155 $0.20 150 $0.00 145 2022 2023 2024 2025e Annualized Dividend per Share Share Count Decreasing share count contributes to ratable dividend increases and va
Slide 25: Global Gas Producer Advantage
GLOBAL GAS PRODUCER ADVANTAGE 25
Slide 26: Advantages of Global Gas
ADVANTAGES OF GLOBAL GAS Q1 2025 PF REALIZED NATURAL GAS PRICE(1) $6 TOP DECILE REALIZED PRICES REALIZED NAT. GAS PRICE ($/MCF) $5 $4 AVERAGE (EXCL VET) = $3.24 DIRECT EXPOSURE TO PREMIUM PRICING $3 $2 OPPORTUNITY TO ACQUIRE EURO GAS ASSETS $1 $0 VET Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer
Slide 27: European Gas Operating Netbacks
EUROPEAN GAS OPERATING NETBACKS VERMILION 2025E OPERATING NETBACK $100 $80 $60 $/ BOE* $40 $20 $0 Ireland Netherlands Croatia Germany European gas assets generate strong netbacks due to direct exposure to premium pricing * Source: Based on company 2025 estimates and 2025 full year average reference
Slide 28: European Gas Price Advantage
EUROPEAN GAS PRICE ADVANTAGE HISTORICAL AND FORWARD PRICING OF EUROPEAN GAS $60 $50 Euro Gas 2025 2026 TTF GAS PRICES (C$/MMBTU) % Hedged 54% 51% $40 Average Floor $18 $14 $30 $20 $10 $0 2017 2018 2019 2020 2021 2022 2023 2024 2025e* 2026e* European natural gas prices trade at a significant premium
Slide 29: European Gas Fundamentals
EUROPEAN GAS FUNDAMENTALS EUROPEAN SUPPLY/DEMAND BALANCE HISTORY** • Europe* 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 ~12
Slide 30: Canadian Gas Fundamentals
CANADIAN GAS FUNDAMENTALS West Coast Canadian LNG(1) North American Power Demand • Natural gas demand for Canadian LNG is expected to • Increased power associated with datacenter development increase notably by end of decade (>6.0 bcf/d) is underpinning long-term natural gas demand o Strong momentum
Slide 31: Gas Marketing Summary
GAS MARKETING SUMMARY GAS PRODUCTION BY REGION(1) NATURAL GAS PRICE EXPOSURE(2) Europe Europe 23% 23% AECO 34% Alliance 7% North America 77% N.A. Hedges 36% AECO N.A. HEDGES ALLIANCE EUROPE (TTF/THE/NBP) Global gas diversification balances gas exposure and improves netbacks (1) Based on company 2025
Slide 32: North American Liquids-Rich Gas Advantage
NORTH AMERICAN LIQUIDS-RICH GAS ADVANTAGE REALIZED PRICING (DEEP BASIN + MONTNEY) $60 • Vermilion’s liquids-rich gas assets offer Over the past decade, Vermilion’s Deep Basin and Montney assets significantly higher realized price and $50 have realized pricing more than double the average AECO price
Slide 33: Asset Overview
ASSET OVERVIEW 33
Slide 34: Canada
CANADA CANADA • Q1 2025 production = 69,721 boe/d (38% liquids) • Q1 2025 PF production = 104,236 boe/d (33% liquids) MONTNEY DEEP BASIN • Targeting liquids-rich gas in the • Targeting light oil and Peace River Arch straddling the condensate-rich natural gas AB and BC border • ~1.1 million net acres
Slide 35: European Gas
EUROPEAN GAS IRELAND GERMANY • 56.5% operated interest in the Corrib • ~700,000 net acres of undeveloped land Natural Gas Project • Q1 2025 production = 5,020 boe/d • Corrib represents 100% of Ireland’s (69% gas) domestic gas production • Q1 2025 production = 8,820 boe/d (100% gas) NETHERLANDS CROAT
Slide 36: 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 2025 production = 6,810 boe/d (100% oil) AUSTRALIA • 100% operated interest in Wandoo, an offshore oil field approximately 80 km N.
Slide 37: ESG & Sustainability
ESG & SUSTAINABILITY 37
Slide 38: Environment, Social and Governance
ENVIRONMENT, SOCIAL AND GOVERNANCE EMISSIONS INTENSITY TREND Vermilion’s Purpose: 0.030 Scope 1&2 tCO2e per BOE To responsibly produce essential energy 0.025 while delivering long-term value to our people, shareholders, customers, partners 0.020 and communities 0.015 2019 2020 2021 2022 2023 • Reduc
Slide 39: Reduced Well Count
REDUCED WELL COUNT TOTAL WELL COUNT 6,000 5,000 • Total well count has been reduced by 50% since 2022 through asset high-grading and WELL COUNT (NET)(1) 4,000 asset retirement obligation expenditures • Average production per well has more than 3,000 doubled since 2022 2,000 • Annual ARO spend of $50
Slide 40: Sustainability Projects
SUSTAINABILITY PROJECTS Advancing environmental projects in communities where we live and work PARENTIS SUSTAINABILITY PARTNERSHIP LA TESTE ECO-NEIGHBOURHOOD • Our oil operations provide 40 GWh of • Our oil operations provide 1.2 GWh of geothermal energy annually to a tomato geothermal energy to an
Slide 41: Summary
SUMMARY Global gas producer with 30 years operating in Europe and North America Diversified portfolio delivers outsized FCF(1) through direct exposure to global commodity prices and enhanced capital allocation optionality Robust asset base combining low-decline conventional assets with long-life gro
Slide 42: Appendix
APPENDIX 42
Slide 43: Pricing and FFO Sensitivity
PRICING AND FFO SENSITIVITY COMMODITY PRICES(1) 2025e 2025 ANNUAL FFO SENSITIVITY (C$MM)(2) FFO Impact FFO Impact Change TTF ($/mmbtu) $18.01 (Hedged) (Unhedged) NBP ($/mmbtu) $17.81 TTF & NBP $1.00/mmbtu $14MM $32MM AECO ($/mcf) $ 2.23 NA Gas Prices $0.25/mmbtu $22MM $34MM Henry Hub (US$/mmbtu) $ 3
Slide 44: Updated Budget and Guidance
UPDATED BUDGET AND GUIDANCE CATEGORY 2025 GUIDANCE(1) 2025 DRILLING PROGRAM WELL COUNT Production (boe/d) 117,000 - 122,000 Germany 5 gross (5.0 net) % Natural gas 65% Netherlands 2 gross (1.2 net) E&D capital expenditures ($MM) $630 - 660 Croatia 1 gross (1.0 net) Royalty rate (% of sales) 8 - 10%
Slide 45: Reserves Growth
RESERVES GROWTH PDP RESERVES 2P RESERVES DECEMBER 31, 2024 DECEMBER 31, 2024 400 800 350 700 300 600 250 500 MMBOE MMBOE 200 400 150 300 100 200 50 100 - - Reported Westbrick SE Sask/USA Pro Forma Reported Westbrick SE Sask/USA Pro Forma Reserves* Acquisition** Divestment* Reserves Reserves* Acquisi
Slide 46: 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 gas liquids, and natural gas prices, foreign currency exchange rates, interest rates and inflation; health, safety, and environmental risks; solicita