Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Corporate Update (January 2023)
10 slides from Vermilion Energy's corporate update, Jan 6, 2023
Slide 1: Vermilion Energy 2023 Budget Conference Call
January 6, 2023 VERMILION ENERGY 2023 BUDGET CONFERENCE CALL INTERNATIONALLY DIVERSIFIED | FREE CASH FLOW FOCUSED | ESG LEADERSHIP
Slide 2: 2023 Budget and Guidance
2023 BUDGET AND GUIDANCE E&D CAPITAL BUDGET AND PRODUCTION GUIDANCE ► E&D capital budget of $570 million $600 100,000 o North America - $340 million (+1% vs. 2022) $500 95,000 o International - $230 million (+7% vs. 2022) $400 90,000 Production (boe/d) ► Production guidance of 87,000 to 91,000 boe/d
Slide 3: Production Guidance Reconciliation
PRODUCTION GUIDANCE RECONCILIATION Optimize long-term development plans, No financial focus on BC in Defers Expect start-up impact as FCF 2024 production and in late 2023 or accrues to VET FFO to 2024 early 2024 3
Slide 4: Montney Asset Optimization
MONTNEY ASSET OPTIMIZATION ► Received three permits on BC lands, including one of the permits to construct a 16,000 boe/d battery ► Will optimize capital allocation by deferring AB investment and focusing on BC to enhance return 4-3 Battery on capital 8-33 Battery ► Recently signed agreements to acq
Slide 5: Montney Production Update
MONTNEY PRODUCTION UPDATE ► First 6-well Montney pad in Alberta brought on MONTNEY PRODUCTION PROFILE production mid-to-late November 30,000 ► Initial results validate long-term development plans 25,000 of 28,000 boe/d target production for 20+ years 20,000 ► Montney production averaged 7,500 boe/d
Slide 6: Free Cash Flow
FREE CASH FLOW FREE CASH FLOW (2022-2024) 2,000 Cumulative FCF - $3.1 Billion (Market Cap - $3.3 Billion**) 1,500 $MM 1,000 $20 TTF 500 - 2022E 2023E 2024E WTI (US$/bbl) $94.23 $79.20 $74.04 AECO ($/GJ) $ 5.27 $ 3.73 $ 3.71 TTF ($/mmbtu) $48.99 $35.14 $33.46 FCF (net of WFT)* WFT Hedge Loss * Based
Slide 7: Commodity Hedge Position
COMMODITY HEDGE POSITION 2023 2024 100% 100% PERCENTAGE OF PRODUCTION HEDGED (%)* PERCENTAGE OF PRODUCTION HEDGED (%)* 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 Natur
Slide 8: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES PROVIDE RESILIENT INCREASE RETURN MAINTAIN STRONG MAINTAIN ROBUST AND INCREASING OF CAPITAL AS DEBT BALANCE SHEET ASSET BASE BASE DIVIDEND DECREASES Target net debt to trailing Rolling 10-year plan of Ratable increases up to NCIB approval to FFO ratio of 1.0x or less st
Slide 9: Summary
SUMMARY ► 2023 Capital Budget of $570 million expected to deliver average production of 87,000 – 91,000 boe/d ► Obtained Irish government approval for the Corrib Acquisition and expect to close by March 31, 2023 ► Forecast 2023 FCF of ~$800 million at current strip prices net of temporary windfall t
Slide 10: 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, securities of Vermilion. This presentation and its contents should not be construed, under any circumstances, as inv