Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Q3 2018 Earnings Presentation
13 slides from Vermilion Energy's earnings presentation, Oct 25, 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 YTO capital expenditures of $355MM by business unit 2018 YTD production of 82,433 boeld by business unit Australia: 9% Australia 6% Germany: 3% Ireland: 11% Netheriands: 4% Germany: 4% France: 18% Nethertands: 9% Canada: 65% Canada: 54% France: 14% United States: 11% United States: 2% 2018 YTD
Slide 3: Net loss for Q3 2018
• We recorded a net loss for Q3 2018 of $15.1 million ($0.10/basic share) compared to a net loss of $61.4 million ($0.46/basic share) in Q2 2018. The net loss in Q3 2018 primarily resulted from a $75.8 million unrealized loss on derivative instruments and a $23.0 million unrealized loss on foreign e
Slide 4: Fund flows from operations in Q3 2018
• Generated fund flows from operations of $260.7 million during Q3 2018, an increase of 34% from Q2 2018. This quarter-over-quarter increase was due to a full quarter of contribution from Spartan Energy Corp. ("Spartan") following the Q2 2018 acquisition and stronger European natural gas and North A
Slide 5: Net loss Q3 2018 vs. Q3 2017
• We recorded a net loss for Q3 2018 of $15.1 million ($0.10/basic share) compared to a net loss of $39.2 million ($0.32/basic share) in Q3 2017 . This net loss occurred despite a doubling in fund flows from operations due to unrealized losses on derivatives and foreign exchange (approximately $68.8
Slide 6: 99% increase in fund flows from Q3 2017 to Q3 2018
99% increase in fund flows from operations from Q3 2017 to Q3 2018 9928 $2607 “Other” contains general and administration, corpotate income taxes, interest, realized FX, and realized other
Slide 7: Nine months ended September 30, 2018 net loss
• For the nine months ended September 30, 2018, the net loss of $51.7 million compared to net earnings of $53.6 million for the comparative year-to-date period in the prior year. The net loss primarily resulted from an unrealized loss on derivative instruments of $163.8 million (compared to an unrea
Slide 8: Fund flows from operations increased 46% for nine months
• Fund flows from operations increased 46% for the nine months ended September 30, 2018 versus the comparable period in the prior year due to higher realized pricing and increased sales volumes. Our consolidated realized price increased by 26% from $43.27/boe to $54.64/boe due to an increase in our
Slide 9: Capital expenditures, sustainability review and dividends
• For the three months ended September 30, 2018, capital expenditures of $146.2 million primarily related to activity in Canada, Australia, and France. In Canada, capital expenditures of $89.8 million included the drilling of 65.0 (59.0 net) wells, primarily in southeast Saskatchewan. In Australia,
Slide 10: Crude oil price volatility in Q3 2018
• Although largely unchanged for the three months ending September 30, 2018 compared to the second quarter of 2018, crude oil prices were volatile during Q3 2018, with prices falling throughout the first half of the quarter before rallying higher into the second half of the quarter. The primary driv
Slide 11: European natural gas prices increased significantly
• European natural gas prices increased significantly in Q3 2018 versus all comparable periods, rising to multi-year highs as increasingly favourable supply and demand conditions were driven by growing competition from Asia for LNG supply, strong demand from storage, surging carbon prices in the Eur
Slide 12: Canadian dollar against US dollar and Euro
• In the three months ended September 30, 2018, the Canadian dollar weakened slightly against the US dollar quarter-over-quarter. • Despite the Canadian dollar weakening against the US dollar in Q3 2018, the Canadian dollar strengthened slightly against the Euro as compared to Q2 2018. Vermilion Ene
Slide 13: Values and contact information
EXCELLENCE ‘We aim for exceptional results In everything we do. TRUST ‘At Vermilion, we operate with honesty. and falrness, and can be counted on to cdo what we say we will. RESPECT We embrace diversity, value our people and belleve every employee and business assoclate worldwide deserves to be trea