Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Investor Presentation (May 2020)
75 slides from Vermilion Energy's investor presentation, May 2020
Slide 1: Internationally Diversified, Free Cash Flow Focused, ESG Leadership
INTERNATIONALLY DIVERSIFIED FREE CASH FLOW FOCUSED ESG LEADERSHIP MAY 2020
Slide 2: Vermilion's Key Attributes
VERMILION’S KEY ATTRIBUTES ► International E&P with leading positions in Europe, North America and Australia ► Free cash flow-oriented model ► Excess cash generation currently directed toward debt reduction ► Conventional and semi-conventional project slate that delivers high margins, low decline ra
Slide 3: Capital Markets Summary
CAPITAL MARKETS SUMMARY Market Summary Trading Price (April 27, 2020) $5.23 (TSX), $3.73 (NYSE) Ticker Symbol (TSX & NYSE) VET Shares Outstanding (March 31, 2020) 157.0 million Average Daily Trading Volume (shares) 2.0 million (TSX), 1.3 million (NYSE) Monthly Dividend Currently Suspended Trailing T
Slide 4: Core Operating Areas
CORE OPERATING AREAS 2020E PRODUCTION* EUR 29% N.A. 66% AUS 5% EUR 32% N.A. FFO* 55% AUS 13% VERMILION IS FOCUSED IN THREE STABLE REGIONS * Company 2020 estimates as at April 22, 2020. 2020E assumes WTI price reflecting 4 months of strip, then US$30/bbl flat through the remainder of the year. Brent
Slide 5: Vermilion History
VERMILION HISTORY Launched as an Alberta-based oil & gas exploration and production company Converted to Vermilion Energy Trust Issued senior IPO in April 1994 at $0.30 per share unsecured notes in US Converted from an income Listed High Yield market trust structure to a corporation on the NYSE 1994
Slide 6: Strategy
STRATEGY ► Free cash flow-oriented model, currently directed toward debt reduction Capital Markets Model ► Cost reductions and inventory improvements allow us to execute our model in a lower-for-longer commodity price environment ► Industry-leading sustainability and ESG performance ► High rate-of-r
Slide 7: Environmental Sustainability
ENVIRONMENTAL SUSTAINABILITY ► We recognize the energy transition is occurring, and we ► Vermilion has been consistently recognized for are playing a meaningful role outstanding sustainability performance ► At the same time, we are realistic that oil and gas consumption ► CDP (formerly Carbon Disclo
Slide 8: Production and Capex
PRODUCTION AND CAPEX ANNUAL PRODUCTION VS E&D CAPITAL EXPENDITURES 120 800 105 12% CAGR 700 90 600 MBOE / D 75 500 $ MM 60 400 45 6% CAGR 300 30 200 15 100 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E* E&D CAPEX / $3,400 $2,700 $4,500 $5,000 $5,600 $
Slide 9: Production and Reserves per Share
PRODUCTION AND RESERVES PER SHARE PRODUCTION PER SHARE RESERVES PER SHARE 250 3.5 6% CAGR 3.0 2P RESERVES (BOE) PER SHARE** 200 10% CAGR BOE PER THOUSAND SHARES 2.5 150 2.0 1.5 100 1.0 50 0.5 0 0.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E* 2003 2004
Slide 10: E&D Capital Budget
E&D CAPITAL BUDGET Capital Expenditures by Country 2014 Actuals 2015 Actuals 2016 Actuals 2017 Actuals 2018 Actuals 2019 Actuals 2020 Budget* ($MM) ($MM) ($MM) ($MM) ($MM) ($MM) ($MM) Canada 336 202 62 149 278 294 190 France 148 92 69 73 80 75 51 Netherlands 62 47 24 31 17 24 12 Germany 3 5 4 9 16 2
Slide 11: FFO / FCF
FFO / FCF FFO FCF (CORPORATE ERA) $1,000 $500 $800 $400 FFO LESS E&D CAPEX* ($MM) $300 FFO ($MM) $600 $200 $400 $100 $200 $0 $0 -$100 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E* 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E* LONG-TERM FFO AND
Slide 12: FFO Sensitivity
FFO SENSITIVITY 2020 FORECAST FFO (C$MM)* COMMODITY ASSUMPTIONS** WTI (US$/BBL) 2020E 25 30 35 40 45 50 TTF (C$/MMBTU) Brent (US$/bbl) $35.25 3.50 338 410 480 546 607 661 WTI (US$/bbl) $32.98 4.50 362 432 502 568 628 682 LSB = WTI less (US$/bbl)*** $6.00 5.50 379 451 519 586 645 700 MSW = WTI less (
Slide 13: Sustainable Economic Model
SUSTAINABLE ECONOMIC MODEL 13
Slide 14: Dividend History
DIVIDEND HISTORY $0.25 $0.23 $0.215 $0.20 $0.20 $0.19 $0.17 MONTHLY DIVIDENDS $0.15 $0.115 FOR MARCH 2020 $0.10 $0.05 CURRENTLY SUSPENDED AS OF APRIL 2020 $0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 TRUST DISTRIBUTIONS CORPORATE DIVIDENDS CUMULATIVE DIV
Slide 15: Total Payout Ratio
TOTAL PAYOUT RATIO 200% MONTHLY DIVIDEND 175% CURRENTLY SUSPENDED 150% TOTAL EXPENDITURES / FFO* 125% 100% 75% 50% 25% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E 2020E Pro Cash Dividends DRIP + PDRIP E&D Capex Forma ► E&D Capex includes both sustain
Slide 16: Elements of Sustainable Model
ELEMENTS OF SUSTAINABLE MODEL SELF-FUNDED GROWTH-AND-INCOME MODEL 1. High Margins 2. Low Base Production Decline Rates 3. Strong Capital Efficiencies Profitability on a per boe basis Required production replacement before growth Cost per boe/d to replace and grow production ► High margins provide in
Slide 17: Netbacks
NETBACKS Q1 2020 Netbacks by Country Total Canada France Netherlands Germany Ireland Australia United States ($/BOE*) Company** Sales $28.60 $61.08 $26.45 $34.70 $28.03 $96.66 $37.12 $36.35 Royalties (3.08) (9.72) (0.19) (3.12) - - (9.42) (3.45) Operating Cost (11.85) (17.10) (12.03) (16.28) (6.71)
Slide 18: Elements of Sustainable Model: Netbacks and Capital Efficiencies
ELEMENTS OF SUSTAINABLE MODEL 2020E FIELD NETBACKS* (EXCLUDING HEDGING)** 2018 CAPITAL EFFICIENCIES (ALL-IN) EXCLUDING A&D* $40 $40,000 $30 $30,000 $ / BOED $ / BOE $20 $20,000 $10 $10,000 $0 $0 OBE BNE VII AAV ARX PMT POU WCP KEL ERF BNP ECA SGY CPG DEE TOG FRU NVA BTE TOU PONY BXE OBE CR BIR CJ PS
Slide 19: Drilling Projects
DRILLING PROJECTS Economics at US$55 WTI DCET 2020E Net IP365 EUR Prod. Efficiency Net Well Investment Well Cost (BOE/D) (MBOE) (IP365 $/BOED) ATAX Recycle ATAX Payout Inventory* Wells (C$M) ROR Ratio (Years) Planned European Gas Netherlands Exploration & Development $10.4 1,250 1,780 $8,300 >100% 8
Slide 20: Cost Reduction
COST REDUCTION OPERATING EFFICIENCY ORGANIC CAPITAL EFFICIENCY 14.00 8% Reduction 40.00 (31% in USD) 12.00 35.00 72% Reduction 30.00 (79% in USD) 10.00 24% Reduction 25.00 8.00 from 2014 Peak $ / BOE $ / BOE (37% in USD) 20.00 6.00 52% Reduction 15% Reduction from 2014 Peak 15.00 from 2014 Peak (60%
Slide 21: Relative PDP Recycle Ratio
RELATIVE PDP RECYCLE RATIO 3-YEAR PROVED DEVELOPED PRODUCING (PDP) FD&A RECYCLE RATIOS* 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x YGR VET ARX ERF BIR PEY PONY WCP CR NVA TOG BNP CPG TOU VII BTE GXE KEL TVE DEE PNE OBE POU TOP RECYCLE RATIOS AMONGST CANADIAN INDEPENDENT E&P COMPANIES * AltaCorp Capital research,
Slide 22: Reserves / Resources
RESERVES / RESOURCES 22
Slide 23: Reserves and Resource Base
RESERVES AND RESOURCE BASE RESERVES* 2019 RESOURCES* 550 RESOURCE CONVERSIONS 400 CONTINGENT PROSPECTIVE 500 (MBOE) (MBOE) 2014 20,400 2,500 450 2015 17,500 500 300 400 2016 5,450 - 2017 20,456 1,734 350 2018 17,000 - 2019 31,800 5,000 MMBOE 300 200 MMBOE 250 200 150 100 100 50 0 0 2003 2004 2005 20
Slide 24: Recycle Ratio
RECYCLE RATIO Including FDC RECYCLE RATIO (F&D incl. FDC) 2019 F&D / FD&A Costs* ($/BOE) 6.0x F&D (E&D CAPEX) $9.93 5.0x FD&A (Total CAPEX, 2017-2019 $9.85 3 Yr Avg – 3.2x including acquisitions) 4.0x F&D Operating Recycle Ratio 3.0x 3.0x ► 14.0 year Proved + Probable reserve life 2.0x index** 1.0x
Slide 25: International Diversification
INTERNATIONAL DIVERSIFICATION 25
Slide 26: Organizational Model
ORGANIZATIONAL MODEL ► Vermilion uses a decentralized business unit structure to manage our diverse global portfolio ► Country-based business units are grouped into three regions: Vermilion Energy Inc. Europe, North America and Australia (Calgary Corporate HQ) ► Each business unit has integrated eng
Slide 27: Commodity Mix
COMMODITY MIX PRODUCTION (2020E)* ESTIMATED FFO CONTRIBUTION (2020E)* France Australia Germany France Australia 10% United 13% 3% Ireland 10% Germany 5% 6% States United 5% 1% Netherlands Ireland States 9% 12% 8% OIL (BRENT) OIL (BRENT) 16% 23% EUROPEAN GAS 18% OIL / EUROPEAN GAS OIL / CONDENSATE /
Slide 28: Global Crude Oil Pricing Advantage
GLOBAL CRUDE OIL PRICING ADVANTAGE ► Approximately 34% of Vermilion’s crude oil production is priced with reference to Dated Brent* Q1 2020 VET ► Vermilion’s Australian crude was sold at an average premium of 2020E VET Benchmark Premium / US$6 to Dated Brent in 2019 Oil Price Benchmark Crude Oil Mix
Slide 29: European Natural Gas Pricing
EUROPEAN NATURAL GAS PRICING NATURAL GAS* $12 ► Futures markets continue to reflect a significant premium for European USGC LNG GAS PRICE (C$/MMBTU) natural gas versus AECO and Henry Hub $10 COST TO EUROPE** FULL-CYCLE $8 COAL FLOOR*** ► Realized prices are influenced by a number of factors, includi
Slide 30: European Natural Gas – Long Term Outlook
EUROPEAN NATURAL GAS – LONG TERM OUTLOOK ► Declining European domestic production results in higher dependence on Global Gas Trade to 2040: European Import Dependence Grows imports Net imports (bcf/d) As % share of demand ► Groningen production is expected to be 1.25 bcf/d in 2020, and phased 2017 2
Slide 31: Risk Management / Balance Sheet
RISK MANAGEMENT / BALANCE SHEET 31
Slide 32: Annual Commodity Hedge Position
ANNUAL COMMODITY HEDGE POSITION Full Year 2020 Full Year 2021 WTI Percent of Production Hedged 46%** 0% Average Floor / Ceiling / Swap ($/bbl) $66.53 / $72.59 / $56.63 -/-/- Brent Percent of Production Hedged 47% -% Average Floor / Ceiling / Swap ($/bbl) $63.81 / $71.68 / $62.56*** -/-/- Total Oil –
Slide 33: Quarterly Commodity Hedge Position
QUARTERLY COMMODITY HEDGE POSITION OIL HEDGES NATURAL GAS HEDGES ($/bbl) ($/mmbtu) European Gas North American Gas Swaps Q1 2020 $79.45 $73.74- $82.14 Swaps Q1 2020 $7.75-$9.09 Q1 2020 $1.49 $1.32-$2.67 Collars $83.59- Collars $90.50 $41.59 HH Basis $60.69- $65.52- Q2 2020 $39.52 Swaps $65.92 $72.81
Slide 34: Conservative Balance Sheet
CONSERVATIVE BALANCE SHEET CURRENT CREDIT CAPACITY C$2.5 BILLION 4-Year Covenant-based Credit Facility Covenant YE 2019 Q1 2020 Financial Covenants (UP TO C$2.9 BILLION WITH ACCORDION) Total debt / Consolidated EBITDA* Less than 4.0 1.94 2.19 AS AT MARCH 31, 2020 Senior debt / Consolidated EBITDA* L
Slide 35: Credit Metrics
CREDIT METRICS Credit Metrics 2014 2015 2016 2017 2018 2019 Q1 2020 LEVERAGE RATIOS* Credit Facility ($MM) 1,500 2,000 2,000 1,400 1,800 2,100 2,1005 4.0x Drawn 1,014 1,163 1,362 900 1,392 1,539 1,573 Undrawn 486 837 638 500 408 561 527 Accordion Capacity 250 - - 600 400 400 400 3.0x Subordinated De
Slide 36: Relative Credit Metrics
RELATIVE CREDIT METRICS INTEREST COVERAGE RATIO* EFFECTIVE INTEREST RATE** 25.0x 8.0% Q4 2019 TTM INT. COVERAGE (x) 20.0x Q4 2019 EFF. INT. RATE (%) 6.0% VET CURRENT WTD. 15.0x AVG. COST OF DEBT VET COVENANT 2.5x 4.0% 10.0x 2.0% 5.0x 0.0x 0.0% VET KEL CPG BTE NVA PEY ERF BIR MEG TOU WCP TOG ARX GTE
Slide 37: High Yield Notes Performance
USD NOTES HIGH YIELD NOTES PERFORMANCE US HY E&P Energy Index Current Yield-to-Worst: 27.28% 30% Volatility: 0.48 Beta (VET Sr. Notes): 0.82 25% YIELD-TO-WORST (%) 20% VET 5.625% Senior Notes Current Yield-to-Worst: 15.31% 15% Volatility: 0.50 US HY BMI Index 10% Current Yield-to-Worst: 9.24% Volati
Slide 38: European Assets
EUROPEAN ASSETS 38
Slide 39: European Core Area
EUROPEAN CORE AREA NETHERLANDS GERMANY ► #2 onshore gas producer ► Establishing production operations and IRELAND ► Large and growing inventory of drilling opportunities substantial exploratory land position in ► Corrib field constitutes ~90% of ► 1P / 2P Reserves: 11.1 / 21.0 mmboe the North German
Slide 40: European Production
EUROPEAN PRODUCTION 35,000 30,000 25,000 20,000 BOE/D 15,000 10,000 5,000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016 2017 2018 2019 2020E E&D CAPEX AS % OF FFO** n/a 43% 51% 101% 45% 73% 111% 56% 23% 46% 26% 86% 84% 65% 43% 71% 93% 70% 31%
Slide 41: France
FRANCE ► Entered France in 1997 PARIS PARIS BASIN ► Assets characterized by large OOIP conventional fields with high working interest (OOIP in 5 largest fields >1.7 billion barrels of oil) FRANCE ► Brent indexed production base with low base decline rate BORDEAUX ► Workover, infill drilling and seco
Slide 42: France Operating Performance
FRANCE OPERATING PERFORMANCE VALUE CREATION (2P RESERVES)* MMBOE Acquired Reserves Initial acquisition (1997) 22.6 14,000 2006 Acquisition 15.0 2012 Acquisition #1 6.7 2006 ACQUISITION 2012 Acquisition #2 6.3 15.0 MMBOE (2P) 12,000 3,900 BOE/D Total Acquired Reserves 50.6 PRODUCTION (BOE/D) Producti
Slide 43: Netherlands
NETHERLANDS HARLINGEN ► Entered Netherlands in 2004 and currently the second- largest onshore gas producer ► Strong gas price, favorable fiscal regime, and low AMSTERDAM OPEX enhance netbacks NETHERLANDS ► High impact natural gas drilling and development ► We have drilled 14 high-rate extension and
Slide 44: Netherlands Operating Performance
NETHERLANDS OPERATING PERFORMANCE VALUE CREATION (2P RESERVES)* MMBOE Acquired Reserves Initial acquisition (2004) 16.5 2013 Acquisition 2.3 14,000 2016 Acquisition (Drenthe WI) 0.6 2013 ACQUISITION Total Acquired Reserves 19.4 2.3 MMBOE (2P) INITIAL ACQUISITION 12,000 600 BOE/D 16.5 MMBOE (2P) PROD
Slide 45: Netherlands 3D Seismic
NETHERLANDS 3D SEISMIC Legacy 2D Line Q4 2017 SEISMIC ACQUISITION ► 310 km2 of new 3D seismic acquired in late 2017 in two concessions near Vermilion’s core operating area in the Netherlands ► This new survey has been merged with older data to complete a continuous 3D seismic set over 2,400 km2 Impr
Slide 46: Role of Domestic Gas in the Netherlands
ROLE OF DOMESTIC GAS IN THE NETHERLANDS ► Production induced seismicity in the Groningen field, including 3.6/3.4 magnitude earthquakes NETHERLANDS SUPPLY AND DEMAND* in 2012/2018, has raised public concern regarding overall gas extraction in the Netherlands 3,000 ► Groningen (largest gas field in E
Slide 47: Germany
GERMANY Initial Non-Operated ► Germany is the largest gas market in Europe, with a long history of oil and Acquisition natural gas development and a consistent fiscal framework Farm-In Agreement Bedekaspel License HANNOVER Awarded Licenses ► Since initial entry with a non-operated interest in 2014,
Slide 48: Ireland
IRELAND OVERVIEW ► Vermilion holds a 20% operated interest in the Corrib gas field, offshore Ireland ► Corrib field constitutes ~90% of Ireland’s gas production ASSET CHARACTERISTICS ► Pricing indexed to National Balancing Point (NBP) (UK) ► No royalties, low OPEX and minimal ongoing CAPEX translate
Slide 49: Central and Eastern Europe (CEE)
CENTRAL AND EASTERN EUROPE (CEE) EXTENSION OF EUROPEAN GROWTH STRATEGY ► Under-invested basin, prospective for both oil and gas, that can benefit from new technology ► Modest back-loaded capital commitments HUNGARY ► Awarded South Battonya and Ebes concessions in 2014/15 covering over 334,000 acres
Slide 50: North American Assets
NORTH AMERICAN ASSETS 50
Slide 51: Robust Returns Amongst North American Projects
ATAX IRR (%) 20% 40% 60% 80% 0% 100% Ellerslie Frobisher/Alida Marten Hills Montney Montney Montney Eagle Ford Eagle Ford Condy Marcellus Viking Montney Cantuar Mannville Ellerslie Charlie Lake Montney Upper Mannville Frobisher / Alida SE SK Unfracked Dunvegan Montney Upper Mannville Montney Montney
Slide 52: North American Production
NORTH AMERICAN PRODUCTION 70,000 60,000 50,000 40,000 BOE/D 30,000 20,000 10,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E E&D CAPEX AS % OF FFO* 21% 36% 67% 58% 31% 76% 247% 225% 165% 101% 92% 127% 57% 74% 80% 72% 96% Canada United States 2020 CAPEX PRO
Slide 53: Canada
CANADA ► Production and assets are focused in West Central Alberta and SE Saskatchewan ► In West Pembina, potential for three significant development projects with a land position of over 400,000 net acres sharing surface infrastructure ► Mannville (2,400 – 2,700m depth) ► Cardium (1,800m depth) ► D
Slide 54: Mannville
ALBERTA NOTIKEWIN Industry Mannville Horizontals Key Oil Battery ► 437 net sections (280,000 acres) of Mannville rights, Key Gas Plant Key Compressor largely held by production VET Gas Pipeline ► 75 net West Pembina (Lower Mannville / Ellerslie) UPPER wells drilled with an average production rate pe
Slide 55: Lower Mannville (Ellerslie) / Upper Mannville
LOWER MANNVILLE (ELLERSLIE) / UPPER MANNVILLE (NOTIKEWIN / FALHER) LOWER MANNVILLE WELL PERFORMANCE* UPPER MANNVILLE WELL PERFORMANCE* 2,000 3,000 Upper Mannville (Ferrier) Lower Mannville (Ellerslie) 2,500 1,600 Type Curve Type Curve 2,000 1,200 BOE/D BOE/D 1,500 800 1,000 400 500 0 0 1 2 3 4 5 6 7
Slide 56: SE Saskatchewan Land Position
SE SASKATCHEWAN LAND POSITION MISSISSIPPIAN ► Entered SE Saskatchewan in 2014, and expanded position with acquisition of Spartan Energy in 2018 ► Land base covers over 500,000 net acres DEVONIAN with approximately 85% working interest TORQUAY / THREE FORKS ► Identified over 1,600 net drilling locati
Slide 57: Frac Midale / Open Hole Frobisher
FRAC MIDALE / OPEN HOLE FROBISHER FRAC MIDALE WELL PERFORMANCE OPEN HOLE FROBISHER WELL PERFORMANCE 400 400 Frac Midale Type Curve Open Hole Frobisher Type Curve 300 300 BBL/D BBL/D 200 200 100 100 0 0 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 MONTH ON PRODUCTION MONTHS ON PRODUCTION FRA
Slide 58: United States – Wyoming Development
UNITED STATES – WYOMING DEVELOPMENT PRB STRAT COLUMN Entered U.S. in 2014 Lance Fm ► Fox Hills Fm ► Early stage light oil growth project in the Powder River Basin of Lewis Shale Teckla SS Mesaverde northeastern Wyoming Fm Teapot SS ► Large, operated contiguous land position (144,600 net acres at Par
Slide 59: Hilight / East Finn
HILIGHT / EAST FINN HILIGHT TURNER HZ PRODUCTION PROFILES* EAST FINN TURNER SAND WELL PERFORMANCE 1,000 500 OIL PRODUCTION (BOPD) OIL PRODUCTION (BOPD) 800 Hilight ESP Type Curve 400 Turner Hz 275 MBO Type Curve 600 300 400 200 200 100 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 0 2 4 6 8 10 12 MONTHS ON PRODU
Slide 60: Australian Assets
AUSTRALIAN ASSETS 60
Slide 61: Australia
AUSTRALIA ► Entered Australia in 2005 ► Offshore oil field ~80 km N.W. of Australia (55m water depth) ► Horizontal well development with 20 wellbores, WANDOO five dual laterals and 10 additional drilling opportunities identified** AUSTRALIA ► Wells 600m below sea bed with 1,500 - 3,700m measured dep
Slide 62: Australia Production
AUSTRALIA PRODUCTION 12,000 10,000 8,000 6,000 BOE/D 4,000 2,000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020E E&D CAPEX AS % OF FFO* 19% 15% 43% 7% 48% 16% 40% 51% 34% 75% 81% 42% 96% 31% 37% Crude Oil MANAGING FOR STABLE PRODUCTION WHILE GENERATING POSITIVE FREE CAS
Slide 63: Australia Operating Performance
AUSTRALIA OPERATING PERFORMANCE VALUE CREATION (2P RESERVES)* MMBOE Acquisition Date Reserves Reserves at initial acquisition (2005) 26.7 16,000 Total Acquisition Date Reserves 26.7 14,000 Production to YE 2019 36.3 Reserves at YE 2019 13.2 12,000 Total Produced / Closing Reserves 49.5 PRODUCTION (B
Slide 64: Corporate Citizenship
Vermilion Enersy Family Centre CORPORATE CITIZENSHIP 64
Slide 65: Governance
GOVERNANCE ► Vermilion’s external awards and recognition provide important benchmarks for our strong performance The Globe and Mail, Report on Business, Board Games ► In 2018, Vermilion ranked 2nd within the oil and gas sector, and among the top quartile of companies in the S&P/TSX composite index ►
Slide 66: Emissions Efficiency Measures
EMISSIONS EFFICIENCY MEASURES CO2e VS REVENUE* CO2e VS PRODUCTION* 2,500 45 40 2,000 35 CO2e / PRODUCTION (t / MBOE / D) CO2e / REVENUE (t / $M) 30 1,500 25 20 1,000 15 500 10 5 0 0 VET VET CVE HSE NVA PEY PEY CVE HSE CPG SU ERF ECA BTE NVA ERF CPG ECA BTE SU GTE ARX WCP CNQ GTE ARX WCP CNQ IMO IMO
Slide 67: CDP (Carbon Disclosure Project)
CDP (CARBON DISCLOSURE PROJECT) ► CDP (formerly Carbon Disclosure Project) is CO2e EMISSIONS INTENSITY PER BOE an international environmental organization 0.04 that collects data about carbon emissions and tCO2e per BOE 0.03 energy use; its rankings are based on emissions disclosure and intensity re
Slide 68: Parentis Sustainability Partnership
PARENTIS SUSTAINABILITY PARTNERSHIP ► Vermilion was the recipient of France’s Circular Economy Award for our project to supply geothermal heat from our oil operation to local greenhouses ► The award recognizes economically successful enterprises that operate within a “circular economy,” in which bus
Slide 69: La Teste Eco-Neighbourhood
LA TESTE ECO-NEIGHBOURHOOD ► Our operations in La Teste, France now support an eco-neighborhood of 550 homes that are heated the same way as the tomato greenhouses, using recycled geothermal energy from our oil operation ► 30-year partnership to provide 80% of the energy required for 550 homes ► Pro
Slide 70: Strategic Community Investment
STRATEGIC COMMUNITY INVESTMENT ► Vermilion is committed to giving back to Canada France Netherlands Australia Ireland the communities in which we operate ► We assess the critical needs in each community, and determine where our financial resources and volunteer time can make a difference ► We focus
Slide 71: Corporate Culture
CORPORATE CULTURE “GREAT PLACE TO WORK” INSTITUTE’S ANNUAL RANKING ► Great Place to Work Institute evaluates companies by analyzing results of a confidential Trust Index© survey provided to employees and evaluating the workplace through a Culture Audit© ► Since 2010, Vermilion has been ranked among
Slide 72: Value Creation 1994 – 2020
VALUE CREATION 1994 – 2020 $4,000 TOTAL VALUE $2,000 $821 CREATION OF $1,525 MARKET $3,856 CAPITALIZATION(2) MILLIONS ($3,152) $0 DIVIDENDS EQUITY PAID(2) ISSUED(1) ($2,000) ($4,000) MORE THAN 20-YEAR RECORD OF STRONG VALUE CREATION (1) Equity issued for cash and acquisitions since 1994, including a
Slide 73: Analyst Coverage
ANALYST COVERAGE FIRM ANALYST PHONE EMAIL AltaCorp Capital Patrick J. O’Rourke, CFA 403-539-8615 porourke@altacorpcapital.com Bank of America Merrill Lynch Asit Sen, CFA 646-855-2602 asit.sen@baml.com BMO Nesbitt Burns Ray Kwan, P.Eng. 403-515-1501 ray.kwan@bmo.com Canaccord Genuity Corp. Dennis Fon
Slide 74: 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
Slide 75: Advisory on Reserves and Resource Disclosure
ADVISORY ON RESERVES AND RESOURCE DISCLOSURE Reserves & Resource Definitions All reserves and resources estimates in this presentation are derived from evaluation reports (dated February 10, 2020 with an effective date of December 31, 2019 relating to our year-end reserves) prepared by GLJ Petroleum