Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Q3 2024 Earnings Presentation
14 slides from Vermilion Energy's earnings presentation, Nov 7, 2024
Slide 1: Vermilion Energy Q3 2024 Conference Call
VERMILION ENERGY INTERNATIONALLY DIVERSIFIED FREE CASH FLOW FOCUSED Q3 2024 CONFERENCE CALL ESG LEADERSHIP
Slide 2: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS Q3 2024 Q2 2024 %∆ • Production at the mid-point of our Q3 2024 guidance range North America (boe/d) 53,936 54,987 (2%) o Includes impact of accelerated Australia International (boe/d) 30,237 29,987 1% turnaround and partial shut in of some Total(1) (boe/d) 84,173 84,974 (1%) Cana
Slide 3: Value of Diversification: Historical and Forward Pricing
VALUE OF DIVERSIFICATION HISTORICAL AND FORWARD PRICING* • Vermilion offers exposure to a global $20 $100 commodity mix, a major differentiating $18 $95 factor compared to our peers $16 $90 Gas Benchmark Price (C$/mcf) Oil Benchmark Price (US$/bbl) • North American gas, especially AECO, has $14 $85
Slide 4: International Operational Highlights
INTERNATIONAL OPERATIONAL HIGHLIGHTS Q3 2024 PRODUCTION • International production averaged 30,237 boe/d INTL 36% o New production from SA-10 block in Croatia and higher runtime in Germany and Ireland, partially offset by planned maintenance downtime in Australia • Continued to advance our deep gas
Slide 5: Germany Gas Exploration Program
GERMANY GAS EXPLORATION PROGRAM • Successfully completed testing operations on the Osterheide well (100% WI), flow tested at a restricted rate of 17 mmcf/d(1) with a wellhead pressure of 4,625 psi, expect deliverability would have been higher without testing equipment limitations o Tie-in operations
Slide 6: Croatia Gas Development
CROATIA GAS DEVELOPMENT • Increased production on the SA-10 block to current rate of over 2,000 boe/d, Q3 2024 averaged 1,855 boe/d • SA-7 exploration program de-risked future development and exploration targets across four areas o Third well flow tested at 5.6 mmcf/d(1) of natural gas o Continue to
Slide 7: North America Operational Highlights
NORTH AMERICA OPERATIONAL HIGHLIGHTS Q3 2024 PRODUCTION N.A. • North American production averaged 53,936 boe/d 64% o Reflects strong runtime from new Mica Montney battery and new wells tied in during the quarter FFO(1) • In Canada we drilled eight (7.3 net) wells, completed twelve (12.3 net) well, a
Slide 8: Montney Development
MONTNEY DEVELOPMENT • Five (5.0 net) wells from the 9-21 pad completed and brought on production during Q3 2024 have produced at an average IP90 rate of over 1,000 boe/d(1) per well (43% liquids)(1) • Total DCET cost for the 9-21 pad was approximately $9.6 million per well as we continue to make pro
Slide 9: Shareholder Returns & Outlook
SHAREHOLDER RETURNS & OUTLOOK 9 9
Slide 10: Compounding Shareholder Returns
COMPOUNDING SHAREHOLDER RETURNS CUMULATIVE SHAREHOLDER RETURNS CUMULATIVE NCIB ACTIVITY $12.00 18 EFCF Payout 16 Target ~50% $10.00 CUMULATIVE RETURN ($/SHARE)* Vermilion returned over SHARES REPURCHASED (MM)** 14 $40/share to shareholders from 2003 to 2020 via base dividend $8.00 EFCF Payout 33% 12
Slide 11: Impactful Return of Capital
IMPACTFUL RETURN OF CAPITAL ANNUAL DIVIDEND PER SHARE VS. SHARE COUNT $0.80 165 SHARES OUTSTANDING (MM) DIVIDENDS PER SHARE $0.60 160 6% of FFO $0.40 155 $0.20 150 $0.00 145 2021 2022 2023 2024 YTD* Annualized Dividend per Share Share Count * Shares outstanding at November 6, 2024. 11
Slide 12: Outlook
OUTLOOK • Tightened 2024 full-year production guidance range to Category 2024 Guidance(1) 84,000 to 85,000 boe/d to reflect increased certainty on annual production levels Production (boe/d) 84,000 - 85,000 o Q4 2024 production impacted by planned third-party E&D capital expenditures ($MM) $600 – 62
Slide 13: Q&A
Q&A 13
Slide 14: 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 possibility that government policies or laws may change or governmental approvals may be delayed or withheld; uncertainty in the solicitation of an offer
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