Vermilion Energy Inc. · TSX:VET
Vermilion Energy — Investor Presentation (March 2025)
47 slides from Vermilion Energy's investor presentation, March 2025
Slide 1: Vermilion Energy Investor Presentation
VERMILION ENERGY INTERNATIONALLY DIVERSIFIED FREE CASH FLOW FOCUSED INVESTOR PRESENTATION ESG EXPERTISE MARCH 2025
Slide 2: Vermilion at a Glance
VERMILION AT A GLANCE Market Summary VET Trading Price (Mar. 5, 2025) $10.90 (TSX), US$7.57 (NYSE) Shares Outstanding (Mar. 5 , 2025) 154.6 MM Average Daily Trading Volume (shares) 0.8 MM (TSX), 1.1 MM (NYSE) Quarterly Dividend $0.13/share Capital Structure Market Capitalization $1.7 B Enterprise Va
Slide 3: Vermilion Advantage
VERMILION ADVANTAGE Global gas producer with 30 years operating in Europe and North America Diversified portfolio delivers outsized FCF(1) through exposure to global commodity pricing and enhanced capital allocation optionality Robust asset base combining low-decline conventional assets with long-li
Slide 4: Key Updates
KEY UPDATES Westbrick Energy Acquisition • Closed acquisition of Westbrick Energy Ltd. in February 2025 • Currently integrating Westbrick assets, on track to deliver annualized 50,000 boe/d of production • Plan to invest $120MM of E&D capital, drill 13 (12.3 net) wells on acquired acreage in 2025 Ge
Slide 5: Westbrick Acquisition Overview
WESTBRICK ACQUISITION OVERVIEW • Vermilion acquired Westbrick Energy Ltd. for total consideration of $1.075 billion • Contiguous land and infrastructure footprint is complementary to Vermilion’s legacy Deep Basin assets o ~1.1 million (770,000 net) acres(1) and four operated gas plants (see right) w
Slide 6: Significant European Gas Discovery
SIGNIFICANT EUROPEAN GAS DISCOVERY • Wisselshorst well (64% WI) o Significant discovery of 68 Bcf (43 Bcf net)(1) o High potential for material follow-up wells o Two zones tested at a combined 41 mmcf/d(2) and 6,200 psi o Vermilion’s largest European gas discovery in over a decade • Weissenmoor well
Slide 7: Non-Core Asset Divestment
NON-CORE ASSET DIVESTMENT • Launched formal sales process for Southeast Saskatchewan and Wyoming assets • High-quality assets with strong retention values o Saskatchewan – ~10,000 boe/d (85% liquids) with moderate declines and multi-lateral development upside o Wyoming – ~5,000 boe/d (80% liquids) w
Slide 8: Capital Allocation
CAPITAL ALLOCATION 8 8
Slide 9: 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 10: Strong Balance Sheet – Liquidity
STRONG BALANCE SHEET – LIQUIDITY HISTORICAL NET DEBT TO FFO CURRENT CREDIT CAPACITY(2) 4.0x 3.5x $572MM 3.0x Available Liquidity NET DEBT TO FFO RATIO(1) of $1,000MM 2.5x Committed to $572MM 2.0x returning to 1.0x leverage 1.5x $350MM $450MM 1.0x 0.5x Undrawn Capacity on Revolving Credit Facility 0.
Slide 11: Strong Balance Sheet – FFO Generation
STRONG BALANCE SHEET – FFO GENERATION NET DEBT VS FFO(1) $2,000 125 – 130 150 mboe/d 125 PRODUCTION (‘000 BOE/D) $1,500 100 $MM $1,000 75 50 $500 25 $0 0 2023 2024 2025e Net Debt to Trailing FFO 0.9x 0.8x 1.5x FFO ($/basic share) $ 6.98 $ 7.63 ~$ 7.50 Unhedged FFO ($/basic share) $ 6.05 $ 5.61 ~$ 7.
Slide 12: Strong Balance Sheet – Hedge Position
STRONG BALANCE SHEET – HEDGE POSITION 2025 2026 PERCENTAGE OF PRODUCTION HEDGED (%)* PERCENTAGE OF PRODUCTION HEDGED (%)* 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 Ga
Slide 13: Robust Asset Base – Reserves
ROBUST ASSET BASE – RESERVES RESERVE LIFE INDEX 18 16 14 RLI (YEARS) 12 10 8 6 4 2 - 2015 2016 2017 2018** 2019 2020 2021 2022 2023 2024 PDP - RLI* 1P - RLI* 2P - RLI* PDP Average 1P Average 2P Average Proved Developed Producing Proved Proved Plus Probable North America (mboe)(1) 114,376 210,670 330
Slide 14: Robust Asset Base – Portfolio High-Grading
ROBUST ASSET BASE – PORTFOLIO HIGH-GRADING Acquired Leucrotta Exploration, adding strategic Montney asset 2022 INCREASED OPERATIONAL SCALE and significantly enhancing drilling inventory Closed acquisition of Equinor’s 36.5% interest in Corrib in Ireland, 2023 HIGHER FREE CASH FLOW PER BOE significan
Slide 15: Shareholder Returns – Base Dividend
SHAREHOLDER RETURNS – BASE DIVIDEND 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
Slide 16: Shareholder Returns – Share Buybacks
SHAREHOLDER RETURNS – SHARE BUYBACKS SHAREHOLDER RETURNS CUMULATIVE NCIB ACTIVITY (EXCLUDING MAJOR ACQUISITIONS) 20 10% 18 8% 16 SHARES REPURCHASED (MM)** SHAREHOLDER RETURN %* 14 6% 12 10 4% 2020-2023 8 focus was debt reduction 2% 6 4 0% 2 -2% 0 2022 2023 2024 2025e* 2022 2023 2024 2025 YTD PPS Gro
Slide 17: Value Driven A&D Strategy
VALUE DRIVEN A&D STRATEGY Target underexploited consolidation opportunities and new development within existing core areas • Accretive while minimizing equity dilution to maximize per share value • Generates strong free cash flow in a mid-pricing environment to support a sustainable dividend Differe
Slide 18: International A&D
INTERNATIONAL A&D ACQUIRED 2P RESERVES VS. POST-ACQUISITION PRODUCTION AND 2P RESERVES 350,000 300,000 250,000 MBOE 200,000 150,000 100,000 50,000 - 1 2 ACQUIRED RESERVES RESERVE ADDITIONS PRODUCTION 2024 RESERVES** (1997-2024)* (1997-2024) (1997-2024) France Entered in 1997, acquired producing fiel
Slide 19: Global Gas Producer Advantage
GLOBAL GAS PRODUCER ADVANTAGE 19
Slide 20: Advantages of Diversified Portfolio
ADVANTAGES OF DIVERSIFIED PORTFOLIO 2025E PRODUCTION(1) European EXPOSURE TO PREMIUM COMMODITY BENCHMARKS DRIVES TOP REALIZED PRICES Gas 14% Int'l Oil 10% Deep Basin / ASSET DIVERSIFICATION REDUCES RISK AND CASHFLOW VOLATILITY SE Sask / USA Montney (Light Oil) (Liquids-Rich Gas) 12% 64% INTERNATIONA
Slide 21: International Operating Netbacks
INTERNATIONAL OPERATING NETBACKS VERMILION 2025E OPERATING NETBACK $120 $100 $80 $/ BOE* $60 $40 $20 $0 Ireland Netherlands Croatia Australia Germany France International assets generate strong netbacks on premium pricing * Source: Based on company 2025 estimates and 2025 full year average reference
Slide 22: 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% 42% $40 Average Floor $17 $13 $30 $20 $10 $0 2017 2018 2019 2020 2021 2022 2023 2024 2025e* 2026e* European natural gas prices trade at a significant premium
Slide 23: Structural Drivers for European Gas
STRUCTURAL DRIVERS FOR EUROPEAN GAS EUROPEAN SUPPLY/DEMAND BALANCE HISTORY** • Europe* consumes an average of ~40 Bcf/d per annum, with 80 Winter 2023 demand down ~10 Bcf/d ~30 Bcf/d swing between summer and winter due to 2nd warmest winter, government policy, and extremely high prices 60 • Russian
Slide 24: Western Canadian Natural Gas Landscape
WESTERN CANADIAN NATURAL GAS LANDSCAPE 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 St
Slide 25: Gas Marketing Summary
GAS MARKETING SUMMARY GAS PRODUCTION BY REGION* NATURAL GAS PRICE EXPOSURE** Europe Europe 22% 22% AECO 43% North America 78% N.A. FINANCIAL HEDGES ALLIANCE N.A. PHYSICAL HEDGES SASKATCHEWAN WYOMING EUROPE (TTF/THE/NBP) Global gas production is diversified by geography and pricing exposure * Based o
Slide 26: 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 27: Global Crude Oil Pricing Advantage
GLOBAL CRUDE OIL PRICING ADVANTAGE OIL PRICES $140 $14 • Vermilion’s global crude oil portfolio sells at an $120 $12 average $5/bbl premium to the Canadian light oil benchmark (MSW) VET PREMIUM TO MSW (C$/BBL) $100 $10 • Approximately one-third of Vermilion’s crude oil $80 $8 production is priced wi
Slide 28: Vermilion Realized Prices
VERMILION REALIZED PRICES Q3 2024 PF REALIZED NATURAL GAS PRICE Q3 2024 PF REALIZED OIL PRICE $5 $105 REALIZED NATURAL GAS PRICE ($/MCF) $4 $100 REALIZED OIL PRICE ($/BBL) AVERAGE = $96.53 $3 $95 $2 $90 AVERAGE = $1.49 $1 $85 $0 $80 VET Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Peer Pee
Slide 29: Asset Overview
ASSET OVERVIEW 29
Slide 30: Europe
EUROPE NETHERLANDS • #2 onshore gas producer IRELAND • ~700,000 net acres of undeveloped land • 56.5% operated interest in the Corrib Natural Gas Project • Q4 2024 production = 4,078 boe/d (99% gas) • Corrib represents 100% of Ireland’s domestic gas production GERMANY • Q4 2024 production = 9,220 bo
Slide 31: Australia
AUSTRALIA • 100% operated interest in Wandoo, an offshore oil field approximately 80 km N.W. off the coast of Australia (55m water depth) • Horizontal well development with 23 producing wellbores and five dual lateral sidetracks tied into two platforms • New wells drilled every 2-3 years, next drill
Slide 32: North America
NORTH AMERICA MONTNEY CANADA SOUTHEAST SASKATCHEWAN • Targeting liquids-rich gas in the • Q4 2024 production = 47,982 boe/d (44% liquids) • Targeting light oil in conventional Peace River Arch straddling the reservoirs AB and BC border • ~275,000 net acres of land with • ~80,000 net acres of Montney
Slide 33: Growth Assets
GROWTH ASSETS a) Se SERS SS eee
Slide 34: Dominant Deep Basin Position
DOMINANT 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. 34
Slide 35: Improved Deep Basin Drilling Economics
IMPROVED DEEP BASIN DRILLING ECONOMICS • Improved operational scale of Vermilion's core Deep Basin asset enables lower costs and improved full-cycle margins Upper Cretaceous o Acquisition lands attract capital within pro forma portfolio with higher half-cycle returns compared to Vermilion’s existing
Slide 36: Premium Montney Acreage
PREMIUM MONTNEY ACREAGE VET owns ~22% of CEI.V* Oil Wet Gas Dry Gas A significant and contiguous premium acreage block in the oil window of the Montney Source: Land information sourced from XI Technologies Asset Book * Vermilion has ownership of, or control and direction over, approximately 22% of t
Slide 37: Montney Development
MONTNEY DEVELOPMENT • Focus is building out BC infrastructure, construction of 16,000 boe/d battery completed in Q2 2024 o Battery and water hub infrastructure has achieved 99% run time since starting up 4-3 Battery o New battery allows us to grow our Montney 8-33 Battery production, targeting avera
Slide 38: Montney DCET Optimization
MONTNEY DCET OPTIMIZATION • Continue to optimize Montney development BC MONTNEY AVERAGE WELL COST to improve half-cycle returns $14 o Tighter well spacing and landing point selection $12 o Modernized drilling approach $10 Per Well Cost ($MM) o Reduced water use in hydraulic fracturing operations $8
Slide 39: Germany Exploration Success
GERMANY EXPLORATION SUCCESS • Wisselshorst well (64% WI) o Significant discovery of 68 Bcf (43 Bcf net)(1) o High potential for material follow-up wells o Two zones tested at a combined 41 mmcf/d(2) and 6,200 psi o Vermilion’s largest European gas discovery in over a decade • Weissenmoor well (100%
Slide 40: ESG & Sustainability
ESG & SUSTAINABILITY 40
Slide 41: Environment, Social and Governance
ENVIRONMENT, SOCIAL AND GOVERNANCE EMISSIONS INTENSITY TREND Vermilion’s Purpose: 0.030 Scope 1&2 tCO2e per BOE To responsibly produce essential energy 0.025 while delivering long-term value to our people, shareholders, customers, partners 0.020 and communities 0.015 2019 2020 2021 2022 2023 • Reduc
Slide 42: Sustainability Projects
SUSTAINABILITY PROJECTS Advancing environmental projects in communities where we live and work PARENTIS SUSTAINABILITY PARTNERSHIP LA TESTE ECO-NEIGHBOURHOOD • Our geothermal energy tomato greenhouse • Our oil operations provide 1MW of geothermal project in Parentis, France provides 8 MW of energy t
Slide 43: Summary
SUMMARY Global gas producer with 30 years operating in Europe and North America Diversified portfolio delivers outsized FCF(1) through exposure to global commodity pricing and enhanced capital allocation optionality Robust asset base combining low-decline conventional assets with long-life growth as
Slide 44: Appendix
APPENDIX 44
Slide 45: Pricing and FFO Sensitivity
PRICING AND FFO SENSITIVITY COMMODITY PRICES* 2025e 2025 FFO SENSITIVITY (C$MM)** FFO Impact (C$) FFO Impact (C$) Change Brent (US$/bbl) $71.29 Hedged Unhedged WTI (US$/bbl) $67.56 WTI & Brent US$1/bbl $10MM $17MM LSB = WTI less (US$/bbl) $ 6.83 MSW = WTI less (US$/bbl) $ 5.39 LSB / WTI US$1/bbl $9M
Slide 46: Updated Budget and Guidance
UPDATED BUDGET AND GUIDANCE Category 2025 Guidance(1) 2025 Drilling Program Well Count Production (boe/d) 125,000 - 130,000 Germany 5 gross (5.0 net) E&D capital expenditures ($MM) $730 - 760 Netherlands 2 gross (1.2 net) Croatia 1 gross (1.0 net) Royalty rate (% of sales) 9 - 11% Slovakia 2 gross (
Slide 47: 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 inherent in Vermilion's marketing operations, including credit risk; the uncertainty of reserves estimates and reserves life and estimates of solicit
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