Vermilion Energy (VET) investor relations material

Executive summary

• Q2 2026 production averaged 125,800 BOE/d (71% natural gas), exceeding guidance and driving a 6% year-over-year increase in production per share.

• Record output at Mica Montney, strong Deep Basin execution, and staged restart in Australia supported results.

• First production achieved at Wisselshorst, the largest European discovery to date, and a bolt-on acquisition closed in Germany, adding 1,000 BOE/d (85% natural gas).

• Free cash flow exceeded CAD 120 million ($122 million), fully funding $110 million in E&D capital expenditures.

• Net debt reduced by $70 million in Q2 to $1.22 billion, totaling $840 million in debt reduction over 15 months.

Financial highlights

• Fund flows from operations were $231 million ($1.51 per basic share); free cash flow was $122 million.

• Net income for Q2 was $134 million ($0.88 per basic share), driven by strong European gas and crude oil pricing and derivative gains.

• Operating netback was $26.23/boe; FFO per boe was $20.55.

• Net debt at June 30, 2026, was $1.22 billion, with a net debt to trailing four-quarter FFO of 1.3x.

• Q2 dividends totaled $21 million; share repurchases were $5 million.

Outlook and guidance

• Full-year 2026 production guidance raised to 121,000–123,000 BOE/d (70% natural gas); E&D capital budget remains $600–$630 million.

• Q3 2026 production expected at 116,000–118,000 BOE/d due to planned maintenance; Q4 expected at ~122,000 BOE/d.

• Quarterly dividend of $0.135 per share declared, payable September 29, 2026.

• No significant downtime expected through mid-2027 beyond planned turnarounds.

• Capital expenditures and operating expenses weighted to the second half of the year.