Vermilion Energy (VET) Investor presentation summary

Strategic portfolio repositioning

• Shifted to a global gas-focused portfolio with long-life assets and top decile realized gas prices, enhancing cash flow resilience through liquids exposure.

• Streamlined operations led to a >45% increase in production per share and >30% reduction in cost structure from 2024 to 2026.

• Deep Basin, Montney, and Germany assets provide decades of drilling inventory and support long-term growth.

• Recent acquisitions in Germany expanded production and infrastructure control, adding significant exploration upside.

• Divested non-core assets and reduced net debt by ~$1B, improving balance sheet strength.

Operational and financial performance

• 2026 guidance: production of 118,000–122,000 boe/d, 70% natural gas, $600–630MM E&D capex, and net debt of $1.2B.

• Achieved top decile realized gas prices, with Q1 2026 price at $6/mcf, well above peer average.

• Maintained strong balance sheet with net debt-to-FFO ratio of 1.3x and $1.1B liquidity.

• Five-year outlook targets $1.7B cumulative excess free cash flow and 8–10% annual production per share growth.

• Capital allocation prioritizes debt repayment (60% of EFCF) and shareholder returns (40% of EFCF), with growing dividends and share buybacks.

Asset and regional highlights

• Deep Basin: 85,000 boe/d Q1 2026 production, >25 years of drilling inventory, and industry-leading drilling cost improvements.

• Montney: 15,000 boe/d Q1 2026, targeting 28,000 boe/d by 2028, with >35% reduction in well costs since 2022.

• Germany & Netherlands: 49 mmcf/d gas production, significant undeveloped acreage, and robust exploration program with 70% historical success rate.

• Legacy oil assets in France and Australia provide stable cash flow with Brent-linked pricing.

• Portfolio diversification ensures resilience, with 70% of 2026 production from natural gas and 30% from liquids.