Vermilion Energy Inc. Q1 FY2025 earnings call

• Production for Q1 increased 23% to over 103,000 BOEs per day due to Westbrick acquisition close. - Generated $256M of fund flows and $74M of free cash flow in Q1. - Ended Q1 with just over $2B of net debt. - Launched divestment process for Saskatchewan and Wyoming assets. - Advanced infrastructure projects and reduced DCET cost per well in Mica Montney. - Brought on production first deep gas exploration well in Germany and proved out large resource base. - International assets contributed 28% of Q1 production and 60% of fund flows.

International assets contributed 28% of Q1 production and 60% of fund flows. The majority of capital was allocated to the global gas portfolio. North American gas portfolio includes concentrated liquids-rich gas assets in the Deep Basin and Montney. European gas from Germany is a key segment with exploration progress.

• Forecasts 2025 annual fund flows in $1 billion to $1.1 billion range with over $300 million of free cash flow. - 50% of 2025 production hedged, 30% of 2026 production hedged. - Prioritize debt reduction with 60% of excess free cash flow allocated to debt reduction and 40% returned to shareholders.

• Recent market volatility from global trade war negatively impacts commodity prices and increases risk of global economic slowdown. - Vermilion is well positioned but market conditions pose challenges.

Q: Can you provide more details on the Wisselshorst wells and future debottlenecking plans? What are the infrastructure requirements? What is the cost? And what is the timing?

A: First priority is to get the well equipped and tied in, initial production expected in first half of 2026. Ordered major long-lead items for gas processing facilities, acquired pipeline for initial tie-in. Anticipate up to six appraisal follow-up locations, first spud in Q1 2027.

Q: What is the current production from the Westbrick assets you acquired? And can you provide more details on the synergies, what part of the cost structure they're coming from? And what should we expect for an annual cost savings?

A: Q1 production from Westbrick assets was around 52,000 barrels a day, full year 2025 expected to average ~50,000 barrels a day. Identified $100M of NPV synergies, ~$5M a year immediate savings from operational changes, ~$10M a year development-related savings expected to increase over time.

Q: Why has executive comp increased when the stock is underperforming? And what are you doing to address share price underperformance?

A: Significant portion of executive comp is at-risk linked to corporate and stock performance. 2024 realized actual comp down 13% year-over-year due to stock performance. Engaged third-party to review comp program. Stock underperformance due to market volatility and elevated debt; focused on debt reduction, organic debt reduction plan, potential divestments to accelerate debt reduction, and strategic focus on improving business to underpin long-term value.