Vermilion Energy (VET) investor relations material

Executive summary

• Q1 2026 production averaged 125,618 boe/d (72% natural gas), up 4% sequentially and 22% year-over-year, exceeding guidance due to Deep Basin, Montney, and robust German performance.

• Portfolio repositioning and operational excellence led to a 25% reduction in controllable expenses year-over-year.

• Net debt reduced by $50 million in Q1 to $1.29 billion, totaling $770 million reduction over the past year, with $27 million returned to shareholders via dividends and buybacks.

• Strategic acquisitions in Germany and divestiture in Croatia optimized the portfolio and enhanced European gas exposure.

• Streamlined operations in core regions, focusing on Deep Basin, Montney, and Germany for long-term growth.

Financial highlights

• Funds from operations reached $232 million ($1.52 per basic share); free cash flow was $98 million after $135 million in E&D capex.

• Net loss of $146 million ($0.95 per basic share) driven by a $286 million unrealized loss on derivatives due to rising oil and European gas prices.

• Operating netback was $25.49/boe, and FFO per boe was $20.33.

• Realized oil price rose over 20% sequentially; realized natural gas price was $5.41/mcf, more than double the AECO benchmark.

• Dividends of $20.6 million paid and 0.4 million shares repurchased.

Outlook and guidance

• Q2 2026 production expected at 123,000–125,000 boe/d (69% natural gas); full-year guidance trending to the top end of 118,000–122,000 boe/d (70% natural gas) on E&D capital expenditures of $600–$630 million.

• Quarterly dividend of $0.135/share declared, payable June 30, 2026.

• 2026 excess free cash flow forecasted to double original budget projections at current prices; five-year outlook projects robust EFCF growth and ~40% increase in production per share by 2030.

• Continued focus on value over volume, especially amid lower AECO pricing.

• Planned maintenance in Q3 2026, including a 32-day turnaround in Ireland, expected to temporarily lower production.