Vermilion Energy (VET) Investor presentation summary

Strategic repositioning and portfolio focus

• Streamlined operations to focus on long-life, efficient global gas assets, exiting five non-core regions and increasing scale in core areas, resulting in a 40% production increase and over 30% reduction in cost structure by 2026.

• Portfolio anchored by dominant positions in Alberta Deep Basin, Montney, and European gas, with 15+ years of inventory in key regions and significant organic growth potential in Germany.

• Capital allocation prioritizes 85% investment in global gas assets, with 67% of E&D capital directed to Canada and 33% internationally.

Financial performance and guidance

• 2026 budget targets production of 118,000–122,000 boe/d, with 70% natural gas weighting and E&D capital expenditures of $600–630MM.

• Operating costs per boe expected to decrease by 4% in 2026, with general and administration expenses down 24% and royalty rates reduced by 6%.

• Net debt forecasted at $1.4B by year-end 2025, with a net debt-to-FFO ratio of 1.4x and a target to reduce leverage below 1.0x.

Asset and operational highlights

• Deep Basin: 1.1 million net acres, 700+ drilling locations, and robust economics with IRRs up to 85% and payouts in 1.3–1.4 years.

• Montney: 80,000 contiguous acres, only 14,000 developed, with DCET costs reduced to $8.5MM/well and IRRs up to 95%.

• Germany: 700,000 net acres, nine structures identified, recent discoveries add $150MM NPV10 and 60 Bcf 2P reserves, with further upside from follow-up drilling.