The following is a summary of the Vermilion Energy Inc. (VET) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Q3 2024 production averaged 84,173 BOEs per day, an increase of 7% per share year-over-year.

• Generated $275 million in fund flows from operations in Q3, a 19% increase from the previous quarter, attributed mainly to stronger European gas prices. The Dutch benchmark TTF increased 14%, averaging $15.52 per MCF.

• Free cash flow of $154 million in Q3, returned $59 million to shareholders through dividends and buybacks.

• Reduced net debt by $73 million to $833 million, with a net debt trailing fund flow ratio of 0.6 times, the lowest in 15 years.

Business Progress:

• Increased European gas production by over 40% in the last two years.

• Launched the largest European exploration drilling campaign, drilling six successful wells in 2024.

• Increased production on the SA-10 block in Croatia and planning to drill more wells to maintain high netback European gas production.

• Advanced the Mica Montney project in Canada, increasing production and planning infrastructure expansions aimed at raising production to 28,000 BOEs per day in the future.

• Continuously reducing production costs, achieving significant cost savings through operational efficiencies.

Opportunities:

• Expected ongoing growth in European operations with organic expansion and potential strategic acquisitions.

• Positioned to benefit from robust European gas prices due to direct exposure to premium price global benchmarks.

• Plans for future organic growth in European regions like Germany, Croatia, and the Netherlands.

Risks:

• Dependence on LNG imports to meet demand in Europe could be a risk if geopolitical or market conditions change adversely affecting LNG availability or prices.

• Exposed to AECO price fluctuations, though hedging strategies and liquids-rich gas production mitigate this impact.

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