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    Travis Wood • National Bank Financial

    Travis Wood's questions to Vermilion Energy Inc (VET) leadership

    Travis Wood's questions to Vermilion Energy Inc (VET) leadership • Q4 2024

    Question

    Travis Wood of National Bank Financial questioned if the risk profile for future German exploration has changed after recent successes and asked for Westbrick's production volume at closing. He also inquired about the reason for the acquisition's closing delay and the specific debt target that would prompt a shift in the capital return framework to favor shareholder returns more heavily.

    Answer

    VP Darcy Kerwin responded that while confidence is higher, each German prospect is still risked independently, though the program is now de-risked by a mix of exploration and development wells. VP Brandon McCue confirmed Westbrick volumes were as expected at ~50,000 boe/d and the minor closing delay was procedural. CFO Lars Glemser indicated that a leverage ratio around 1x net debt to FFO, similar to pre-acquisition levels, would be the likely trigger to reconsider the 40/60 capital return split.

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    Travis Wood's questions to Vermilion Energy Inc (VET) leadership • Q4 2024

    Question

    Travis Wood of National Bank Financial questioned if the risk profile for future German exploration has changed, inquired about Westbrick's production volumes at closing, and asked about the specific debt target needed for Vermilion to increase its shareholder return allocation above the current 40% of excess free cash flow.

    Answer

    VP Darcy Kerwin explained that while confidence is higher, prospects are still risked independently, with the main change being a new mix of development and exploration wells. VP Brandon McCue confirmed Westbrick volumes were as expected at ~50,000 boe/d. CFO Lars Glemser indicated that a return to the pre-acquisition leverage ratio of around 1.0x net debt to funds flow would be a likely benchmark for considering an increase in the shareholder return payout.

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