VET) joins TSX top gainer list as energy prices rise

Vermilion Energy Inc. (TSX:VET) (NYSE:VET) has joined the TSX’s top percentage gainers list due to the escalating Iran war and rising energy prices, with the stock trading up 9.11% at $18.92 on the TSX, up 9.11%, up $1.58 following the report.

On March 4, Vermilion Energy reported operating and condensed financial results for the year ending December 31, 2025.

The audited financial statements, management discussion and analysis and annual information forms for the year ended December 31, 2025 will be available on the System for Electronic Document Analysis and Retrieval Plus (“SEDAR+”).
www.sedarplus.caon edgar
www.sec.gov/edgar.shtmlAnd on Vermillion’s website
www.vermilionenergy.com.

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year end 2025 results

Generated $1,010 million ($6.58/Basic Share)(2) funds flow from operations (“FFO”))(1) and $375 million of free cash flow (“FCF”))(6), fully funded $635 million of exploration and development (“E&D”) capital expenditures(3) while strengthening the balance sheet and returning cash to shareholders.

Reduction of net debt(7) by over $700 million since Q1 2025, ending the year at $1.34 billion and achieving a four quarter net debt to FFO(8) ratio of 1.4x, with debt levels well below any relevant financial covenants.

$116 million was returned to shareholders through dividends and share buybacks, including $80 million in dividends and the repurchase and cancellation of 3.1 million shares under the NCIB.

Hedging achieved an average natural gas price of $6.01/Mcf in 2025, more than three times the AECO benchmark, reflecting structural exposure to premium international gas markets and portfolio diversification.

Recorded a net loss of $654 million ($4.25/parent share) due to discontinued operations related to the sale of Saskatchewan and US assets and non-cash, value-related impairments on mature legacy assets in Australia, France and Ireland, with no impact on 2025 FFO, liquidity or continuing operations.

Record production of 119,919 bo/d(10) (65% natural gas), representing an increase of 46% per share year over year. Production includes 90,062 boe/d(10) from North American assets and 29,857 boe/d(10) from international assets.

Total proven plus probable (“2P”) reserves at year end increased 36% year over year to 592 MMboe(13), reflecting a 14-year reserve life index and reserves replacement of over 450%.

Proven developed production (“PDP”) and 2P exploration, development and acquisition (“FD&A”) costs (14), including changes in future development costs (“FDC”) of $14.91/BOE and $7.71/BOE, respectively, resulting in FD&A operating recycle ratios (15) of 1.8x and 3.5x, respectively.

The pre-tax net present value (“NPV”) of 2P reserves, after deducting net debt, was $4.8 billion(13) at year-end, or a 10% discount to $23 per share(13). The 2P NPV includes the development of 23% of Vermilion’s internally identified inventory in the Deep Basin and Montney.

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Vermillion is a global gas producer that seeks to create value through the acquisition, exploration and development of liquids-rich natural gas in Canada and conventional natural gas in Europe while optimizing low-degrading oil assets. This diversified portfolio provides massive free cash flow through direct exposure to global commodity prices and increased capital allocation optionality.

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