Vermilion Energy Inc (VET) 2024 Q2 法說會逐字稿

Good morning. My name is Sylvie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vermilion Energy Q2 conference call.

早安.我叫西爾維，今天我將擔任你們的會議操作員。在此，我歡迎大家參加朱紅能源第二季電話會議。

(Operator Instructions) Thank you. Mr. Dion Hatcher, you may now begin your conference.

（操作員說明）謝謝。Dion Hatcher 先生，您現在可以開始會議了。

Thank you, Sylvie. Well, good morning, ladies and gentlemen. Thank you for joining us. I'm Dion Hatcher, President and CEO of Vermilion Energy. With me today are Lars Glemser, Vice President and CFO; Darcy Kerwin, Vice President, International and HSE; Randy McQuaig, Vice President, North America; and Kyle Preston, Vice President, Investor Relations.

謝謝你，西爾維。那麼，早安，女士們先生們。感謝您加入我們。我是迪昂‧哈切爾 (Dion Hatcher)，Vermilion Energy 總裁兼執行長。今天與我在一起的有副總裁兼財務長 Lars Glemser； Darcy Kerwin，國際和 HSE 副總裁；麥克奎格 (Randy McQuaig)，北美副總裁；凱爾普雷斯頓 (Kyle Preston)，投資人關係副總裁。

We'll be referencing a PowerPoint presentation to discuss our Q2 2024 results. The presentation can be found on our website under Invest with Us in Events & Presentations.

我們將參考 PowerPoint 簡報來討論 2024 年第二季的結果。該簡報可以在我們網站上的「與我們一起投資活動和簡報」下找到。

Please refer to our advisory on forward-looking statements at the end of this presentation. It describes forward-looking information, non-GAAP measures, and oil and gas terms used today. And it outlines the risk factors and assumptions relevant to this discussion.

請參閱本簡報末尾的前瞻性陳述諮詢。它描述了前瞻性資訊、非公認會計原則措施以及當今使用的石油和天然氣術語。它概述了與本次討論相關的風險因素和假設。

Production during the second quarter averaged 84,974 boes per day, which was at the top end of our Q2 guidance range of 83,000 to 85,000 boes per day, mainly due to the early start-up of our BC Montney battery. On a year-over-year basis, production increased 2% or 6% on a per share basis. We generated $237 million of fund flows and $126 million of free cash flow, which was lower than Q1, mainly due to lower realized commodity hedge gains.

第二季度的平均產量為每天 84,974 桶油當量，處於我們第二季度指導範圍（每天 83,000 至 85,000 桶油當量）的上限，這主要是由於我們的 BC Montney 電池組較早啟動。與去年同期相比，每股產量增加了 2% 或 6%。我們產生了 2.37 億美元的資金流和 1.26 億美元的自由現金流，低於第一季度，主要是由於實現的商品對沖收益較低。

During the second quarter, we reduced net debt by a further $38 million to $907 million, and significantly increased our pace of share buybacks as we transitioned to a return of capital payout target of 50% of an annual excess free cash flow. We repurchased 2.8 million shares during Q2 for total proceeds of $47 million and also paid out approximately $19 million in dividends for a total return of $66 million or 62% of excess free cash flow for the quarter. Year to date, we have returned $121 million or 36% of excess free cash flow.

在第二季度，我們將淨債務進一步減少了3,800 萬美元，達到9.07 億美元，並顯著加快了股票回購的步伐，因為我們將資本支出回報率目標轉變為年度超額自由現金流的50% 。我們在第二季回購了 280 萬股股票，總收益為 4,700 萬美元，也支付了約 1,900 萬美元的股息，總回報為 6,600 萬美元，佔本季超額自由現金流的 62%。今年迄今為止，我們已返還 1.21 億美元，即超額自由現金流的 36%。

During the second quarter, we also achieved key operational milestones with the start-up of the Mica Montney battery in British Columbia and the SA-10 gas plant in Croatia. This is in addition to the five successful exploration wells drilled in Europe during the first half of the year. I'll expand on each of these in the upcoming slides.

在第二季度，我們還實現了關鍵的營運里程碑，不列顛哥倫比亞省的 Mica Montney 電池和克羅埃西亞的 SA-10 天然氣工廠啟動。這是今年上半年在歐洲成功鑽探的五口勘探井的補充。我將在接下來的幻燈片中詳細介紹這些內容。

Production from our international operations averaged 29,987 boes per day in Q2, reflecting scheduled maintenance on several assets during the quarter. In Croatia, we commissioned our gas plant on the SA-10 block, slightly ahead of schedule. We currently have both wells on production, and they are expected to ramp up through the third quarter.

第二季度，我們國際業務的平均產量為每天 29,987 桶油當量，反映了本季對多項資產的計畫維護。在克羅埃西亞，我們在 SA-10 區塊上調試了天然氣廠，稍微提前於規劃。目前，我們的兩口油井均已投產，預計第三季產量將增加。

The SA-10 asset will support the European gas weighting in our portfolio, which represents approximately 40% of our corporate natural gas production or over 100 million cubic feet per day. This new gas production also benefits from stronger natural gas prices in Croatia, where gas sells at a premium to other European natural gas benchmarks.

SA-10 資產將支持我們投資組合中的歐洲天然氣權重，該權重約占我們公司天然氣產量的 40%，即每天超過 1 億立方英尺。新的天然氣產量也受惠於克羅埃西亞天然氣價格上漲，該國天然氣的售價高於其他歐洲天然氣基準。

Over the past two years, we have grown our European natural gas production by over 15%. And we continue to organically grow our European natural gas franchise. The TTF benchmark gas price averaged $13.62 per MMBtu in Q2.

過去兩年，我們歐洲天然氣產量增加了 15% 以上。我們繼續有機發展我們的歐洲天然氣特許經營權。第二季 TTF 基準天然氣價格平均為每 MMBtu 13.62 美元。

That represents a 16% increase over Q1 and based on forward strip, is expected to further strengthen in the second half of this year and next year. TTF forward price is currently trading at approximately $17 for 2025, and we have approximately 44% of our European natural gas hedged at an average floor price of $17 for 2025.

這比第一季成長了 16%，並且基於遠期帶鋼，預計今年下半年和明年將進一步加強。目前 2025 年 TTF 遠期價格約為 17 美元，我們約 44% 的歐洲天然氣以 2025 年平均底價 17 美元進行對沖。

We're very excited with the long-term development potential of our Germany and Croatia assets. And I'll speak more about how we expect these two countries to provide meaningful organic growth in the following slides. In Germany, operations were focused on the successful discovery on our first deep gas exploration well.

我們對德國和克羅埃西亞資產的長期發展潛力感到非常興奮。我將在接下來的幻燈片中更多地討論我們期望這兩個國家如何實現有意義的有機成長。在德國，業務重點是我們第一口深層天然氣勘探井的成功發現。

Testing was rescheduled to Q3, and we'll continue to prepare for tie-in operations for anticipated on-stream date of early '25. We also plan to commence drilling on the second deep gas exploration well in the upcoming weeks.

測試被重新安排到第三季度，我們將繼續為 25 年初的預計投產日期做好搭配操作的準備。我們也計劃在未來幾週內開始鑽探第二口深層天然氣勘探井。

The second well is a higher-risk prospect, targeting a very large structure, over 300 Bcf gross of gas in place based on our internal estimates. Success on this prospect could allow for follow-up drilling, given the size of the target structure. We have a 60% working interest in this well, which reduces our risk exposure by limiting our dry-hole cost at less than $10 million on an after-tax basis.

第二口井是一個風險較高的勘探區，目標是一個非常大的結構，根據我們的內部估計，其天然氣儲量超過 300 Bcf。考慮到目標結構的規模，此勘探區的成功可以進行後續鑽探。我們擁有這口井 60% 的工作權益，這將我們的乾井成本限制在稅後不到 1000 萬美元，從而降低了我們的風險。

In Croatia, as noted earlier, we completed construction of the gas plant on the SA-10 block in Q2, and then we commissioned the plant in June. Both of the previous drilled gas wells are currently ramping up production, which will increase our exposure to high-netback European natural gas.

在克羅埃西亞，如前所述，我們在第二季完成了 SA-10 區塊天然氣廠的建設，然後在 6 月開始運作。先前鑽探的兩口氣井目前都在提高產量，這將增加我們對高淨值歐洲天然氣的投資。

On the SA-7 block, we drilled one exploration well and completed two wells from the prior quarter. The first well tested over 300 barrels of light oil, while the second well tested at 4.5 million cubic feet per day of natural gas.

在 SA-7 區塊，我們比上一季鑽了一口探井並完成了兩口井。第一口井測試了 300 多桶輕質油，第二口井測試了每天 450 萬立方英尺的天然氣。

Subsequent to the quarter, we also completed drilling on the final well of this four-well program and discovered hydrocarbons across multiple zones. Three of these four wells are natural gas wells, aligning with our intention to organically grow our European natural gas franchise.

在本季之後，我們也完成了這個四井計畫的最後一口井的鑽探，並在多個區域發現了碳氫化合物。這四口井中的三口是天然氣井，符合我們有機發展歐洲天然氣特許經營權的意圖。

Testing operations on the remaining two wells are planned for the second half of '24, while we continue to move forward with the permitting process and evaluate the long-term development potential of the SA-7 block. These four new discoveries are very encouraging as they represent a 100% success rate on our inaugural SA-7 exploration campaign and serves to validate our geological models while setting the foundation for future growth in Croatia.

其餘兩口井的測試作業計劃於 24 年下半年進行，同時我們將繼續推進許可程序並評估 SA-7 區塊的長期開發潛力。這四項新發現非常令人鼓舞，因為它們代表了我們首次 SA-7 勘探活動的 100% 成功率，並有助於驗證我們的地質模型，同時為克羅埃西亞未來的成長奠定基礎。

Production from our North American operations averaged 54,987 boes a day in Q4, an increase of 4% from the previous quarter due to new production from our recent Mica Montney wells. At Mica, we drilled one and brought on production six BC Montney wells in advance of the start-up of our BC battery in late Q2.

由於我們最近的 Mica Montney 井新增產量，第四季度我們北美業務的平均產量為每天 54,987 桶油當量，比上一季成長 4%。在 Mica，我們在第二季末啟動 BC 電池之前，鑽了一口 BC Montney 井並投入了六口生產。

In Saskatchewan, we drilled two and completed one oil well, while in the US, we participated in the drilling and completion of five gross 0.2 net non-operated oil wells. Construction of the BC Montney battery was completed during the quarter. The completion of this battery was an important milestone in our Montney development, as it provides the runway for future production growth on our Montney asset.

在薩斯喀徹溫省，我們鑽探了2口油井並完井了1口油井，而在美國，我們參與了5口總淨值為0.2的未作業油井的鑽探和完井。BC Montney 電池組的建設已於本季完成。該電池的完成是我們蒙特尼開發的一個重要里程碑，因為它為我們蒙特尼資產的未來產量成長提供了跑道。

Start-up of the Mica battery will allow us to nearly double our Montney production to approximately 14,000 boes a day in 2025 and will provide the platform for future expansion to 28,000 boes a day through further debottlenecking of the infrastructure in the coming years. Our team did a great job of getting these infrastructure projects completed and started on time and on budget. Commissioning of the facility went very smooth, and the plant continues to perform very well.

雲母電池的啟動將使我們在2025 年將蒙尼產量提高近一倍，達到每天約14,000 桶油當量，並將為未來透過在未來幾年進一步消除基礎設施瓶頸而將產量擴大到每天28,000 桶油當量提供平台。我們的團隊出色地完成了這些基礎設施項目並按時按預算啟動。該設施的調試非常順利，工廠繼續表現良好。

During the second quarter, we brought on production six new wells on the 16 to 28 pad prior to the start-up of new battery. As shown on the blue line on this chart, these wells were constrained prior to the start-up of the battery. And production is in line with our expectations for these wells. Subsequent to the quarter, we completed five wells on the 9 to 21 BC pad and expect to bring these wells on in late Q3 2024.

第二季度，在新電瓶啟動之前，我們在 16 至 28 台上投產了 6 口新井。如該圖表中的藍線所示，這些孔在電池啟動之前受到限制。產量符合我們對這些井的預期。本季結束後，我們在 9 至 21 BC 區塊完成了 5 口井，預計將在 2024 年第三季末將這些井投入使用。

Construction of our water hub infrastructure adjacent to the 8-33 battery was also completed subsequent to the quarter. The start-up of this water hub is expected to allow for up to 55% recycling of our water needs and reduce capital costs by approximately $650,000 per well.

8-33 電池附近的水中心基礎設施建設也在本季後完成。該水中心的啟動預計將能夠回收高達 55% 的水需求，並減少每口井約 65 萬美元的資本成本。

And our most recent wells on the 9 to 21 pad, they were completed in significantly less time than previous wells and used approximately 30% less water, resulting in approximately 15% completion cost savings or $1 million per well. We continue to drive efficiencies in our Montney operations as our activity level increases.

我們最近在 9 至 21 台的油井的完井時間明顯少於以前的油井，用水量減少了約 30%，從而節省了約 15% 的完井成本，即每口井 100 萬美元。隨著活動水準的增加，我們將繼續提高蒙尼業務的效率。

I will now pass it over to Lars to discuss shareholder returns and outlook.

現在我將把它交給拉爾斯討論股東回報和前景。

Thank you, Dion. As Dion mentioned during the beginning of the presentation, we significantly increased our pace of share buybacks during the second quarter. As you recall, we achieved our $1 billion net debt target in Q1. And in early March, we announced that we were increasing our ROC allocation to 50% of EFCF on an annual basis.

謝謝你，迪翁。正如迪翁在演講開始時所提到的，我們在第二季大幅加快了股票回購的腳步。您還記得，我們​​在第一季實現了 10 億美元的淨債務目標。3 月初，我們宣布每年將 ROC 分配增加至 EFCF 的 50%。

The chart on the left of this slide illustrates the steady increase in shareholder returns since 2021. In addition to dividends and share buybacks, debt reduction is an informal return of capital as it transfers value from debt holders to equity holders. Including these three components, we have returned over $10 per share of capital to our equity holders over the past 3.5 years.

本投影片左側的圖表顯示了自 2021 年以來股東回報的穩定成長。除了股息和股票回購之外，債務減少也是一種非正式的資本回報，因為它將價值從債務持有人轉移到股權持有人。包括這三個組成部分，在過去 3.5 年裡，我們向股東返還了超過 10 美元的每股資本。

The chart on the right shows the cumulative effect of share buybacks over the past 3.5 years. The achievement of our debt target in Q1 of this year marked a pivotal change in our return of capital framework. And Q2 2024 was the first full quarter executing under our revised ROC parameters.

右圖顯示了過去3.5年股票回購的累積效應。今年第一季債務目標的實現標誌著我們資本回報框架的關鍵變化。2024 年第二季是根據我們修訂後的 ROC 參數執行的第一個完整季度。

To date this year, we have already repurchased and canceled 6.1 million shares, which is more than we repurchased in the full year of 2023. We have further reduced our share count to 157.3 million shares at July 31, 2024. We continue to believe our share price is significantly undervalued and as such, we plan to allocate the majority of our shareholder returns to share buybacks.

今年迄今為止，我們已經回購並註銷了 610 萬股股票，這比我們 2023 年全年回購的股票還要多。截至 2024 年 7 月 31 日，我們已將股份數量進一步減少至 1.573 億股。我們仍然認為我們的股價被嚴重低估，因此，我們計劃將大部分股東回報分配給股票回購。

Given the strong operational performance year to date and anticipation of new production growth during the second half of the year in Mica and Croatia, offsetting some planned downtime, we are increasing our annual production guidance to 83,000 to 86,000 boe per day, while maintaining our capital budget guidance of $600 million to $625 million. All other financial guidance remains unchanged.

鑑於今年迄今為止的強勁營運業績以及 Mica 和克羅埃西亞下半年新產量成長的預期，抵消了一些計劃內的停工，我們將年產量指導提高至每天 83,000 至 86,000 桶油當量，同時維持我們的資本預算指導為6 億至6.25 億美元。所有其他財務指導保持不變。

Our Q3 2024 capital program includes completing and bringing on production the five wells from the 9 to 21 pad in the BC Montney and commencing our second-half 2024 drilling program in Alberta and Saskatchewan. In addition, we will commence drilling operations on the second exploration well in Germany, while we conduct further evaluation and testing of the successful exploration wells in Germany and Croatia.

我們的2024 年第三季資本計畫包括完成BC 蒙特尼9 號至21 號平台的5 口井並投入生產，並於2024 年下半年開始在艾伯塔省和薩斯喀徹溫省的鑽探計劃。此外，我們將在德國開始鑽探第二口探勘井，同時對德國和克羅埃西亞的成功探井進行進一步的評估和測試。

We expect Q3 2024 production to be in the range of 83,000 to 85,000 boe a day, taking into account planned turnaround activity, including a third-party turnaround deferred from Q2 2024 in Alberta, higher downtime during periods of high temperatures, and approximately 800 boe a day of dry gas production in Alberta that we have curtailed due to low gas prices.

我們預計2024 年第三季的產量將在每天83,000 至85,000 桶油當量之間，考慮到計劃的周轉活動，包括阿爾伯塔省自2024 年第二季度推遲的第三方週轉、高溫期間較長的停機時間以及約800 桶油當量由於天然氣價格低廉，我們減少了艾伯塔省一天的乾氣產量。

With that, I will pass it back to Dion.

這樣，我會將其傳回給迪翁。

Thank you, Lars. On closing, it was another strong quarter for Vermilion, as we delivered on our production guidance and achieved several milestones on our strategic growth assets. In addition, we benefited from a diversified portfolio that provides exposure to premium-priced European gas, which resulted in a corporate realized gas price of $5.69 this quarter or a 4.8 times multiple to the AECO benchmark.

謝謝你，拉爾斯。結束時，這是 Vermilion 的另一個強勁季度，我們實現了生產指導，並在策略成長資產上實現了多個里程碑。此外，我們受益於多元化的投資組合，該投資組合提供了高價歐洲天然氣的投資，這導致本季度企業實現的天然氣價格為 5.69 美元，是 AECO 基準的 4.8 倍。

We're excited about the upcoming test results from the recent discoveries in Germany and Croatia, as well as the ramp-up of our Montney battery and Croatia gas plant. I look forward to providing an update at a later date.

我們對德國和克羅埃西亞最近發現的即將到來的測試結果以及我們蒙特尼電池和克羅埃西亞天然氣工廠的產能成長感到興奮。我期待稍後提供更新。

As Lars mentioned, we have made significant progress on our share buyback program and plan to continue this momentum through the balance of this year. We truly believe the compounding effect of combining modest production growth with a growing base dividend and share buybacks will drive shareholder value in the months and years to come.

正如拉斯所提到的，我們在股票回購計畫方面取得了重大進展，並計劃在今年餘下的時間裡繼續保持這一勢頭。我們堅信，適度的產量成長與不斷增長的基本股息和股票回購相結合的複合效應將在未來幾個月和幾年內推動股東價值。

Well, that concludes my prepared remarks. And with that, I would like to open it up for questions.

好了，我準備好的發言就到此結束。說到這裡，我想開放提問。

(Operator Instructions) And at this time, sir, it appears that we have no questions registered.

（操作員指示）先生，目前我們似乎還沒有登記任何問題。

Well, thank you, Sylvie. Thank you again for participating in our Q2 '24 results conference call. Thank you.

好吧，謝謝你，西爾維。再次感謝您參加我們的 24 年第 2 季業績電話會議。謝謝。

Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines.

謝謝您，先生。女士們、先生們，今天的電話會議到此結束。再次感謝您的出席。此時，我們確實要求您斷開線路。