Earnings Labs

Vermilion Energy Inc. (VET)

Q1 2013 Earnings Call· Wed, May 1, 2013

$13.12

+4.04%

Key Takeaways · AI generated
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Transcript

Lorenzo Donadeo

Management

Provide you a bit of an update on our 2012 key accomplishments. Some of our first quarter highlights and some of our ongoing activity. So I'd also like to welcome the people who are just joining us by webcast today. And so if you have any questions at the end of the presentation, we ask that you speak into the microphones that are at the center of the room. And questions can also be addressed from our webcast audience. So I've got a couple of advisory slides. So just going over our 2012 key accomplishments. 2012 was a very strong year for Vermilion. In terms of our portfolio and future growth, we achieved 7% growth and -- 18 -- in production, an 18% growth in fund flows. We completed a couple of strategic acquisitions in France, adding about 2,800 barrels a day Brent-based price crude. We identified contingent resources of 161 million BOEs and prospective resources of 249 million BOEs, announced a significant position in the liquids-rich Duvernay play, 175,000 acres roughly, and we commenced testing of that play. We awarded -- we were awarded 3 land permits in The Netherlands totaling about 222,000 acres and captured a 2.3 million-acre block of land in Morocco, following a nonconventional and conventional exploration play. In terms of shareholder returns and financial stability, a very strong year. We significantly outperformed our peers at 19.6% positive returns versus the negative 21.5%, outperformed a number of other relevant indices as well. Our balance sheet is sort of best in class, a balance sheet of 1.2x debt to cash flow at the end of 2012, which is very, very strong. In terms of our operations, we doubled our production in the Cardium light oil play to about 7,500 BOEs per day, and we achieved record consolidated…

Andrea McCormick

Management

We do have a question from the Internet, from the webcast. What will the exposure to prices be when Ireland is fully onstream?

Lorenzo Donadeo

Management

I'm sorry. Could you -- I didn't catch that. I'm sorry.

Andrea McCormick

Management

What will the exposure to prices be when Ireland is fully onstream?

Lorenzo Donadeo

Management

Well, I mean, when Ireland comes on, our prices for Ireland will be in the range of about $10 an MCF. And so, I guess, if it's related to the exposure to European gas prices, I guess, it would be $10 an MCF. I'm not sure I totally understand the question, I'm sorry. Is there any other questions, Andrea?

Andrea McCormick

Management

No other questions from the webcast.

Lorenzo Donadeo

Management

Okay, okay. And if the webcast caller has any -- needs clarity on that, please call us at the office. We're happy to expand on that. Great. Well, thank you, everybody, for attending. Thanks for your patience today. Thank you very much.