Earnings release
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Exhibit 99.1 Vermilion Energy Inc. Reports Strong Q3 2025 Results, Lowers 2025 Cost Guidance, Releases 2026 Budget and Announces Planned 4% Dividend Increase CALGARY, AB, Nov. 5, 2025 /CNW/ - Vermilion Energy Inc. ("Vermilion", "We", "Our", "Us" or the "Company")(TSX: VET) (NYSE: VET) is pleased to report operating and condensed financial results for the three and ninemonths ended September 30, 2025. The unaudited interim financial statements and management discussion and analysis for the three and ninemonths ended September 30, 2025 will be available on the System for Electronic Document Analysis andRetrieval Plus ("SEDAR+") at www.sedarplus.ca, on EDGAR at www.sec.gov/edgar.shtml, and on Vermilion'swebsite at www.vermilionenergy.com. Highlights Q3 2025 Results • Generated $254 million ($1.65/basic share)(2) of fund flows from operations ("FFO")(1). Exploration and development ("E&D") capital expenditures(3) were $146 million, resulting in free cash flow ("FCF")(5) of$108 million. • Reduced net debt(6) by over $650 million since Q1 2025, bringing net debt to $1.38 billion as at September 30, 2025. This resulted in a net debt to four quarter trailing FFO(7) ratio of 1.4 times,reflecting continued progress toward strengthening Vermilion's balance sheet. • Vermilion reported comprehensive income of $35 million ($0.23/basic share). • Driven by the successful asset repositioning, including realized Deep Basin synergies in the second halfof 2025, Vermilion reduced the upper end of annual E&D capital expenditure guidance by $20 million,from $660 million to $640 million, and reduced annual operating cost guidance by over $10 million. • Vermilion realized an average natural gas price of $4.36/mcf before hedging and $5.62/mcf after hedgingin Q3 2025 - approximately seven and nine times the AECO 5A benchmark, respectively. To optimizemargins, the Company elected to shut in a portion of our gas production and deferred the start-up ofseveral wells, which resulted in approximately 3,000 boe/d of production impact in the quarter, withproduction expected to resume in Q4 2025 amid stronger pricing. • Vermilion returned $26 million to shareholders through dividends and share buybacks, comprising $20million in dividends and $6 million of share buybacks. During the quarter, the Company repurchased andcancelled 0.6 million shares through the NCIB for a total of 2.5 million shares repurchased year-to-date. • Production averaged 119,062 boe/d(9) (67% natural gas and 33% crude oil and liquids), comprising 88,763 boe/d(9) from the North American assets and 30,299 boe/d(9) from the International assets. • Drilled 13 (12.4 net) wells in the Deep Basin, demonstrating strong results across our significant landbase. Our Q3 2025 drilling program delivered well in excess of our expectations, demonstrating thequality of our land base and reinforcing our confidence in the development potential of these assets. • Executed a successful two-well (1.2 net) drilling program in the Netherlands in Q3 2025, discoveringcommercial gas in both the Rotliegend and Zechstein formations, with both wells expected to becompleted, tied in and brought on production in Q4 2025. These wells build on our two-decade track
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record of exploration success in the Netherlands, and, combined with recent discoveries in Germany,underscore Vermilion's broader European gas exploration expertise. 2026 Budget • Vermilion's Board of Directors has approved an E&D capital budget of $600 to $630 million for 2026.This capital budget prioritizes our global gas assets, with approximately 85% of capital invested in thispart of Vermilion's portfolio. The Company expects to deliver annual average production of 118,000 to 122,000 boe/d (70% natural gas)(12), focusing on financial discipline and free cash flow generation. The2026 budget reflects the Company's lower overall cost structure of the enhanced portfolio, with 30%improvements in capital efficiencies and unit operating costs driven by increased operational scale in ourcore areas. • Vermilion plans to invest approximately $415 million of E&D capital into liquids-rich gas assets inthe Montney and Deep Basin in 2026, including drilling a total of 49 (44.8 net) wells and investing in keyinfrastructure. Vermilion will run a three-rig drilling program in the Deep Basin, drilling 43 (38.8 net) wellswith minimal infrastructure requirements. In the Montney, we plan to drill six (6.0 net) wells, whilecompleting and bringing on production ten (10.0 net) wells and investing to expand existinginfrastructure. • Vermilion plans to invest approximately $200 million across its International assets in 2026, with acontinued emphasis on European natural gas exploration and development. In Germany, the Companyplans to build out key infrastructure and prepare for two (1.3 net) follow-up wells at the Wisselshorstdiscovery in early 2027, while bringing on production from the first Wisselshorst discovery in mid-2026.We plan to drill one (0.5 net) well in the Netherlands, while continuing to fund economic workover andoptimization projects throughout the International portfolio. • Plan to increase the quarterly cash dividend by 4% to $0.135 CAD per share, effective with the Q1 2026dividend payable on March 31, 2026, subject to approval by the Company's Board of Directors in March2026. Outlook • Vermilion expects Q4 2025 production to average 119,000 to 121,000 boe/d (69% natural gas)(12), with full-year production of approximately 119,500 boe/d (65% natural gas)(12) on E&D capital expendituresof $630 to $640 million. • Declared a quarterly cash dividend of $0.13 per common share, payable on December 31, 2025, toshareholders of record on December 15, 2025. ($M except as indicated) Q3 2025 Q2 2025 Q3 2024 YTD 2025 YTD 2024 Financial Fund flows from operations (1) 253,810 259,678 275,024 769,517 943,085 Fund flows from operations ($/basic share) (2) 1.65 1.68 1.76 5.00 5.93 Fund flows from operations ($/diluted share) (2) 1.64 1.67 1.75 4.96 5.87 Net earnings (loss) Net earnings (loss) from continuing operations (4,774) 74,385 39,794 73,314 (77,645) Net earnings (loss) from discontinued operations 7,331 (307,843) 11,903 (289,262) 49,222 Net earnings (loss) 2,557 (233,458) 51,697 (215,948) (28,423) Net earnings (loss) from continuing operations ($/basic share) (0.03) 0.48 0.25 0.48 (0.49) Net earnings (loss) from discontinued operations ($/basic share) 0.05 (1.99) 0.08 (1.88) 0.31 Net earnings (loss) ($/basic share) 0.02 (1.51) 0.33 (1.40) (0.18) Cash flows from operating activities 389,453 140,467 134,547 810,304 755,164 Cash flows (from) used in investing activities (325,061) 198,989 145,828 1,129,674 480,196 Capital expenditures (3) 145,562 115,489 121,269 443,170 422,321 Acquisitions (4) 1,068 1,591 1,642 1,123,657 16,844 Dispositions 483,525 - - 483,525 - Repurchase of shares 6,320 6,323 40,106 29,219 123,070 Cash dividends ($/share) 0.13 0.13 0.12 0.39 0.36 Dividends declared 19,947 20,022 18,642 60,012 56,806 Free cash flow (5) 108,248 144,189 153,755 326,347 520,764 Long-term debt 1,264,343 1,951,250 903,354 1,264,343 903,354 Net debt (6) 1,384,753 1,413,321 833,331 1,384,753 833,331
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Net debt to four quarter trailing fund flows from operations (7) 1.4 1.4 0.6 1.4 0.6 Shares outstanding - basic ('000s) 153,434 154,019 155,348 153,434 155,348 Weighted average shares outstanding - diluted ('000s) (8) 154,921 155,778 157,502 154,080 160,743 Operational Production (9) Crude oil and condensate (bbls/d) 28,197 37,449 29,837 32,662 31,797 NGLs (bbls/d) 10,985 12,656 7,547 10,943 7,264 Natural gas (mmcf/d) 479.28 515.38 280.73 455.08 274.93 Total (boe/d) 119,062 136,002 84,173 119,451 84,881 Average realized prices Crude oil and condensate ($/bbl) 91.93 85.07 103.55 91.80 105.54 NGLs ($/bbl) 22.99 24.68 27.49 26.01 30.99 Natural gas ($/mcf) 4.36 4.88 6.57 5.48 6.13 Average realized price ($/boe) 42.18 43.71 61.97 48.28 62.63 Production mix (% of production) % priced with reference to AECO 52 % 50 % 33 % 49 % 33 % % priced with reference to TTF and NBP 15 % 13 % 22 % 15 % 21 % % priced with reference to WTI 23 % 28 % 32 % 26 % 32 % % priced with reference to Dated Brent 10 % 9 % 13 % 10 % 14 % Netbacks Operating netback ($/boe) (10) 28.54 28.60 41.89 31.37 48.23 Fund flows from operations ($/boe) (11) 22.82 21.25 34.78 23.63 39.99 (1) Fund flows from operations (FFO) is a total of segments and non-GAAP financial measure most directly comparable to netearnings (loss) and is calculated as sales less royalties, transportation expense, operating expense, G&A expense, corporateincome tax expense (recovery), PRRT expense, interest expense, equity based compensation settled in cash, realized (gain)loss on derivatives, realized foreign exchange (gain) loss, and realized other (income) expense. The measure is used bymanagement to assess the contribution of each business unit to Vermilion's ability to generate income necessary to paydividends, repay debt, fund asset retirement obligations, and make capital investments. FFO does not have a standardizedmeaning under IFRS® Accounting Standards and therefore may not be comparable to similar measures provided by otherissuers. More information and a reconciliation to net earnings (loss), the most directly comparable primary financial statementmeasure, can be found in the "Non-GAAP and Other Specified Financial Measures" section of this document. Fund flows fromcontinuing operations and fund flows from discontinued operations are calculated in the same manner as FFO and are mostdirectly comparable to net earnings (loss) from continuing operations and net earnings (loss) discontinued operations,respectively. (2) Fund flows from operations per basic share and diluted share is calculated by dividing fund flows from operations (total ofsegments and non-GAAP financial measure) by the basic weighted average shares outstanding as defined under IFRSAccounting Standards. Fund flows from operations per diluted share is calculated by dividing fund flows from operations by thesum of basic weighted average shares outstanding and incremental shares issuable under the equity-based compensationplans as determined using the treasury stock method. Management assesses fund flows from operations on a per share basisas we believe this provides a measure of our operating performance after taking into account the issuance and potential futureissuance of Vermilion common shares. More information and a reconciliation to cash flows used in investing activities, the mostdirectly comparable primary financial statement measure, can be found in the "Non-GAAP and Other Specified FinancialMeasures" section of this document. Fund flows from continuing operations per basic and diluted share and fund flows fromdiscontinued operations per basic and diluted share are calculated in the same manner as FFO per basic and diluted share. (3) Capital expenditures is a non-GAAP financial measure most directly comparable to cash flows used in investing activities and iscalculated as the sum of drilling and development costs and exploration and evaluation costs. Management considers capitalexpenditures to be a useful measure of our investment in our existing asset base. Capital expenditures does not have astandardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures provided byother issuers. More information and a reconciliation to cash flows used in investing activities, the most directly comparableprimary financial statement measure, can be found in the "Non-GAAP and Other Specified Financial Measures" section of thisdocument. Capital expenditures is also referred to as E&D capital expenditures. (4) Acquisitions is a non-GAAP financial measure and is not a standardized financial measure under IFRS Accounting Standardsand therefore may not be comparable to similar measures disclosed by other issuers. Acquisitions is calculated as the sum ofacquisitions, net of cash acquired, acquisitions of securities and net acquired working capital (deficit). Management believesthat including these components provides a useful measure of the economic investment associated with our acquisition activityand is most directly comparable to cash flows used in investing activities. More information and a reconciliation to acquisitions,net of cash acquired and acquisition of securities, the most directly comparable primary financial statement measure, can befound in the "Non-GAAP and Other Specified Financial Measures" section of this document. (5) Free cash flow (FCF) and excess free cash flow (EFCF) are non-GAAP financial measures most directly comparable to cashflows from operating activities. FCF is calculated as FFO less drilling and development costs and exploration and evaluationcosts and EFCF is calculated as FCF less payments on lease obligations and asset retirement obligations settled. FCF is usedby management to determine the funding available for investing and financing activities including payment of dividends,repayment of long-term debt, reallocation into existing business units and deployment into new ventures. EFCF is used by
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management to determine the funding available to return to shareholders after costs attributable to normal business operations.FCF and EFCF do not have standardized meanings under IFRS Accounting Standards and therefore may not be comparable tosimilar measures provided by other issuers. More information and a reconciliation to cash flows from operating activities, themost directly comparable primary financial statement measure, can be found in the "Non-GAAP and Other Specified FinancialMeasures" section of this document. (6) Net debt is a capital management measure in accordance with IAS 1 "Presentation of Financial Statements" that is most directlycomparable to long-term debt and is calculated as long-term debt (excluding unrealized foreign exchange on swapped USDborrowings) plus adjusted working deficit (capital), a non-GAAP financial measure described in the "Non-GAAP and OtherSpecified Financial Measures" section of this document. Management considers this a helpful representation of Vermilion's netfinancing obligations after adjusting for the timing of working capital fluctuations. More information and a reconciliation to long-term debt, the most directly comparable primary financial statement measure, can be found in the "Non-GAAP and OtherSpecified Financial Measures" section of this document. (7) Net debt to four quarter trailing fund flows from operations is a non-GAAP ratio and is not a standardized financial measureunder IFRS Accounting Standards and therefore may not be comparable to similar measures disclosed by other issuers. Netdebt to four quarter FFO is calculated as net debt divided by FFO from the preceding four quarters. Management uses thismeasure to assess the Company's ability to repay debt. More information can be found in the "Non-GAAP and Other SpecifiedFinancial Measures" section of this document. Subsequent to February 26, 2025, net debt to four quarter trailing fund flows from operations is calculated inclusive of WestbrickEnergy's pre-acquisition four quarter trailing fund flows from operations, as if the acquisition of Westbrick Energy occurred at thebeginning of the four-quarter trailing period, and exclusive of the four quarter trailing fund flows from discontinued operations toreflect the Company's ability to repay debt on a pro forma basis. (8) Diluted shares outstanding represents the sum of shares outstanding at the period end plus outstanding awards under theLong-term Incentive Plan, based on current estimates of future performance factors and forfeiture rates. (9) Please refer to Supplemental Table 4 "Production" of the accompanying Management's Discussion and Analysis for disclosureby product type. (10) Operating netback is a non-GAAP financial measure that is not standardized under IFRS Accounting Standards and may not becomparable to similar measures disclosed by other issuers. Operating netback is most directly comparable to net (loss)earnings and is calculated as sales less royalties, operating expense, transportation expense, PRRT expense, and realizedhedging (gain) loss, and when presented on a per unit basis is a non-GAAP ratio. Management assesses operating netback asa measure of the profitability and efficiency of our field operations. More information and a reconciliation to net (loss) earnings,the most directly comparable primary financial statement measure, can be found in the "Non-GAAP and Other SpecifiedFinancial Measures" section of this document. (11) Fund flows from operations per boe is a non-GAAP ratio that is not standardized under IFRS Accounting Standards and maynot be comparable to similar measures disclosed by other issuers. FFO per boe is calculated as FFO divided by boe production.FFO per boe is used by management to assess the profitability of Vermilion's business units and Vermilion as a whole. Moreinformation can be found in the "Non-GAAP and Other Specified Financial Measures" section of this document. Fund flows fromcontinuing operations per boe and fund flows from discontinued operations per boe are calculated in the same manner as FFOper boe. (12) Based on Company estimates as at October 27, 2025. Message to Shareholders Vermilion delivered a strong third quarter, both operationally and financially, with production at the upper end ofour guidance range and robust fund flows from operations. Our continued focus on asset repositioning has ledto repeatable improvements in capital and operating efficiencies, supported by longer-duration assets. As aresult, we have reduced the upper end of our 2025 capital guidance by $20 million and lowered full-yearoperating cost guidance by over $10 million. These improvements are structural in nature and have beenembedded into our 2026 budget guidance, which is inclusive of realized Deep Basin synergies. Compared to2024 - the most recent year prior to our asset high-grading - our 2026 operational guidance reflects an over40% increase in production per share, as well as a 30% structural improvement in capital efficiency andoperating costs. Following our repositioning, 85% of our production and capital is now concentrated in larger,core areas of our global gas portfolio. We believe this better positions Vermilion for long-term success. Our ability to deliver strong Q3 2025 results despite pricing volatility underscores the strength of ourdifferentiated portfolio. Vermilion's assets drove strong operational and financial results despite downwardpressure on AECO pricing in response to imbalanced supply-demand dynamics. Vermilion's realized gas price,excluding realized hedging gain, was $4.36/mcf, and including realized hedging gain was $5.62/mcf,
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approximately seven and nine times the daily benchmark, respectively. This outperformance was driven by ourexposure to premium-priced European gas, supplemented by a robust hedging program, and highlights thebenefit of being a global gas producer. To optimize margins, the Company elected to shut in a portion of our gasproduction and deferred the start-up of several wells, which resulted in approximately 3,000 boe/d of productionimpact in the quarter. The Company expects to bring the shut-in production and new wells online in Q4 2025into a more supportive pricing environment. We ramped up to a three-rig drilling program in the Deep Basin during Q3 2025, targeting several discretezones and delivering strong results across our extensive 1.1 million net acre position. This level of activityreflects a full-scale drilling program and results to-date have exceeded expectations, highlighting the quality ofour land base and reinforcing confidence in the asset's long-term potential. Looking ahead, we plan to maintaina steady three-rig program to efficiently advance development across the Deep Basin. Vermilion executed a successful two-well (1.2 net) drilling program in the Netherlands in Q3 2025, discoveringcommercial gas in both the Rotliegend and Zechstein formations, with both wells expected to be completed,tied in and brought on production in Q4 2025. These wells build on our two-decade track record of explorationsuccess in the Netherlands, and, combined with recent discoveries in Germany, underscore Vermilion's broaderEuropean gas exploration expertise. The first well of the 2024 Germany exploration program, Osterheide,continues to produce at a restricted rate of 1,100 boe/d, while the second well, Wisselshorst, is on track forstart-up by mid-2026, with preparations underway for follow-up drilling. The fourth quarter of 2025 will represent the first full quarter of Vermilion's repositioned global gas portfoliofollowing a busy period of acquisition and disposition activity. With demonstrated successes in exploration anddevelopment across our asset base and an improving backdrop for natural gas pricing in Canada, we believeVermilion is uniquely positioned to benefit from global gas demand. Q3 2025 Review Vermilion generated $254 million of fund flows from operations ("FFO") in Q3 2025, with free cash flow ("FCF")of $108 million reflecting E&D capital expenditures of $146 million. Production averaged 119,062 boe/d (67% gas)(1), which was at the upper end of our Q3 2025 guidance range. Production from Vermilion's North American operations averaged 88,763 boe/d(1), inclusive of the divestments of the Company's assets in Saskatchewan and the United States, which closed in July 2025, as well as shut-in gas and the impact of planned turnaround activity. Production from Vermilion's International operations averaged 30,299 boe/d(1) inQ3 2025, an increase of 2% from the previous quarter due to strong performance across the Internationalbusiness units. In Canada, capital activity ramped up in Q3 2025, with the Company executing a three-rig drilling program inthe Deep Basin. Vermilion drilled thirteen (12.4 net), completed twelve (11.3 net), and brought on productionthree (2.4 net) liquids-rich gas wells in the Deep Basin and brought on production one (1.0 net) liquids-rich gaswell in the Montney. The Company elected to defer start-up of several wells drilled and completed in Q3 2025 toQ4 2025, with production expected to come online amid stronger pricing. In the Netherlands, Vermilion drilled two (1.2 net) conventional natural gas wells. Both wells discoveredcommercial hydrocarbons and are planned to be completed, tied in and brought on production in Q4 2025. InGermany, the Osterheide well (1.0 net) that was brought on production at the end of Q1 2025 continued toproduce at approximately 1,100 boe/d in Q3 2025. 2026 Budget and Guidance Vermilion's Board of Directors has approved an E&D capital budget of $600 to $630 million for 2026, withapproximately 85% allocated to our global gas portfolio. Key investments include drilling and strategicinfrastructure investment on the Montney asset, high-return liquids-rich gas wells in the Deep Basin, and drillingand infrastructure capital investment in Germany and the Netherlands. The Company expects to deliver annual average production of 118,000 to 122,000 boe/d (70% natural gas)(2), focusing on financial discipline and freecash flow generation. The 2026 budget reflects the lower overall cost structure of the Company's enhancedportfolio, with 30% improvements in capital efficiencies and unit operating costs driven by increased operationalscale in our core operating areas. Canada Vermilion plans to invest approximately $415 million of E&D capital into liquids-rich gas assets in the Montneyand Deep Basin in 2026, including drilling a total of 49 (44.8 net) wells and investing in key infrastructure.Vermilion will run a three-rig drilling program in the Deep Basin, drilling 43 (38.8 net) wells with minimal
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infrastructure requirements. In the Montney, we plan to drill six (6.0 net) wells, and complete and bring onproduction ten (10.0 net) wells, while investing to expand existing infrastructure. Third-party infrastructure isexpected to increase total Montney throughput capacity to 28,000 boe/d within the next few years, after whichthe ongoing capital commitment will decrease to approximately eight wells per year to maintain production, withno further infrastructure expansion anticipated. International Vermilion plans to invest approximately $200 million across its International assets in 2026, with a continuedemphasis on European natural gas exploration and development. In Germany, the Company plans to build outkey infrastructure and prepare for two (1.3 net) follow-up wells at the Wisselshorst discovery in early 2027,while bringing on production from the first Wisselshorst discovery in mid-2026. We plan to drill one (0.5 net) wellin the Netherlands, while continuing to fund economic workover and optimization projects throughout theinternational portfolio. We expect maintenance spending will be higher than previous years due to non-recurringturnarounds across our international asset base, including a planned 32-day turnaround in Ireland that has ascope of work that occurs every five years. Financial Outlook and Return of Capital The Company's shareholder returns priorities remain unchanged, as we will focus on funding the basedividend, buying back shares when warranted, and directing excess free cash flow to debt reduction. Vermilionis pleased to announce a planned 4% increase to the quarterly cash dividend to $0.135 CAD per share,effective with the Q1 2026 dividend payable on March 31, 2026, subject to approval by the Company's Board ofDirectors in March 2026. 2026 Guidance Category 2026 Current (3) Production (boe/d) 118,000 - 122,000 E&D capital expenditures ($MM) $600 - 630 Operating ($/boe) $12.25 - 13.25 General and administration ($/boe) (4) $1.65 - 2.15 Transportation ($/boe) $3.00 - 3.50 Royalty rate (% of sales) 7 - 9% Cash taxes (% of pre-tax FFO) 2 - 6% Asset retirement obligations settled ($MM) $55 Payments on lease obligations ($MM) $10 Outlook and 2025 Guidance Update Vermilion expects Q4 2025 production to average 119,000 to 121,000 boe/d (69% natural gas)(2), with full-year production of approximately 119,500 boe/d (65% natural gas)(2) on E&D capital expenditures of $630 to $640 million. The $20 million reduction in the upper range of E&D capital expenditures guidance reflects theimproved efficiency of our capital program. Commodity Hedging Vermilion hedges to manage commodity price exposures and increase the stability of our cash flows. Inaggregate, we have 55% of our expected net-of-royalty production hedged for the remainder of 2025. Withrespect to individual commodity products, we have hedged 54% of our European natural gas production, 59%of our crude oil production, and 49% of our North American natural gas volumes, respectively. Please refer tothe Hedging section of our website under Invest With Us for further details using the following link:https://www.vermilionenergy.com/invest-with-us/hedging. Board of Directors Vermilion is pleased to announce the appointment of Mr. Paul Myers to its Board of Directors, effectiveSeptember 2, 2025. Mr. Myers brings 40 years of global experience in oil and gas exploration, development,and leadership. He was the Founder and Chief Executive Officer of Canbriam Energy, where he oversaw thecompany's growth into a leading Montney natural gas developer, with responsibility for strategy, capital
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allocation, stakeholder engagement, and operational excellence. Following Canbriam's acquisition by PacificOil & Gas in 2019, he served as President of Pacific Canbriam Energy until his retirement in 2025, guiding theintegration and continued development of the company's assets. Earlier in his career, Mr. Myers was Chief Executive Officer of Esprit Energy Trust and Vice President,Deepwater Gulf of Mexico, at EnCana, where he gained extensive technical and operational expertise in large-scale offshore developments. He also held senior roles with Statoil Exploration US and Amoco ProductionCompany, building deep expertise in geophysics, exploration, and development operations. (Signed "Dion Hatcher") Dion Hatcher President & Chief Executive Officer November 5, 2025 (1) Please refer to Supplemental Table 4 "Production" of the accompanying Management's Discussion and Analysis for disclosure byproduct type. (2) Based on Company estimates, 2026 reflects 2026 forward strip pricing as at October 27, 2025: TTF $14.66/mmbtu; NBP$14.41/mmbtu; AECO $3.26/mcf; Brent US$63.89/bbl; WTI US$59.98/bbl; CAD/USD 1.38; CAD/EUR 1.63 and CAD/AUD 0.91. (3) 2026 guidance reflects foreign exchange assumptions of CAD/USD 1.38, CAD/EUR 1.63, and CAD/AUD 0.91. (4) General and administration expense exclusive of expected cash-settled equity based compensation of $0.15 - 0.20/boe. Conference Call Vermilion will discuss these results in a conference call and webcast presentation on Thursday, November 6,2025, at 9:00 AM MT (11:00 AM ET). To participate, call 1-888-510-2154 (Canada and US Toll Free) or 1-437-900-0527 (International and Toronto Area). A recording of the conference call will be available for replay bycalling 1-888-660-6345 (Canada and US Toll Free) or 1-289-819-1450 (International and Toronto Area) andusing conference replay entry code 43922# from November 6, 2025, at 12:00 PM MT to November 13, 2025, at12:00 PM MT. To join the conference call without operator assistance, you may register and enter your phone number athttps://emportal.ink/47fxkup to receive an instant automated call back. You may also access the webcast athttps://app.webinar.net/Vy9wqr8Zbzj. The webcast links will be available on Vermilion's website athttps://www.vermilionenergy.com/invest-with-us/events-presentations/ under Upcoming Events prior to theconference call. Participants who would like to submit questions ahead of time may do so by emailinginvestor_relations@vermilionenergy.com. Non-GAAP and Other Specified Financial Measures This report and other materials released by Vermilion includes financial measures that are not standardized,specified, defined, or determined under IFRS Accounting Standards and are therefore considered non-GAAP orother specified financial measures and may not be comparable to similar measures presented by other issuers.These financial measures include: Total of Segments Measures Fund flows from operations (FFO): Most directly comparable to net earnings (loss), FFO is a non-GAAPfinancial measure and total of segments measure comprised of sales less royalties, transportation, operating,G&A, corporate income tax, PRRT, interest expense, equity based compensation settled in cash, realized gain(loss) on derivatives, realized foreign exchange gain (loss), and realized other income (expense). The measureis used by management to assess the contribution of each business unit to Vermilion's ability to generateincome necessary to pay dividends, repay debt, fund asset retirement obligations and make capitalinvestments. Reconciliation to the most directly comparable primary financial statement measures can be foundbelow. Fund flows from continuing operations and fund flows from discontinued operations are calculated in thesame manner as FFO and is most directly comparable to net earnings (loss) from continuing operations and netearnings (loss) discontinued operations, respectively.
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Q3 2025 Q3 2024 YTD 2025 YTD 2024 $M $/boe $M $/boe $M $/boe $M $/boe Sales 449,502 41.49 388,171 59.72 1,362,029 46.10 1,136,475 59.62 Royalties (27,398) (2.53) (23,678) (3.64) (86,757) (2.94) (71,188) (3.73) Transportation (34,852) (3.22) (23,508) (3.62) (96,705) (3.27) (64,994) (3.41) Operating (138,484) (12.78) (111,425) (17.14) (375,388) (12.70) (338,032) (17.73) General and administration (19,027) (1.76) (15,665) (2.41) (72,752) (2.46) (53,365) (2.80) Corporate income tax expense (4,676) (0.43) (12,707) (1.96) (34,851) (1.18) (50,427) (2.65) Petroleum resource rent tax (1,663) (0.15) (507) (0.08) (5,436) (0.18) (14,928) (0.78) Interest expense (34,408) (3.18) (21,187) (3.26) (105,078) (3.56) (60,641) (3.18) Equity based compensation - - - - (5,692) (0.19) (14,361) (0.75) Realized gain on derivatives 61,793 5.70 49,891 7.68 120,611 4.08 316,523 16.61 Realized foreign exchange (loss) gain (882) (0.08) 1,155 0.18 1,130 0.04 5,293 0.28 Realized other income (expense) 163 0.02 (1,676) (0.26) (14,956) (0.51) (2,148) (0.11) Fund flows from continuing operations 250,068 23.08 228,864 35.21 686,155 23.23 788,207 41.37 Equity based compensation (5,937) (6,412) (13,154) (8,070) Unrealized gain (loss) on derivative instruments (1) 5,511 (1,052) 62,405 (315,585) Unrealized foreign exchange loss (1) (41,507) (11,522) (71,519) (30,384) Accretion (18,910) (17,017) (52,427) (49,067) Depletion and depreciation (174,033) (152,840) (488,077) (432,843) Deferred tax (expense) recovery (20,265) 251 (48,655) (29,080) Unrealized other income (expense) (1) 299 (478) (1,414) (823) Net (loss) earnings from continuing operations (4,774) 39,794 73,314 (77,645) Q3 2025 Q3 2024 YTD 2025 YTD 2024 $M $/boe $M $/boe $M $/boe $M $/boe Sales 19,349 68.62 101,924 72.36 209,816 69.77 340,580 75.33 Royalties (4,387) (15.56) (19,060) (13.53) (40,386) (13.43) (66,713) (14.76) Transportation (1,025) (3.64) (3,185) (2.26) (6,969) (2.32) (9,978) (2.21) Operating (5,587) (19.81) (27,381) (19.44) (59,285) (19.71) (90,315) (19.98) General and administration (4,608) (16.34) (6,138) (4.36) (19,814) (6.59) (18,678) (4.13) Corporate income tax expense - - - - - - (18) - Fund flows from discontinued operations 3,742 13.27 46,160 32.77 83,362 27.72 154,878 34.25 Unrealized gain on derivative instruments (1) 11,047 - - - Unrealized foreign exchange gain (loss) (1) 336 140 (101) 430 Unrealized other expense (3,986) - (3,986) - Accretion - (2,109) (4,235) (6,202) Depletion and depreciation - (27,324) (46,511) (86,939) Deferred tax (expense) recovery (3,808) (4,964) 54,595 (12,945) Impairment expense - - (372,386) - Net earnings (loss) from discontinued operations 7,331 11,903 (289,262) 49,222 Fund flows from operations 253,810 22.82 275,024 34.78 769,517 23.63 943,085 39.99 Net earnings (loss) 2,557 51,697 (215,948) (28,423) (1) Unrealized gain (loss) on derivative instruments, Unrealized foreign exchange loss, and Unrealized other expense are line itemsfrom the respective Consolidated Statements of Cash Flows. Non-GAAP Financial Measures and Non-GAAP Ratios Fund flows from operations per basic and diluted share: FFO per basic share and diluted share are non-GAAP ratios. Management assesses fund flows from operations on a per share basis as we believe thisprovides a measure of our operating performance after taking into account the issuance and potential future
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issuance of Vermilion common shares. Fund flows from operations per basic share is calculated by dividingfund flows from operations (total of segments measure) by the basic weighted average shares outstanding asdefined under IFRS Accounting Standards. Fund flows from operations per diluted share is calculated bydividing fund flows from operations by the sum of basic weighted average shares outstanding and incrementalshares issuable under the equity based compensation plans as determined using the treasury stock method.Fund flows from continuing operations per basic and diluted share and fund flows from discontinued operationsper basic and diluted share are calculated in the same manner as FFO per basic and diluted share. Fund flows from operations per boe: Management uses fund flows from operations per boe to assess theprofitability of our business units and Vermilion as a whole. Fund flows from operations per boe is calculated bydividing fund flows from operations (total of segments measure) by boe production. Fund flows from continuingoperations per boe and fund flows from discontinued operations per boe are calculated in the same manner asFFO per boe. Free cash flow (FCF) and excess free cash flow (EFCF): Most directly comparable to cash flows fromoperating activities, FCF is a non-GAAP financial measure calculated as fund flows from operations less drillingand development costs and exploration and evaluation costs and EFCF is comprised of FCF less payments onlease obligations and asset retirement obligations settled. FCF is used by management to determine thefunding available for investing and financing activities including payment of dividends, repayment of long-termdebt, reallocation into existing business units and deployment into new ventures. EFCF is used by managementto determine the funding available to return to shareholders after costs attributable to normal businessoperations. Reconciliation to the primary financial statement measures can be found in the following table. ($M) Q3 2025 Q3 2024 2025 2024 Cash flows from operating activities 389,453 134,547 810,304 755,164 Changes in non-cash operating working capital (148,972) 125,145 (71,849) 155,869 Asset retirement obligations settled 13,329 15,332 31,062 32,052 Fund flows from operations 253,810 275,024 769,517 943,085 Drilling and development (144,791) (118,809) (423,493) (410,457) Exploration and evaluation (771) (2,460) (19,677) (11,864) Free cash flow 108,248 153,755 326,347 520,764 Payments on lease obligations (3,014) (7,547) (10,695) (19,479) Asset retirement obligations settled (13,329) (15,332) (31,062) (32,052) Excess free cash flow 91,905 130,876 284,590 469,233 Capital expenditures: Most directly comparable to cash flows used in investing activities, capital expendituresis a non-GAAP financial measure calculated as the sum of drilling and development costs and exploration andevaluation costs as derived from the Consolidated Statements of Cash Flows. We consider capital expendituresto be a useful measure of our investment in our existing asset base. Capital expenditures are also referred toas E&D capital. Reconciliation to the primary financial statement measures can be found below. ($M) Q3 2025 Q3 2024 2025 2024 Drilling and development 144,791 118,809 423,493 410,457 Exploration and evaluation 771 2,460 19,677 11,864 Capital expenditures 145,562 121,269 443,170 422,321 Payout and payout % of FFO: Payout and payout % of FFO are, respectively, a non-GAAP financial measureand non-GAAP ratio. Payout is most directly comparable to dividends declared. Payout is comprised ofdividends declared plus drilling and development costs, exploration and evaluation costs, and asset retirementobligations settled, and payout % of FFO is calculated as payout divided by FFO. The measure is used bymanagement to assess the amount of cash distributed back to shareholders and reinvested in the business formaintaining production and organic growth. Payout as a percentage of FFO is also referred to as the payoutratio or sustainability ratio. The reconciliation of the measure to the primary financial statement measure can befound below. ($M) Q3 2025 Q3 2024 2025 2024 Dividends declared 19,947 18,642 60,012 56,806 Drilling and development 144,791 118,809 423,493 410,457 Exploration and evaluation 771 2,460 19,677 11,864 Asset retirement obligations settled 13,329 15,332 31,062 32,052 Payout 178,838 155,243 534,244 511,179 % of fund flows from operations 70 % 56 % 69 % 54 %
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Return on capital employed (ROCE): A non-GAAP ratio, ROCE is a measure that management uses toanalyze our profitability and the efficiency of our capital allocation process; the comparable primary financialstatement measure is earnings before income taxes. ROCE is calculated by dividing net earnings (loss) beforeinterest and taxes ("EBIT") by average capital employed over the preceding twelve months. Capital employed iscalculated as total assets less current liabilities while average capital employed is calculated using the balancesheets at the beginning and end of the twelve-month period. Twelve Months Ended ($M) Sep 30, 2025 Sep 30, 2024 Net loss (234,264) (831,559) Taxes (32,898) (4,597) Interest expense 129,043 83,550 EBIT (138,119) (752,606) Average capital employed 5,513,299 5,995,108 Return on capital employed (3) % (13) % Adjusted working capital (deficit): Adjusted working capital (deficit) is a non-GAAP financial measurecalculated as current assets less current liabilities, excluding current derivatives and current lease liabilities.The measure is used by management to calculate net debt, a capital management measure disclosed below. As at ($M) Sep 30, 2025 Dec 31, 2024 Current assets 394,584 582,326 Current liabilities (489,424) (610,590) Current derivative asset (44,544) (40,312) Current lease liability 10,136 12,206 Current derivative liability 7,180 52,944 Adjusted working capital (deficit) (122,068) (3,426) Acquisitions: Acquisitions is a non-GAAP financial measure and is calculated as the sum of acquisitions, netof cash acquired and acquisitions of securities from the Consolidated Statements of Cash Flows, Vermilioncommon shares issued as consideration, the estimated value of contingent consideration, the amount ofacquiree's outstanding long-term debt assumed, and net acquired working capital deficit or surplus.Management believes that including these components provides a useful measure of the economic investmentassociated with our acquisition activity and is most directly comparable to cash flows used in investingactivities. A reconciliation to the acquisitions line items in the Consolidated Statements of Cash Flows can befound below. ($M) Q3 2025 Q3 2024 2025 2024 Acquisitions, net of cash acquired 1,068 1,642 1,087,115 7,471 Shares issued for acquisition - - 13,363 - Acquisition of securities - - - 9,373 Acquired working capital deficit - - 23,179 - Acquisitions 1,068 1,642 1,123,657 16,844 Operating netback: Operating netback is non-GAAP financial measure and is calculated as sales lessroyalties, operating expense, transportation costs, PRRT, and realized hedging gains and losses, and whenpresented on a per unit basis is a non-GAAP ratio. Operating netback is most directly comparable to netearnings (loss). Management assesses operating netback as a measure of the profitability and efficiency of ourfield operations. Net debt to four quarter trailing fund flows from operations: Management uses net debt (a capitalmanagement measure, as defined below) to four quarter trailing fund flows from operations to assess theCompany's ability to repay debt. Net debt to four quarter trailing fund flows from operations is a non-GAAP ratiocalculated as net debt (capital management measure) divided by fund flows from operations (total of segmentsmeasure) from the preceding four quarters. Capital Management Measure Net debt: Net debt is a capital management measure in accordance with IAS 1 "Presentation of FinancialStatements" that is most directly comparable to long-term debt. Net debt is comprised of long-term debt(excluding unrealized foreign exchange on swapped USD borrowings) plus adjusted working capital (defined as
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current assets less current liabilities, excluding current derivatives and current lease liabilities), and representsVermilion's net financing obligations after adjusting for the timing of working capital fluctuations. As at ($M) Sep 30, 2025 Dec 31, 2024 Long-term debt 1,264,343 963,456 Adjusted working capital (1) 122,068 3,426 Unrealized FX on swapped USD borrowings (1,658) - Net debt 1,384,753 966,882 Ratio of net debt to four quarter trailing fund flows from operations (1) 1.4 0.8 (1) Adjusted working capital is defined as current assets (excluding current derivatives), less current liabilities (excluding currentderivatives and current lease liabilities). (2) Subsequent to February 26, 2025, net debt to four quarter trailing fund flows from operations is calculated inclusive of WestbrickEnergy's pre-acquisition four quarter trailing fund flows from operations, as if the acquisition of Westbrick Energy occurred at thebeginning of the four-quarter trailing period, and exclusive of the four quarter trailing fund flows from discontinued operations toreflect the Company's ability to repay debt on a pro forma basis. Supplementary Financial Measures Diluted shares outstanding: The sum of shares outstanding at the period end plus outstanding awards underthe Long-term Incentive Plan ("LTIP"), based on current estimates of future performance factors and forfeiturerates. ('000s of shares) Q3 2025 Q3 2024 Shares outstanding 153,434 155,348 Potential shares issuable pursuant to the LTIP 4,717 3,564 Diluted shares outstanding 158,151 158,912 Production per share growth: Calculated as the change in production determined on a per weighted averageshares outstanding basis over a predefined period of time, expressed as a compounded, annualized returnpercentage. Measuring production growth per share better reflects the interests of our existing shareholders byreflecting the dilutive impact of equity issuances. F&D (finding and development) and FD&A (finding, development and acquisition) costs: used as ameasure of capital efficiency, calculated by dividing the applicable capital expenditures for the period, includingthe change in undiscounted FDC (future development capital), by the change in the reserves, incorporatingrevisions and production, for the same period. Operating Recycle Ratio: A non-GAAP ratio that is calculated by dividing the Operating Netback, excludingrealized gain (loss) on derivatives and petroleum resource rent tax, by the cost of adding reserves (F&D andFD&A cost). Management assesses operating recycle ratio as a measure of the reinvestment of earnings. Management's Discussion and Analysis and Consolidated Financial Statements To view Vermilion's Management's Discussion and Analysis and Interim Condensed Consolidated FinancialStatements for the three and nine months ended September 30, 2025 and 2024, please refer to SEDAR+(www.sedarplus.ca) or Vermilion's website at www.vermilionenergy.com. About Vermilion Vermilion is a global gas producer that seeks to create value through the acquisition, exploration anddevelopment of liquids-rich natural gas in Canada and conventional natural gas in Europe while optimizing low-decline oil assets. This diversified portfolio delivers outsized free cash flow through direct exposure to globalcommodity prices and enhanced capital allocation optionality. Vermilion's priorities are health and safety, the environment, and profitability, in that order. Nothing is moreimportant than the safety of the public and those who work with Vermilion, and the protection of the naturalsurroundings. In addition, the Company emphasizes strategic community investment in each of its operatingareas. Vermilion trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET.
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Disclaimer Certain statements included or incorporated by reference in this document may constitute forward-lookingstatements or information under applicable securities legislation. Such forward-looking statements orinformation typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend","estimate", "propose", or similar words suggesting future outcomes or statements regarding an outlook.Forward-looking statements or information in this document may include, but are not limited to: capitalexpenditures, including Vermilion's 2025 guidance, and Vermilion's ability to fund such expenditures; theflexibility of Vermilion's capital program and operations; business strategies and objectives; operational andfinancial performance; wells expected to be drilled and the timing thereof; exploration and development plansand the timing thereof; future drilling prospects; the ability of our asset base to deliver modest productiongrowth; the evaluation of international acquisition opportunities; statements regarding the return of capital; ourasset petroleum and natural gas sales; future production levels and the timing thereof, including Vermilion's2025 guidance, and rates of average annual production growth; the effect of changes in crude oil and naturalgas prices, changes in exchange and inflation rates; the payment and amount of future dividends, includingmanagement's intention to increase the Company's dividend and the timing thereof; the effect of possiblechanges in critical accounting estimates; the Company's review of the impact of potential changes to financialreporting standards; the potential financial impact of climate-related risks; Vermilion's goals regarding its debtlevels, including maintenance of a ratio of net debt to four quarter trailing fund flows from operations;statements regarding Vermilion's hedging program and the stability of our cash flows; operating and otherexpenses; royalty and income tax rates and Vermilion's expectations regarding future taxes and taxability andthe timing of regulatory proceedings and approvals. Such forward-looking statements or information are based on a number of assumptions, all or any of which mayprove to be incorrect. In addition to any other assumptions identified in this document, assumptions have beenmade regarding, among other things: the ability of Vermilion to obtain equipment, services and supplies in atimely manner to carry out its activities in Canada and internationally; the ability of Vermilion to market crude oil,natural gas liquids, and natural gas successfully to current and new customers; the timing and costs of pipelineand storage facility construction and expansion and the ability to secure adequate product transportation; thetimely receipt of required regulatory approvals; the ability of Vermilion to obtain financing on acceptable terms;foreign currency exchange rates and interest rates; future crude oil, natural gas liquids, and natural gas prices;management's expectations relating to the timing and results of exploration and development activities; theimpact of Vermilion's dividend policy on its future cash flows; credit ratings; hedging program; expectedearnings/(loss) and adjusted earnings/(loss); expected earnings/(loss) or adjusted earnings/(loss) per share;expected future cash flows and free cash flow and expected future cash flow and free cash flow per share;estimated future dividends; financial strength and flexibility; debt and equity market conditions; generaleconomic and competitive conditions; ability of management to execute key priorities; and the effectiveness ofvarious actions resulting from the Vermilion's strategic priorities. Although Vermilion believes that the expectations reflected in such forward-looking statements or informationare reasonable, undue reliance should not be placed on forward-looking statements because Vermilion cangive no assurance that such expectations will prove to be correct. Financial outlooks are provided for thepurpose of understanding Vermilion's financial position and business objectives, and the information may not beappropriate for other purposes. Forward-looking statements or information are based on current expectations,estimates, and projections that involve a number of risks and uncertainties which could cause actual results todiffer materially from those anticipated by Vermilion and described in the forward-looking statements orinformation. These risks and uncertainties include, but are not limited to: the ability of management to executeits business plan; the risks of the oil and gas industry, both domestically and internationally, such as operationalrisks in exploring for, developing and producing crude oil, natural gas liquids, and natural gas; risks anduncertainties involving geology of crude oil, natural gas liquids, and natural gas deposits; risks inherent inVermilion's marketing operations, including credit risk; the uncertainty of reserves estimates and reserves lifeand estimates of resources and associated expenditures; the uncertainty of estimates and projections relatingto production and associated expenditures; potential delays or changes in plans with respect to exploration ordevelopment projects; Vermilion's ability to enter into or renew leases on acceptable terms; fluctuations in crudeoil, natural gas liquids, and natural gas prices, foreign currency exchange rates, interest rates and inflation;health, safety, and environmental risks; uncertainties as to the availability and cost of financing; the ability ofVermilion to add production and reserves through exploration and development activities; the possibility thatgovernment policies or laws may change or governmental approvals may be delayed or withheld; uncertainty inamounts and timing of royalty payments; risks associated with existing and potential future law suits andregulatory actions against or involving Vermilion; and other risks and uncertainties described elsewhere in thisdocument or in Vermilion's other filings with Canadian securities regulatory authorities. References to Vermilionor the Company in this document include Westbrick Energy Ltd. ("Westbrick" or "Westbrick Energy") which wasacquired by Vermilion Energy Inc. on February 26, 2025.
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The forward-looking statements or information contained in this document are made as of the date hereof andVermilion undertakes no obligation to update publicly or revise any forward-looking statements or information,whether as a result of new information, future events, or otherwise, unless required by applicable securitieslaws. This document discloses certain oil and gas metrics, including DCET costs, which do not have standardizedmeanings or standard methods of calculation and therefore such measures may not be comparable to similarmeasures used by other companies and should not be used to make comparisons. Such metrics have beenincluded in this MD&A to provide readers with additional measures to evaluate the Company's performance;however, such measures are not reliable indicators of the Company's future performance and futureperformance may not compare to the Company's performance in previous periods and therefore such metricsshould not be unduly relied upon. DCET costs includes all capital spent to drill, complete, equip and tie-in awell. Additional oil and gas metrics in this document may include, but are not limited to: Boe Equivalency: Per barrel of oil equivalent amounts have been calculated using a conversion rate of sixthousand cubic feet of natural gas to one barrel of oil equivalent (6:1). Barrel of oil equivalents (boe) may bemisleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl is based on an energyequivalency conversion method primarily applicable at the burner tip and does not represent a valueequivalency at the wellhead. In addition, as the value ratio between natural gas and crude oil based on thecurrent prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing aconversion on a 6:1 basis may be misleading as an indication of value. Estimates of Drilling Locations: Unbooked drilling locations are the internal estimates of Vermilion based onVermilion's prospective acreage and an assumption as to the number of wells that can be drilled per sectionbased on industry practice and internal review. Unbooked locations do not have attributed reserves orresources (including contingent and prospective). Unbooked locations have been identified by Vermilion'smanagement as an estimation of Vermilion's multi-year drilling activities based on evaluation of applicablegeologic, seismic, engineering, production and reserves information. There is no certainty that Vermilion will drillall unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oiland natural gas reserves, resources or production. The drilling locations on which Vermilion will actually drillwells, including the number and timing thereof is ultimately dependent upon the availability of funding,regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additionalreservoir information that is obtained and other factors. While a certain number of the unbooked drillinglocations have been de-risked by Vermilion drilling existing wells in relative close proximity to such unbookeddrilling locations, the majority of other unbooked drilling locations are farther away from existing wells wheremanagement of Vermilion has less information about the characteristics of the reservoir and therefore there ismore uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that suchwells will result in additional oil and gas reserves, resources or production. Financial data contained within this document are reported in Canadian dollars, unless otherwise stated. View original content to download multimedia:https://www.prnewswire.com/news-releases/vermilion-energy-inc-reports-strong-q3-2025-results-lowers-2025-cost-guidance-releases-2026-budget-and-announces-planned-4-dividend-increase-302606182.html SOURCE Vermilion Energy Inc. View original content to download multimedia:http://www.newswire.ca/en/releases/archive/November2025/05/c6755.html %CIK: 0001293135 CO: Vermilion Energy Inc. CNW 17:01e 05-NOV-25