Investor Relations
- Vermilion's value driven strategy ensures delivery of sustainable dividends
- Vermilion has a history as a successful strategic acquirer
- Vermilion is led by a bold, disciplined, and caring team you can trust
- Home»
- Investor Relations»
- Hedging
The nature of Vermilion's operations results in exposure to fluctuations in commodity prices, interest rates and foreign currency exchange rates. Vermilion monitors and, when appropriate, uses derivative financial instruments to manage its exposure to these risks. All transactions of this nature entered into by Vermilion are related to an underlying financial position or to future petroleum and natural gas production. Vermilion does not use derivative financial instruments for speculative purposes. Vermilion has elected to not designate any of its price risk management activities as accounting hedges and thus accounts for changes to fair value in net earnings for the period. During the normal course of business, Vermilion enters into fixed price arrangements to sell a portion of its production. Vermilion has elected to exempt these contracts from fair value accounting through the use of the normal purchase and sales exemption. Vermilion does not obtain collateral or other security to support its financial derivatives as management reviews the creditworthiness of the counterparty prior to entering into a derivative contract.
The following table summarizes Vermilion's outstanding financial derivative positions as at May 21, 2013:
| Vermilion Oil Hedging Summary | ||||
|
TYPE |
Term |
Vol (1) |
Floor |
Ceiling |
|---|---|---|---|---|
| 2013 | ||||
| Collar (Dated Brent Crude Oil) | Jan-Jun 2013 |
1,000 |
90.00 |
103.65 |
| Collar (Dated Brent Crude Oil) | Jan-Jun 2013 |
1,000 |
90.00 |
106.90 |
| Collar (Dated Brent Crude Oil) | Jan-Dec 2013 |
500 |
95.00 |
109.90 |
| Collar (Dated Brent Crude Oil) | Jan-Dec 2013 |
1,000 |
97.00 |
107.65 |
| Collar (Dated Brent Crude Oil) | Jan-Dec 2013 |
500 |
95.00 |
106.50 |
| Collar (Dated Brent Crude Oil) | Jan-Dec 2013 |
1,000 |
97.00 |
106.15 |
| Collar (Dated Brent Crude Oil) | Jan-Dec 2013 |
500 |
95.00 |
107.35 |
| Collar (Dated Brent Crude Oil) | Apr-Jun 2013 |
250 |
105.00 |
114.65 |
| Collar (Dated Brent Crude Oil) | Apr-Jun 2013 |
250 |
105.00 |
111.30 |
| Collar (Dated Brent Crude Oil) | Apr-Jun 2013 |
250 |
105.00 |
113.05 |
| Collar (Dated Brent Crude Oil) | Apr-Jun 2013 |
250 |
105.00 |
113.05 |
| Collar (Dated Brent Crude Oil) | Apr-Jun 2013 |
250 |
105.00 |
110.25 |
| Collar (Dated Brent Crude Oil) | Apr-Jun 2013 |
250 |
106.00 |
110.70 |
| Collar (Dated Brent Crude Oil) | Apr-Jun 2013 |
200 |
105.00 |
115.25 |
| Collar (Dated Brent Crude Oil) | Apr-Jun 2013 |
250 |
108.00 |
115.18 |
| Collar (Dated Brent Crude Oil) | Apr-Jun 2013 |
250 |
113.00 |
118.50 |
| Collar (Dated Brent Crude Oil) | Apr-Jun 2013 |
250 |
109.00 |
115.00 |
| Collar (Dated Brent Crude Oil) | Apr-Jun 2013 |
250 |
109.00 |
114.85 |
| Collar (Dated Brent Crude Oil) | Jul-Dec 2013 |
500 |
95.00 |
109.10 |
| Collar (WTI Crude Oil) | Apr-Jun 2013 |
250 |
88.00 |
109.43 |
| Collar (WTI Crude Oil) | Apr-Jun 2013 |
250 |
94.00 |
101.55 |
| Collar (WTI Crude Oil) | Apr-Jun 2013 |
250 |
94.00 |
101.50 |
| Collar (WTI Crude Oil) | Apr-Jun 2013 |
250 |
91.00 |
95.15 |
| SWAP (WTI)* | Jan-Jun 2013 |
500 |
100.85 |
|
| SWAP (WTI)* | Jan-Jun 2013 |
500 |
101.50 |
|
| SWAP (Dated Brent Crude Oil) | Apr-Jun 2013 |
250 |
115.41 |
|
| SWAP (WTI) | Jul-Sep 2013 |
250 |
95.28 |
|
| SWAP (WTI) | Jul-Sep 2013 |
250 |
95.66 |
|
| SWAP (WTI) | Jul-Dec 2013 |
500 |
94.98 |
|
| SWAP (WTI) | Jan-Dec 2013 |
500 |
93.80 |
|
| SWAP (WTI) | Jan-Dec 2013 |
250 |
93.93 |
|
| SWAP (WTI) | Jan-Dec 2013 |
250 |
94.06 |
|
| SWAP (WTI) | Jan-Dec 2013 |
250 |
94.01 |
|
| SWAP (WTI) | Jan-Dec 2013 |
250 |
94.62 |
|
| SWAP (WTI) | Jan-Dec 2013 | 250 | 89.96 |
|
| SWAP (WTI) | Jan-Dec 2013 |
250 |
90.15 |
|
| Fixed Differential (MSW Crude Oil) | Apr-Jun 2013 |
2,000 |
WTI Less $4.25 |
|
|
1 2013 Oil hedges represents approximately 37% of Vermilion's projected 2013 oil production |
||||
| Vermilion Gas Hedge Summary | ||||
|
TYPE |
Term |
GJ/d |
Floor |
Ceiling |
|---|---|---|---|---|
| Canadian Gas | ||||
| Collar (AECO Gas) - Physical | Apr 2012 - Mar 2014 |
2,500 |
2.60 |
3.75 |
| Collar (AECO Gas) - Physical | Apr 2012 - Mar 2014 |
3,000 |
2.60 |
3.80 |
| Collar (AECO Gas) - Physical | Jun 2012 - Mar 2014 |
3,000 |
2.30 |
3.75 |
| Collar (AECO Gas) | Apr 2013 - Sep 2013 |
2,500 |
2.90 |
3.47 |
| Collar (AECO Gas) | Apr 2013 - Oct 2013 |
3,500 |
3.05 |
3.66 |
| Collar (AECO Gas) | Apr 2013 - Dec 2013 |
2,500 |
2.85 |
3.52 |
| Collar (AECO Gas) | Apr 2013 - Dec 2013 |
2,500 |
3.00 |
3.515 |
| SWAP (AECO Gas) | May 2013 - Dec 2013 |
2,500 |
3.65 |
|
| Collar (AECO Gas) | Oct 2013 - Dec 2013 |
2,500 |
2.85 |
3.56 |
| Vermilion Gas Hedge Summary | |||
|
TYPE |
Term |
MWh/d |
Floor |
|---|---|---|---|
| European Gas | |||
| SWAP (TTF Gas) | Apr 2013 - Sep 2013 |
500 |
25.615 |
| SWAP (TTF Gas) | May 2013 - Dec 2013 |
500 |
26.65 |
| SWAP (TTF Gas) | May 2013 - Dec 2013 |
500 |
26.70 |
| SWAP (TTF Gas) | Jun 2013 - Dec 2013 |
1,000 |
26.79 |
| SWAP (TTF Gas) | Jun 2013 - Dec 2013 |
500 |
26.48 |
| SWAP (TTF Gas) | Jun 2013 - Dec 2013 |
1,000 |
26.88 |
| SWAP (TTF Gas) | Jun 2013 - Dec 2013 |
500 |
26.55 |
| SWAP (TTF Gas) | Jun 2013 - Dec 2013 |
500 |
26.74 |
| SWAP (TTF Gas) | Jun 2013 - Dec 2013 |
500 |
27.10 |
| SWAP (TTF Gas) | Oct 2013 - Dec 2013 |
250 |
27.26 |
| SWAP (TTF Gas) | Oct 2013 - Dec 2013 |
250 |
26.92 |
© 2013 Vermilion Energy Inc.