Vermilion
Vermilion
Vermilion

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

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)
bbl/d

Floor
US$/bbl

Ceiling
US$/bbl

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 
* Extendible 

Vermilion's Gas Hedging Summary:  
Vermilion Gas Hedge Summary

TYPE

Term

GJ/d

Floor
CDN$/GJ

Ceiling
CDN$/GJ

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
Euro - MWh

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