Investor Relations

Sustainable Distributions

Vermilion's disciplined, value driven strategy ensures the delivery of sustainable distributions to our unitholders.

Vermilion maintains a five-year business plan that is periodically reviewed and submitted to the Board of Directors for approval. We evaluate the outlook for commodity prices, the market environment for properties, the availability of services and personnel, the general economic climate and the outlook in capital markets. Vermilion sets distribution levels based on the long-term sustainability of those distributions. We take into account ongoing development-capital requirements and the need to maintain a strong balance sheet to provide the maximum impact from future potential acquisitions. We believe this disciplined approach rewards our investors by assuring a high level of confidence in our distribution stream and, consequently, optimum valuation of our units.

Proficient International Operator

As a proficient international operator, Vermilion is able to execute the business plan efficiently.

Vermilion's global reach and diversity of operations exposes us to opportunities and challenges far exceeding a typical producer in western Canada. Vermilion's properties span three continents. We operate an offshore platform in Australia, major waterflood oilfields in France, natural gas production and processing in the Netherlands, and coalbed methane and tight gas production and processing in western Canada. "We continuously seek means of improving drilling and operating efficiencies, while adhering to the highest environmental and safety standards in all our operations", affirms Bob Mac Dougall, Executive Vice President and Chief Operating Officer. Vermilion's strong record of operating proficiency and diligence to health, safety and the environment are also critical components in the Trust's ability to gain access to assets in the international arena.

Successful Strategic Acquirer

Vermilion has a history as a successful strategic acquirer.

Vermilion remains the only Canadian based energy trust with assets outside North America. We have strategically pursued the acquisition of long life assets in areas with stable political and economic environments and in regions with well established oil and gas infrastructures. This approach mitigates much of the ‘international' risks normally associated with global operations.

Each of our jurisdictions is led by industry veterans, all having an intimate understanding of their specific operations, the countries and the cultures in which they operate. We have acquired most of our international properties from major, multinational energy firms. Generally, these are high quality, well maintained assets which become candidates for divesture as production declines to levels that do not warrant further capital investment by the vendor. These ‘tail-end' assets are ideal properties for Vermilion, and often provide smaller scale development opportunities suitable for Vermilion's model.

"Vermilion continues to seek accretive acquisitions with long term development potential", stresses John Donovan, Executive VP of Business Development. We will continue to pursue this global strategy, focusing our attention on our core areas of Canada, Western Europe and Australia.

Financially Conservative

Adherence to a financially conservative policy allows us to deliver strong, sustainable performance.

"By properly allocating our fund flows between capital expenditure programs, acquisitions and debt management, we are able to maintain financial leverage that is appropriate for projected commodity price levels and corresponds to the level of financial risk exposure expected by our unitholders", explains Curtis Hicks, Executive VP Finance and Chief Financial Officer. Our conservative approach to financial management contributes to steady, reliable distributions for our unitholders and provides confidence that Vermilion will be able to maintain these distributions over the long term.

Trustworthy Team

Vermilion is led by a bold, disciplined, and caring team you can trust.

At every level of Vermilion, from the Board of Directors, to senior management, to all professional and support staff employed by the Trust, we seek the right people to fill each position, such that our stakeholders are able to reap the highest possible rewards from our operations. Our independent, award winning Board of Directors ensures we maintain high levels of fiscal prudence and corporate responsibility. Management and staff actively strive to maximize the value of our properties, while respecting the communities in which we operate.

We emphasize the health and safety of our employees and contractors and are considerate of the environment in which we live and work. Vermilion has succeeded in the past by engaging talented, creative and responsible individuals, and we will succeed in the future by adhering to this approach.