Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document And Entity Information [Abstract] | |
Document Type | 40-F |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | VERMILION ENERGY INC. |
Entity Central Index Key | 0001293135 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Trading Symbol | VET |
Entity Common Stock, Shares Outstanding | 156,289,575 |
Consolidated Balance Sheet
Consolidated Balance Sheet - CAD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current | ||
Cash and cash equivalents | $ 29,028 | $ 26,809 |
Accounts receivable | 211,409 | 260,322 |
Crude oil inventory | 29,389 | 27,751 |
Derivative instruments | 55,645 | 95,667 |
Prepaid expenses | 22,210 | 19,328 |
Total current assets | 347,681 | 429,877 |
Derivative instruments | 20,127 | 1,215 |
Deferred taxes | 196,543 | 219,411 |
Exploration and evaluation assets | 286,149 | 303,295 |
Capital assets | 5,015,620 | 5,316,873 |
Total assets | 5,866,120 | 6,270,671 |
Current | ||
Accounts payable and accrued liabilities | 312,442 | 449,651 |
Dividends payable | 35,947 | 35,122 |
Derivative instruments | 62,405 | 41,016 |
Income taxes payable | 5,416 | 37,410 |
Total current liabilities | 416,210 | 563,199 |
Derivative instruments | 24,358 | 17,527 |
Long-term debt | 1,924,665 | 1,796,207 |
Lease obligations | 93,072 | 108,189 |
Asset retirement obligations | 618,201 | 650,164 |
Deferred taxes | 336,309 | 318,134 |
Total liabilities | 3,412,815 | 3,453,420 |
Shareholders' Equity | ||
Shareholders' capital | 4,119,031 | 4,008,828 |
Contributed surplus | 75,735 | 78,478 |
Accumulated other comprehensive income | 49,578 | 118,182 |
Deficit | (1,791,039) | (1,388,237) |
Total shareholders' equity | 2,453,305 | 2,817,251 |
Total liabilities and shareholders' equity | $ 5,866,120 | $ 6,270,671 |
Consolidated Statements of Net
Consolidated Statements of Net Earnings and Comprehensive (Loss) Income - CAD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | ||
Petroleum and natural gas sales | $ 1,689,863 | $ 1,678,117 |
Royalties | (163,666) | (152,167) |
Sales of purchased commodities | 221,274 | 0 |
Petroleum and natural gas revenue | 1,747,471 | 1,525,950 |
Expenses | ||
Purchased commodities | 221,274 | 0 |
Operating | 440,078 | 357,014 |
Transportation | 72,446 | 51,887 |
Equity based compensation | 64,233 | 60,746 |
(Gain) loss on derivative instruments | (26,792) | 1,932 |
Interest expense | 81,377 | 72,759 |
General and administration | 58,976 | 51,929 |
Foreign exchange (gain) loss | (52,271) | 63,000 |
Other income | (6,875) | (82) |
Accretion | 32,667 | 31,219 |
Depletion and depreciation | 675,177 | 609,056 |
Impairment | 46,056 | 0 |
Gain on business combination | (128,208) | |
Expenses | 1,606,346 | 1,171,252 |
Earnings before income taxes | 141,125 | 354,698 |
Taxes | ||
Deferred | 56,096 | 39,471 |
Current | 52,230 | 43,577 |
Taxes | 108,326 | 83,048 |
Net earnings | 32,799 | 271,650 |
Other comprehensive (loss) income | ||
Currency translation adjustments | (81,042) | 46,353 |
Unrealized gain on derivatives designated as cash flow hedges, net of tax | 11,295 | 0 |
Unrealized gain on derivatives designated as net investment hedges, net of tax | 1,143 | 0 |
Comprehensive (loss) income | $ (35,805) | $ 318,003 |
Net earnings per share | ||
Basic | $ 0.21 | $ 1.93 |
Diluted | $ 0.21 | $ 1.91 |
Weighted average shares outstanding ('000s) | ||
Basic | 154,736 | 140,619 |
Diluted | 156,095 | 142,335 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating | ||
Net earnings | $ 32,799 | $ 271,650 |
Adjustments: | ||
Accretion | 32,667 | 31,219 |
Depletion and depreciation | 675,177 | 609,056 |
Impairment loss | 46,056 | 0 |
Gain on business combinations | 0 | (128,208) |
Unrealized loss (gain) on derivative instruments | 57,427 | (109,326) |
Equity based compensation | 64,233 | 60,746 |
Unrealized foreign exchange (gain) loss | (57,225) | 63,243 |
Unrealized other expense | 825 | 801 |
Deferred taxes | 56,096 | 39,471 |
Asset retirement obligations settled | (19,442) | (15,765) |
Changes in non-cash operating working capital | (65,148) | (6,876) |
Cash flows from operating activities | 823,465 | 816,011 |
Investing | ||
Drilling and development | (486,677) | (503,842) |
Exploration and evaluation | (36,487) | (14,372) |
Acquisitions | (38,472) | (276,308) |
Changes in non-cash investing working capital | (57,072) | 55,491 |
Cash flows used in investing activities | (618,708) | (739,031) |
Financing | ||
Borrowings on the revolving credit facility | 214,895 | 251,155 |
Payments on lease obligations | (26,354) | (18,884) |
Cash dividends | (391,549) | (330,194) |
Cash flows used in financing activities | (203,008) | (97,923) |
Foreign exchange gain on cash held in foreign currencies | 470 | 1,191 |
Net change in cash and cash equivalents | 2,219 | (19,752) |
Cash and cash equivalents, beginning of year | 26,809 | 46,561 |
Cash and cash equivalents, end of year | 29,028 | 26,809 |
Supplementary information for cash flows from operating activities | ||
Interest paid | 73,783 | 70,049 |
Income taxes paid | $ 84,224 | $ 45,228 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - CAD ($) $ in Thousands | Issued capital [member] | Share premium [member] | Retained Earnings [Member] | Total |
Balance, beginning of year at Dec. 31, 2017 | $ 2,650,706 | |||
Shareholders' capital | ||||
Shares issued for acquisition | 1,234,676 | |||
Shares issued for the Dividend Reinvestment Plan | 49,051 | |||
Vesting of equity based awards | $ 54,057 | $ (54,057) | ||
Equity based compensation | 12,565 | 48,181 | ||
Share-settled dividends on vested equity based awards | 7,773 | $ 7,773 | ||
Balance, end of year at Dec. 31, 2018 | 4,008,828 | |||
Contributed surplus | ||||
Equity based compensation | 12,565 | 48,181 | ||
Vesting of equity based awards | 54,057 | (54,057) | ||
Balance, end of year at Dec. 31, 2018 | 78,478 | |||
Accumulated other comprehensive income | ||||
Currency translation adjustments | 46,353 | |||
Gain on derivatives designated as cash flow hedges, net of tax | 0 | |||
Amount reclassified from cash flow hedge reserve to net earnings, net of tax | 0 | |||
Loss on derivatives designated as net investment hedges, net of tax | 0 | |||
Amount reclassified from net investment hedge reserve to net earnings, net of tax | 0 | |||
Balance, end of year at Dec. 31, 2018 | 118,182 | |||
Deficit | ||||
Net earnings | 271,650 | |||
Dividends declared | (388,111) | |||
Share-settled dividends on vested equity based awards | (7,773) | (7,773) | ||
Balance, end of year at Dec. 31, 2018 | (1,388,237) | |||
Deficit | ||||
Total shareholders' equity | 2,817,251 | |||
Shares issued for the Dividend Reinvestment Plan | 34,937 | |||
Vesting of equity based awards | 51,108 | (51,108) | ||
Equity based compensation | 15,868 | 48,365 | ||
Share-settled dividends on vested equity based awards | 8,290 | 8,290 | ||
Balance, end of year at Dec. 31, 2019 | 4,119,031 | |||
Contributed surplus | ||||
Equity based compensation | 15,868 | 48,365 | ||
Vesting of equity based awards | 51,108 | $ (51,108) | ||
Balance, end of year at Dec. 31, 2019 | 75,735 | |||
Accumulated other comprehensive income | ||||
Currency translation adjustments | (81,042) | |||
Gain on derivatives designated as cash flow hedges, net of tax | 19,659 | |||
Amount reclassified from cash flow hedge reserve to net earnings, net of tax | (8,364) | |||
Loss on derivatives designated as net investment hedges, net of tax | (3,513) | |||
Amount reclassified from net investment hedge reserve to net earnings, net of tax | 4,656 | |||
Balance, end of year at Dec. 31, 2019 | 49,578 | |||
Deficit | ||||
Net earnings | 32,799 | |||
Dividends declared | (427,311) | |||
Share-settled dividends on vested equity based awards | $ (8,290) | $ (8,290) | ||
Balance, end of year at Dec. 31, 2019 | (1,791,039) | |||
Deficit | ||||
Total shareholders' equity | $ 2,453,305 |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2019 | |
Basis of presentation | |
Basis of presentation | 1. Basis of presentation Vermilion Energy Inc. and its subsidiaries (the “Company” or “Vermilion”) are engaged in the business of petroleum and natural gas exploration, development, acquisition, and production. Vermilion was incorporated in Canada and the Company’s registered office and principal place of business is located at 3500, 520, 3rd Avenue SW, Calgary, Alberta, Canada. These consolidated financial statements were approved and authorized for issuance by Vermilion’s Board of Directors on March 5, 2020. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies | |
Significant accounting policies | 2. Significant accounting policies Accounting framework The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Principles of consolidation The consolidated financial statements include the accounts of Vermilion Energy Inc. and its subsidiaries. Vermilion’s subsidiaries include entities in each of the jurisdictions that Vermilion operates as described in Note 4 (Segmented information) including: Canada, France, Netherlands, Germany, Ireland, Australia, the United States, and Central and Eastern Europe (Hungary, Slovakia, and Croatia). Vermilion Energy Inc. directly or indirectly through holding companies owns all of the voting securities of each material subsidiary. Transactions between Vermilion Energy Inc. and its subsidiaries have been eliminated. Vermilion accounts for joint operations by recognizing the Company’s share of assets, liabilities, income, and expenses. Exploration and evaluation assets Vermilion classifies costs as exploration and evaluation (“E&E”) assets when they relate to exploring and evaluating an area for which the Company has the license or right to explore and extract resources. E&E costs may include: geological and geophysical costs; land and license acquisition costs; and costs for the drilling, completion, and testing of exploration wells. E&E costs are reclassified to capital assets if the technical feasibility and commercial viability of the area can be determined. E&E assets are assessed for impairment prior to any reclassification. The technical feasibility and commercial viability of extracting the reserves is considered to be determinable when proved and probable reserves are identified. Costs incurred prior to the acquisition of the legal rights to explore an area are expensed as incurred. If reserves are not found within the license area or the area is abandoned, the related E&E costs are depreciated over a period not greater than five years. If an exploration license expires prior to the commencement of exploration activities, the cost of the exploration license is written off through depreciation in the year of expiration. Capital assets Vermilion recognizes capital assets at cost less accumulated depletion, depreciation, and impairment losses. Costs include directly attributable costs incurred for the drilling, completion, and tie-in of wells and the construction of production and processing facilities. When components of capital assets are replaced, disposed of, or no longer in use, they are derecognized. Gains and losses on disposal of capital assets are determined by comparing the proceeds of disposal compared to the carrying amount. Depletion and depreciation Capital assets are grouped into depletion units, which are groups of assets within a specific production area that have similar economic lives. Depletion units represent the lowest level of disaggregation for which costs are accumulated for the purposes of calculating depletion and depreciation. The net carrying value of each depletion unit is depleted using the unit of production method by reference to the ratio of production in the period to the total proved and probable reserves, taking into account the future development costs necessary to bring the applicable reserves into production. For the purposes of the depletion calculations, oil and gas reserves are converted to a common unit of measure on the basis of their relative energy content based on a conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent. Impairment of capital assets and exploration and evaluation assets Depletion units are aggregated into cash generating units (“CGUs”) for impairment testing. CGUs are the lowest level for which there are identifiable cash inflows that are largely independent of cash inflows of other groups of assets. CGUs are reviewed for indicators of potential impairment at each reporting date. E&E assets are tested for impairment when reclassified to capital assets or when indicators of potential impairment are identified. E&E assets are reviewed for indicators of potential impairment at each reporting date. If indicators of potential impairment are identified, E&E assets are tested for impairment as part of the CGU attributable to the jurisdiction in which the exploration area resides. If an indicator of potential impairment exists, the CGU’s carrying value is compared to its recoverable amount. A CGU’s recoverable amount is the higher of its fair value less costs of disposal and its value-in-use. If the carrying amount of a CGU exceeds its recoverable amount, an impairment loss is recognized to reduce the carrying value of the CGU to its recoverable amount. If an impairment loss has been recognized in a prior period, an assessment is performed at each reporting date to determine if there are indicators that the circumstances which led to the impairment loss have reversed. If the change in circumstances results in the recoverable amount being higher than the carrying value after the impairment loss, then the impairment loss (net of depletion that would otherwise have been recorded) is reversed. Lease obligations and right-of-use assets A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the lease commencement date, a lease obligation is recognized at the present value of future lease payments, typically using the applicable incremental borrowing rate. A corresponding right-of-use asset is recognized at the amount of the lease obligation, adjusted for lease incentives received and initial direct costs. Vermilion does not recognize leases for short-term leases with a lease term of 12 months or less, or leases for low-value assets. Payments are applied against the lease obligation and interest expense is recognized on the lease obligations using the effective interest rate method. Depreciation is recognized on the right-of-use asset over the lease term. Cash and cash equivalents Cash and cash equivalents include cash on deposit with financial institutions and guaranteed investment certificates. Crude oil inventory Crude oil inventory is valued at the lower of cost or net realizable value. The cost of crude oil inventory produced includes related operating expense, royalties, and depletion determined on a weighted-average basis. Asset retirement obligations Vermilion recognizes a provision for asset retirement obligations when an event occurs giving rise to an obligation of uncertain timing or amount. Asset retirement obligations are recognized on the consolidated balance sheet as a long-term liability with a corresponding increase to E&E or capital assets. Asset retirement obligations reflect the present value of estimated future settlement costs. The discount rate used to calculate the present value is specific to the jurisdiction the obligation relates to and is reflective of current market assessment of the time value of money and risks specific to the liabilities that have not been reflected in the cash flow estimates. Asset retirement obligations are remeasured at each reporting period to reflect changes in market rates and estimated future settlement costs. Asset retirement obligations are increased each reporting period to reflect the passage of time with a corresponding charge to accretion expense. Revenue recognition Revenue associated with the sale of crude oil and condensate, natural gas, and natural gas liquids is measured based on the consideration specified in contracts with customers. Revenue from contracts with customers is recognized when or as Vermilion satisfies a performance obligation by transferring control of crude oil and condensate, natural gas, or natural gas liquids to a customer at contractually specified transfer points. This transfer coincides with title passing to the customer and the customer taking physical possession of the commodity. Vermilion principally satisfies its performance obligations at a point in time and the amounts of revenue recognized relating to performance obligations satisfied over time are not significant. Vermilion invoices customers for delivered products monthly and payment occurs shortly thereafter. Vermilion does not have any contracts where the period between the transfer of control of the commodity to the customer and payment by the customer exceeds one year. As a result, Vermilion does not adjust its revenue transactions to reflect significant financing components. Financial instruments On initial recognition, financial instruments are measured at fair value. Measurement in subsequent periods depends on the classification of the financial instrument as described below: · Fair value through profit or loss ("FVTPL"): Financial instruments under this classification include cash and cash equivalents and derivative assets and liabilities. · Fair value through other comprehensive income ("FVTOCI"): Financial instruments under this classification include derivative assets and liabilities where hedge accounting is applied. · Amortized cost: Financial instruments under this classification include accounts receivable, accounts payable and accrued liabilities, dividends payable, lease obligations, and long-term debt. Accounts receivable are measured net of a loss allowance equal to the lifetime expected credit loss. Hedge accounting Hedge accounting is applied to financial instruments designated as hedging instruments in qualifying hedging relationships. Qualifying hedge relationships may include cash flow hedges, fair value hedges, and hedges of net investments in foreign operations. The purpose of hedge accounting is to represent the effect of Vermilion's risk management activities to manage exposures arising from specific risks that affect net earnings such as foreign currency risk. In order to apply hedge accounting, the eligible hedging instrument must be highly effective in offsetting the exposure to changes in the eligible hedged item. This effectiveness is assessed at inception and at the end of each reporting period thereafter. At inception, formal designation and documentation of the hedging relationship, risk management objective and strategy is required for undertaking the hedge. For cash flow and net investment hedges, gains and losses on the hedging instrument are recognized in the consolidated statement of earnings in the same period in which the transaction associated with the hedged item occurs. Where the hedging instrument is a derivative instrument, a derivative asset or liability is recognized on the balance sheet at fair value (included in "Derivative instruments") with the effective portion of the gain or loss recorded to other comprehensive income. Any gain or loss associated with the ineffective portion of the hedging relationship is recognized in the consolidated statement of net earnings as other income or expense. If a hedging relationship no longer qualifies for hedge accounting, any gain or loss resulting from the discontinuation of hedge accounting is deferred in other comprehensive income until the forecasted transaction date. If the forecasted transaction is no longer expected to occur, any gain or loss resulting from the discontinuation of hedge accounting is immediately recognized in the consolidated statement of net earnings. Equity based compensation Equity based compensation expense results from equity-settled awards issued under Vermilion’s long-term share-based compensation plans as well as the grant date fair value of Vermilion common shares issued under the Company’s bonus and employee share savings plans. Vermilion’s long-term share-based compensation plans consist of the Vermilion Incentive Plan (“VIP”), the "Five-Year Compensation Arrangement", and the Deferred Share Unit Plan ("DSU"). Equity-settled awards issued under the VIP vest over a period of one to three years, awards issued under the Five-Year Compensation Arrangement vest in the fifth year following the grant date, and awards issued under the DSU vest immediately upon granting. Awards issued under the VIP and Five-Year Compensation Arrangement plans are adjusted upon vesting by a performance factor determined by the Company’s Board of Directors. Equity based compensation expense for equity-settled plans is recognized over the vesting period with a corresponding adjustment to contributed surplus. The expense recognized is based on the grant date fair value of the awards, an estimate of the performance factor that will be achieved (if applicable), and an estimate of forfeiture rates based on historical vesting data. Dividends notionally accrue to the VIP and Five-Year Compensation Arrangement and are excluded in the determination of grant date fair values. When the awards are converted to Vermilion common shares, the amount recognized in contributed surplus is reclassified to shareholders’ capital. The grant date fair value of awards or Vermilion common shares issued is determined as the closing price of Vermilion’s common shares on the Toronto Stock Exchange on the grant date. Per share amounts Basic net earnings per share is calculated by dividing net earnings by the weighted-average number of shares outstanding during the period. Diluted net earnings per share is calculated by dividing net earnings by the diluted weighted-average number of shares outstanding during the period. The diluted weighted-average number of shares outstanding is the sum of the basic weighted-average number of shares outstanding and (to the extent inclusion reduces diluted net earnings per share) the number of shares issuable for equity-settled awards determined using the treasury stock method. The treasury stock method assumes that the unrecognized equity based compensation expense are deemed proceeds used to repurchase Vermilion common shares at the average market price during the period. Foreign currency translation Vermilion Energy Inc.’s functional and presentation currency is the Canadian dollar. Vermilion has subsidiaries that transact and operate in countries other than Canada and have functional currencies other than the Canadian dollar. Foreign currency translation includes the translation of foreign currency transactions and the translation of foreign operations. Foreign currency transaction translation occurs when translating transactions and balances in foreign currencies to the applicable functional currency of Vermilion Energy Inc. and its subsidiaries. Gains and losses from foreign currency transactions are recorded as foreign exchange gains or losses in the statement of net earnings. Foreign currency transaction translation occurs as follows: · Income and expenses are translated at the prevailing rates on the date of the transaction. · Non-monetary assets or liabilities are carried at the prevailing rates on the date of the transaction. · Monetary items, including intercompany loans that are not deemed to represent net investments in a foreign subsidiary, are translated at the prevailing rates at the balance sheet date. Foreign operation translation occurs when translating the financial statements of non-Canadian functional currency subsidiaries to the Canadian dollar and when translating intercompany loans that are deemed to represent net investments in a foreign subsidiary. Gains and losses from foreign operation translations are recorded as currency translation adjustments. Foreign operation translation occurs as follows: · Income and expenses are translated at the average exchange rates for the period. · Assets and liabilities are translated at the prevailing rates on the balance sheet date. Income taxes Deferred tax assets and liabilities are calculated using the balance sheet method. Deferred tax assets and liabilities are recognized for the estimated effect of any temporary differences between the amounts recognized on Vermilion’s consolidated balance sheet and the respective tax basis. This calculation uses enacted or substantively enacted tax rates that are expected to be in effect when the temporary differences are expected to reverse. The effect of a change in tax rates on deferred taxes is recognized in the period the related legislation is substantively enacted. Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent it is no longer probable that the related tax benefit will be realized. Business combinations Acquisitions of corporations or groups of assets are accounted for as business combinations using the acquisition method if the acquired assets constitute a business. Under the acquisition method, assets acquired and liabilities assumed in a business combination (with the exception of deferred tax assets and liabilities) are measured at their fair value. Deferred tax assets or liabilities arising from the assets acquired and liabilities assumed are measured in accordance with the policies described in "Income taxes" above. If applicable, the excess or deficiency of the fair value of net assets acquired compared to consideration paid is recognized as a gain on business combination or as goodwill on the consolidated balance sheet. Acquisition-related costs incurred to effect a business combination are expensed in the period incurred. As part of the assessment to determine if the acquisition constitutes a business, Vermilion may elect to apply the concentration test on a transaction by transaction basis. The test is met if substantially all of the fair value related to the gross assets acquired is concentrated in a single identifiable asset (or group of similar assets) resulting in the acquisition not being deemed a business and recorded as an asset acquisition. Segmented information Vermilion has a decentralized business unit structure designed to manage assets in each country the Company operates. Each of Vermilion’s operating segments derives its revenues solely from the production and sale of petroleum and natural gas. Vermilion’s Corporate segment aggregates costs incurred at the Company’s Corporate head office located in Calgary, Alberta, Canada as well as costs incurred relating to Vermilion’s exploration and production activities in Hungary, Slovakia, and Croatia (Central and Eastern Europe). These operating segments have similar economic characteristics as they do not currently generate material revenue. Vermilion’s chief operating decision maker regularly reviews fund flows from operations generated by each of Vermilion’s operating segments. Fund flows from operations is a measure of profit or loss that provides the chief operating decision maker with the ability to assess the profitability of each operating segment and, correspondingly, the ability of each operating segment to fund its share of dividends, asset retirement obligations, and capital investments. Management judgments and estimation uncertainty The preparation of the consolidated financial statements in accordance with IFRS requires management to make judgments, estimates, and assumptions that affect the reported amount of assets, liabilities, income, and expenses. Actual results could differ significantly from these estimates. Key areas where management has made judgments, estimates, and assumptions are described below. The measurement of the fair value of capital assets acquired in a business combination and the determination of the recoverable amount of cash generating units: · Calculating the fair value of capital assets acquired in a business combination and the recoverable amount of cash generating units (in the assessment of impairments or reversals of previous impairments if indicators of impairment or impairment reversal are identified) are based on estimated future commodity prices, discount rates and estimated reserves and resources. Reserve and resource estimates are based on: engineering data, estimated future commodity prices, expected future rates of production, and assumptions regarding the timing and amount of future expenditures. Changes in these estimates and assumptions can directly impact the calculated fair value of capital assets acquired (and thus the resulting goodwill or gain on business combination) and the recoverable amount of a CGU (and thus the resulting impairment loss or recovery). · In addition, the recoverable amount of a CGU is impacted by the composition of CGUs, which are subject to management’s judgment of the lowest level at which there are identifiable cash inflows that are largely independent of the cash inflows of other groups of assets. The factors used by Vermilion to determine CGUs vary by jurisdiction due to their unique operating and geographic conditions. In general, Vermilion will assess the following factors: geographic proximity of the assets within a group to one another, geographic proximity of the group of assets to other groups of assets, homogeneity of the production from the group of assets and the sharing of infrastructure used to process and/or transport production. Changes in these judgments can directly impact the calculated recoverable amount of a CGU (and thus the resulting impairment loss or recovery). The measurement of the carrying value of asset retirement obligations on the balance sheet, including the fair value and subsequent carrying value of asset retirement obligations assumed in a business combination: · Asset retirement obligations are based on judgments regarding regulatory requirements, estimates of future costs, assumptions on the expected timing of expenditures, and estimates of the underlying risk inherent to the obligation. The carrying balance of asset retirement obligations and accretion expense may differ due to changes in: laws and regulations, technology, the expected timing of expenditures, and market conditions affecting the discount rate applied. The recognition and measurement of deferred tax assets and liabilities: · Tax interpretations, regulations, and legislation in the various jurisdictions in which Vermilion and its subsidiaries operate are subject to change and interpretation. Changes in laws and interpretations can affect the timing of the reversal of temporary tax differences, the tax rates in effect when such differences reverse and Vermilion’s ability to use tax losses and other tax pools in the future. The Company’s income tax filings are subject to audit by taxation authorities in numerous jurisdictions and the results of such audits may increase or decrease the tax liability. The determination of tax amounts recognized in the consolidated financial statements are based on management’s assessment of the tax positions, which includes consideration of their technical merits, communications with tax authorities and management’s view of the most likely outcome. · The extent to which deferred tax assets are recognized are based on estimates of future profitability. These estimates are based on estimated future commodity prices and estimates of reserves. Judgments, estimates, and assumptions inherent in reserve estimates are described above. The measurement of lease obligations and corresponding right-of-use assets: · The measurement of lease obligations are subject to management’s judgments of the applicable incremental borrowing rate and the expected lease term. The carrying balance of the right-of-use assets, lease obligations, and the resulting interest and depletion and depreciation expense, may differ due to changes in the market conditions and expected lease terms. Applicable incremental borrowing rates are based on judgments of the economic environment, term, currency, and the underlying risk inherent to the asset. Lease terms are based on assumptions regarding cancellation and extension terms that allow for operational flexibility based on future market conditions. · |
Changes in accounting pronounce
Changes in accounting pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Changes in accounting pronouncements | |
Changes in accounting pronouncements | 3. Changes in accounting pronouncements Definition of a Business - Amendments to IFRS 3 "Business Combinations" Vermilion elected to early adopt the amendments to IFRS 3 " Business Combinations " effective January 1, 2019, which will be applied prospectively to acquisitions that occur on or after January 1, 2019. The amendments introduce an optional concentration test, narrow the definitions of a business and outputs, and clarify that an acquired set of activities and assets must include an input and a substantive process that together significantly contribute to the ability to create outputs. These amendments did not result in changes to Vermilion's accounting policies for applying the acquisition method. |
Segmented information
Segmented information | 12 Months Ended |
Dec. 31, 2019 | |
Segmented information | |
Segmented information | 4. Segmented information Substantially all sales in the France, Netherlands, and Ireland operating segments for the years ended December 31, 2019 and 2018 were to one customer in each respective segment. In 2019, France contributed more than 10% of Vermilion's consolidated revenues. In 2018, France, Netherlands, and Ireland each contributed more than 10% of Vermilion's consolidated revenues. Year Ended December 31, 2019 ($M) Canada France Netherlands Germany Ireland Australia USA Corporate Total Total assets 3,088,947 841,875 226,834 261,712 470,316 233,581 421,609 321,246 5,866,120 Drilling and development 293,744 74,579 19,866 10,806 1,372 30,550 57,196 (1,436) 486,677 Exploration and evaluation — 62 3,739 10,878 — — — 21,808 36,487 Crude oil and condensate sales 699,290 326,578 2,411 25,783 27 184,490 63,449 — 1,302,028 NGL sales 33,159 — — — — — 6,499 — 39,658 Natural gas sales 95,621 121 110,446 31,529 104,247 — 5,416 797 348,177 Sales of purchased commodities — — — — — — — 221,274 221,274 Royalties (94,079) (43,895) (1,469) (5,264) — — (18,706) (253) (163,666) Revenue from external customers 733,991 282,804 111,388 52,048 104,274 184,490 56,658 221,818 1,747,471 Purchased commodities — — — — — — — (221,274) (221,274) Transportation (41,261) (21,609) — (5,117) (4,459) — — — (72,446) Operating (242,790) (61,281) (32,125) (24,970) (12,431) (49,810) (16,370) (301) (440,078) General and administration (23,341) (15,406) (2,659) (8,452) (2,491) (4,940) (7,566) 5,879 (58,976) PRRT — — — — — (25,947) — — (25,947) Corporate income taxes — (21,431) 3,961 — — (8,407) — (406) (26,283) Interest expense — — — — — — — (81,377) (81,377) Realized gain on derivative instruments — — — — — — — 84,219 84,219 Realized foreign exchange loss — — — — — — — (4,954) (4,954) Realized other income — — — — — — — 7,700 7,700 Fund flows from operations 426,599 163,077 80,565 13,509 84,893 95,386 32,722 11,304 908,055 Year Ended December 31, 2018 ($M) Canada France Netherlands Germany Ireland Australia USA Corporate Total Total assets 3,060,291 918,398 277,348 284,063 709,585 263,739 407,323 349,924 6,270,671 Drilling and development 277,857 79,451 17,963 10,863 224 75,638 40,837 1,009 503,842 Exploration and evaluation — 307 (480) 4,943 — — — 9,602 14,372 Crude oil and condensate sales 541,844 360,471 2,462 32,704 — 150,733 31,142 — 1,119,356 NGL sales 56,554 — — — — — 4,622 — 61,176 Natural gas sales 72,774 131 163,454 49,745 205,150 — 2,701 3,630 497,585 Royalties (84,696) (46,781) (3,181) (6,626) — — (10,070) (813) (152,167) Revenue from external customers 586,476 313,821 162,735 75,823 205,150 150,733 28,395 2,817 1,525,950 Transportation (29,912) (10,426) — (6,420) (5,129) — — — (51,887) Operating (177,499) (54,690) (26,681) (23,048) (15,366) (53,199) (6,421) (110) (357,014) General and administration (6,057) (14,170) (1,947) (7,401) (8,386) (4,918) (6,306) (2,744) (51,929) PRRT — — — — — (4,824) — — (4,824) Corporate income taxes — (15,084) (16,561) — — (6,595) — (513) (38,753) Interest expense — — — — — — — (72,759) (72,759) Realized loss on derivative instruments — — — — — — — (111,258) (111,258) Realized foreign exchange gain — — — — — — — 243 243 Realized other income — — — — — — — 883 883 Fund flows from operations 373,008 219,451 117,546 38,954 176,269 81,197 15,668 (183,441) 838,652 Reconciliation of fund flows from operations to net earnings: Year Ended Dec 31, 2019 Dec 31, 2018 Fund flows from operations 908,055 838,652 Accretion (32,667) (31,219) Depletion and depreciation (675,177) (609,056) Impairment (46,056) — Gain on business combinations — 128,208 Unrealized (loss) gain on derivative instruments (57,427) 109,326 Equity based compensation (64,233) (60,746) Unrealized foreign exchange gain (loss) 57,225 (63,243) Unrealized other expense (825) (801) Deferred tax (56,096) (39,471) Net earnings 32,799 271,650 |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business combinations | |
Business combinations | 5. Business combinations Private Producer in Southeast Saskatchewan and Southwest Manitoba On February 15, 2018, Vermilion acquired all of the issued and outstanding common shares of a private producer with assets in southeast Saskatchewan and southwest Manitoba. The acquisition comprised of light oil producing fields near Vermilion’s existing operations in southeast Saskatchewan. The acquisition complements Vermilion’s existing southeast Saskatchewan operations and aligns with the Company’s sustainable growth-and-income model. The acquisition was funded through Vermilion’s revolving credit facility. The total consideration paid and the fair value of the assets acquired and liabilities assumed at the date of acquisition are detailed in the table below: Consideration Cash paid to vendor 53,288 Total consideration 53,288 Allocation of consideration Capital assets 67,549 Deferred tax assets 26,914 Acquired working capital 1,577 Long-term debt (38,300) Asset retirement obligations (4,452) Net assets acquired 53,288 For the year ended December 31, 2018, the acquisition contributed revenues of $18.7 million and net earnings of $6.7 million. Had the acquisition occurred on January 1, 2018, revenues would have increased by $2.9 million and net earnings would have increased by $1.0 million for the year ended December 31, 2018. Spartan Energy Corp. On May 28, 2018, Vermilion acquired all of the issued and outstanding common shares of Spartan Energy Corp., a publicly traded oil and gas producer with light oil producing properties in southeast Saskatchewan as well as other areas in Saskatchewan, Alberta, and Manitoba. The acquisition increased Vermilion’s position in southeast Saskatchewan and aligned with the Company’s sustainable growth-and-income model. Consideration consisted of the issuance of 27.9 million Vermilion common shares valued at approximately $1.2 billion (based on the closing price per Vermilion common share of $44.30 on the Toronto Stock Exchange on May 28, 2018). Acquisition-related costs of $1.3 million were incurred in the year ended December 31, 2018. The total consideration paid and the fair value of the assets acquired and liabilities assumed as at the date of the acquisition are detailed in the table below: Consideration Shares issued for acquisition 1,235,221 Total consideration 1,235,221 Allocation of consideration Capital assets 1,401,686 Deferred tax assets 123,813 Long-term debt (150,196) Asset retirement obligations (92,149) Lease obligations (25,455) Assumed working capital deficit (22,478) Net assets acquired 1,235,221 For the year ended December 31, 2018, the acquisition contributed revenues of $242.1 million and net earnings of $45.1 million. Had the acquisition occurred on January 1, 2018, revenues would have increased by $182.4 million and net earnings would have increased by $35.0 million for the year ended December 31, 2018. Assets in Wyoming In August 2018, Vermilion acquired oil and gas producing assets and mineral leasehold land from a private oil company for total cash consideration of $189.0 million. The assets are located in Campbell County, Wyoming in the Powder River Basin, approximately 65 kilometres northwest of Vermilion’s existing operations. The acquired assets complement Vermilion’s existing Powder River operations and align with the Company’s sustainable growth-and-income model. The acquisition was funded through Vermilion’s revolving credit facility. The total consideration paid and the fair value of the assets acquired and liabilities assumed at the date of acquisition are detailed in the table below: Consideration Cash paid to vendor 189,014 Total consideration 189,014 Allocation of consideration Capital assets 284,333 Deferred tax liability (19,019) Asset retirement obligations (4,821) Assumed working capital deficit (2,651) Net assets acquired 257,842 Gain on business combination (68,828) Total net assets acquired, net of gain on business combination 189,014 The gain on the business combination primarily resulted from the recognition of additional reserve value when the acquisition closed compared to the estimated value when Vermilion entered into the purchase and sale agreement and the acquisition price was determined. For the year ended December 31, 2018, the acquisition contributed revenues of $11.6 million and net earnings of $0.3 million. Had the acquisition occurred on January 1, 2018, revenues would have increased by $11.1 million and net earnings would have decreased by $0.1 million for the year ended December 31, 2018. Shell E&P Ireland Limited In December 2018, Vermilion acquired all of the issued and outstanding common shares of Shell E&P Ireland Limited, along with an incremental 1.5% working interest in the Corrib Natural Gas Project ("Corrib") in Ireland from Nephin Energy Holdings Limited, a wholly owned subsidiary of Canada Pension Plan Investment Board. The acquisition increased Vermilion’s total ownership in Corrib to 20% and aligns with the Company’s sustainable growth-and-income model. In addition to this transaction, Vermilion assumed operatorship of Corrib. The total consideration paid and the fair value of the assets acquired and liabilities assumed as at the date of the acquisition are detailed in the table below: ($M) Consideration Cash paid to vendor 40,805 Cash acquired (82,116) Contingent consideration 290 Total consideration (41,021) ($M) Allocation of consideration Capital assets 53,368 Deferred tax assets 4,239 Assumed working capital deficit (35,449) Lease obligations (2,234) Asset retirement obligations (1,565) Net assets acquired 18,359 Gain on business combination (59,380) Total net assets acquired, net of gain on business combination (41,021) The fair value of the contingent consideration obligation is estimated to be approximately $0.3 million based on estimated future commodity prices and estimated reserves. Maximum contingent payments are €5.8 million (approximately $9.1 million) through 2025. The gain on the business combination primarily resulted from increases in working capital and the fair value of capital assets from when the purchase and sale agreement was entered into in July 2017 and when the acquisition closed in December 2018. For the year ended December 31, 2018, the acquisition contributed revenues of $1.3 million and net earnings of $0.4 million. Had the acquisition occurred on January 1, 2018, revenues would have increased by $15.2 million and net earnings would have increased by $4.3 million for the year ended December 31, 2018. Minor acquisitions Vermilion completed a number of minor acquisitions during the year ended December 31, 2018 for total cash consideration of $56.0 million, in which $147.4 million of capital assets, $28.6 million of exploration and evaluation assets, and $104.0 million of asset retirement obligations were recognized. |
Capital assets
Capital assets | 12 Months Ended |
Dec. 31, 2019 | |
Capital assets. | |
Capital assets | 6. Capital assets The following table reconciles the change in Vermilion’s capital assets: Balance at January 1 5,316,873 3,337,965 Acquisitions 38,472 1,975,327 Additions 486,677 503,842 Increase in right-of-use assets 12,348 98,343 Transfers from exploration and evaluation assets 27,918 29,615 Impairment (46,056) — Depletion and depreciation (657,863) (605,994) Changes in asset retirement obligations (10,354) (100,876) Foreign exchange (152,395) 78,651 Balance at December 31 5,015,620 5,316,873 Cost 9,604,933 9,202,604 Accumulated depletion, depreciation, and impairment (4,589,313) (3,885,731) Carrying amount at December 31 5,015,620 5,316,873 Right-of-use assets The following table discloses the carrying balance and depreciation charge relating to right-of-use assets by class of underlying asset as at and for the year ended December 31, 2019: As at Dec 31, 2019 As at Dec 31, 2018 ($M) Depreciation Balance Depreciation Balance Office space 9,745 53,777 9,119 62,279 Gas processing facilities 7,089 34,701 5,491 41,788 Oil storage facilities 2,633 16,803 2,728 20,758 Vehicles and equipment 3,209 10,327 2,020 9,121 Total 22,676 115,608 19,358 133,946 2019 impairment As a result of declining natural gas price forecasts in Ireland during the year ended December 31, 2019 an indication of impairment was identified in the Ireland CGU. This resulted in the performance of an impairment test whereby the Company determined that the carrying amount exceeded its recoverable amount. A non-cash impairment charge of $46.1 million was recorded in the consolidated statement of net earnings. The recoverable amount was determined using fair value less costs to sell, which considered future after-tax cash flows from proved plus probable reserves using forecasted price and cost estimates and an after-tax discount rate of 9.0%. The following price estimates as issued by Sproule and effective January 1, 2020 were applied: NBP (€/mmbtu) Sproule 5.58 5.51 5.54 5.65 5.77 5.88 6.00 6.12 6.24 6.37 Changes in any of the key judgments, such as a revision in reserves, changes in forecast commodity prices, foreign exchange rates, capital or operating costs would impact the estimated recoverable amount. As at December 31, 2019, a 1% increase in the assumed after-tax discount rate would reduce the estimated recoverable amount by $14.7 million (resulting in a $60.8 million impairment) while a 5% decrease in revenues (due to a decrease in commodity price forecasts or reserve estimates) would reduce the estimated recoverable amount by $28.6 million (resulting in a $74.7 million impairment). |
Exploration and evaluation asse
Exploration and evaluation assets | 12 Months Ended |
Dec. 31, 2019 | |
Exploration and evaluation assets | |
Exploration and evaluation assets | 7. Exploration and evaluation assets The following table reconciles the change in Vermilion’s exploration and evaluation assets: Balance at January 1 303,295 292,278 Acquisitions — 28,572 Additions 36,487 14,372 Changes in asset retirement obligations 36 629 Transfers to capital assets (27,918) (29,615) Depreciation (18,689) (5,942) Foreign exchange (7,062) 3,001 Balance at December 31 286,149 303,295 Cost 371,632 371,015 Accumulated depreciation (85,483) (67,720) Carrying amount at December 31 286,149 303,295 |
Asset retirement obligations
Asset retirement obligations | 12 Months Ended |
Dec. 31, 2019 | |
Asset retirement obligations | |
Asset retirement obligations | 8. Asset retirement obligations The following table reconciles the change in Vermilion’s asset retirement obligations: Balance at January 1 650,164 517,180 Additional obligations recognized 7,595 211,580 Changes in estimated abandonment timing and costs 39,722 (98,158) Obligations settled (19,442) (15,765) Accretion 32,667 31,219 Changes in discount rates (57,635) (6,646) Foreign exchange (34,870) 10,754 Balance at December 31 618,201 650,164 Vermilion has estimated the asset retirement obligations based on current cost estimates of $1.8 billion (2018 - $1.8 billion). Current cost estimates are inflated to the estimated time of abandonment using inflation rates of between 0.4% and 2.7% (2018 - between 0.5% and 2.9%), resulting in inflated cost estimates of $2.6 billion (2018 - $2.6 billion). These payments are expected to be made between 2020 and 2073, with the majority of costs occurring between 2030 and 2040 ($0.7 billion), 2048 to 2055 ($0.9 billion), and 2060 and 2073 ($0.7 billion). Vermilion calculated the present value of the obligations using a credit-adjusted risk-free rate, calculated using a credit spread of 5.3% (2018 – 4.0%) added to risk-free rates based on long-term, risk-free government bonds. The risk-free rates used as inputs to discount the obligations were as follows: Dec 31, 2019 Dec 31, 2018 Canada 1.7 % 2.2 % France 0.9 % 1.6 % Netherlands (0.1) % 0.4 % Germany 0.3 % 0.9 % Ireland 0.6 % 1.6 % Australia 1.6 % 2.6 % United States 2.4 % 2.7 % A 0.5% increase/decrease in the discount rate applied to asset retirement obligations would decrease/increase asset retirement obligations by approximately $52.7 million. A one-year increase/decrease in the expected timing of abandonment spend would decrease/increase asset retirement obligations by approximately $27.5 million. |
Derivative instruments
Derivative instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative instruments | |
Derivative instruments | 9. Derivative instruments The following table reconciles the change in the fair value of Vermilion’s derivative instruments: Year Ended Dec 31, 2019 Dec 31, 2018 Fair value of contracts, beginning of year 38,339 (70,713) Reversal of opening contracts settled during the year (62,735) 57,719 Assumed in acquisitions — (274) Realized gain (loss) on contracts settled during the year 84,219 (111,258) Unrealized gain during the year on contracts outstanding at the end of the year 5,308 51,607 Net receipt from counterparties on contract settlements during the year (84,219) 111,258 Unrealized loss on derivatives designated as cash flow hedges (1,071) — Unrealized gain on derivatives designated as net investment hedges 9,168 — Fair value of contracts, end of year (10,991) 38,339 Comprised of: Current derivative asset 55,645 95,667 Current derivative liability (62,405) (41,016) Non-current derivative asset 20,127 1,215 Non-current derivative liability (24,358) (17,527) Fair value of contracts, end of year (10,991) 38,339 The (gain) loss on derivative instruments for 2019 and 2018 were comprised of the following: Year Ended Dec 31, 2019 Dec 31, 2018 Realized (gain) loss on contracts settled during the year (84,219) 111,258 Reversal of opening contracts settled during the year 62,735 (57,719) Unrealized gain on contracts outstanding at the end of the year (5,308) (51,607) (Gain) loss on derivative instruments (26,792) 1,932 Please refer to Note 19 (Supplemental information) for a listing of Vermilion’s outstanding derivative instruments as at December 31, 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | 10. Leases Vermilion had the following future commitments associated with its lease obligations: As at ($M) Dec 31, 2019 Dec 31, 2018 Less than 1 year 29,217 30,641 1 - 3 years 46,501 50,024 3 - 5 years 38,177 34,313 After 5 years 26,168 42,739 Total lease payments 140,063 157,717 Amounts representing interest (23,309) (24,583) Present value of net lease payments 116,754 133,134 Current portion of lease obligations (23,682) (24,945) Non-current portion of lease obligations 93,072 108,189 Total cash outflow 33,276 27,468 Interest on lease liabilities 6,984 7,185 |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Taxes | |
Taxes | 11. Taxes The following table reconciles Vermilion’s deferred tax asset and liability: As at Dec 31, 2019 Dec 31, 2018 Deferred tax assets: Capital assets (296,793) (296,591) Non-capital losses 454,339 487,398 Asset retirement obligations 36,170 38,429 Derivative contracts 2,712 (11,937) Unrealized foreign exchange (3,034) (1,873) Other 3,149 3,985 Deferred tax assets 196,543 219,411 Deferred tax liabilities: Capital assets 262,669 319,553 Non-capital losses (48,007) (57,785) Asset retirement obligations 123,257 51,031 Unrealized foreign exchange — 10,715 Other (1,610) (5,380) Deferred tax liabilities 336,309 318,134 Income tax expense differs from the amount that would have been expected if the reported earnings had been subject only to the statutory Canadian income tax rate as follows: Year Ended Dec 31, 2019 Dec 31, 2018 Earnings before income taxes 141,125 354,698 Canadian corporate tax rate (1) 26.72 % 27.00 % Expected tax expense 37,709 95,768 Increase (decrease) in taxes resulting from: Petroleum resource rent tax rate (PRRT) differential (2) 17,455 5,349 Foreign tax rate differentials (2) (3) 5,543 3,086 Equity based compensation expense 3,733 13,883 Amended returns and changes to estimated tax pools and tax positions (24,387) (873) Statutory rate changes and the estimated reversal rates associated with temporary differences (4) 9,543 — Derecognition (recognition) of deferred tax assets 65,522 (26,931) Adjustment for uncertain tax positions 3,659 8,080 Gain on business combinations — (28,812) Other non-deductible items (10,451) 13,498 Provision for income taxes 108,326 83,048 (1) In Canada, the lower tax rate is a result of reductions to the Alberta corporate tax rate from 12% to 8% over four years. (2) In Australia, current taxes include both corporate income tax rates and PRRT. Corporate income tax rates were applied at a rate of 30% and PRRT was applied at a rate of 40%. (3) The applicable tax rates for 2019 were: 32.0% in France, 50.0% in the Netherlands, 31.8% in Germany, 25.0% in Ireland, and 21.0% in the United States (2018: 34.4% in France, 50.0% in the Netherlands, 30.2% in Germany, 25.0% in Ireland, and 21.0% in the United States). (4) On December 28, 2019, the French Parliament approved the Finance Bill for 2020. The Finance Bill for 2020 provides for a progressive decrease of the French corporate income tax rate for companies with sales below €250 million from 32.0% to 25.8% by 2022. Effective July 1, 2019, Alberta decreased its corporate tax rate from 12% to 11% for 2019 with further 1% rate reductions every year on January 1 until the general corporate tax rate is 8% on January 1, 2022. At December 31, 2019, Vermilion had $2.5 billion (2018 - $2.6 billion) of unused tax losses of which $1.2 billion (2018 - $1.1 billion) relates to Vermilion’s Canada segment and expire between 2025 and 2040. The majority of the remaining unused tax losses relates to Vermilion’s Ireland segment and do not expire. At December 31, 2019, Vermilion derecognized $65.5 million (2018 - recognized $26.9 million) of deferred income assets relating to the aforementioned non-expiring tax loss in Ireland as there is uncertainty as to the Company’s ability to fully utilize such losses based on the forecasted commodity prices in effect as at December 31, 2019. The aggregate amount of temporary differences associated with investments in subsidiaries for which deferred tax liabilities have not been recognized as at December 31, 2019 is approximately $0.5 billion (2018 – approximately $0.5 billion). |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2019 | |
Long-term debt | |
Long-term debt | 12. Long-term debt The following table summarizes Vermilion’s outstanding long-term debt: As at Dec 31, 2019 Dec 31, 2018 Revolving credit facility 1,539,225 1,392,206 Senior unsecured notes 385,440 404,001 Long-term debt 1,924,665 1,796,207 The fair value of the revolving credit facility is equal to its carrying value due to the use of short-term borrowing instruments at market rates of interest. The fair value of the senior unsecured notes as at December 31, 2019 was $366.4 million. The following table reconciles the change in Vermilion’s long-term debt: Balance at January 1 1,796,207 1,270,330 Borrowings on the revolving credit facility 207,787 251,155 Assumed on acquisitions (1) — 188,496 Amortization of transaction costs and prepaid interest 4,379 2,286 Foreign exchange (83,708) 83,940 Balance at December 31 1,924,665 1,796,207 (1) Pursuant to the acquisitions described in Note 5 (Business combinations), Vermilion assumed the credit facilities of the acquired companies and immediately extinguished them following the respective acquisitions using proceeds from Vermilion’s revolving credit facility. Revolving credit facility At December 31, 2019, Vermilion had in place a bank revolving credit facility maturing May 31, 2023 with the following terms: As at Dec 31, 2019 Dec 31, 2018 Total facility amount 2,100,000 1,800,000 Amount drawn (1,539,225) (1,392,206) Letters of credit outstanding (10,230) (15,400) Unutilized capacity 550,545 392,394 The facility can be extended from time to time at the option of the lenders and upon notice from Vermilion. If no extension is granted by the lenders, the amounts owing pursuant to the facility are due at the maturity date. The facility is secured by various fixed and floating charges against the subsidiaries of Vermilion. The facility bears interest at a rate applicable to demand loans plus applicable margins. As at December 31, 2019, the revolving credit facility was subject to the following financial covenants: As at Financial covenant Limit Dec 31, 2019 Dec 31, 2018 Consolidated total debt to consolidated EBITDA Less than 4.0 1.94 1.72 Consolidated total senior debt to consolidated EBITDA Less than 3.5 1.56 1.34 Consolidated EBITDA to consolidated interest expense Greater than 2.5 13.46 14.57 The financial covenants include financial measures defined within the revolving credit facility agreement that are not defined under IFRS. These financial measures are defined by the revolving credit facility agreement as follows: · Consolidated total debt: Includes all amounts classified as “Long-term debt” and “Lease obligations” (including the current portion included within "Accounts payable and accrued liabilities" but excluding operating leases as defined under IAS 17) on the balance sheet. · Consolidated total senior debt: Defined as consolidated total debt excluding unsecured and subordinated debt. · Consolidated EBITDA: Defined as consolidated net earnings before interest, income taxes, depreciation, accretion and certain other non-cash items, adjusted for the impact of the acquisition of a material subsidiary. · Consolidated total interest expense: Includes all amounts classified as “Interest expense", but excluding interest on operating leases as defined under IAS 17. As at December 31, 2019 and 2018, Vermilion was in compliance with the above covenants. Senior unsecured notes On March 13, 2017, Vermilion issued US $300.0 million of senior unsecured notes at par. The notes bear interest at a rate of 5.625% per annum, to be paid semi-annually on March 15 and September 15. The notes mature on March 15, 2025. As direct senior unsecured obligations of Vermilion, the notes rank equally with existing and future senior unsecured indebtedness of the Company. The senior unsecured notes were recognized at amortized cost and include the transaction costs directly related to the issuance. Vermilion may, at its option, redeem the notes prior to maturity as follows: · Prior to March 15, 2020, Vermilion may redeem up to 35% of the original principal amount of the senior unsecured notes with the proceeds of certain equity offerings by the Company at a redemption price of 105.625% of the principal amount plus any accrued and unpaid interest to the applicable redemption date. · Prior to March 15, 2020, Vermilion may redeem some or all of the senior unsecured notes at a price equal to 100% of the principal amount of the senior unsecured notes, plus an applicable premium and any accrued and unpaid interest. · On or after March 15, 2020, Vermilion may redeem some or all of the senior unsecured notes at the redemption prices set forth in the following table plus any accrued and unpaid interest. Year Redemption price 2020 104.219 % 2021 102.813 % 2022 101.406 % 2023 and thereafter 100.000 % Cross currency interest rate swaps On June 12, 2019, Vermilion entered into a series of cross currency interest rate swaps with a syndicate of banks. Vermilion applied hedge accounting to these derivative instruments. The cross currency interest rate swaps mature March 15, 2025 and include regular cash receipts and payments on March 15 and September 15 of each year. On a net basis, the cross currency interest swaps result in Vermilion receiving US dollar interest and principal amounts equal to the interest and principal payments under the US $300.0 million of senior unsecured notes. In exchange, Vermilion will make interest and principal payments equal to €265.0 million at a rate of 3.275%. The cross currency interest rate swaps were executed as two separate sets of instruments: · US dollar to Canadian dollar ("USD-to-CAD") cross currency interest rate swaps: Vermilion receives US dollar interest and principal amounts equal to US$300.0 million of debt at 5.625% interest and pays Canadian dollar interest and principal amounts equal to $398.5 million of debt at 5.40% interest. · Canadian dollar to Euro ("CAD-to-EUR") cross currency interest rate swaps: Vermilion receives Canadian dollar interest and principal amounts equal to $398.5 million of debt at 5.40% interest and pays Euro interest and principal amounts equal to €265.0 million at a rate of 3.275%. The USD-to-CAD cross currency interest swaps have been designated as the hedging instrument in a cash flow hedge to mitigate the risk of the fluctuation of interest and principal cash flows due to changes in foreign currency rates related to the Senior Unsecured Notes described above. The forward element of the swap contract is treated as the excluded component and is initially recognized within other comprehensive income. The excluded component is amortized to net earnings in interest expense on a systematic basis. As the timing and amount of the cash flows received on the USD-to-CAD cross currency interest rate swaps offset the timing and amount of the cash flows paid on the senior unsecured notes, the economic relationship is expected to be highly effective. The change in the value of the hedged item associated with a change in spot foreign exchange rates is initially recognized in other comprehensive income. This change is reclassified from other comprehensive income to net earnings (and recorded as an foreign exchange gain or loss) to offset the associated foreign exchange gain or loss recognized on the senior unsecured notes. The CAD-to-EUR cross currency interest rate swaps have been designated as the hedging instrument in a net investment hedge to mitigate the effective change in exchange rates on our net investments in Euro denominated foreign subsidiaries. The change in the value of the hedged item associated with a change in spot foreign exchange rates is initially recognized in other comprehensive income. This change is reclassified from other comprehensive income to net earnings (and recorded as a foreign exchange gain or loss) only if the net investment is disposed of by sale. The forward element of the swap contract is treated as the excluded component and is initially recognized within other comprehensive income. The excluded component is amortized to net earnings in interest expense on a systematic basis. |
Shareholders' capital
Shareholders' capital | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' capital | |
Shareholders' capital | 13. Shareholders’ capital The following table reconciles the change in Vermilion’s shareholders’ capital: 2019 2018 Shares Shares Shareholders’ capital (‘000s) Amount ($M) (‘000s) Amount ($M) Balance at January 1 152,704 4,008,828 122,119 2,650,706 Shares issued for acquisition — — 27,883 1,234,676 Shares issued for the Dividend Reinvestment Plan 1,417 34,937 1,179 49,051 Vesting of equity based awards 1,359 51,108 1,025 54,057 Shares issued for equity based compensation 552 15,868 314 12,565 Share-settled dividends on vested equity based awards 258 8,290 184 7,773 Balance at December 31 156,290 4,119,031 152,704 4,008,828 Vermilion is authorized to issue an unlimited number of common shares with no par value. Dividends are approved by the Board of Directors and are paid monthly. Dividends declared to shareholders for the year ended December 31, 2019 were $427.3 million or $2.76 per common share (2018 - $388.1 million or $2.72 per common share). Subsequent to the end of year-end and prior to the consolidated financial statements being authorized for issue on March 5, 2020, Vermilion declared dividends of $72.0 million or $0.23 per share for each of January and February of 2020. |
Capital disclosures
Capital disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Capital disclosures | |
Capital disclosures | 14. Capital disclosures Vermilion defines capital as net debt (long-term debt plus net working capital) and shareholders’ capital. Vermilion excludes from its definition of capital any obligations secured by an offsetting asset, such as lease obligations. Vermilion monitors the ratio of net debt to fund flows from operations. As at December 31, 2019, our ratio of net debt to trailing fund flows from operations is 2.20 (2018 - 2.30). Vermilion manages the ratio of net debt to fund flows from operations (refer to Note 4 - Segmented information) by monitoring capital expenditures, dividends, and asset retirement obligations with expected fund flows from operations. Vermilion intends for the ratio of net debt to fund flows from operations to trend towards 1.5 over time. The following table calculates Vermilion’s ratio of net debt to fund flows from operations: Year Ended Dec 31, 2019 Dec 31, 2018 Long-term debt 1,924,665 1,796,207 Current liabilities 416,210 563,199 Current assets (347,681) (429,877) Net debt 1,993,194 1,929,529 Ratio of net debt to four quarter trailing fund flows from operations 2.20 2.30 |
Equity based compensation
Equity based compensation | 12 Months Ended |
Dec. 31, 2019 | |
Equity based compensation | |
Equity based compensation | 15. Equity based compensation The following table summarizes the number of awards outstanding under the VIP and the Five-Year Compensation Arrangement: Number of VIP and Five Year Compensation Awards (‘000s) Opening balance 1,931 1,685 Granted 1,193 932 Vested (688) (520) Forfeited (168) (166) Closing balance (1) 2,268 1,931 (1) As at December 31, 2019, 51,860 awards (2018 - 36,845 awards) are included in the closing balance related to the Five-Year Compensation Arrangement. For the year ended December 31, 2019, the awards had a weighted average grant date fair value of $30.92 (2018 - $40.57). Equity based compensation expense for the awards is calculated based on the number of awards outstanding multiplied by the estimated performance factor that will be realized upon vesting (2019 - 1.7; 2018 - 1.9) adjusted by an estimated annual forfeiture rate (2019 - 5.2%; 2018 - 4.6%). Equity based compensation expense of $46.6 million was recorded during the year ended December 31, 2019 (2018 - $48.2 million) relating to the awards. For the year ended December 31, 2019, there were 72,191 DSUs granted and outstanding with a weighted average grant date fair value of $25.25. Equity based compensation expense of $1.8 million was recorded during the year ended December 31, 2019 relating to the DSUs. |
Per share amounts
Per share amounts | 12 Months Ended |
Dec. 31, 2019 | |
Per share amounts | |
Per share amounts | 16. Per share amounts Basic and diluted net earnings per share have been determined based on the following: Year Ended Dec 31, 2019 Dec 31, 2018 Net earnings 32,799 271,650 Basic weighted average shares outstanding (‘000s) 154,736 140,619 Dilutive impact of equity based compensation (‘000s) 1,359 1,716 Diluted weighted average shares outstanding (‘000s) 156,095 142,335 Basic earnings per share 0.21 1.93 Diluted earnings per share 0.21 1.91 |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financial instruments | |
Financial instruments | 17. Financial instruments Classification of financial instruments The following table summarizes the carrying value relating to Vermilion’s financial instruments: As at Dec 31, 2019 As at Dec 31, 2018 Amortized Amortized ($M) FVTPL FVTOCI Cost Total FVTPL FVTOCI Cost Total Cash and cash equivalents 29,028 — — 29,028 26,809 — — 26,809 Derivative assets 64,135 11,637 — 75,772 96,882 — — 96,882 Derivative liabilities (83,223) (3,540) — (86,763) (58,543) — — (58,543) Accounts receivable — — 211,409 211,409 — — 260,322 260,322 Accounts payable and accrued liabilities — — (312,442) (312,442) — — (449,651) (449,651) Dividends payable — — (35,947) (35,947) — — (35,122) (35,122) Lease obligations — — (93,072) (93,072) — — (108,189) (108,189) Long-term debt (1) — — (1,924,665) (1,924,665) — — (1,796,207) (1,796,207) (1) The carrying value of the above equals fair value except for long-term debt. The fair value of long-term debt was $1,905,588 (2018 - $1,781,809). The carrying value of accounts receivable, accounts payable and accrued liabilities, dividends payable and lease obligations are a reasonable approximation of their fair value due to the short maturity of these financial instruments. The carrying value of long-term debt outstanding on the revolving credit facility approximates its fair value due to the use of short-term borrowing instruments at market rates of interest. Fair value measurements are categorized into a fair value hierarchy based on the lowest level input that is significant to the fair value measurement: · Level 1 inputs are determined by reference to unadjusted quoted prices in active markets for identical assets or liabilities. Inputs used in fair value measurement of cash and cash equivalents, the revolving credit facility, and the senior unsecured notes are categorized as Level 1. · Level 2 inputs are determined based on inputs other than unadjusted quoted prices that are observable, either directly or indirectly. The fair value of Vermilion’s derivative assets and liabilities are determined using pricing models that incorporate future price forecasts (supported by prices from observable market transactions) and credit risk adjustments. · Level 3 inputs are not based on observable market data. Vermilion does not have any financial instruments classified as Level 3. There were no transfers between levels in the hierarchy in the years ended December 31, 2019 and 2018. Nature and Extent of Risks Associated with Financial Instruments Vermilion is exposed to financial risks from its financial instruments. These financial risks include: market risk (includes commodity price risk, interest rate risk, and currency risk), credit risk, and liquidity risk. Commodity price risk Vermilion is exposed to commodity price risk on its derivative assets and liabilities which are used as part of the Company’s risk management program to mitigate the effects of changes in commodity prices on future cash flows. While transactions of this nature relate to future petroleum and natural gas production, Vermilion does not designate these derivative assets and liabilities as accounting hedges. As such, changes in commodity prices impact the fair value of derivative instruments and the corresponding gains or losses recognized on derivative instruments. Currency risk Vermilion is exposed to currency risk on its financial instruments denominated in foreign currencies. These financial instruments include cash and cash equivalents, accounts receivables, accounts payables, lease obligations, long-term debt, derivative assets and derivative liabilities. These financial instruments are primarily denominated in the US dollar and the Euro. Vermilion monitors its exposure to currency risk and reviews whether the use of derivative financial instruments is appropriate to manage potential fluctuations in foreign exchange rates. Interest rate risk Vermilion is exposed to interest rate risk on its revolving credit facility, which consists of short-term borrowing instruments that bear interest at market rates. Thus, changes in interest rates could result in an increase or decrease in the amount paid by Vermilion to service this debt. The following table summarizes the increase (positive values) or decrease (negative values) to net earnings before tax due to a change in the value of Vermilion’s financial instruments as a result of a change in the relevant market risk variable. This analysis does not attempt to reflect any interdependencies between the relevant risk variables. ($M) Dec 31, 2019 Dec 31, 2018 Currency risk - Euro to Canadian dollar $0.01 increase in strength of the Canadian dollar against the Euro (1,599) (2,205) $0.01 decrease in strength of the Canadian dollar against the Euro 1,599 2,205 Currency risk - US dollar to Canadian dollar $0.01 increase in strength of the Canadian dollar against the US $ (5,594) 2,981 $0.01 decrease in strength of the Canadian dollar against the US $ 5,594 (2,981) Commodity price risk - Crude oil US $5.00/bbl increase in crude oil price used to determine the fair value of derivatives (44,106) (18,421) US $5.00/bbl decrease in crude oil price used to determine the fair value of derivatives 47,777 17,351 Commodity price risk - European natural gas € 0.5/GJ increase in European natural gas price used to determine the fair value of derivatives (28,192) (36,508) € 0.5/GJ decrease in European natural gas price used to determine the fair value of derivatives 22,670 33,005 Credit risk: Vermilion is exposed to credit risk on accounts receivable and derivative assets in the event that customers, joint operation partners, or counterparties fail to discharge their contractual obligations. As at December 31, 2019, Vermilion’s maximum exposure to receivable credit risk was $287.2 million (December 31, 2018 - $357.2 million) which is the value of accounts receivable and derivative assets on the balance sheet. Vermilion’s accounts receivable primarily relates to customers and joint operations partners in the petroleum and natural gas industry. These amounts are subject to normal industry payment terms and credit risks. Vermilion manages these risks by monitoring the creditworthiness of customers and joint operations partners and, where appropriate, obtaining assurances such as parental guarantees and letters of credit. Vermilion determines the lifetime expected credit losses recognized on accounts receivable using a provision matrix. In preparing the provision matrix, the Company takes into account historical credit loss experience based on the aging of accounts receivable, adjusted as necessary for current and future petroleum and natural gas prices to the extent that changes in pricing may negatively impact the Company’s customers and joint operations partners. The lifetime expected credit losses on accounts receivable as at December 31, 2019 and 2018 is not material. As at the balance sheet date, approximately 3.6% (2018 - 0.7%) of the accounts receivable balance was outstanding for more than 90 days. Vermilion considers the balance of accounts receivable to be collectible. Vermilion’s derivative assets primarily relates to the fair value of financial instruments used as part of the Company’s risk management program to mitigate the effects of changes in commodity prices on future cash flows. Vermilion manages this risk by monitoring the creditworthiness of counterparties, transacting primarily with counterparties that have investment grade third party credit ratings, and by limiting the concentration of financial exposure to individual counterparties. As a result, Vermilion has not obtained collateral or other security to support its financial derivatives. Vermilion’s cash deposited in financial institutions and guaranteed investment certificates are also subject to counterparty credit risk. Vermilion mitigates this risk by transacting with financial institutions with high third party credit ratings. Liquidity risk: Liquidity risk is the risk that Vermilion will encounter difficulty in meeting obligations associated with its financial liabilities. Vermilion does not consider this to be a significant risk as its financial position and available committed borrowing facility provide significant financial flexibility and allow Vermilion to meet its obligations as they come due. The following table summarizes Vermilion’s undiscounted non-derivative financial liabilities and their contractual maturities: 1 month to 3 months to 1 year to ($M) 1 month 3 months 1 year 5 years December 31, 2019 134,502 208,752 5,136 1,608,435 December 31, 2018 167,491 306,927 10,355 1,472,087 |
Related party disclosures
Related party disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Related party disclosures | |
Related party disclosures | 18. Related party disclosures The compensation of directors and management is reviewed annually by the independent Governance and Human Resources Committee against industry practices for oil and gas companies of similar size and scope. The following table summarizes the compensation of directors and other members of key management personnel during the years ended December 31, 2019 and 2018: Year Ended Dec 31, 2019 Dec 31, 2018 Short-term benefits 8,084 6,018 Equity based compensation 16,296 16,309 24,380 22,327 Number of individuals included in the above amounts 19 18 During the year ended December 31, 2019, Vermilion recorded $0.2 million of office rent recoveries (2018 - $0.2 million) relating to an office sub-lease to a company whose Managing Director is also a member of Vermilion’s Board of Directors. This related party transaction is provided in the normal course of business under the same commercial terms and conditions as transactions with unrelated companies and is recorded at the exchange amount. |
Supplemental information
Supplemental information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental information | |
Supplemental information | 19. Supplemental information Changes in non-cash working capital was comprised of the following: Year Ended Dec 31, 2019 Dec 31, 2018 Changes in: Accounts receivable 48,913 (94,562) Crude oil inventory (1,638) (10,646) Prepaid expenses (2,882) (4,896) Accounts payable and accrued liabilities (137,209) 230,567 Income taxes payable (31,994) (1,651) Working capital assumed in acquisitions — (58,841) Initial recognition of IFRS 16 liability — (10,483) Foreign exchange 2,590 (873) Changes in non-cash working capital (122,220) 48,615 Changes in non-cash operating working capital (65,148) (6,876) Changes in non-cash investing working capital (57,072) 55,491 Changes in non-cash working capital (122,220) 48,615 Cash and cash equivalents was comprised of the following: As at Dec 31, 2019 Dec 31, 2018 Cash on deposit with financial institutions 28,898 26,604 Guaranteed investment certificates 130 205 Cash and cash equivalents 29,028 26,809 Wages and benefits included in operating expenses and general and administration expenses were: Year Ended Dec 31, 2019 Dec 31, 2018 Operating expense 77,868 66,095 General and administration expense 47,310 42,496 Wages and benefits 125,178 108,591 The following tables summarize Vermilion's outstanding risk management positions as at December 31, 2019: Weighted Average Weighted Weighted Weighted Bought Put Bought Put Sold Call Average Sold Sold Put Average Sold Swap Average Swap Unit Currency Volume Price Volume Call Price Volume Put Price Volume Price Dated Brent Q1 2020 bbl USD 3,000 62.25 3,000 67.39 3,000 55.58 — — Q2 2020 bbl USD 3,000 62.25 3,000 67.39 3,000 55.58 — — WTI Q1 2020 bbl USD 9,750 54.18 6,000 60.95 9,750 46.23 1,500 59.17 Q2 2020 bbl USD 7,250 53.07 4,000 60.23 7,250 44.86 — — Q3 2020 bbl USD 500 57.00 500 61.25 500 52.00 — — Q4 2020 bbl USD 500 57.00 500 61.25 500 52.00 — — AECO Q1 2020 mcf CAD 10,426 1.58 10,426 2.56 — — — — Q2 2020 mcf CAD — — — — — — 10,426 1.39 Q3 2020 mcf CAD — — — — — — 10,426 1.39 Q4 2020 mcf CAD — — — — — — 3,513 1.39 AECO Basis (AECO less NYMEX Henry Hub) Q1 2020 mcf USD — — — — — — 32,500 (0.94) Q2 2020 mcf USD — — — — — — 52,500 (1.12) Q3 2020 mcf USD — — — — — — 50,000 (1.12) Q4 2020 mcf USD — — — — — — 36,739 (1.11) Q1 2021 mcf USD — — — — — — 30,000 (1.11) Q2 2021 mcf USD — — — — — — 45,000 (1.08) Q3 2021 mcf USD — — — — — — 45,000 (1.08) Q4 2021 mcf USD — — — — — — 35,054 (1.09) Q1 2022 mcf USD — — — — — — 30,000 (1.10) Q2 2022 mcf USD — — — — — — 35,000 (1.09) Q3 2022 mcf USD — — — — — — 35,000 (1.09) Q4 2022 mcf USD — — — — — — 11,793 (1.09) NYMEX Henry Hub Q1 2020 mcf USD 10,000 2.75 10,000 3.10 10,000 2.25 — — Weighted Average Weighted Weighted Weighted Bought Put Bought Put Sold Call Average Sold Sold Put Average Sold Swap Average Swap Unit Currency Volume Price Volume Call Price Volume Put Price Volume Price NBP Q1 2020 mcf EUR 49,135 5.27 49,135 5.83 49,135 3.98 — — Q2 2020 mcf EUR 41,765 5.21 41,765 5.53 41,765 3.83 — — Q3 2020 mcf EUR 41,765 5.21 41,765 5.52 41,765 3.83 — — Q4 2020 mcf EUR 61,419 5.28 63,875 5.77 61,419 3.90 — — Q1 2021 mcf EUR 54,048 5.44 56,505 5.85 54,048 3.94 — — Q2 2021 mcf EUR 46,678 5.42 46,678 5.80 46,678 3.92 — — Q3 2021 mcf EUR 46,678 5.42 46,678 5.77 46,678 3.92 — — Q4 2021 mcf EUR 54,048 5.44 54,048 5.72 54,048 3.94 — — Q1 2022 mcf EUR 19,654 5.42 19,654 6.30 19,654 3.79 — — Q2 2022 mcf EUR 12,284 5.33 12,284 6.03 12,284 3.60 — — NBP Basis (NBP less NYMEX Henry Hub) Q1 2020 mcf USD 17,500 2.74 17,500 3.99 — — — — Q2 2020 mcf USD 15,000 2.61 15,000 3.98 — — — — Q3 2020 mcf USD 15,000 2.61 15,000 3.98 — — — — Q4 2020 mcf USD 10,000 3.24 10,000 3.98 — — — — TTF Q1 2020 mcf EUR 7,370 5.37 7,370 6.25 7,370 3.81 — — Q2 2020 mcf EUR 13,512 5.36 9,827 6.15 13,512 3.73 4,913 5.54 Q3 2020 mcf EUR 13,512 5.36 9,827 6.15 13,512 3.73 3,258 5.45 Q4 2020 mcf EUR 7,370 5.37 7,370 6.25 7,370 3.81 — — TTF Basis (TTF less NYMEX Henry Hub) Q2 2020 mcf USD 2,500 3.50 2,500 4.00 — — 5,000 3.21 Q3 2020 mcf USD 2,500 3.50 2,500 4.00 — — 5,000 3.21 Cross Currency Interest Rate Receive Notional Amount Receive Rate Pay Notional Amount Pay Rate Swap Jan 2020 - Mar 2025 300,000,000 USD 5.625 % 265,048,910 EUR 3.275 % Swap Q1 2020 1,735,895,470 USD LIBOR + 1.70 % 2,304,900,000 CAD CDOR + 1.25 % VET Equity Swaps Initial Share Price Share Volume Swap Jan 2020 - Sep 2021 20.9788 CAD 2,250,000 Swap Jan 2020 - Oct 2021 22.4587 CAD 1,500,000 The following sold option instruments allow the counterparties, at the specified date, to enter into a derivative instrument contract with Vermilion at the detailed terms: Weighted Weighted Weighted Option Average Average Average Weighted Period if Option Expiration Bought Put Bought Put Sold Call Sold Call Sold Put Sold Put Swap Average Exercised Unit Currency Date Volume Price Volume Price Volume Price Volume Swap Price Dated Brent Feb 2020 - Jan 2021 bbl USD 28-Jan-20 — — — — — — 500 63.00 Feb 2020 - Jan 2021 bbl USD 31-Jan-20 — — — — — — 3,000 62.00 Mar 2020 - Feb 2021 bbl USD 28-Feb-20 — — — — — — 4,500 62.71 Apr 2020 - Mar 2021 bbl USD 31-Mar-20 — — — — — — 3,500 63.32 Apr 2020 - Mar 2021 bbl USD 31-Mar-20 1,000 64.00 1,000 69.00 1,000 59.00 — — May 2020 - Apr 2021 bbl USD 30-Apr-20 — — — — — — 4,000 62.63 NBP Oct 2020 - Jun 2022 mcf EUR 30-Jun-20 — — — — — — 2,457 5.86 Jan 2021 - Sep 2022 mcf EUR 30-Jun-20 — — — — — — 2,457 5.86 Jan 2021 - Sep 2022 mcf USD 30-Jun-20 — — — — — — 2,457 6.45 Jan 2022 - Dec 2022 mcf USD 30-Jun-20 — — — — — — 9,827 6.45 Oct 2020 - Jun 2022 mcf EUR 30-Sep-20 — — — — — — 2,457 6.15 |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant accounting policies | |
Accounting framework | Accounting framework The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of Vermilion Energy Inc. and its subsidiaries. Vermilion’s subsidiaries include entities in each of the jurisdictions that Vermilion operates as described in Note 4 (Segmented information) including: Canada, France, Netherlands, Germany, Ireland, Australia, the United States, and Central and Eastern Europe (Hungary, Slovakia, and Croatia). Vermilion Energy Inc. directly or indirectly through holding companies owns all of the voting securities of each material subsidiary. Transactions between Vermilion Energy Inc. and its subsidiaries have been eliminated. Vermilion accounts for joint operations by recognizing the Company’s share of assets, liabilities, income, and expenses. |
Exploration and evaluation assets | Exploration and evaluation assets Vermilion classifies costs as exploration and evaluation (“E&E”) assets when they relate to exploring and evaluating an area for which the Company has the license or right to explore and extract resources. E&E costs may include: geological and geophysical costs; land and license acquisition costs; and costs for the drilling, completion, and testing of exploration wells. E&E costs are reclassified to capital assets if the technical feasibility and commercial viability of the area can be determined. E&E assets are assessed for impairment prior to any reclassification. The technical feasibility and commercial viability of extracting the reserves is considered to be determinable when proved and probable reserves are identified. Costs incurred prior to the acquisition of the legal rights to explore an area are expensed as incurred. If reserves are not found within the license area or the area is abandoned, the related E&E costs are depreciated over a period not greater than five years. If an exploration license expires prior to the commencement of exploration activities, the cost of the exploration license is written off through depreciation in the year of expiration. |
Capital assets | Capital assets Vermilion recognizes capital assets at cost less accumulated depletion, depreciation, and impairment losses. Costs include directly attributable costs incurred for the drilling, completion, and tie-in of wells and the construction of production and processing facilities. When components of capital assets are replaced, disposed of, or no longer in use, they are derecognized. Gains and losses on disposal of capital assets are determined by comparing the proceeds of disposal compared to the carrying amount. |
Depletion and depreciation | Depletion and depreciation Capital assets are grouped into depletion units, which are groups of assets within a specific production area that have similar economic lives. Depletion units represent the lowest level of disaggregation for which costs are accumulated for the purposes of calculating depletion and depreciation. The net carrying value of each depletion unit is depleted using the unit of production method by reference to the ratio of production in the period to the total proved and probable reserves, taking into account the future development costs necessary to bring the applicable reserves into production. For the purposes of the depletion calculations, oil and gas reserves are converted to a common unit of measure on the basis of their relative energy content based on a conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent. |
Impairment of capital assets and exploration and evaluation assets | Impairment of capital assets and exploration and evaluation assets Depletion units are aggregated into cash generating units (“CGUs”) for impairment testing. CGUs are the lowest level for which there are identifiable cash inflows that are largely independent of cash inflows of other groups of assets. CGUs are reviewed for indicators of potential impairment at each reporting date. E&E assets are tested for impairment when reclassified to capital assets or when indicators of potential impairment are identified. E&E assets are reviewed for indicators of potential impairment at each reporting date. If indicators of potential impairment are identified, E&E assets are tested for impairment as part of the CGU attributable to the jurisdiction in which the exploration area resides. If an indicator of potential impairment exists, the CGU’s carrying value is compared to its recoverable amount. A CGU’s recoverable amount is the higher of its fair value less costs of disposal and its value-in-use. If the carrying amount of a CGU exceeds its recoverable amount, an impairment loss is recognized to reduce the carrying value of the CGU to its recoverable amount. If an impairment loss has been recognized in a prior period, an assessment is performed at each reporting date to determine if there are indicators that the circumstances which led to the impairment loss have reversed. If the change in circumstances results in the recoverable amount being higher than the carrying value after the impairment loss, then the impairment loss (net of depletion that would otherwise have been recorded) is reversed. |
Lease obligations and right-of-use assets | Lease obligations and right-of-use assets A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the lease commencement date, a lease obligation is recognized at the present value of future lease payments, typically using the applicable incremental borrowing rate. A corresponding right-of-use asset is recognized at the amount of the lease obligation, adjusted for lease incentives received and initial direct costs. Vermilion does not recognize leases for short-term leases with a lease term of 12 months or less, or leases for low-value assets. Payments are applied against the lease obligation and interest expense is recognized on the lease obligations using the effective interest rate method. Depreciation is recognized on the right-of-use asset over the lease term. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on deposit with financial institutions and guaranteed investment certificates. |
Crude oil inventory | Crude oil inventory Crude oil inventory is valued at the lower of cost or net realizable value. The cost of crude oil inventory produced includes related operating expense, royalties, and depletion determined on a weighted-average basis. |
Asset retirement obligations | Asset retirement obligations Vermilion recognizes a provision for asset retirement obligations when an event occurs giving rise to an obligation of uncertain timing or amount. Asset retirement obligations are recognized on the consolidated balance sheet as a long-term liability with a corresponding increase to E&E or capital assets. Asset retirement obligations reflect the present value of estimated future settlement costs. The discount rate used to calculate the present value is specific to the jurisdiction the obligation relates to and is reflective of current market assessment of the time value of money and risks specific to the liabilities that have not been reflected in the cash flow estimates. Asset retirement obligations are remeasured at each reporting period to reflect changes in market rates and estimated future settlement costs. Asset retirement obligations are increased each reporting period to reflect the passage of time with a corresponding charge to accretion expense. |
Revenue recognition | Revenue recognition Revenue associated with the sale of crude oil and condensate, natural gas, and natural gas liquids is measured based on the consideration specified in contracts with customers. Revenue from contracts with customers is recognized when or as Vermilion satisfies a performance obligation by transferring control of crude oil and condensate, natural gas, or natural gas liquids to a customer at contractually specified transfer points. This transfer coincides with title passing to the customer and the customer taking physical possession of the commodity. Vermilion principally satisfies its performance obligations at a point in time and the amounts of revenue recognized relating to performance obligations satisfied over time are not significant. Vermilion invoices customers for delivered products monthly and payment occurs shortly thereafter. Vermilion does not have any contracts where the period between the transfer of control of the commodity to the customer and payment by the customer exceeds one year. As a result, Vermilion does not adjust its revenue transactions to reflect significant financing components. |
Financial instruments | Financial instruments On initial recognition, financial instruments are measured at fair value. Measurement in subsequent periods depends on the classification of the financial instrument as described below: · Fair value through profit or loss ("FVTPL"): Financial instruments under this classification include cash and cash equivalents and derivative assets and liabilities. · Fair value through other comprehensive income ("FVTOCI"): Financial instruments under this classification include derivative assets and liabilities where hedge accounting is applied. · Amortized cost: Financial instruments under this classification include accounts receivable, accounts payable and accrued liabilities, dividends payable, lease obligations, and long-term debt. Accounts receivable are measured net of a loss allowance equal to the lifetime expected credit loss. Hedge accounting Hedge accounting is applied to financial instruments designated as hedging instruments in qualifying hedging relationships. Qualifying hedge relationships may include cash flow hedges, fair value hedges, and hedges of net investments in foreign operations. The purpose of hedge accounting is to represent the effect of Vermilion's risk management activities to manage exposures arising from specific risks that affect net earnings such as foreign currency risk. In order to apply hedge accounting, the eligible hedging instrument must be highly effective in offsetting the exposure to changes in the eligible hedged item. This effectiveness is assessed at inception and at the end of each reporting period thereafter. At inception, formal designation and documentation of the hedging relationship, risk management objective and strategy is required for undertaking the hedge. For cash flow and net investment hedges, gains and losses on the hedging instrument are recognized in the consolidated statement of earnings in the same period in which the transaction associated with the hedged item occurs. Where the hedging instrument is a derivative instrument, a derivative asset or liability is recognized on the balance sheet at fair value (included in "Derivative instruments") with the effective portion of the gain or loss recorded to other comprehensive income. Any gain or loss associated with the ineffective portion of the hedging relationship is recognized in the consolidated statement of net earnings as other income or expense. If a hedging relationship no longer qualifies for hedge accounting, any gain or loss resulting from the discontinuation of hedge accounting is deferred in other comprehensive income until the forecasted transaction date. If the forecasted transaction is no longer expected to occur, any gain or loss resulting from the discontinuation of hedge accounting is immediately recognized in the consolidated statement of net earnings. |
Equity based compensation | Equity based compensation Equity based compensation expense results from equity-settled awards issued under Vermilion’s long-term share-based compensation plans as well as the grant date fair value of Vermilion common shares issued under the Company’s bonus and employee share savings plans. Vermilion’s long-term share-based compensation plans consist of the Vermilion Incentive Plan (“VIP”), the "Five-Year Compensation Arrangement", and the Deferred Share Unit Plan ("DSU"). Equity-settled awards issued under the VIP vest over a period of one to three years, awards issued under the Five-Year Compensation Arrangement vest in the fifth year following the grant date, and awards issued under the DSU vest immediately upon granting. Awards issued under the VIP and Five-Year Compensation Arrangement plans are adjusted upon vesting by a performance factor determined by the Company’s Board of Directors. Equity based compensation expense for equity-settled plans is recognized over the vesting period with a corresponding adjustment to contributed surplus. The expense recognized is based on the grant date fair value of the awards, an estimate of the performance factor that will be achieved (if applicable), and an estimate of forfeiture rates based on historical vesting data. Dividends notionally accrue to the VIP and Five-Year Compensation Arrangement and are excluded in the determination of grant date fair values. When the awards are converted to Vermilion common shares, the amount recognized in contributed surplus is reclassified to shareholders’ capital. The grant date fair value of awards or Vermilion common shares issued is determined as the closing price of Vermilion’s common shares on the Toronto Stock Exchange on the grant date. |
Per share amounts | Per share amounts Basic net earnings per share is calculated by dividing net earnings by the weighted-average number of shares outstanding during the period. Diluted net earnings per share is calculated by dividing net earnings by the diluted weighted-average number of shares outstanding during the period. The diluted weighted-average number of shares outstanding is the sum of the basic weighted-average number of shares outstanding and (to the extent inclusion reduces diluted net earnings per share) the number of shares issuable for equity-settled awards determined using the treasury stock method. The treasury stock method assumes that the unrecognized equity based compensation expense are deemed proceeds used to repurchase Vermilion common shares at the average market price during the period. |
Foreign currency translation | Foreign currency translation Vermilion Energy Inc.’s functional and presentation currency is the Canadian dollar. Vermilion has subsidiaries that transact and operate in countries other than Canada and have functional currencies other than the Canadian dollar. Foreign currency translation includes the translation of foreign currency transactions and the translation of foreign operations. Foreign currency transaction translation occurs when translating transactions and balances in foreign currencies to the applicable functional currency of Vermilion Energy Inc. and its subsidiaries. Gains and losses from foreign currency transactions are recorded as foreign exchange gains or losses in the statement of net earnings. Foreign currency transaction translation occurs as follows: · Income and expenses are translated at the prevailing rates on the date of the transaction. · Non-monetary assets or liabilities are carried at the prevailing rates on the date of the transaction. · Monetary items, including intercompany loans that are not deemed to represent net investments in a foreign subsidiary, are translated at the prevailing rates at the balance sheet date. Foreign operation translation occurs when translating the financial statements of non-Canadian functional currency subsidiaries to the Canadian dollar and when translating intercompany loans that are deemed to represent net investments in a foreign subsidiary. Gains and losses from foreign operation translations are recorded as currency translation adjustments. Foreign operation translation occurs as follows: · Income and expenses are translated at the average exchange rates for the period. · Assets and liabilities are translated at the prevailing rates on the balance sheet date. |
Income taxes | Income taxes Deferred tax assets and liabilities are calculated using the balance sheet method. Deferred tax assets and liabilities are recognized for the estimated effect of any temporary differences between the amounts recognized on Vermilion’s consolidated balance sheet and the respective tax basis. This calculation uses enacted or substantively enacted tax rates that are expected to be in effect when the temporary differences are expected to reverse. The effect of a change in tax rates on deferred taxes is recognized in the period the related legislation is substantively enacted. Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent it is no longer probable that the related tax benefit will be realized. |
Business combinations | Business combinations Acquisitions of corporations or groups of assets are accounted for as business combinations using the acquisition method if the acquired assets constitute a business. Under the acquisition method, assets acquired and liabilities assumed in a business combination (with the exception of deferred tax assets and liabilities) are measured at their fair value. Deferred tax assets or liabilities arising from the assets acquired and liabilities assumed are measured in accordance with the policies described in "Income taxes" above. If applicable, the excess or deficiency of the fair value of net assets acquired compared to consideration paid is recognized as a gain on business combination or as goodwill on the consolidated balance sheet. Acquisition-related costs incurred to effect a business combination are expensed in the period incurred. As part of the assessment to determine if the acquisition constitutes a business, Vermilion may elect to apply the concentration test on a transaction by transaction basis. The test is met if substantially all of the fair value related to the gross assets acquired is concentrated in a single identifiable asset (or group of similar assets) resulting in the acquisition not being deemed a business and recorded as an asset acquisition. |
Segmented information | Segmented information Vermilion has a decentralized business unit structure designed to manage assets in each country the Company operates. Each of Vermilion’s operating segments derives its revenues solely from the production and sale of petroleum and natural gas. Vermilion’s Corporate segment aggregates costs incurred at the Company’s Corporate head office located in Calgary, Alberta, Canada as well as costs incurred relating to Vermilion’s exploration and production activities in Hungary, Slovakia, and Croatia (Central and Eastern Europe). These operating segments have similar economic characteristics as they do not currently generate material revenue. Vermilion’s chief operating decision maker regularly reviews fund flows from operations generated by each of Vermilion’s operating segments. Fund flows from operations is a measure of profit or loss that provides the chief operating decision maker with the ability to assess the profitability of each operating segment and, correspondingly, the ability of each operating segment to fund its share of dividends, asset retirement obligations, and capital investments. |
Management judgments and estimation uncertainty | Management judgments and estimation uncertainty The preparation of the consolidated financial statements in accordance with IFRS requires management to make judgments, estimates, and assumptions that affect the reported amount of assets, liabilities, income, and expenses. Actual results could differ significantly from these estimates. Key areas where management has made judgments, estimates, and assumptions are described below. The measurement of the fair value of capital assets acquired in a business combination and the determination of the recoverable amount of cash generating units: · Calculating the fair value of capital assets acquired in a business combination and the recoverable amount of cash generating units (in the assessment of impairments or reversals of previous impairments if indicators of impairment or impairment reversal are identified) are based on estimated future commodity prices, discount rates and estimated reserves and resources. Reserve and resource estimates are based on: engineering data, estimated future commodity prices, expected future rates of production, and assumptions regarding the timing and amount of future expenditures. Changes in these estimates and assumptions can directly impact the calculated fair value of capital assets acquired (and thus the resulting goodwill or gain on business combination) and the recoverable amount of a CGU (and thus the resulting impairment loss or recovery). · In addition, the recoverable amount of a CGU is impacted by the composition of CGUs, which are subject to management’s judgment of the lowest level at which there are identifiable cash inflows that are largely independent of the cash inflows of other groups of assets. The factors used by Vermilion to determine CGUs vary by jurisdiction due to their unique operating and geographic conditions. In general, Vermilion will assess the following factors: geographic proximity of the assets within a group to one another, geographic proximity of the group of assets to other groups of assets, homogeneity of the production from the group of assets and the sharing of infrastructure used to process and/or transport production. Changes in these judgments can directly impact the calculated recoverable amount of a CGU (and thus the resulting impairment loss or recovery). The measurement of the carrying value of asset retirement obligations on the balance sheet, including the fair value and subsequent carrying value of asset retirement obligations assumed in a business combination: · Asset retirement obligations are based on judgments regarding regulatory requirements, estimates of future costs, assumptions on the expected timing of expenditures, and estimates of the underlying risk inherent to the obligation. The carrying balance of asset retirement obligations and accretion expense may differ due to changes in: laws and regulations, technology, the expected timing of expenditures, and market conditions affecting the discount rate applied. The recognition and measurement of deferred tax assets and liabilities: · Tax interpretations, regulations, and legislation in the various jurisdictions in which Vermilion and its subsidiaries operate are subject to change and interpretation. Changes in laws and interpretations can affect the timing of the reversal of temporary tax differences, the tax rates in effect when such differences reverse and Vermilion’s ability to use tax losses and other tax pools in the future. The Company’s income tax filings are subject to audit by taxation authorities in numerous jurisdictions and the results of such audits may increase or decrease the tax liability. The determination of tax amounts recognized in the consolidated financial statements are based on management’s assessment of the tax positions, which includes consideration of their technical merits, communications with tax authorities and management’s view of the most likely outcome. · The extent to which deferred tax assets are recognized are based on estimates of future profitability. These estimates are based on estimated future commodity prices and estimates of reserves. Judgments, estimates, and assumptions inherent in reserve estimates are described above. The measurement of lease obligations and corresponding right-of-use assets: · The measurement of lease obligations are subject to management’s judgments of the applicable incremental borrowing rate and the expected lease term. The carrying balance of the right-of-use assets, lease obligations, and the resulting interest and depletion and depreciation expense, may differ due to changes in the market conditions and expected lease terms. Applicable incremental borrowing rates are based on judgments of the economic environment, term, currency, and the underlying risk inherent to the asset. Lease terms are based on assumptions regarding cancellation and extension terms that allow for operational flexibility based on future market conditions. |
Segmented information (Tables)
Segmented information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segmented information | |
Summary of segment operations | Substantially all sales in the France, Netherlands, and Ireland operating segments for the years ended December 31, 2019 and 2018 were to one customer in each respective segment. In 2019, France contributed more than 10% of Vermilion's consolidated revenues. In 2018, France, Netherlands, and Ireland each contributed more than 10% of Vermilion's consolidated revenues. Year Ended December 31, 2019 ($M) Canada France Netherlands Germany Ireland Australia USA Corporate Total Total assets 3,088,947 841,875 226,834 261,712 470,316 233,581 421,609 321,246 5,866,120 Drilling and development 293,744 74,579 19,866 10,806 1,372 30,550 57,196 (1,436) 486,677 Exploration and evaluation — 62 3,739 10,878 — — — 21,808 36,487 Crude oil and condensate sales 699,290 326,578 2,411 25,783 27 184,490 63,449 — 1,302,028 NGL sales 33,159 — — — — — 6,499 — 39,658 Natural gas sales 95,621 121 110,446 31,529 104,247 — 5,416 797 348,177 Sales of purchased commodities — — — — — — — 221,274 221,274 Royalties (94,079) (43,895) (1,469) (5,264) — — (18,706) (253) (163,666) Revenue from external customers 733,991 282,804 111,388 52,048 104,274 184,490 56,658 221,818 1,747,471 Purchased commodities — — — — — — — (221,274) (221,274) Transportation (41,261) (21,609) — (5,117) (4,459) — — — (72,446) Operating (242,790) (61,281) (32,125) (24,970) (12,431) (49,810) (16,370) (301) (440,078) General and administration (23,341) (15,406) (2,659) (8,452) (2,491) (4,940) (7,566) 5,879 (58,976) PRRT — — — — — (25,947) — — (25,947) Corporate income taxes — (21,431) 3,961 — — (8,407) — (406) (26,283) Interest expense — — — — — — — (81,377) (81,377) Realized gain on derivative instruments — — — — — — — 84,219 84,219 Realized foreign exchange loss — — — — — — — (4,954) (4,954) Realized other income — — — — — — — 7,700 7,700 Fund flows from operations 426,599 163,077 80,565 13,509 84,893 95,386 32,722 11,304 908,055 Year Ended December 31, 2018 ($M) Canada France Netherlands Germany Ireland Australia USA Corporate Total Total assets 3,060,291 918,398 277,348 284,063 709,585 263,739 407,323 349,924 6,270,671 Drilling and development 277,857 79,451 17,963 10,863 224 75,638 40,837 1,009 503,842 Exploration and evaluation — 307 (480) 4,943 — — — 9,602 14,372 Crude oil and condensate sales 541,844 360,471 2,462 32,704 — 150,733 31,142 — 1,119,356 NGL sales 56,554 — — — — — 4,622 — 61,176 Natural gas sales 72,774 131 163,454 49,745 205,150 — 2,701 3,630 497,585 Royalties (84,696) (46,781) (3,181) (6,626) — — (10,070) (813) (152,167) Revenue from external customers 586,476 313,821 162,735 75,823 205,150 150,733 28,395 2,817 1,525,950 Transportation (29,912) (10,426) — (6,420) (5,129) — — — (51,887) Operating (177,499) (54,690) (26,681) (23,048) (15,366) (53,199) (6,421) (110) (357,014) General and administration (6,057) (14,170) (1,947) (7,401) (8,386) (4,918) (6,306) (2,744) (51,929) PRRT — — — — — (4,824) — — (4,824) Corporate income taxes — (15,084) (16,561) — — (6,595) — (513) (38,753) Interest expense — — — — — — — (72,759) (72,759) Realized loss on derivative instruments — — — — — — — (111,258) (111,258) Realized foreign exchange gain — — — — — — — 243 243 Realized other income — — — — — — — 883 883 Fund flows from operations 373,008 219,451 117,546 38,954 176,269 81,197 15,668 (183,441) 838,652 Reconciliation of fund flows from operations to net earnings: Year Ended Dec 31, 2019 Dec 31, 2018 Fund flows from operations 908,055 838,652 Accretion (32,667) (31,219) Depletion and depreciation (675,177) (609,056) Impairment (46,056) — Gain on business combinations — 128,208 Unrealized (loss) gain on derivative instruments (57,427) 109,326 Equity based compensation (64,233) (60,746) Unrealized foreign exchange gain (loss) 57,225 (63,243) Unrealized other expense (825) (801) Deferred tax (56,096) (39,471) Net earnings 32,799 271,650 |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Southeast Saskatchewan and Southwest Manitoba [Member] | |
Statement [Line Items] | |
Summary of consideration paid and fair value of assets acquired and liabilities assumed | The total consideration paid and the fair value of the assets acquired and liabilities assumed at the date of acquisition are detailed in the table below: Consideration Cash paid to vendor 53,288 Total consideration 53,288 Allocation of consideration Capital assets 67,549 Deferred tax assets 26,914 Acquired working capital 1,577 Long-term debt (38,300) Asset retirement obligations (4,452) Net assets acquired 53,288 |
Spartan Energy Corp [Member] | |
Statement [Line Items] | |
Summary of consideration paid and fair value of assets acquired and liabilities assumed | The total consideration paid and the fair value of the assets acquired and liabilities assumed as at the date of the acquisition are detailed in the table below: Consideration Shares issued for acquisition 1,235,221 Total consideration 1,235,221 Allocation of consideration Capital assets 1,401,686 Deferred tax assets 123,813 Long-term debt (150,196) Asset retirement obligations (92,149) Lease obligations (25,455) Assumed working capital deficit (22,478) Net assets acquired 1,235,221 |
Shell EP Ireland Limited [Member] | |
Statement [Line Items] | |
Summary of consideration paid and fair value of assets acquired and liabilities assumed | The total consideration paid and the fair value of the assets acquired and liabilities assumed as at the date of the acquisition are detailed in the table below: ($M) Consideration Cash paid to vendor 40,805 Cash acquired (82,116) Contingent consideration 290 Total consideration (41,021) ($M) Allocation of consideration Capital assets 53,368 Deferred tax assets 4,239 Assumed working capital deficit (35,449) Lease obligations (2,234) Asset retirement obligations (1,565) Net assets acquired 18,359 Gain on business combination (59,380) Total net assets acquired, net of gain on business combination (41,021) |
Wyoming [Member] | |
Statement [Line Items] | |
Summary of consideration paid and fair value of assets acquired and liabilities assumed | The total consideration paid and the fair value of the assets acquired and liabilities assumed at the date of acquisition are detailed in the table below: Consideration Cash paid to vendor 189,014 Total consideration 189,014 Allocation of consideration Capital assets 284,333 Deferred tax liability (19,019) Asset retirement obligations (4,821) Assumed working capital deficit (2,651) Net assets acquired 257,842 Gain on business combination (68,828) Total net assets acquired, net of gain on business combination 189,014 |
Capital assets (Tables)
Capital assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Capital assets. | |
Schedule of changes in Vermilion's capital assets | The following table reconciles the change in Vermilion’s capital assets: Balance at January 1 5,316,873 3,337,965 Acquisitions 38,472 1,975,327 Additions 486,677 503,842 Increase in right-of-use assets 12,348 98,343 Transfers from exploration and evaluation assets 27,918 29,615 Impairment (46,056) — Depletion and depreciation (657,863) (605,994) Changes in asset retirement obligations (10,354) (100,876) Foreign exchange (152,395) 78,651 Balance at December 31 5,015,620 5,316,873 Cost 9,604,933 9,202,604 Accumulated depletion, depreciation, and impairment (4,589,313) (3,885,731) Carrying amount at December 31 5,015,620 5,316,873 |
Summary of carrying balance and depreciation charge relating to right-of-use assets | Right-of-use assets The following table discloses the carrying balance and depreciation charge relating to right-of-use assets by class of underlying asset as at and for the year ended December 31, 2019: As at Dec 31, 2019 As at Dec 31, 2018 ($M) Depreciation Balance Depreciation Balance Office space 9,745 53,777 9,119 62,279 Gas processing facilities 7,089 34,701 5,491 41,788 Oil storage facilities 2,633 16,803 2,728 20,758 Vehicles and equipment 3,209 10,327 2,020 9,121 Total 22,676 115,608 19,358 133,946 |
Schedule of price estimates as issued by Sproule | NBP (€/mmbtu) Sproule 5.58 5.51 5.54 5.65 5.77 5.88 6.00 6.12 6.24 6.37 |
Exploration and evaluation as_2
Exploration and evaluation assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Exploration and evaluation assets [member] | |
Disclosure Of Exploration And Evaluation Assets [Line Items] | |
Summary of reconciliation of changes in Vermilion's exploration and evaluation assets | The following table reconciles the change in Vermilion’s exploration and evaluation assets: Balance at January 1 303,295 292,278 Acquisitions — 28,572 Additions 36,487 14,372 Changes in asset retirement obligations 36 629 Transfers to capital assets (27,918) (29,615) Depreciation (18,689) (5,942) Foreign exchange (7,062) 3,001 Balance at December 31 286,149 303,295 Cost 371,632 371,015 Accumulated depreciation (85,483) (67,720) Carrying amount at December 31 286,149 303,295 |
Asset retirement obligations (T
Asset retirement obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset retirement obligations | |
Summary of reconciliation of changes in Vermilion's asset obligations | The following table reconciles the change in Vermilion’s asset retirement obligations: Balance at January 1 650,164 517,180 Additional obligations recognized 7,595 211,580 Changes in estimated abandonment timing and costs 39,722 (98,158) Obligations settled (19,442) (15,765) Accretion 32,667 31,219 Changes in discount rates (57,635) (6,646) Foreign exchange (34,870) 10,754 Balance at December 31 618,201 650,164 |
Schedule of risk free rates used to discount the obligations | The risk-free rates used as inputs to discount the obligations were as follows: Dec 31, 2019 Dec 31, 2018 Canada 1.7 % 2.2 % France 0.9 % 1.6 % Netherlands (0.1) % 0.4 % Germany 0.3 % 0.9 % Ireland 0.6 % 1.6 % Australia 1.6 % 2.6 % United States 2.4 % 2.7 % |
Derivative instruments (Tables)
Derivative instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative instruments | |
Summary of reconciliation of change in fair value of derivative instruments | The following table reconciles the change in the fair value of Vermilion’s derivative instruments: Year Ended Dec 31, 2019 Dec 31, 2018 Fair value of contracts, beginning of year 38,339 (70,713) Reversal of opening contracts settled during the year (62,735) 57,719 Assumed in acquisitions — (274) Realized gain (loss) on contracts settled during the year 84,219 (111,258) Unrealized gain during the year on contracts outstanding at the end of the year 5,308 51,607 Net receipt from counterparties on contract settlements during the year (84,219) 111,258 Unrealized loss on derivatives designated as cash flow hedges (1,071) — Unrealized gain on derivatives designated as net investment hedges 9,168 — Fair value of contracts, end of year (10,991) 38,339 Comprised of: Current derivative asset 55,645 95,667 Current derivative liability (62,405) (41,016) Non-current derivative asset 20,127 1,215 Non-current derivative liability (24,358) (17,527) Fair value of contracts, end of year (10,991) 38,339 |
Summary of loss (gain) on derivative instruments | The (gain) loss on derivative instruments for 2019 and 2018 were comprised of the following: Year Ended Dec 31, 2019 Dec 31, 2018 Realized (gain) loss on contracts settled during the year (84,219) 111,258 Reversal of opening contracts settled during the year 62,735 (57,719) Unrealized gain on contracts outstanding at the end of the year (5,308) (51,607) (Gain) loss on derivative instruments (26,792) 1,932 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Summary of future commitments associated with lease obligations | Vermilion had the following future commitments associated with its lease obligations: As at ($M) Dec 31, 2019 Dec 31, 2018 Less than 1 year 29,217 30,641 1 - 3 years 46,501 50,024 3 - 5 years 38,177 34,313 After 5 years 26,168 42,739 Total lease payments 140,063 157,717 Amounts representing interest (23,309) (24,583) Present value of net lease payments 116,754 133,134 Current portion of lease obligations (23,682) (24,945) Non-current portion of lease obligations 93,072 108,189 Total cash outflow 33,276 27,468 Interest on lease liabilities 6,984 7,185 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes | |
Summary of deferred tax asset and liability | The following table reconciles Vermilion’s deferred tax asset and liability: As at Dec 31, 2019 Dec 31, 2018 Deferred tax assets: Capital assets (296,793) (296,591) Non-capital losses 454,339 487,398 Asset retirement obligations 36,170 38,429 Derivative contracts 2,712 (11,937) Unrealized foreign exchange (3,034) (1,873) Other 3,149 3,985 Deferred tax assets 196,543 219,411 Deferred tax liabilities: Capital assets 262,669 319,553 Non-capital losses (48,007) (57,785) Asset retirement obligations 123,257 51,031 Unrealized foreign exchange — 10,715 Other (1,610) (5,380) Deferred tax liabilities 336,309 318,134 |
Summary of reconciliation of accounting profit multiplied by applicable tax rates | Income tax expense differs from the amount that would have been expected if the reported earnings had been subject only to the statutory Canadian income tax rate as follows: Year Ended Dec 31, 2019 Dec 31, 2018 Earnings before income taxes 141,125 354,698 Canadian corporate tax rate (1) 26.72 % 27.00 % Expected tax expense 37,709 95,768 Increase (decrease) in taxes resulting from: Petroleum resource rent tax rate (PRRT) differential (2) 17,455 5,349 Foreign tax rate differentials (2) (3) 5,543 3,086 Equity based compensation expense 3,733 13,883 Amended returns and changes to estimated tax pools and tax positions (24,387) (873) Statutory rate changes and the estimated reversal rates associated with temporary differences (4) 9,543 — Derecognition (recognition) of deferred tax assets 65,522 (26,931) Adjustment for uncertain tax positions 3,659 8,080 Gain on business combinations — (28,812) Other non-deductible items (10,451) 13,498 Provision for income taxes 108,326 83,048 (1) In Canada, the lower tax rate is a result of reductions to the Alberta corporate tax rate from 12% to 8% over four years. (2) In Australia, current taxes include both corporate income tax rates and PRRT. Corporate income tax rates were applied at a rate of 30% and PRRT was applied at a rate of 40%. (3) The applicable tax rates for 2019 were: 32.0% in France, 50.0% in the Netherlands, 31.8% in Germany, 25.0% in Ireland, and 21.0% in the United States (2018: 34.4% in France, 50.0% in the Netherlands, 30.2% in Germany, 25.0% in Ireland, and 21.0% in the United States). (4) On December 28, 2019, the French Parliament approved the Finance Bill for 2020. The Finance Bill for 2020 provides for a progressive decrease of the French corporate income tax rate for companies with sales below €250 million from 32.0% to 25.8% by 2022. Effective July 1, 2019, Alberta decreased its corporate tax rate from 12% to 11% for 2019 with further 1% rate reductions every year on January 1 until the general corporate tax rate is 8% on January 1, 2022. |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Long-term Debt [Line Items] | |
Summary of outstanding long-term debt | The following table summarizes Vermilion’s outstanding long-term debt: As at Dec 31, 2019 Dec 31, 2018 Revolving credit facility 1,539,225 1,392,206 Senior unsecured notes 385,440 404,001 Long-term debt 1,924,665 1,796,207 |
Summary of change in long-term debt | The following table reconciles the change in Vermilion’s long-term debt: Balance at January 1 1,796,207 1,270,330 Borrowings on the revolving credit facility 207,787 251,155 Assumed on acquisitions (1) — 188,496 Amortization of transaction costs and prepaid interest 4,379 2,286 Foreign exchange (83,708) 83,940 Balance at December 31 1,924,665 1,796,207 (1) Pursuant to the acquisitions described in Note 5 (Business combinations), Vermilion assumed the credit facilities of the acquired companies and immediately extinguished them following the respective acquisitions using proceeds from Vermilion’s revolving credit facility. |
Summary of financial covenants | As at December 31, 2019, the revolving credit facility was subject to the following financial covenants: As at Financial covenant Limit Dec 31, 2019 Dec 31, 2018 Consolidated total debt to consolidated EBITDA Less than 4.0 1.94 1.72 Consolidated total senior debt to consolidated EBITDA Less than 3.5 1.56 1.34 Consolidated EBITDA to consolidated interest expense Greater than 2.5 13.46 14.57 |
Summary of redemption price of unsecured notes | Year Redemption price 2020 104.219 % 2021 102.813 % 2022 101.406 % 2023 and thereafter 100.000 % |
Revolving Credit Facilities [Member] | |
Disclosure of Long-term Debt [Line Items] | |
Summary of outstanding long-term debt | At December 31, 2019, Vermilion had in place a bank revolving credit facility maturing May 31, 2023 with the following terms: As at Dec 31, 2019 Dec 31, 2018 Total facility amount 2,100,000 1,800,000 Amount drawn (1,539,225) (1,392,206) Letters of credit outstanding (10,230) (15,400) Unutilized capacity 550,545 392,394 |
Shareholders' capital (Tables)
Shareholders' capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Shareholders' capital | |
Summary of changes in shareholders' capital | The following table reconciles the change in Vermilion’s shareholders’ capital: 2019 2018 Shares Shares Shareholders’ capital (‘000s) Amount ($M) (‘000s) Amount ($M) Balance at January 1 152,704 4,008,828 122,119 2,650,706 Shares issued for acquisition — — 27,883 1,234,676 Shares issued for the Dividend Reinvestment Plan 1,417 34,937 1,179 49,051 Vesting of equity based awards 1,359 51,108 1,025 54,057 Shares issued for equity based compensation 552 15,868 314 12,565 Share-settled dividends on vested equity based awards 258 8,290 184 7,773 Balance at December 31 156,290 4,119,031 152,704 4,008,828 |
Capital disclosures (Tables)
Capital disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Capital disclosures | |
Schedule of ratio of net debt to fund flows from operations | The following table calculates Vermilion’s ratio of net debt to fund flows from operations: Year Ended Dec 31, 2019 Dec 31, 2018 Long-term debt 1,924,665 1,796,207 Current liabilities 416,210 563,199 Current assets (347,681) (429,877) Net debt 1,993,194 1,929,529 Ratio of net debt to four quarter trailing fund flows from operations 2.20 2.30 |
Equity based compensation (Tabl
Equity based compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Vermilion incentive plan [Member] | |
Disclosure Of Equity Based Compensation [Line Items] | |
Summary of number of awards outstanding under VIP and the Five-Year Compensation Arrangement | The following table summarizes the number of awards outstanding under the VIP and the Five-Year Compensation Arrangement: Number of VIP and Five Year Compensation Awards (‘000s) Opening balance 1,931 1,685 Granted 1,193 932 Vested (688) (520) Forfeited (168) (166) Closing balance (1) 2,268 1,931 |
Per share amounts (Tables)
Per share amounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Per share amounts | |
Schedule of determination of basic and diluted net earnings per share | Basic and diluted net earnings per share have been determined based on the following: Year Ended Dec 31, 2019 Dec 31, 2018 Net earnings 32,799 271,650 Basic weighted average shares outstanding (‘000s) 154,736 140,619 Dilutive impact of equity based compensation (‘000s) 1,359 1,716 Diluted weighted average shares outstanding (‘000s) 156,095 142,335 Basic earnings per share 0.21 1.93 Diluted earnings per share 0.21 1.91 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial instruments | |
Summary of financial instruments | The following table summarizes the carrying value relating to Vermilion’s financial instruments: As at Dec 31, 2019 As at Dec 31, 2018 Amortized Amortized ($M) FVTPL FVTOCI Cost Total FVTPL FVTOCI Cost Total Cash and cash equivalents 29,028 — — 29,028 26,809 — — 26,809 Derivative assets 64,135 11,637 — 75,772 96,882 — — 96,882 Derivative liabilities (83,223) (3,540) — (86,763) (58,543) — — (58,543) Accounts receivable — — 211,409 211,409 — — 260,322 260,322 Accounts payable and accrued liabilities — — (312,442) (312,442) — — (449,651) (449,651) Dividends payable — — (35,947) (35,947) — — (35,122) (35,122) Lease obligations — — (93,072) (93,072) — — (108,189) (108,189) Long-term debt (1) — — (1,924,665) (1,924,665) — — (1,796,207) (1,796,207) |
Summary of increase (decrease) to net earnings before tax | The following table summarizes the increase (positive values) or decrease (negative values) to net earnings before tax due to a change in the value of Vermilion’s financial instruments as a result of a change in the relevant market risk variable. This analysis does not attempt to reflect any interdependencies between the relevant risk variables. ($M) Dec 31, 2019 Dec 31, 2018 Currency risk - Euro to Canadian dollar $0.01 increase in strength of the Canadian dollar against the Euro (1,599) (2,205) $0.01 decrease in strength of the Canadian dollar against the Euro 1,599 2,205 Currency risk - US dollar to Canadian dollar $0.01 increase in strength of the Canadian dollar against the US $ (5,594) 2,981 $0.01 decrease in strength of the Canadian dollar against the US $ 5,594 (2,981) Commodity price risk - Crude oil US $5.00/bbl increase in crude oil price used to determine the fair value of derivatives (44,106) (18,421) US $5.00/bbl decrease in crude oil price used to determine the fair value of derivatives 47,777 17,351 Commodity price risk - European natural gas € 0.5/GJ increase in European natural gas price used to determine the fair value of derivatives (28,192) (36,508) € 0.5/GJ decrease in European natural gas price used to determine the fair value of derivatives 22,670 33,005 |
Schedule of undiscounted non-derivative financial liabilities and their contractual maturities | The following table summarizes Vermilion’s undiscounted non-derivative financial liabilities and their contractual maturities: 1 month to 3 months to 1 year to ($M) 1 month 3 months 1 year 5 years December 31, 2019 134,502 208,752 5,136 1,608,435 December 31, 2018 167,491 306,927 10,355 1,472,087 |
Related party disclosures (Tabl
Related party disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related party disclosures | |
Summary of compensation of directors and other members of key management personnel | The following table summarizes the compensation of directors and other members of key management personnel during the years ended December 31, 2019 and 2018: Year Ended Dec 31, 2019 Dec 31, 2018 Short-term benefits 8,084 6,018 Equity based compensation 16,296 16,309 24,380 22,327 Number of individuals included in the above amounts 19 18 |
Supplemental information (Table
Supplemental information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental information | |
Summary of changes in non-working capital | Changes in non-cash working capital was comprised of the following: Year Ended Dec 31, 2019 Dec 31, 2018 Changes in: Accounts receivable 48,913 (94,562) Crude oil inventory (1,638) (10,646) Prepaid expenses (2,882) (4,896) Accounts payable and accrued liabilities (137,209) 230,567 Income taxes payable (31,994) (1,651) Working capital assumed in acquisitions — (58,841) Initial recognition of IFRS 16 liability — (10,483) Foreign exchange 2,590 (873) Changes in non-cash working capital (122,220) 48,615 Changes in non-cash operating working capital (65,148) (6,876) Changes in non-cash investing working capital (57,072) 55,491 Changes in non-cash working capital (122,220) 48,615 |
Schedule of components of cash and cash equivalents | Cash and cash equivalents was comprised of the following: As at Dec 31, 2019 Dec 31, 2018 Cash on deposit with financial institutions 28,898 26,604 Guaranteed investment certificates 130 205 Cash and cash equivalents 29,028 26,809 |
Summary of wages and benefits | Wages and benefits included in operating expenses and general and administration expenses were: Year Ended Dec 31, 2019 Dec 31, 2018 Operating expense 77,868 66,095 General and administration expense 47,310 42,496 Wages and benefits 125,178 108,591 |
Summary of outstanding risk management positions | The following tables summarize Vermilion's outstanding risk management positions as at December 31, 2019: Weighted Average Weighted Weighted Weighted Bought Put Bought Put Sold Call Average Sold Sold Put Average Sold Swap Average Swap Unit Currency Volume Price Volume Call Price Volume Put Price Volume Price Dated Brent Q1 2020 bbl USD 3,000 62.25 3,000 67.39 3,000 55.58 — — Q2 2020 bbl USD 3,000 62.25 3,000 67.39 3,000 55.58 — — WTI Q1 2020 bbl USD 9,750 54.18 6,000 60.95 9,750 46.23 1,500 59.17 Q2 2020 bbl USD 7,250 53.07 4,000 60.23 7,250 44.86 — — Q3 2020 bbl USD 500 57.00 500 61.25 500 52.00 — — Q4 2020 bbl USD 500 57.00 500 61.25 500 52.00 — — AECO Q1 2020 mcf CAD 10,426 1.58 10,426 2.56 — — — — Q2 2020 mcf CAD — — — — — — 10,426 1.39 Q3 2020 mcf CAD — — — — — — 10,426 1.39 Q4 2020 mcf CAD — — — — — — 3,513 1.39 AECO Basis (AECO less NYMEX Henry Hub) Q1 2020 mcf USD — — — — — — 32,500 (0.94) Q2 2020 mcf USD — — — — — — 52,500 (1.12) Q3 2020 mcf USD — — — — — — 50,000 (1.12) Q4 2020 mcf USD — — — — — — 36,739 (1.11) Q1 2021 mcf USD — — — — — — 30,000 (1.11) Q2 2021 mcf USD — — — — — — 45,000 (1.08) Q3 2021 mcf USD — — — — — — 45,000 (1.08) Q4 2021 mcf USD — — — — — — 35,054 (1.09) Q1 2022 mcf USD — — — — — — 30,000 (1.10) Q2 2022 mcf USD — — — — — — 35,000 (1.09) Q3 2022 mcf USD — — — — — — 35,000 (1.09) Q4 2022 mcf USD — — — — — — 11,793 (1.09) NYMEX Henry Hub Q1 2020 mcf USD 10,000 2.75 10,000 3.10 10,000 2.25 — — Weighted Average Weighted Weighted Weighted Bought Put Bought Put Sold Call Average Sold Sold Put Average Sold Swap Average Swap Unit Currency Volume Price Volume Call Price Volume Put Price Volume Price NBP Q1 2020 mcf EUR 49,135 5.27 49,135 5.83 49,135 3.98 — — Q2 2020 mcf EUR 41,765 5.21 41,765 5.53 41,765 3.83 — — Q3 2020 mcf EUR 41,765 5.21 41,765 5.52 41,765 3.83 — — Q4 2020 mcf EUR 61,419 5.28 63,875 5.77 61,419 3.90 — — Q1 2021 mcf EUR 54,048 5.44 56,505 5.85 54,048 3.94 — — Q2 2021 mcf EUR 46,678 5.42 46,678 5.80 46,678 3.92 — — Q3 2021 mcf EUR 46,678 5.42 46,678 5.77 46,678 3.92 — — Q4 2021 mcf EUR 54,048 5.44 54,048 5.72 54,048 3.94 — — Q1 2022 mcf EUR 19,654 5.42 19,654 6.30 19,654 3.79 — — Q2 2022 mcf EUR 12,284 5.33 12,284 6.03 12,284 3.60 — — NBP Basis (NBP less NYMEX Henry Hub) Q1 2020 mcf USD 17,500 2.74 17,500 3.99 — — — — Q2 2020 mcf USD 15,000 2.61 15,000 3.98 — — — — Q3 2020 mcf USD 15,000 2.61 15,000 3.98 — — — — Q4 2020 mcf USD 10,000 3.24 10,000 3.98 — — — — TTF Q1 2020 mcf EUR 7,370 5.37 7,370 6.25 7,370 3.81 — — Q2 2020 mcf EUR 13,512 5.36 9,827 6.15 13,512 3.73 4,913 5.54 Q3 2020 mcf EUR 13,512 5.36 9,827 6.15 13,512 3.73 3,258 5.45 Q4 2020 mcf EUR 7,370 5.37 7,370 6.25 7,370 3.81 — — TTF Basis (TTF less NYMEX Henry Hub) Q2 2020 mcf USD 2,500 3.50 2,500 4.00 — — 5,000 3.21 Q3 2020 mcf USD 2,500 3.50 2,500 4.00 — — 5,000 3.21 Cross Currency Interest Rate Receive Notional Amount Receive Rate Pay Notional Amount Pay Rate Swap Jan 2020 - Mar 2025 300,000,000 USD 5.625 % 265,048,910 EUR 3.275 % Swap Q1 2020 1,735,895,470 USD LIBOR + 1.70 % 2,304,900,000 CAD CDOR + 1.25 % VET Equity Swaps Initial Share Price Share Volume Swap Jan 2020 - Sep 2021 20.9788 CAD 2,250,000 Swap Jan 2020 - Oct 2021 22.4587 CAD 1,500,000 |
Summary of sold option instruments counterparties | Weighted Weighted Weighted Option Average Average Average Weighted Period if Option Expiration Bought Put Bought Put Sold Call Sold Call Sold Put Sold Put Swap Average Exercised Unit Currency Date Volume Price Volume Price Volume Price Volume Swap Price Dated Brent Feb 2020 - Jan 2021 bbl USD 28-Jan-20 — — — — — — 500 63.00 Feb 2020 - Jan 2021 bbl USD 31-Jan-20 — — — — — — 3,000 62.00 Mar 2020 - Feb 2021 bbl USD 28-Feb-20 — — — — — — 4,500 62.71 Apr 2020 - Mar 2021 bbl USD 31-Mar-20 — — — — — — 3,500 63.32 Apr 2020 - Mar 2021 bbl USD 31-Mar-20 1,000 64.00 1,000 69.00 1,000 59.00 — — May 2020 - Apr 2021 bbl USD 30-Apr-20 — — — — — — 4,000 62.63 NBP Oct 2020 - Jun 2022 mcf EUR 30-Jun-20 — — — — — — 2,457 5.86 Jan 2021 - Sep 2022 mcf EUR 30-Jun-20 — — — — — — 2,457 5.86 Jan 2021 - Sep 2022 mcf USD 30-Jun-20 — — — — — — 2,457 6.45 Jan 2022 - Dec 2022 mcf USD 30-Jun-20 — — — — — — 9,827 6.45 Oct 2020 - Jun 2022 mcf EUR 30-Sep-20 — — — — — — 2,457 6.15 |
Segmented information - Segment
Segmented information - Segment Operations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Segmented Information [Line Items] | ||
Total assets | $ 5,866,120 | $ 6,270,671 |
Drilling and development | 486,677 | 503,842 |
Exploration and evaluation | 36,487 | 14,372 |
Royalties | (163,666) | (152,167) |
Revenue from external customers | 1,747,471 | 1,525,950 |
Transportation | (72,446) | (51,887) |
Operating | (440,078) | (357,014) |
General and administration | (58,976) | (51,929) |
Current tax income (expense) | (52,230) | (43,577) |
Interest expense | (81,377) | (72,759) |
Fund flows from operations | 908,055 | 838,652 |
Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 5,866,120 | 6,270,671 |
Drilling and development | 486,677 | 503,842 |
Exploration and evaluation | 36,487 | 14,372 |
Crude oil and condensate sales | 1,302,028 | 1,119,356 |
NGL sales | 39,658 | 61,176 |
Natural gas sales | 348,177 | 497,585 |
Sales of purchased commodities | 221,274 | |
Royalties | (163,666) | (152,167) |
Revenue from external customers | 1,747,471 | 1,525,950 |
Purchased commodities | (221,274) | |
Transportation | (72,446) | (51,887) |
Operating | (440,078) | (357,014) |
General and administration | (58,976) | (51,929) |
Interest expense | (81,377) | (72,759) |
Realized loss on derivative instruments | 84,219 | (111,258) |
Realized other income | 7,700 | 883 |
Fund flows from operations | 908,055 | 838,652 |
Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange gain | (4,954) | 243 |
PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | (25,947) | (4,824) |
Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | (26,283) | (38,753) |
CANADA | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 3,088,947 | 3,060,291 |
Drilling and development | 293,744 | 277,857 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 699,290 | 541,844 |
NGL sales | 33,159 | 56,554 |
Natural gas sales | 95,621 | 72,774 |
Sales of purchased commodities | 0 | |
Royalties | (94,079) | (84,696) |
Revenue from external customers | 733,991 | 586,476 |
Purchased commodities | 0 | |
Transportation | (41,261) | (29,912) |
Operating | (242,790) | (177,499) |
General and administration | (23,341) | (6,057) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 426,599 | 373,008 |
CANADA | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
CANADA | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
FRANCE | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 841,875 | 918,398 |
Drilling and development | 74,579 | 79,451 |
Exploration and evaluation | 62 | 307 |
Crude oil and condensate sales | 326,578 | 360,471 |
NGL sales | 0 | 0 |
Natural gas sales | 121 | 131 |
Sales of purchased commodities | 0 | |
Royalties | (43,895) | (46,781) |
Revenue from external customers | 282,804 | 313,821 |
Purchased commodities | 0 | |
Transportation | (21,609) | (10,426) |
Operating | (61,281) | (54,690) |
General and administration | (15,406) | (14,170) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 163,077 | 219,451 |
FRANCE | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
FRANCE | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | (21,431) | (15,084) |
NETHERLANDS | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 226,834 | 277,348 |
Drilling and development | 19,866 | 17,963 |
Exploration and evaluation | 3,739 | (480) |
Crude oil and condensate sales | 2,411 | 2,462 |
NGL sales | 0 | 0 |
Natural gas sales | 110,446 | 163,454 |
Sales of purchased commodities | 0 | |
Royalties | (1,469) | (3,181) |
Revenue from external customers | 111,388 | 162,735 |
Purchased commodities | 0 | |
Transportation | 0 | 0 |
Operating | (32,125) | (26,681) |
General and administration | (2,659) | (1,947) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 80,565 | 117,546 |
NETHERLANDS | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
NETHERLANDS | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 3,961 | (16,561) |
GERMANY | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 261,712 | 284,063 |
Drilling and development | 10,806 | 10,863 |
Exploration and evaluation | 10,878 | 4,943 |
Crude oil and condensate sales | 25,783 | 32,704 |
NGL sales | 0 | 0 |
Natural gas sales | 31,529 | 49,745 |
Sales of purchased commodities | 0 | |
Royalties | (5,264) | (6,626) |
Revenue from external customers | 52,048 | 75,823 |
Purchased commodities | 0 | |
Transportation | (5,117) | (6,420) |
Operating | (24,970) | (23,048) |
General and administration | (8,452) | (7,401) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 13,509 | 38,954 |
GERMANY | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
GERMANY | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
IRELAND | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 470,316 | 709,585 |
Drilling and development | 1,372 | 224 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 27 | 0 |
NGL sales | 0 | 0 |
Natural gas sales | 104,247 | 205,150 |
Sales of purchased commodities | 0 | |
Royalties | 0 | 0 |
Revenue from external customers | 104,274 | 205,150 |
Purchased commodities | 0 | |
Transportation | (4,459) | (5,129) |
Operating | (12,431) | (15,366) |
General and administration | (2,491) | (8,386) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 84,893 | 176,269 |
IRELAND | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
IRELAND | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
AUSTRALIA | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 233,581 | 263,739 |
Drilling and development | 30,550 | 75,638 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 184,490 | 150,733 |
NGL sales | 0 | 0 |
Natural gas sales | 0 | 0 |
Sales of purchased commodities | 0 | |
Royalties | 0 | 0 |
Revenue from external customers | 184,490 | 150,733 |
Purchased commodities | 0 | |
Transportation | 0 | 0 |
Operating | (49,810) | (53,199) |
General and administration | (4,940) | (4,918) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 95,386 | 81,197 |
AUSTRALIA | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | (25,947) | (4,824) |
AUSTRALIA | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | (8,407) | (6,595) |
UNITED STATES | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 421,609 | 407,323 |
Drilling and development | 57,196 | 40,837 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 63,449 | 31,142 |
NGL sales | 6,499 | 4,622 |
Natural gas sales | 5,416 | 2,701 |
Sales of purchased commodities | 0 | |
Royalties | (18,706) | (10,070) |
Revenue from external customers | 56,658 | 28,395 |
Purchased commodities | 0 | |
Transportation | 0 | 0 |
Operating | (16,370) | (6,421) |
General and administration | (7,566) | (6,306) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 32,722 | 15,668 |
UNITED STATES | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
UNITED STATES | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
Corporate | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 321,246 | 349,924 |
Drilling and development | (1,436) | 1,009 |
Exploration and evaluation | 21,808 | 9,602 |
Crude oil and condensate sales | 0 | 0 |
NGL sales | 0 | 0 |
Natural gas sales | 797 | 3,630 |
Sales of purchased commodities | 221,274 | |
Royalties | (253) | (813) |
Revenue from external customers | 221,818 | 2,817 |
Purchased commodities | (221,274) | |
Transportation | 0 | 0 |
Operating | (301) | (110) |
General and administration | 5,879 | (2,744) |
Interest expense | (81,377) | (72,759) |
Realized loss on derivative instruments | 84,219 | (111,258) |
Realized other income | 7,700 | 883 |
Fund flows from operations | 11,304 | (183,441) |
Corporate | Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange gain | (4,954) | 243 |
Corporate | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
Corporate | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | $ (406) | $ (513) |
Segmented information - Reconci
Segmented information - Reconciliation of Fund Flows from Operations to Net Earnings (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segmented information | ||
Fund flows from operations | $ 908,055 | $ 838,652 |
Accretion | (32,667) | (31,219) |
Depletion and depreciation | (675,177) | (609,056) |
Impairment | (46,056) | 0 |
Gain on business combinations | 128,208 | |
Unrealized (loss) gain on derivative instruments | (57,427) | 109,326 |
Equity based compensation | (64,233) | (60,746) |
Unrealized foreign exchange gain (loss) | 57,225 | (63,243) |
Unrealized other expense | (825) | (801) |
Deferred tax | (56,096) | (39,471) |
Net earnings | $ 32,799 | $ 271,650 |
Business combinations - Conside
Business combinations - Consideration Paid and Fair Value of Assets Acquired and Liabilities Assumed (Details) - CAD ($) $ in Thousands | Aug. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | May 28, 2018 | Feb. 15, 2018 |
Disclosure of detailed information about business combination [line items] | |||||
Lease obligations | $ (108,189) | $ (93,072) | |||
Gain on business combination | 128,208 | ||||
Southeast Saskatchewan and Southwest Manitoba [Member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash paid to vendor | $ 53,288 | ||||
Total consideration | 53,288 | ||||
Capital assets | 67,549 | ||||
Deferred tax assets | 26,914 | ||||
Acquired working capital | 1,577 | ||||
Long-term debt | (38,300) | ||||
Asset retirement obligations | (4,452) | ||||
Net assets acquired | $ 53,288 | ||||
Spartan Energy Corp [Member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Shares issued for acquisition | $ 1,235,221 | ||||
Total consideration | 1,235,221 | ||||
Capital assets | 1,401,686 | ||||
Deferred tax assets | 123,813 | ||||
Long-term debt | (150,196) | ||||
Asset retirement obligations | (92,149) | ||||
Lease obligations | (25,455) | ||||
Assumed working capital deficit | (22,478) | ||||
Net assets acquired | $ 1,235,221 | ||||
Wyoming [Member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash paid to vendor | $ 189,014 | ||||
Total consideration | 189,014 | ||||
Capital assets | 284,333 | ||||
Deferred tax liability | (19,019) | ||||
Asset retirement obligations | (4,821) | ||||
Assumed working capital deficit | (2,651) | ||||
Net assets acquired | 257,842 | ||||
Gain on business combination | (68,828) | ||||
Total net assets acquired, net of gain on business combination | $ 189,014 | ||||
Shell EP Ireland Limited [Member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash paid to vendor | 40,805 | ||||
Cash acquired | (82,116) | ||||
Contingent consideration recognised as of acquisition date | 290 | ||||
Total consideration | 41,021 | ||||
Capital assets | 53,368 | ||||
Deferred tax assets | 4,239 | ||||
Asset retirement obligations | (1,565) | ||||
Lease obligations | (2,234) | ||||
Assumed working capital deficit | (35,449) | ||||
Net assets acquired | 18,359 | ||||
Gain on business combination | (59,380) | ||||
Total net assets acquired, net of gain on business combination | $ (41,021) |
Business combinations - Additio
Business combinations - Additional Information (Details) $ / shares in Units, $ in Thousands, € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
May 28, 2018CAD ($)$ / shares | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018CAD ($) | Aug. 31, 2018CAD ($) | Feb. 15, 2018CAD ($) | |
Southeast Saskatchewan and Southwest Manitoba [Member] | ||||||
Statement [Line Items] | ||||||
Cash flows from used in operations | $ 1,000 | |||||
Revenue of acquiree since acquisition date | 18,700 | |||||
Revenue of combined entity as if combination occurred at beginning of period | 2,900 | |||||
Profit (loss) of combined entity as if combination occurred at beginning of period | 1,000 | |||||
Total consideration | $ 53,288 | |||||
Cash transferred | 53,288 | |||||
Property, plant and equipment recognised as of acquisition date | 67,549 | |||||
Profit (loss) of acquiree since acquisition date | 6,700 | |||||
Asset Retirement Obligations Recognized On Acquisition Date | $ 4,452 | |||||
Spartan Energy Corp [Member] | ||||||
Statement [Line Items] | ||||||
Cash flows from used in operations | 35,000 | |||||
Revenue of acquiree since acquisition date | 242,100 | |||||
Revenue of combined entity as if combination occurred at beginning of period | 182,400 | |||||
Profit (loss) of combined entity as if combination occurred at beginning of period | 35,000 | |||||
Equity interests of acquirer | $ 1,235,221 | |||||
Acquisition-related costs for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | 1,300 | |||||
Total consideration | 1,235,221 | |||||
Property, plant and equipment recognised as of acquisition date | 1,401,686 | |||||
Profit (loss) of acquiree since acquisition date | 45,100 | |||||
Asset Retirement Obligations Recognized On Acquisition Date | 92,149 | |||||
Spartan Energy Corp [Member] | Vermilion Common Shares [Member] | ||||||
Statement [Line Items] | ||||||
Equity interests of acquirer | 27,900 | |||||
Stock issued during period Value as of the acquistion date | $ 1,200,000 | |||||
Par value per share | $ / shares | $ 44.30 | |||||
Minor [Member] | ||||||
Statement [Line Items] | ||||||
Cash transferred | 56,000 | |||||
Property, plant and equipment recognised as of acquisition date | 147,400 | |||||
Asset Retirement Obligations Recognized On Acquisition Date | 104,000 | |||||
Minor [Member] | Exploration and evaluation assets [member] | ||||||
Statement [Line Items] | ||||||
Non-current assets recognised as of acquisition date | 28,600 | |||||
Shell EP Ireland Limited [Member] | ||||||
Statement [Line Items] | ||||||
Cash flows from used in operations | 4,300 | |||||
Revenue of acquiree since acquisition date | 1,300 | |||||
Revenue of combined entity as if combination occurred at beginning of period | 15,200 | |||||
Profit (loss) of combined entity as if combination occurred at beginning of period | 4,300 | |||||
Total consideration | $ 41,021 | |||||
Incremental Working interest | 1.50% | |||||
Proportion of ownership interest in subsidiary | 20.00% | 20.00% | 20.00% | |||
Contingent consideration recognised as of acquisition date | $ 290 | |||||
Maximum Contingent Consideration | € 5.8 | 9,100 | ||||
Cash transferred | 40,805 | |||||
Property, plant and equipment recognised as of acquisition date | 53,368 | |||||
Profit (loss) of acquiree since acquisition date | 400 | |||||
Asset Retirement Obligations Recognized On Acquisition Date | 1,565 | |||||
Wyoming [Member] | ||||||
Statement [Line Items] | ||||||
Cash flows from used in operations | $ 0.1 | (100) | ||||
Revenue of acquiree since acquisition date | 11,600 | |||||
Revenue of combined entity as if combination occurred at beginning of period | 11,100 | |||||
Profit (loss) of combined entity as if combination occurred at beginning of period | $ 0.1 | (100) | ||||
Total consideration | $ 189,014 | |||||
Cash transferred | 189,014 | |||||
Property, plant and equipment recognised as of acquisition date | 284,333 | |||||
Profit (loss) of acquiree since acquisition date | $ 300 | |||||
Asset Retirement Obligations Recognized On Acquisition Date | $ 4,821 |
Capital assets - Reconciliation
Capital assets - Reconciliation of Change in Carrying Amount (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Capital assets [Line Items] | ||
Beginning balance | $ 5,316,873 | |
Impairment | (46,056) | $ 0 |
Ending balance | 5,015,620 | 5,316,873 |
Property, plant and equipment | 5,015,620 | 5,316,873 |
Capital assets [Member] | ||
Disclosure of Capital assets [Line Items] | ||
Beginning balance | 5,316,873 | 3,337,965 |
Acquisitions | 38,472 | 1,975,327 |
Additions | 486,677 | 503,842 |
Increase in right-of-use assets | 12,348 | 98,343 |
Transfers from exploration and evaluation assets | 27,918 | 29,615 |
Impairment | (46,056) | |
Depletion and depreciation | (657,863) | (605,994) |
Changes in asset retirement obligations | (10,354) | (100,876) |
Foreign exchange | (152,395) | 78,651 |
Ending balance | 5,015,620 | 5,316,873 |
Property, plant and equipment | 5,015,620 | 5,316,873 |
Capital assets [Member] | Gross carrying amount [member] | ||
Disclosure of Capital assets [Line Items] | ||
Beginning balance | 9,202,604 | |
Ending balance | 9,604,933 | 9,202,604 |
Property, plant and equipment | 9,604,933 | 9,202,604 |
Capital assets [Member] | Accumulated depletion, depreciation, and impairment [member] | ||
Disclosure of Capital assets [Line Items] | ||
Beginning balance | (3,885,731) | |
Ending balance | (4,589,313) | (3,885,731) |
Property, plant and equipment | $ (4,589,313) | $ (3,885,731) |
Capital assets - Carrying Balan
Capital assets - Carrying Balance and Depreciation (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Capital assets [Line Items] | ||
Depreciation | $ 22,676 | $ 19,358 |
Balance | 115,608 | 133,946 |
Office space [Member] | ||
Disclosure of Capital assets [Line Items] | ||
Depreciation | 9,745 | 9,119 |
Balance | 53,777 | 62,279 |
Gas processing facilities [Member] | ||
Disclosure of Capital assets [Line Items] | ||
Depreciation | 7,089 | 5,491 |
Balance | 34,701 | 41,788 |
Oil storage facilities [Member] | ||
Disclosure of Capital assets [Line Items] | ||
Depreciation | 2,633 | 2,728 |
Balance | 16,803 | 20,758 |
Vehicles and equipment [Member] | ||
Disclosure of Capital assets [Line Items] | ||
Depreciation | 3,209 | 2,020 |
Balance | $ 10,327 | $ 9,121 |
Capital assets - 2019 Impairmen
Capital assets - 2019 Impairment (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019CAD ($)€ / MMBTU | Dec. 31, 2018CAD ($) | |
Disclosure of Capital assets [Line Items] | ||
Impairment | $ | $ 46,056 | $ 0 |
Discount rate applied to cash flow projections | 9.00% | |
Increase in the after-tax discount rate (in percent) | 1.00% | |
Increase (decrease) in estimated recoverable amount due to change in discount rate | $ | $ (14,700) | |
Impairment due to change in discount rate | $ | $ 60,800 | |
Decrease in revenues (in percent) | 5.00% | |
Increase (decrease) in estimated recoverable amount due to change in revenues | $ | $ (28,600) | |
Impairment due to change in revenues | $ | $ 74,700 | |
2020 | ||
Disclosure of Capital assets [Line Items] | ||
Price estimates issued by Sproule | 5.58 | |
2021 | ||
Disclosure of Capital assets [Line Items] | ||
Price estimates issued by Sproule | 5.51 | |
2022 | ||
Disclosure of Capital assets [Line Items] | ||
Price estimates issued by Sproule | 5.54 | |
2023 | ||
Disclosure of Capital assets [Line Items] | ||
Price estimates issued by Sproule | 5.65 | |
2024 | ||
Disclosure of Capital assets [Line Items] | ||
Price estimates issued by Sproule | 5.77 | |
2025 | ||
Disclosure of Capital assets [Line Items] | ||
Price estimates issued by Sproule | 5.88 | |
2026 | ||
Disclosure of Capital assets [Line Items] | ||
Price estimates issued by Sproule | 6 | |
2027 | ||
Disclosure of Capital assets [Line Items] | ||
Price estimates issued by Sproule | 6.12 | |
2028 | ||
Disclosure of Capital assets [Line Items] | ||
Price estimates issued by Sproule | 6.24 | |
2029 | ||
Disclosure of Capital assets [Line Items] | ||
Price estimates issued by Sproule | 6.37 |
Exploration and evaluation as_3
Exploration and evaluation assets - Reconciliation of Change in Carrying Amount (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Beginning balance | $ 5,316,873 | |
Ending balance | 5,015,620 | $ 5,316,873 |
Property, plant and equipment | 5,015,620 | 5,316,873 |
Exploration and evaluation assets [member] | ||
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Beginning balance | 303,295 | 292,278 |
Acquisitions | 28,572 | |
Additions | 36,487 | 14,372 |
Changes in asset retirement obligations | 36 | 629 |
Transfers to capital assets | (27,918) | (29,615) |
Depreciation | (18,689) | (5,942) |
Foreign exchange | (7,062) | 3,001 |
Ending balance | 286,149 | 303,295 |
Property, plant and equipment | 286,149 | 303,295 |
Exploration and evaluation assets [member] | Gross carrying amount [member] | ||
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Beginning balance | 371,015 | |
Ending balance | 371,632 | 371,015 |
Property, plant and equipment | 371,632 | 371,015 |
Exploration and evaluation assets [member] | Accumulated depletion, depreciation, and impairment [member] | ||
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Beginning balance | (67,720) | |
Ending balance | (85,483) | (67,720) |
Property, plant and equipment | $ (85,483) | $ (67,720) |
Asset retirement obligations -
Asset retirement obligations - Reconciliation of Change in Carrying Amount (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset retirement obligations | ||
Beginning balance | $ 650,164 | $ 517,180 |
Additional obligations recognized | 7,595 | 211,580 |
Changes in estimated abandonment timing and costs | 39,722 | (98,158) |
Obligations settled | (19,442) | (15,765) |
Accretion | 32,667 | 31,219 |
Changes in discount rates | (57,635) | (6,646) |
Foreign exchange | (34,870) | 10,754 |
Ending balance | $ 618,201 | $ 650,164 |
Asset retirement obligations _2
Asset retirement obligations - Risk Free Rates (Details) - Provision for decommissioning, restoration and rehabilitation costs [member] | Dec. 31, 2019 | Dec. 31, 2018 |
CANADA | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 1.70% | 2.20% |
FRANCE | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 0.90% | 1.60% |
NETHERLANDS | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | (0.10%) | 0.40% |
GERMANY | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 0.30% | 0.90% |
IRELAND | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 0.60% | 1.60% |
AUSTRALIA | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 1.60% | 2.60% |
UNITED STATES | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 2.40% | 2.70% |
Asset retirement obligations _3
Asset retirement obligations - Additional Information (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Asset Retirement Obligations Based On Current Cost Estimates | $ 1,800 | $ 1,800 |
Credit Risk Rate Used In Determining Other Provisions | 5.30% | 4.00% |
Increase decrease in discount rate, asset retirement obligations | 0.50% | |
IncreaseDecreaseInAssetRetirementObligations | $ 52.7 | |
Scenario Forecasts [Member] | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
IncreaseDecreaseInAssetRetirementObligations | 27.5 | |
Two Thousand Twenty And Two Thousand Seventy Three [Member] | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Asset retirement obligations based on a total undiscounted future liability | 2,600 | $ 2,600 |
Two Thousand Thirty And Two Thousand Fourty [Member] | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Asset retirement obligations based on a total undiscounted future liability | 700 | |
Two Thousand Fourty Eight And Two Thousand Fifty Five [Member] | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Asset retirement obligations based on a total undiscounted future liability | 900 | |
Two Thousand Sixty And Two Thousand Seventy Three [Member] | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Asset retirement obligations based on a total undiscounted future liability | $ 700 | |
Bottom of range [member] | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Inflation rates used in determining the cash flow estimates | 0.40% | 0.50% |
Top of range [member] | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Inflation rates used in determining the cash flow estimates | 2.70% | 2.90% |
Derivative instruments - Change
Derivative instruments - Changes in Fair Value (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative instruments | ||
Fair value of contracts, beginning of year | $ 38,339 | $ (70,713) |
Reversal of opening contracts settled during the year | (62,735) | 57,719 |
Assumed in acquisitions | 0 | (274) |
Realized gain (loss) on contracts settled during the year | 84,219 | (111,258) |
Unrealized gain during the year on contracts outstanding at the end of the year | 5,308 | 51,607 |
Net receipt from counterparties on contract settlements during the year | (84,219) | 111,258 |
Unrealized loss on derivatives designated as cash flow hedges | (1,071) | |
Unrealized gain on derivatives designated as net investment hedges | 9,168 | |
Fair value of contracts, end of year | (10,991) | 38,339 |
Current derivative asset | 55,645 | 95,667 |
Current derivative liability | (62,405) | (41,016) |
Non-current derivative asset | 20,127 | 1,215 |
Non-current derivative liability | $ (24,358) | $ (17,527) |
Derivative instruments - Loss(G
Derivative instruments - Loss(Gain) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative instruments | ||
Realized (gain) loss on contracts settled during the year | $ (84,219) | $ 111,258 |
Reversal of opening contracts settled during the year | 62,735 | (57,719) |
Unrealized gain on contracts outstanding at the end of the year | (5,308) | (51,607) |
(Gain) loss on derivative instruments | $ (26,792) | $ 1,932 |
Leases - Future Commitments (De
Leases - Future Commitments (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of leases [Line Items] | ||
Gross lease liabilities | $ 140,063 | $ 157,717 |
Amounts representing interest | (23,309) | (24,583) |
Present value of net lease payments | 116,754 | 133,134 |
Current portion of lease obligations | (23,682) | (24,945) |
Non-current portion of lease obligations | 93,072 | 108,189 |
Less than 1 year | ||
Disclosure Of leases [Line Items] | ||
Gross lease liabilities | 29,217 | 30,641 |
1 - 3 years | ||
Disclosure Of leases [Line Items] | ||
Gross lease liabilities | 46,501 | 50,024 |
3 - 5 years | ||
Disclosure Of leases [Line Items] | ||
Gross lease liabilities | 38,177 | 34,313 |
After 5 years | ||
Disclosure Of leases [Line Items] | ||
Gross lease liabilities | $ 26,168 | $ 42,739 |
Leases - Additional Information
Leases - Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases | ||
Total cash outflow | $ 33,276 | $ 27,468 |
Interest on lease liabilities | $ 6,984 | $ 7,185 |
Taxes - Reconciliation of Defer
Taxes - Reconciliation of Deferred Tax Asset and Liability (Details) - CAD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | $ 196,543 | $ 219,411 |
Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 336,309 | 318,134 |
Derivative contracts [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 2,712 | (11,937) |
Capital assets [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | (296,793) | (296,591) |
Capital assets [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 262,669 | 319,553 |
Non-capital losses [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 454,339 | 487,398 |
Non-capital losses [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | (48,007) | (57,785) |
Asset retirement obligations [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 36,170 | 38,429 |
Asset retirement obligations [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 123,257 | 51,031 |
Unrealized foreign exchange [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | (3,034) | (1,873) |
Unrealized foreign exchange [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 10,715 | |
Other deferred tax liabilities [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | (1,610) | (5,380) |
Other deferred tax assets [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | $ 3,149 | $ 3,985 |
Taxes - Reconciliation of Accou
Taxes - Reconciliation of Accounting Profit (Details) - CAD ($) $ in Thousands | Jan. 01, 2022 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2018 |
Taxes | ||||||
Earnings before income taxes | $ 141,125 | $ 354,698 | ||||
Canadian corporate tax rate | 8.00% | 11.00% | 12.00% | 1.00% | 26.72% | 27.00% |
Expected tax expense | $ 37,709 | $ 95,768 | ||||
Petroleum resource rent tax rate (PRRT) differential | 17,455 | 5,349 | ||||
Foreign tax rate differentials | 5,543 | 3,086 | ||||
Equity based compensation expense | 3,733 | 13,883 | ||||
Amended returns and changes to estimated tax pools and tax positions | (24,387) | (873) | ||||
Statutory rate changes and the estimated reversal rates associated with temporary differences | 9,543 | 0 | ||||
Derecognition (recognition) of deferred tax assets | 65,522 | (26,931) | ||||
Adjustment for uncertain tax positions | 3,659 | 8,080 | ||||
Gain on business combinations | 0 | (28,812) | ||||
Other non-deductible items | (10,451) | 13,498 | ||||
Provision for income taxes | $ 108,326 | $ 83,048 |
Taxes - Additional Information
Taxes - Additional Information (Details) € in Millions, $ in Millions | Jan. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2019CAD ($) | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2019EUR (€) | Dec. 30, 2019 | Dec. 31, 2018CAD ($) |
Disclosure of income tax [Line Items] | ||||||||
Applicable tax rate | 8.00% | 11.00% | 12.00% | 1.00% | 26.72% | 27.00% | ||
Unused tax losses for which no deferred tax asset recognised | $ 2,500 | $ 2,600 | ||||||
Maximum sales limit to companies for applicability of progressive decrease of the french corporate income tax rate | € | € 250 | |||||||
Deductible temporary differences for which no deferred tax asset is recognised | 65.5 | 26.9 | ||||||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | 500 | 500 | ||||||
Vermilions Canada Segment [Member] | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Deductible temporary differences, unused tax losses and unused tax credits expired | $ 1,200 | $ 1,100 | ||||||
Bottom of range [member] | Vermilions Canada Segment [Member] | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Description of expiry date of deductible temporary differences, unused tax losses and unused tax credits | 2025 | |||||||
Top of range [member] | Vermilions Canada Segment [Member] | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Description of expiry date of deductible temporary differences, unused tax losses and unused tax credits | 2040 | |||||||
FRANCE | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Applicable tax rate | 32.00% | 34.40% | ||||||
NETHERLANDS | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Applicable tax rate | 50.00% | 50.00% | ||||||
GERMANY | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Applicable tax rate | 31.80% | 30.20% | ||||||
IRELAND | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Applicable tax rate | 25.00% | 25.00% | ||||||
UNITED STATES | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Applicable tax rate | 21.00% | 21.00% | ||||||
CANADA | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Applicable tax rate | 8.00% | 12.00% | ||||||
Corporate income tax [Member] | AUSTRALIA | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Applicable tax rate | 30.00% | |||||||
PRRT [Member] | AUSTRALIA | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Applicable tax rate | 40.00% | |||||||
FrenchCorporate Income tax [Member] | ||||||||
Disclosure of income tax [Line Items] | ||||||||
Applicable tax rate | 25.80% | 32.00% |
Long-term debt - Outstanding Am
Long-term debt - Outstanding Amount (Details) - CAD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term debt | ||
Revolving credit facility | $ 1,539,225 | $ 1,392,206 |
Senior unsecured notes | 385,440 | 404,001 |
Long-term debt | $ 1,924,665 | $ 1,796,207 |
Long-term debt - Change in Outs
Long-term debt - Change in Outstanding Amount (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Long-term debt | |||
Beginning balance | $ 1,796,207 | $ 1,270,330 | |
Borrowings on the revolving credit facility | 207,787 | 251,155 | |
Assumed on acquisitions | [1] | 0 | 188,496 |
Amortization of transaction costs and prepaid interest | 4,379 | 2,286 | |
Foreign exchange | (83,708) | 83,940 | |
Ending balance | $ 1,924,665 | $ 1,796,207 | |
[1] | 2019 2018 Balance at January 1 1,796,207 1,270,330 Borrowings on the revolving credit facility 207,787 251,155 Assumed on acquisitions (1) — 188,496 Amortization of transaction costs and prepaid interest 4,379 2,286 Foreign exchange (83,708) 83,940 Balance at December 31 1,924,665 1,796,207Pursuant to the acquisitions described in Note 5 (Business combinations), Vermilion assumed the credit facilities of the acquired companies and immediately extinguished them following the respective acquisitions using proceeds from Vermilion’s revolving credit facility. |
Long-term debt - Terms of Revol
Long-term debt - Terms of Revolving Credit Facility (Details) - Revolving Credit Facilities [Member] - CAD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Long-term Debt [Line Items] | ||
Total facility amount | $ 2,100,000 | $ 1,800,000 |
Amount drawn | (1,539,225) | (1,392,206) |
Letters of credit outstanding | (10,230) | (15,400) |
Unutilized capacity | $ 550,545 | $ 392,394 |
Long-term debt - Financial Cove
Long-term debt - Financial Covenants (Details) - item | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Long-term Debt [Line Items] | ||
Consolidated total debt to consolidated EBITDA | 1.94 | 1.72 |
Consolidated total senior debt to consolidated EBITDA | 1.56 | 1.34 |
Consolidated EBITDA to consolidated interest expense | 13.46% | 14.57% |
Top of range [member] | ||
Disclosure of Long-term Debt [Line Items] | ||
Consolidated total debt to consolidated EBITDA | 4 | |
Consolidated total senior debt to consolidated EBITDA | 3.5 | |
Consolidated EBITDA to consolidated interest expense | 2.50% |
Long-term debt - Maturity Analy
Long-term debt - Maturity Analysis (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Year Three [Member] | |
Disclosure of Long-term Debt [Line Items] | |
Redemption price Percentage of senior unsecured notes | 104.219% |
Year Four [Member] | |
Disclosure of Long-term Debt [Line Items] | |
Redemption price Percentage of senior unsecured notes | 102.813% |
Year Five [Member] | |
Disclosure of Long-term Debt [Line Items] | |
Redemption price Percentage of senior unsecured notes | 101.406% |
Year Five and There after [Member] | |
Disclosure of Long-term Debt [Line Items] | |
Redemption price Percentage of senior unsecured notes | 100.00% |
Long-term debt - Additional Inf
Long-term debt - Additional Information (Details) € in Millions, $ in Millions, $ in Millions | Mar. 15, 2020 | Dec. 31, 2019CAD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Mar. 13, 2017USD ($) |
Disclosure of Long-term Debt [Line Items] | |||||
Fair value of senior unsecured notes | $ 366.4 | ||||
Borrowings Repayment Description Prior Maturity | Prior to March 15, 2020, Vermilion may redeem up to 35% of the original principal amount of the senior unsecured notes with the proceeds of certain equity offerings by the Company at a redemption price of 105.625% of the principal amount plus any accrued and unpaid interest to the applicable redemption date.Prior to March 15, 2020, Vermilion may redeem some or all of the senior unsecured notes at a price equal to 100% of the principal amount of the senior unsecured notes, plus an applicable premium and any accrued and unpaid interest.On or after March 15, 2020, Vermilion may redeem some or all of the senior unsecured notes at the redemption prices set forth in the following table plus any accrued and unpaid interest. | ||||
Swap contract [member] | Canada, Dollars | |||||
Disclosure of Long-term Debt [Line Items] | |||||
Borrowings, interest rate | 5.40% | 5.40% | |||
Net amounts for pay-floating (receive-fixed) interest rate swaps for which net cash flows are exchanged | $ 398.5 | ||||
Swap contract [member] | Euro Member Countries, Euro | |||||
Disclosure of Long-term Debt [Line Items] | |||||
Borrowings, interest rate | 3.275% | 3.275% | |||
Net amounts for pay-floating (receive-fixed) interest rate swaps for which net cash flows are exchanged | € | € 265 | ||||
Unsecured notes [Member] | |||||
Disclosure of Long-term Debt [Line Items] | |||||
Notional amount | $ 300 | ||||
Borrowings, interest rate | 5.625% | ||||
Borrowings Repayment Description Prior Maturity | March 15, 2025 |
Shareholders' capital - Reconci
Shareholders' capital - Reconciliation of Change in Balance (Details) - CAD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Shareholder's Capital [Line Items] | ||
Balance, beginning of year | $ 4,008,828 | $ 2,650,706 |
Balance at January 1 (shares) | 152,704 | 122,119 |
Shares issued for acquisition | $ 1,234,676 | |
Shares issued for acquisition (shares) | 27,883 | |
Shares issued for the Dividend Reinvestment Plan | $ 34,937 | $ 49,051 |
Vesting of equity based awards (shares) | 1,359 | 1,025 |
Share-settled dividends on vested equity based awards (shares) | 258 | 184 |
Balance, end of year | $ 4,119,031 | $ 4,008,828 |
Balance at December 31 (shares) | 156,290 | 152,704 |
Equity based compensation [Member] | ||
Disclosure Of Shareholder's Capital [Line Items] | ||
Shares issued for equity based compensation (shares) | 552 | 314 |
Dividend reinvestment plan [Member] | ||
Disclosure Of Shareholder's Capital [Line Items] | ||
Shares issued for the Dividend Reinvestment Plan (shares) | 1,417 | 1,179 |
Issued capital [member] | ||
Disclosure Of Shareholder's Capital [Line Items] | ||
Vesting of equity based awards | $ 51,108 | $ 54,057 |
Shares issued for equity based compensation | 15,868 | 12,565 |
Share-settled dividends on vested equity based awards | $ 8,290 | $ 7,773 |
Shareholders' capital - Additio
Shareholders' capital - Additional Information (Details) - CAD ($) $ / shares in Units, $ in Millions | Mar. 05, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Shareholders' capital | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 72 | ||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | $ 0.23 | ||
Dividends paid, ordinary shares | $ 427.3 | $ 388.1 | |
Dividends paid, ordinary shares per share | $ 2.76 | $ 2.72 |
Capital disclosures - Ratio of
Capital disclosures - Ratio of Net Debt to Fund Flows Operations (Details) $ in Thousands | Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) |
Capital disclosures | |||
Long-term debt | $ 1,924,665 | $ 1,796,207 | $ 1,270,330 |
Current liabilities | 416,210 | 563,199 | |
Current assets | (347,681) | (429,877) | |
Net debt | $ 1,993,194 | $ 1,929,529 | |
Ratio of net debt to fund flows from operations | 2.20 | 2.30 |
Capital disclosures - Additiona
Capital disclosures - Additional Information (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Capital Disclosures [Line Items] | ||
Ratio of net debt to funds from operations | 2.20 | 2.30 |
Top of range [member] | ||
Disclosure Of Capital Disclosures [Line Items] | ||
Ratio of net debt to funds from operations | 1.5 |
Equity based compensation - Awa
Equity based compensation - Awards Outstanding (Details) - Vermilion incentive plan [Member] - EquityInstruments EquityInstruments in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Equity Based Compensation [Line Items] | ||
Opening balance | 1,931 | 1,685 |
Granted | 1,193 | 932 |
Vested | (688) | (520) |
Forfeited | (168) | (166) |
Closing balance | 2,268 | 1,931 |
Equity based compensation - Add
Equity based compensation - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019CAD ($)itemEquityInstruments | Dec. 31, 2018CAD ($)itemEquityInstruments | Dec. 31, 2017EquityInstruments | |
Disclosure Of Equity Based Compensation [Line Items] | |||
Expense from share-based payment transactions with employees | $ 64,233,000 | $ 60,746,000 | |
Vermilion incentive plan [Member] | |||
Disclosure Of Equity Based Compensation [Line Items] | |||
Weighted average fair value at measurement date, other equity instruments granted | $ 30.92 | $ 40.57 | |
Performance factor (ratio) | 1.7 | 1.9 | |
Annual forfeiture rate share options granted | 5.20% | 4.60% | |
Expense from share-based payment transactions with employees | $ 46,600,000 | $ 48,200,000 | |
Number of other equity instruments outstanding in share-based payment arrangement | EquityInstruments | 2,268,000 | 1,931,000 | 1,685,000 |
FiveYear Compensation Arrangement member [Member] | |||
Disclosure Of Equity Based Compensation [Line Items] | |||
Number of other equity instruments outstanding in share-based payment arrangement | item | 51,860 | 36,845 | |
Deferred Share Units [Member] | |||
Disclosure Of Equity Based Compensation [Line Items] | |||
Weighted average fair value at measurement date, other equity instruments granted | $ 25.25 | ||
Expense from share-based payment transactions with employees | $ 1,800,000 | ||
Number of other equity instruments outstanding in share-based payment arrangement | EquityInstruments | 72,191 |
Per share amounts - Determinati
Per share amounts - Determination of Basic and Diluted Earnings Per Share (Details) - CAD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Per share amounts | ||
Net earnings | $ 32,799 | $ 271,650 |
Basic weighted average shares outstanding ('000s) | 154,736 | 140,619 |
Dilutive impact of equity based compensation ('000s) | 1,359 | 1,716 |
Diluted weighted average shares outstanding ('000s) | 156,095 | 142,335 |
Basic earnings per share | $ 0.21 | $ 1.93 |
Diluted earnings per share | $ 0.21 | $ 1.91 |
Financial instruments - Fair Va
Financial instruments - Fair Value and Amortized Cost (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative liabilities [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, FVTPL | $ (83,223) | $ (58,543) |
Financial liabilities, FVTOCI | (3,540) | |
Financial liabilities, Total | (86,763) | (58,543) |
Dividends payable [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, Amortized Cost | (35,947) | (35,122) |
Financial liabilities, Total | (35,947) | (35,122) |
Accounts payable and accrued liability [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, Amortized Cost | (312,442) | (449,651) |
Financial liabilities, Total | (312,442) | (449,651) |
Lease Obligations [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, Amortized Cost | (93,072) | (108,189) |
Financial liabilities, Total | (93,072) | (108,189) |
Long-term debts [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, Amortized Cost | (1,924,665) | (1,796,207) |
Financial liabilities, Total | (1,924,665) | (1,796,207) |
Cash and cash equivalent [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, FVTPL | 29,028 | 26,809 |
Financial assets, Total | 29,028 | 26,809 |
Derivative assets [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, FVTPL | 64,135 | 96,882 |
Financial assets, FVTOCI | 11,637 | |
Financial assets, Total | 75,772 | 96,882 |
Loans And Receivables [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, Amortized Cost | 211,409 | 260,322 |
Financial assets, Total | $ 211,409 | $ 260,322 |
Financial instruments - Increas
Financial instruments - Increase (Decrease) to Net Earnings Before Tax (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Currency risk increase [Member] | Euro [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Increase or decrease to net earnings before tax due to change in fair value of financial instruments | $ (1,599) | $ (2,205) |
Currency risk increase [Member] | US dollar [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Increase or decrease to net earnings before tax due to change in fair value of financial instruments | (5,594) | 2,981 |
Currency risk decrease [Member] | Euro [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Increase or decrease to net earnings before tax due to change in fair value of financial instruments | 1,599 | 2,205 |
Currency risk decrease [Member] | US dollar [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Increase or decrease to net earnings before tax due to change in fair value of financial instruments | 5,594 | (2,981) |
Commodity price risk increase [Member] | Euro [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Increase or decrease to net earnings before tax due to change in fair value of financial instruments | (28,192) | (36,508) |
Commodity price risk increase [Member] | US dollar [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Increase or decrease to net earnings before tax due to change in fair value of financial instruments | (44,106) | (18,421) |
Commodity price risk decrease [Member] | Euro [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Increase or decrease to net earnings before tax due to change in fair value of financial instruments | 22,670 | 33,005 |
Commodity price risk decrease [Member] | US dollar [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Increase or decrease to net earnings before tax due to change in fair value of financial instruments | $ 47,777 | $ 17,351 |
Financial instruments - Undisco
Financial instruments - Undiscounted Non-derivative Financial Liabilities and Contractual Maturities (Details) - CAD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Not later than one month [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | $ 134,502 | $ 167,491 |
Later than one month and not later than three months [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 208,752 | 306,927 |
Later than three months and not later than one year [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 5,136 | 10,355 |
Later than one year and not later than five years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | $ 1,608,435 | $ 1,472,087 |
Financial instruments - Additio
Financial instruments - Additional Information (Details) - CAD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | $ 287,200 | $ 357,200 |
Percentage of trade and other current receivables | 3.60% | 0.70% |
Long-term debts [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of long-term debt | $ 1,905,588 | $ 1,781,809 |
Related party disclosures - Com
Related party disclosures - Compensation of Directors and Other Members (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019CAD ($)individual | Dec. 31, 2018CAD ($)individual | |
Disclosure Of Related Party Disclosures [Line Items] | ||
Short-term benefits | $ 8,084 | $ 6,018 |
Equity based compensation | 16,296 | 16,309 |
Key management personnel compensation | $ 24,380 | $ 22,327 |
Key management personnel [member] | ||
Disclosure Of Related Party Disclosures [Line Items] | ||
Number of individuals included in the above amounts | individual | 19 | 18 |
Related party disclosures - Add
Related party disclosures - Additional Information (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related party disclosures | ||
Income from subleasing right-of-use assets | $ 0.2 | $ 0.2 |
Supplemental information - Chan
Supplemental information - Changes in Non-cash Working Capital (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental information . | ||
Accounts receivable | $ 48,913 | $ (94,562) |
Crude oil inventory | (1,638) | (10,646) |
Prepaid expenses | (2,882) | (4,896) |
Accounts payable and accrued liabilities | (137,209) | 230,567 |
Income taxes payable | (31,994) | (1,651) |
Working capital assumed in acquisitions | (58,841) | |
Initial recognition of IFRS 16 liability | (10,483) | |
Foreign exchange | 2,590 | (873) |
Changes in non-cash working capital | (122,220) | 48,615 |
Changes in non-cash operating working capital | (65,148) | (6,876) |
Changes in non-cash investing working capital | (57,072) | 55,491 |
Changes in non-cash working capital | $ (122,220) | $ 48,615 |
Supplemental information - Comp
Supplemental information - Components of Cash and Cash Equivalents (Details) - CAD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental information | |||
Cash on deposit with financial institutions | $ 28,898 | $ 26,604 | |
Guaranteed investment certificates | 130 | 205 | |
Cash and cash equivalents | $ 29,028 | $ 26,809 | $ 46,561 |
Supplemental information - Wage
Supplemental information - Wages and Benefits (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Supplemental Information [Line Items] | ||
Short-term employee benefits expense | $ 125,178 | $ 108,591 |
Operating expense [Member] | ||
Disclosure Of Supplemental Information [Line Items] | ||
Short-term employee benefits expense | 77,868 | 66,095 |
General and administration expense [Member] | ||
Disclosure Of Supplemental Information [Line Items] | ||
Short-term employee benefits expense | $ 47,310 | $ 42,496 |
Supplemental information - Outs
Supplemental information - Outstanding Risk Management Positions (Details) - 12 months ended Dec. 31, 2019 | EUR (€)$ / MMBTUitemUSD ($)CAD ($)$ / MMBTU€ / MMBTU | USD ($)$ / MMBTUitemCAD ($)$ / MMBTU€ / MMBTU | CAD ($)$ / MMBTUitemUSD ($)$ / shares$ / MMBTU€ / MMBTU |
Crude oil dated brent Q1 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 3,000 | 3,000 | 3,000 |
Derivative, weighted average bought put | 62.25 | 62.25 | 62.25 |
Derivative, sold call volume | item | 3,000 | 3,000 | 3,000 |
Derivative, weighted average sold call | 67.39 | 67.39 | 67.39 |
Derivative, sold put volume | $ | 3,000,000 | 3,000,000 | 3,000,000 |
Derivative, weighted average sold put | 55.58 | 55.58 | 55.58 |
Derivative, swap volume | item | 0 | 0 | 0 |
Derivative, weighted average swap | 0 | 0 | 0 |
Crude oil dated brent Q2 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 3,000 | 3,000 | 3,000 |
Derivative, weighted average bought put | 62.25 | 62.25 | 62.25 |
Derivative, sold call volume | item | 3,000 | 3,000 | 3,000 |
Derivative, weighted average sold call | 67.39 | 67.39 | 67.39 |
Derivative, sold put volume | $ | 3,000,000 | 3,000,000 | 3,000,000 |
Derivative, weighted average sold put | 55.58 | 55.58 | 55.58 |
Derivative, swap volume | item | 0 | 0 | 0 |
Derivative, weighted average swap | 0 | 0 | 0 |
Crude oil west texas intermediate Q1 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 9,750 | 9,750 | 9,750 |
Derivative, weighted average bought put | 54.18 | 54.18 | 54.18 |
Derivative, sold call volume | item | 6,000 | 6,000 | 6,000 |
Derivative, weighted average sold call | 60.95 | 60.95 | 60.95 |
Derivative, sold put volume | $ | 9,750,000 | 9,750,000 | 9,750,000 |
Derivative, weighted average sold put | 46.23 | 46.23 | 46.23 |
Derivative, swap volume | item | 1,500 | 1,500 | 1,500 |
Derivative, weighted average swap | 59.17 | 59.17 | 59.17 |
Crude oil west texas intermediate Q2 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 7,250 | 7,250 | 7,250 |
Derivative, weighted average bought put | 53.07 | 53.07 | 53.07 |
Derivative, sold call volume | item | 4,000 | 4,000 | 4,000 |
Derivative, weighted average sold call | 60.23 | 60.23 | 60.23 |
Derivative, sold put volume | $ | 7,250,000 | 7,250,000 | 7,250,000 |
Derivative, weighted average sold put | 44.86 | 44.86 | 44.86 |
Derivative, swap volume | item | 0 | 0 | 0 |
Derivative, weighted average swap | 0 | 0 | 0 |
Crude oil west texas intermediate Q3 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 500 | 500 | 500 |
Derivative, weighted average bought put | 57 | 57 | 57 |
Derivative, sold call volume | item | 500 | 500 | 500 |
Derivative, weighted average sold call | 61.25 | 61.25 | 61.25 |
Derivative, sold put volume | $ | 500,000 | 500,000 | 500,000 |
Derivative, weighted average sold put | 52 | 52 | 52 |
Derivative, swap volume | item | 0 | 0 | 0 |
Derivative, weighted average swap | 0 | 0 | 0 |
Crude oil west texas intermediate Q4 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 500 | 500 | 500 |
Derivative, weighted average bought put | 57 | 57 | 57 |
Derivative, sold call volume | item | 500 | 500 | 500 |
Derivative, weighted average sold call | 61.25 | 61.25 | 61.25 |
Derivative, sold put volume | $ | 500,000 | 500,000 | 500,000 |
Derivative, weighted average sold put | 52 | 52 | 52 |
Derivative, swap volume | item | 0 | 0 | 0 |
Derivative, weighted average swap | 0 | 0 | 0 |
North American Gas AECO Q1 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | CAD | CAD | CAD |
Derivative, bought put volume | item | 10,426 | 10,426 | 10,426 |
Derivative, weighted average bought put | 1.58 | 1.58 | 1.58 |
Derivative, sold call volume | item | 10,426 | 10,426 | 10,426 |
Derivative, weighted average sold call | 2.56 | 2.56 | 2.56 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 0 | 0 | 0 |
Derivative, weighted average swap | 0 | 0 | 0 |
North American Gas Aeco Q2 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | CAD | CAD | CAD |
Derivative, bought put volume | item | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 10,426 | 10,426 | 10,426 |
Derivative, weighted average swap | 1.39 | 1.39 | 1.39 |
North American Gas Aeco Q3 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | CAD | CAD | CAD |
Derivative, bought put volume | item | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 10,426 | 10,426 | 10,426 |
Derivative, weighted average swap | 1.39 | 1.39 | 1.39 |
North American Gas Aeco Q4 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | CAD | CAD | CAD |
Derivative, bought put volume | item | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 3,513 | 3,513 | 3,513 |
Derivative, weighted average swap | 1.39 | 1.39 | 1.39 |
North American Gas Aeco Basis Q1 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 32,500 | 32,500 | 32,500 |
Derivative, weighted average swap | (0.94) | (0.94) | (0.94) |
North American Gas Aeco Basis Q2 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 52,500 | 52,500 | 52,500 |
Derivative, weighted average swap | (1.12) | (1.12) | (1.12) |
North American Gas Aeco Basis Q3 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 50,000 | 50,000 | 50,000 |
Derivative, weighted average swap | (1.12) | (1.12) | (1.12) |
North American Gas Aeco Basis Q4 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 36,739 | 36,739 | 36,739 |
Derivative, weighted average swap | (1.11) | (1.11) | (1.11) |
North American Gas Aeco Basis Q1 2021 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 30,000 | 30,000 | 30,000 |
Derivative, weighted average swap | (1.11) | (1.11) | (1.11) |
North American Gas Aeco Basis Q2 2021 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 45,000 | 45,000 | 45,000 |
Derivative, weighted average swap | (1.08) | (1.08) | (1.08) |
North American Gas Aeco Basis Q3 2021 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 45,000 | 45,000 | 45,000 |
Derivative, weighted average swap | (1.08) | (1.08) | (1.08) |
North American Gas Aeco Basis Q4 2021 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 35,054 | 35,054 | 35,054 |
Derivative, weighted average swap | (1.09) | (1.09) | (1.09) |
North American Gas Aeco Basis Q1 2022 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 30,000 | 30,000 | 30,000 |
Derivative, weighted average swap | (1.10) | (1.10) | (1.10) |
North American Gas Aeco Basis Q2 2022 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 35,000 | 35,000 | 35,000 |
Derivative, weighted average swap | (1.09) | (1.09) | (1.09) |
North American Gas Aeco Basis Q3 2022 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 35,000 | 35,000 | 35,000 |
Derivative, weighted average swap | (1.09) | (1.09) | (1.09) |
North American Gas Aeco Basis Q4 2022 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 0 | 0 | 0 |
Derivative, weighted average bought put | 0 | 0 | 0 |
Derivative, sold call volume | item | 0 | 0 | 0 |
Derivative, weighted average sold call | 0 | 0 | 0 |
Derivative, sold put volume | $ | 0 | 0 | 0 |
Derivative, weighted average sold put | 0 | 0 | 0 |
Derivative, swap volume | item | 11,793 | 11,793 | 11,793 |
Derivative, weighted average swap | (1.09) | (1.09) | (1.09) |
North American Gas NYMX HH Q1 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | 10,000 | 10,000 | 10,000 |
Derivative, weighted average bought put | 2.75 | 2.75 | 2.75 |
Derivative, sold call volume | item | 10,000 | 10,000 | 10,000 |
Derivative, weighted average sold call | 3.10 | 3.10 | 3.10 |
Derivative, sold put volume | $ | 10,000,000 | 10,000,000 | 10,000,000 |
Derivative, weighted average sold put | 2.25 | 2.25 | 2.25 |
Derivative, swap volume | item | 0 | 0 | 0 |
Derivative, weighted average swap | 0 | 0 | 0 |
European Gas Nbp Q1 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 49,135 | 49,135 | 49,135 |
Derivative, weighted average bought put | € / MMBTU | 5.27 | 5.27 | 5.27 |
Derivative, sold call volume | item | 49,135 | 49,135 | 49,135 |
Derivative, weighted average sold call | € / MMBTU | 5.83 | 5.83 | 5.83 |
Derivative, sold put volume | item | 49,135 | 49,135 | 49,135 |
Derivative, weighted average sold put | € / MMBTU | 3.98 | 3.98 | 3.98 |
European Gas Nbp Q2 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 41,765 | 41,765 | 41,765 |
Derivative, weighted average bought put | € / MMBTU | 5.21 | 5.21 | 5.21 |
Derivative, sold call volume | item | 41,765 | 41,765 | 41,765 |
Derivative, weighted average sold call | € / MMBTU | 5.53 | 5.53 | 5.53 |
Derivative, sold put volume | item | 41,765 | 41,765 | 41,765 |
Derivative, weighted average sold put | € / MMBTU | 3.83 | 3.83 | 3.83 |
European Gas Nbp Q3 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 41,765 | 41,765 | 41,765 |
Derivative, weighted average bought put | € / MMBTU | 5.21 | 5.21 | 5.21 |
Derivative, sold call volume | item | 41,765 | 41,765 | 41,765 |
Derivative, weighted average sold call | € / MMBTU | 5.52 | 5.52 | 5.52 |
Derivative, sold put volume | item | 41,765 | 41,765 | 41,765 |
Derivative, weighted average sold put | € / MMBTU | 3.83 | 3.83 | 3.83 |
European Gas Nbp Q4 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 61,419 | 61,419 | 61,419 |
Derivative, weighted average bought put | € / MMBTU | 5.28 | 5.28 | 5.28 |
Derivative, sold call volume | item | 63,875 | 63,875 | 63,875 |
Derivative, weighted average sold call | € / MMBTU | 5.77 | 5.77 | 5.77 |
Derivative, sold put volume | item | 61,419 | 61,419 | 61,419 |
Derivative, weighted average sold put | € / MMBTU | 3.90 | 3.90 | 3.90 |
European Gas Nbp Q1 2021 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 54,048 | 54,048 | 54,048 |
Derivative, weighted average bought put | € / MMBTU | 5.44 | 5.44 | 5.44 |
Derivative, sold call volume | item | 56,505 | 56,505 | 56,505 |
Derivative, weighted average sold call | € / MMBTU | 5.85 | 5.85 | 5.85 |
Derivative, sold put volume | item | 54,048 | 54,048 | 54,048 |
Derivative, weighted average sold put | € / MMBTU | 3.94 | 3.94 | 3.94 |
European Gas Nbp Q2 2021 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 46,678 | 46,678 | 46,678 |
Derivative, weighted average bought put | € / MMBTU | 5.42 | 5.42 | 5.42 |
Derivative, sold call volume | item | 46,678 | 46,678 | 46,678 |
Derivative, weighted average sold call | € / MMBTU | 5.80 | 5.80 | 5.80 |
Derivative, sold put volume | item | 46,678 | 46,678 | 46,678 |
Derivative, weighted average sold put | € / MMBTU | 3.92 | 3.92 | 3.92 |
European Gas Nbp Q3 2021 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 46,678 | 46,678 | 46,678 |
Derivative, weighted average bought put | € / MMBTU | 5.42 | 5.42 | 5.42 |
Derivative, sold call volume | item | 46,678 | 46,678 | 46,678 |
Derivative, weighted average sold call | € / MMBTU | 5.77 | 5.77 | 5.77 |
Derivative, sold put volume | item | 46,678 | 46,678 | 46,678 |
Derivative, weighted average sold put | € / MMBTU | 3.92 | 3.92 | 3.92 |
European Gas Nbp Q4 2021 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 54,048 | 54,048 | 54,048 |
Derivative, weighted average bought put | € / MMBTU | 5.44 | 5.44 | 5.44 |
Derivative, sold call volume | item | 54,048 | 54,048 | 54,048 |
Derivative, weighted average sold call | € / MMBTU | 5.72 | 5.72 | 5.72 |
Derivative, sold put volume | item | 54,048 | 54,048 | 54,048 |
Derivative, weighted average sold put | € / MMBTU | 3.94 | 3.94 | 3.94 |
European Gas Nbp Q1 2022 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 19,654 | 19,654 | 19,654 |
Derivative, weighted average bought put | € / MMBTU | 5.42 | 5.42 | 5.42 |
Derivative, sold call volume | item | 19,654 | 19,654 | 19,654 |
Derivative, weighted average sold call | € / MMBTU | 6.30 | 6.30 | 6.30 |
Derivative, sold put volume | item | 19,654 | 19,654 | 19,654 |
Derivative, weighted average sold put | € / MMBTU | 3.79 | 3.79 | 3.79 |
European Gas Nbp Q2 2022 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 12,284 | 12,284 | 12,284 |
Derivative, weighted average bought put | € / MMBTU | 5.33 | 5.33 | 5.33 |
Derivative, sold call volume | item | 12,284 | 12,284 | 12,284 |
Derivative, weighted average sold call | € / MMBTU | 6.03 | 6.03 | 6.03 |
Derivative, sold put volume | item | 12,284 | 12,284 | 12,284 |
Derivative, weighted average sold put | € / MMBTU | 3.60 | 3.60 | 3.60 |
European Gas Nbp Basis Q1 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 17,500 | 17,500 | 17,500 |
Derivative, weighted average bought put | 2.74 | 2.74 | 2.74 |
Derivative, sold call volume | item | 17,500 | 17,500 | 17,500 |
Derivative, weighted average sold call | 3.99 | 3.99 | 3.99 |
European Gas Nbp Basis Q2 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 15,000 | 15,000 | 15,000 |
Derivative, weighted average bought put | 2.61 | 2.61 | 2.61 |
Derivative, sold call volume | item | 15,000 | 15,000 | 15,000 |
Derivative, weighted average sold call | 3.98 | 3.98 | 3.98 |
European Gas Nbp Basis Q3 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 15,000 | 15,000 | 15,000 |
Derivative, weighted average bought put | 2.61 | 2.61 | 2.61 |
Derivative, sold call volume | item | 15,000 | 15,000 | 15,000 |
Derivative, weighted average sold call | 3.98 | 3.98 | 3.98 |
European Gas Nbp Basis Q4 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 10,000 | 10,000 | 10,000 |
Derivative, weighted average bought put | 3.24 | 3.24 | 3.24 |
Derivative, sold call volume | item | 10,000 | 10,000 | 10,000 |
Derivative, weighted average sold call | 3.98 | 3.98 | 3.98 |
European Gas Ttf Q1 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 7,370 | 7,370 | 7,370 |
Derivative, weighted average bought put | € / MMBTU | 5.37 | 5.37 | 5.37 |
Derivative, sold call volume | item | 7,370 | 7,370 | 7,370 |
Derivative, weighted average sold call | € / MMBTU | 6.25 | 6.25 | 6.25 |
Derivative, sold put volume | item | 7,370 | 7,370 | 7,370 |
Derivative, weighted average sold put | € / MMBTU | 3.81 | 3.81 | 3.81 |
European Gas Ttf Q2 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 13,512 | 13,512 | 13,512 |
Derivative, weighted average bought put | € / MMBTU | 5.36 | 5.36 | 5.36 |
Derivative, sold call volume | item | 9,827 | 9,827 | 9,827 |
Derivative, weighted average sold call | € / MMBTU | 6.15 | 6.15 | 6.15 |
Derivative, sold put volume | item | 13,512 | 13,512 | 13,512 |
Derivative, weighted average sold put | € / MMBTU | 3.73 | 3.73 | 3.73 |
Derivative, swap volume | item | 4,913 | 4,913 | 4,913 |
Derivative, weighted average swap | € / MMBTU | 5.54 | 5.54 | 5.54 |
European Gas Ttf Q3 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 13,512 | 13,512 | 13,512 |
Derivative, weighted average bought put | € / MMBTU | 5.36 | 5.36 | 5.36 |
Derivative, sold call volume | item | 9,827 | 9,827 | 9,827 |
Derivative, weighted average sold call | € / MMBTU | 6.15 | 6.15 | 6.15 |
Derivative, sold put volume | item | 13,512 | 13,512 | 13,512 |
Derivative, weighted average sold put | € / MMBTU | 3.73 | 3.73 | 3.73 |
Derivative, swap volume | item | 3,258 | 3,258 | 3,258 |
Derivative, weighted average swap | € / MMBTU | 5.45 | 5.45 | 5.45 |
European Gas Ttf Q4 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | EUR | EUR | EUR |
Derivative, bought put volume | item | 7,370 | 7,370 | 7,370 |
Derivative, weighted average bought put | € / MMBTU | 5.37 | 5.37 | 5.37 |
Derivative, sold call volume | item | 7,370 | 7,370 | 7,370 |
Derivative, weighted average sold call | € / MMBTU | 6.25 | 6.25 | 6.25 |
Derivative, sold put volume | item | 7,370 | 7,370 | 7,370 |
Derivative, weighted average sold put | € / MMBTU | 3.81 | 3.81 | 3.81 |
European Gas Ttf Basis Q2 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 2,500 | 2,500 | 2,500 |
Derivative, weighted average bought put | 3.50 | 3.50 | 3.50 |
Derivative, sold call volume | item | 2,500 | 2,500 | 2,500 |
Derivative, weighted average sold call | 4 | 4 | 4 |
Derivative, swap volume | item | 5,000 | 5,000 | 5,000 |
Derivative, weighted average swap | 3.21 | 3.21 | 3.21 |
European Gas Ttf Basis Q3 2020 [Member] | |||
Statement [Line Items] | |||
Description of presentation currency | USD | USD | USD |
Derivative, bought put volume | item | 2,500 | 2,500 | 2,500 |
Derivative, weighted average bought put | 3.50 | 3.50 | 3.50 |
Derivative, sold call volume | item | 2,500 | 2,500 | 2,500 |
Derivative, weighted average sold call | 4 | 4 | 4 |
Derivative, swap volume | item | 5,000 | 5,000 | 5,000 |
Derivative, weighted average swap | 3.21 | 3.21 | 3.21 |
European Gas cross currency interest rate [Member] | |||
Statement [Line Items] | |||
Derivative interest maturity period | Q1 2020 | Q1 2020 | Q1 2020 |
Swap Contract One [Member] | European Gas cross currency interest rate [Member] | |||
Statement [Line Items] | |||
Derivative interest maturity period | Jan 2020 - Mar 2025 | Jan 2020 - Mar 2025 | Jan 2020 - Mar 2025 |
Proceeds from sales or maturity of financial instruments, classified as investing activities | $ | $ 300,000,000 | ||
London Interbank Offered Rate | 5.625% | 5.625% | 5.625% |
Purchase of financial instruments, classified as investing activities | € | € 265,048,910 | ||
Canadian Dollar Offered Rate | 3.275% | 3.275% | 3.275% |
Swap Contract One [Member] | VET Equity Swaps [Member] | |||
Statement [Line Items] | |||
Derivative interest maturity period | Jan 2020 - Sep 2021 | Jan 2020 - Sep 2021 | Jan 2020 - Sep 2021 |
Initial Share Price | $ / shares | $ 20.9788 | ||
Share Volume | $ | $ 2,250,000 | ||
Swap Contract Two [Member] | European Gas cross currency interest rate [Member] | |||
Statement [Line Items] | |||
Proceeds from sales or maturity of financial instruments, classified as investing activities | $ | $ 1,735,895,470 | ||
London Interbank Offered Rate | 1.70% | 1.70% | 1.70% |
Purchase of financial instruments, classified as investing activities | $ | $ 2,304,900,000 | ||
Canadian Dollar Offered Rate | 1.25% | 1.25% | 1.25% |
Swap Contract Two [Member] | VET Equity Swaps [Member] | |||
Statement [Line Items] | |||
Derivative interest maturity period | Jan 2020 - Oct 2021 | Jan 2020 - Oct 2021 | Jan 2020 - Oct 2021 |
Initial Share Price | $ / shares | $ 22.4587 | ||
Share Volume | $ | $ 1,500,000 |
Supplemental information - Sold
Supplemental information - Sold option instruments (Details) | 12 Months Ended |
Dec. 31, 2019item€ / MMBTU$ / MMBTU | |
Crude Oil Dated Brent Period if Option Exercised One [Member] | |
Statement [Line Items] | |
Derivative, contract period | Feb 2020 - Jan 2021 |
Description of presentation currency | USD |
Option Expiration Date | Jan. 28, 2020 |
Derivative, swap volume | 500 |
Derivative, weighted average swap | $ / MMBTU | 63 |
Crude Oil Dated Brent Period if Option Exercised Two [Member] | |
Statement [Line Items] | |
Derivative, contract period | Feb 2020 - Jan 2021 |
Description of presentation currency | USD |
Option Expiration Date | Jan. 31, 2020 |
Derivative, swap volume | 3,000 |
Derivative, weighted average swap | $ / MMBTU | 62 |
Crude Oil Dated Brent Period if Option Exercised Three [Member] | |
Statement [Line Items] | |
Derivative, contract period | Mar 2020 - Feb 2021 |
Description of presentation currency | USD |
Option Expiration Date | Feb. 28, 2020 |
Derivative, swap volume | 4,500 |
Derivative, weighted average swap | $ / MMBTU | 62.71 |
Crude Oil Dated Brent Period if Option Exercised Four [Member] | |
Statement [Line Items] | |
Derivative, contract period | Apr 2020 - Mar 2021 |
Description of presentation currency | USD |
Option Expiration Date | Mar. 31, 2020 |
Derivative, swap volume | 3,500 |
Derivative, weighted average swap | $ / MMBTU | 63.32 |
Crude Oil Dated Brent Period if Option Exercised Five [Member] | |
Statement [Line Items] | |
Derivative, contract period | Apr 2020 - Mar 2021 |
Description of presentation currency | USD |
Option Expiration Date | Mar. 31, 2020 |
Derivative, bought put volume | 1,000 |
Derivative, weighted average bought put | $ / MMBTU | 64 |
Derivative, sold call volume | 1,000 |
Derivative, weighted average sold call | $ / MMBTU | 69 |
Derivative, sold put volume | 1,000 |
Derivative, weighted average sold put | $ / MMBTU | 59 |
Crude Oil Dated Brent Period if Option Exercised Six [Member] | |
Statement [Line Items] | |
Derivative, contract period | May 2020 - Apr 2021 |
Description of presentation currency | USD |
Option Expiration Date | Apr. 30, 2020 |
Derivative, swap volume | 4,000 |
Derivative, weighted average swap | $ / MMBTU | 62.63 |
European Gas Nbp Period if Option Exercised One [Member] | |
Statement [Line Items] | |
Derivative, contract period | Oct 2020 - Jun 2022 |
Description of presentation currency | EUR |
Option Expiration Date | Jun. 30, 2020 |
Derivative, swap volume | 2,457 |
Derivative, weighted average swap | € / MMBTU | 5.86 |
European Gas Nbp Period if Option Exercised Two [Member] | |
Statement [Line Items] | |
Derivative, contract period | Jan 2021 - Sep 2022 |
Description of presentation currency | EUR |
Option Expiration Date | Jun. 30, 2020 |
Derivative, swap volume | 2,457 |
Derivative, weighted average swap | € / MMBTU | 5.86 |
European Gas Nbp Period if Option Exercised Three [Member] | |
Statement [Line Items] | |
Derivative, contract period | Jan 2021 - Sep 2022 |
Description of presentation currency | USD |
Option Expiration Date | Jun. 30, 2020 |
Derivative, swap volume | 2,457 |
Derivative, weighted average swap | € / MMBTU | 6.45 |
European Gas Nbp Period if Option Exercised Four [Member] | |
Statement [Line Items] | |
Derivative, contract period | Jan 2022 - Dec 2022 |
Description of presentation currency | USD |
Option Expiration Date | Jun. 30, 2020 |
Derivative, swap volume | 9,827 |
Derivative, weighted average swap | € / MMBTU | 6.45 |
European Gas Nbp Period if Option Exercised Five [Member] | |
Statement [Line Items] | |
Derivative, contract period | Oct 2020 - Jun 2022 |
Description of presentation currency | EUR |
Option Expiration Date | Sep. 30, 2020 |
Derivative, swap volume | 2,457 |
Derivative, weighted average swap | € / MMBTU | 6.15 |