Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001293135 |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2022 |
Entity File Number | 001-35829 |
Entity Registrant Name | Vermilion Energy Inc. |
Entity Incorporation, State or Country Code | A0 |
Entity Primary SIC Number | 1311 |
Entity Tax Identification Number | 00-0000000 |
Entity Address, Address Line One | 3500, 520 - 3rd Avenue S.W. |
Entity Address, State or Province | AB |
Entity Address, City or Town | Calgary |
Entity Address, Postal Zip Code | T2P 0R3 |
City Area Code | 403 |
Local Phone Number | 269-4884 |
Title of 12(b) Security | Common Shares |
ICFR Auditor Attestation Flag | true |
Trading Symbol | VET |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Common Stock, Shares Outstanding | 163,226,618 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Auditor Name | Deloitte LLP |
Auditor Firm ID | 1208 |
Auditor Location | Calgary, Canada |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | National Corporate Research, Ltd |
Entity Address, Address Line One | 225 West 34th Street, Suite 910 |
Entity Address, State or Province | NY |
Entity Address, City or Town | New York |
Entity Address, Postal Zip Code | 10122 |
City Area Code | 212 |
Local Phone Number | 947-7200 |
Consolidated Balance Sheet
Consolidated Balance Sheet - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current | ||
Cash and cash equivalents | $ 13,836 | $ 6,028 |
Accounts receivable | 373,651 | 328,584 |
Crude oil inventory | 19,657 | 20,070 |
Derivative instruments | 162,843 | 19,321 |
Prepaid expenses | 144,459 | 98,842 |
Total current assets | 714,446 | 472,845 |
Derivative instruments | 132,598 | |
Investment in securities | 56,366 | |
Deferred taxes | 125,533 | 374,993 |
Exploration and evaluation assets | 270,593 | 233,290 |
Property, plant and equipment | 5,691,522 | 4,824,195 |
Total assets | 6,991,058 | 5,905,323 |
Current | ||
Accounts payable and accrued liabilities | 481,444 | 440,658 |
Dividends payable | 13,058 | |
Derivative instruments | 55,845 | 268,973 |
Income taxes payable | 341,698 | 37,182 |
Total current liabilities | 892,045 | 746,813 |
Derivative instruments | 0 | 51,213 |
Long-term debt | 1,081,351 | 1,651,569 |
Lease obligations | (51,507) | (60,190) |
Asset retirement obligations | 1,087,757 | 1,000,554 |
Deferred taxes | 477,340 | 328,839 |
Total liabilities | 3,590,000 | 3,839,178 |
Shareholders' Equity | ||
Shareholders' capital | 4,243,794 | 4,241,773 |
Contributed surplus | 35,409 | 49,529 |
Accumulated other comprehensive income | 123,505 | 28,467 |
Deficit | (1,001,650) | (2,253,624) |
Total shareholders' equity | 3,401,058 | 2,066,145 |
Total liabilities and shareholders' equity | $ 6,991,058 | $ 5,905,323 |
Consolidated Statements of Net
Consolidated Statements of Net (Loss) Earnings and Comprehensive Loss - CAD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | ||
Petroleum and natural gas sales | $ 3,476,394 | $ 2,079,761 |
Royalties | (306,017) | (186,122) |
Sales of purchased commodities | 244,834 | 147,091 |
Petroleum and natural gas revenue | 3,415,211 | 2,040,730 |
Expenses | ||
Purchased commodities | 244,834 | 147,091 |
Operating | 489,034 | 413,013 |
Transportation | 78,896 | 77,161 |
Equity based compensation | 44,390 | 41,565 |
(Gain) loss on derivative instruments | (134,907) | 508,478 |
Interest expense | 82,858 | 73,075 |
General and administration | 57,677 | 52,877 |
Foreign exchange loss | 69,269 | 71,576 |
Other income | (11,149) | (21,422) |
Accretion | 58,170 | 43,552 |
Depletion and depreciation | 577,134 | 571,688 |
Impairment reversal | (192,094) | (1,302,619) |
Gain on business combinations | (17,198) | |
Expenses | 1,364,112 | 658,837 |
Earnings before income taxes | 2,051,099 | 1,381,893 |
Income tax expense | ||
Deferred | 288,707 | 187,343 |
Current | 226,471 | 45,854 |
Windfall taxes | 222,859 | |
Taxes | 738,037 | 233,197 |
Net earnings | 1,313,062 | 1,148,696 |
Other comprehensive income | ||
Currency translation adjustments | 60,543 | (55,632) |
Hedge accounting reserve | 5,599 | 6,113 |
Fair value adjustment on investment in securities, net of tax | 28,896 | 0 |
Comprehensive income | $ 1,408,100 | $ 1,099,177 |
Net earnings per share | ||
Basic | $ 8.03 | $ 7.13 |
Diluted | $ 7.80 | $ 6.97 |
Weighted average shares outstanding ('000s) | ||
Basic | 163,489 | 161,172 |
Diluted | 168,426 | 164,765 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating | ||
Net earnings | $ 1,313,062 | $ 1,148,696 |
Adjustments: | ||
Accretion | 58,170 | 43,552 |
Depletion and depreciation | 577,134 | 571,688 |
Impairment reversal | (192,094) | (1,302,619) |
Gain on business combinations | 0 | (17,198) |
Unrealized (gain) loss on derivative instruments | (540,801) | 181,094 |
Equity based compensation | 44,390 | 41,565 |
Unrelized foreign exchange loss | 84,464 | 64,963 |
Unrealized other expense | 1,833 | 778 |
Deferred tax expense | 288,707 | 187,343 |
Asset retirement obligations settled | (37,514) | (28,525) |
Changes in non-cash operating working capital | 216,869 | (56,884) |
Cash flows from operating activities | 1,814,220 | 834,453 |
Investing | ||
Drilling and development | (528,056) | (339,390) |
Exploration and evaluation | (23,761) | (35,406) |
Acquisitions, net of cash acquired | (510,309) | (131,628) |
Acquisition of securities | (23,282) | 0 |
Changes in non-cash investing working capital | 26,116 | 36,724 |
Cash flows used in investing activities | (1,059,292) | (469,700) |
Financing | ||
Repayments on the revolving credit facility | (1,121,868) | (341,259) |
Issuance of senior unsecured notes | 499,037 | 0 |
Payments on lease obligations | (21,168) | (22,187) |
Repurchase of shares | (71,659) | 0 |
Cash dividends | (32,711) | 0 |
Cash flows used in financing activities | (748,369) | (363,446) |
Foreign exchange gain (loss) on cash held in foreign currencies | 1,249 | (2,183) |
Net change in cash and cash equivalents | 7,808 | (876) |
Cash and cash equivalents, beginning of year | 6,028 | 6,904 |
Cash and cash equivalents, end of year | 13,836 | 6,028 |
Supplementary information for cash flows from operating activities | ||
Interest paid | 75,042 | 71,369 |
Income taxes paid | $ 144,814 | $ 13,212 |
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, 2020 | $ 4,181,160 | |||
Shareholders' capital | ||||
Vesting of equity based awards | $ 49,922 | $ (49,922) | ||
Equity based compensation | 8,365 | 33,201 | ||
Share-settled dividends on vested equity based awards | 2,326 | $ 2,326 | ||
Repurchase of shares | 0 | 0 | 0 | |
Balance, end of year at Dec. 31, 2021 | 4,241,773 | |||
Balance, beginning of year at Dec. 31, 2020 | 66,250 | |||
Contributed surplus | ||||
Equity based compensation | 8,365 | 33,201 | ||
Vesting of equity based awards | 49,922 | (49,922) | ||
Balance, end of year at Dec. 31, 2021 | 49,529 | |||
Balance, beginning of year at Dec. 31, 2020 | 77,986 | |||
Accumulated other comprehensive income. | ||||
Currency translation adjustments | (55,632) | |||
Hedge accounting reserve | 6,113 | |||
Fair value adjustment on investment in securities, net of tax | 0 | |||
Balance, end of year at Dec. 31, 2021 | 28,467 | |||
Balance, beginning of year at Dec. 31, 2020 | (3,399,994) | |||
Deficit | ||||
Net earnings | 1,148,696 | 1,148,696 | ||
Dividends declared | 0 | |||
Share-settled dividends on vested equity based awards | (2,326) | (2,326) | ||
Repurchase of shares | 0 | 0 | 0 | |
Balance, end of year at Dec. 31, 2021 | (2,253,624) | |||
Deficit | ||||
Total shareholders' equity | 2,066,145 | |||
Vesting of equity based awards | 44,811 | (44,811) | ||
Equity based compensation | 13,699 | 30,691 | ||
Share-settled dividends on vested equity based awards | 4,377 | 4,377 | ||
Repurchase of shares | (60,866) | (10,942) | 71,659 | |
Balance, end of year at Dec. 31, 2022 | 4,243,794 | |||
Contributed surplus | ||||
Equity based compensation | 13,699 | 30,691 | ||
Vesting of equity based awards | 44,811 | $ (44,811) | ||
Balance, end of year at Dec. 31, 2022 | 35,409 | |||
Accumulated other comprehensive income. | ||||
Currency translation adjustments | 60,543 | |||
Hedge accounting reserve | 5,599 | |||
Loss on derivatives designated as cash flow hedges, net of tax | 4,300 | |||
Loss on derivatives designated as net investment hedges, net of tax | 1,300 | |||
Fair value adjustment on investment in securities, net of tax | 28,896 | |||
Balance, end of year at Dec. 31, 2022 | 123,505 | |||
Deficit | ||||
Net earnings | 1,313,062 | 1,313,062 | ||
Dividends declared | (45,769) | |||
Share-settled dividends on vested equity based awards | (4,377) | (4,377) | ||
Repurchase of shares | $ (60,866) | $ (10,942) | 71,659 | |
Balance, end of year at Dec. 31, 2022 | (1,001,650) | |||
Deficit | ||||
Total shareholders' equity | $ 3,401,058 |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2022 | |
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 8, 2023. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
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 3 (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 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. Transaction costs under this classification are expensed as incurred. ● Fair value through other comprehensive income ("FVTOCI"): Financial instruments under this classification include derivative assets, investment in securities, and liabilities where hedge accounting is applied. Transaction costs under this classification are expensed as incurred. ● Amortized cost: Financial instruments under this classification include accounts receivable, accounts payable and accrued liabilities, dividends payable, lease obligations, and long-term debt. Transaction costs under this classification are included in the measurement of the financial instrument. 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 Long-term Incentive Plan (“LTIP”) and the Deferred Share Unit Plan ("DSU"). Equity-settled awards issued under the LTIP vest over a period of one three years 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 LTIP 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 in the statement of comprehensive income. 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 values. 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 determination of whether indicators of impairment or impairment reversals: ● Determining whether there are indicators of impairment or impairment reversals are based on management's assessments of the changes in estimates for future commodity prices, costs, discount rates, or reserves. Changes in these estimates and assumptions can directly impact the calculated fair value of capital assets and therefore could be indicators of impairment or impairment reversals. In addition, change in the Vermilion's market capitalization relative to its book value could be an indicator of impairment. 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 ("CGU"): ● Calculating the fair value of capital assets acquired in a business combination and the recoverable amount of CGUs (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. Reserve 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
Segmented information | 12 Months Ended |
Dec. 31, 2022 | |
Segmented information | |
Segmented information | 3. Segmented information Substantially all sales in the France and Netherlands operating segments for the years ended December 31, 2022 and December 31, 2021 were to one customer in each respective segment. In 2022 and 2021, France and the Netherlands each contributed more than 10% of Vermilion's consolidated revenues. Year Ended December 31, 2022 Canada USA France Netherlands Germany Ireland Australia Corporate Total Total assets 3,612,487 618,116 823,544 240,276 398,612 465,643 249,253 583,127 6,991,058 Drilling and development 275,203 63,353 44,250 21,629 25,087 3,030 95,173 331 528,056 Exploration and evaluation — — 2 23 1,070 — — 22,666 23,761 Crude oil and condensate sales 910,863 130,150 365,431 2,119 62,464 15 221,187 — 1,692,229 NGL sales 114,128 19,385 — — — — — — 133,513 Natural gas sales 319,293 16,698 — 560,738 418,796 324,330 — 10,797 1,650,652 Sales of purchased commodities — — — — — — — 244,834 244,834 Royalties (196,005) (44,427) (40,353) (512) (21,232) — — (3,488) (306,017) Revenue from external customers 1,148,279 121,806 325,078 562,345 460,028 324,345 221,187 252,143 3,415,211 Purchased commodities — — — — — — — (244,834) (244,834) Transportation (44,849) (618) (20,100) — (9,751) (3,578) — — (78,896) Operating (240,899) (27,372) (57,588) (45,903) (41,523) (16,580) (57,478) (1,691) (489,034) General and administration (28,643) (5,863) (16,444) (4,255) (6,949) 122 (4,964) 9,319 (57,677) PRRT — — — — — — (18,318) — (18,318) Corporate income taxes (10) — (29,889) (150,647) (31,513) — 5,016 (1,110) (208,153) Windfall taxes — — — — — — — (222,859) (222,859) Interest expense — — — — — — — (82,858) (82,858) Realized loss on derivative instruments — — — — — — — (405,894) (405,894) Realized foreign exchange gain — — — — — — — 15,195 15,195 Realized other income — — — — — — — 12,982 12,982 Fund flows from operations 833,878 87,953 201,057 361,540 370,292 304,309 145,443 (669,607) 1,634,865 Year Ended December 31, 2021 Canada USA France Netherlands Germany Ireland Australia Corporate Total Total assets 3,100,322 545,296 771,707 227,779 422,030 427,362 217,852 192,975 5,905,323 Drilling and development 190,242 32,540 39,587 20,198 19,234 1,261 34,785 1,543 339,390 Exploration and evaluation — — 121 6,839 1,073 — — 27,373 35,406 Crude oil and condensate sales 625,053 80,208 279,263 2,640 32,607 23 143,014 — 1,162,808 NGL sales 86,932 17,723 — — — — — — 104,655 Natural gas sales 189,790 14,484 — 293,083 99,328 214,402 — 1,211 812,298 Sales of purchased commodities — — — — — — — 147,091 147,091 Royalties (113,651) (30,747) (37,666) (873) (2,847) — — (338) (186,122) Revenue from external customers 788,124 81,668 241,597 294,850 129,088 214,425 143,014 147,964 2,040,730 Purchased commodities — — — — — — — (147,091) (147,091) Transportation (38,764) (1,336) (26,497) — (6,359) (4,205) — — (77,161) Operating (215,378) (16,992) (52,147) (35,269) (27,149) (14,889) (50,748) (441) (413,013) General and administration (18,380) (4,563) (10,954) (1,243) (5,257) 9 (3,457) (9,032) (52,877) PRRT — — — — — — (15,688) — (15,688) Corporate income taxes — — 9,120 (46,567) — — 5,759 1,522 (30,166) Interest expense — — — — — — — (73,075) (73,075) Realized loss on derivative instruments — — — — — — — (327,384) (327,384) Realized foreign exchange loss — — — — — — — (6,613) (6,613) Realized other income — — — — — — — 22,200 22,200 Fund flows from operations 515,602 58,777 161,119 211,771 90,323 195,340 78,880 (391,950) 919,862 Reconciliation of fund flows from operations to net earnings: Year Ended Dec 31, 2022 Dec 31, 2021 Fund flows from operations 1,634,865 919,862 Equity based compensation (44,390) (41,565) Unrealized gain (loss) on derivative instruments 540,801 (181,094) Unrealized foreign exchange (loss) gain (84,464) (64,963) Accretion (58,170) (43,552) Depletion and depreciation (577,134) (571,688) Deferred tax expense (288,707) (187,343) Gain on business combinations — 17,198 Impairment reversal 192,094 1,302,619 Unrealized other expense (1,833) (778) Net earnings 1,313,062 1,148,696 |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about business combination [abstract] | |
Business combinations | 4. Business combinations Leucrotta Exploration Inc. On May 31, 2022, Vermilion closed the acquisition of all outstanding common shares of Leucrotta Exploration Inc. (“Leucrotta”), a Canadian publicly listed, Montney-focused oil and natural gas exploration and development company. The primary asset acquired is the Mica property, comprised of 81,000 gross (77,000 net) contiguous acres of Montney mineral rights in the Peace River Arch straddling the Alberta and British Columbia borders. Prior to May 31, 2022, Vermilion controlled 7,536,800 common shares of Leucrotta. On May 31, 2022, Vermilion transferred consideration and assumed ownership of all remaining outstanding common shares of Leucrotta. The acquisition was funded through Vermilion’s revolving credit facility. The total consideration and the fair value of the assets acquired and liabilities assumed at the date of acquisition are detailed in the table below: Consideration Cash consideration paid 486,488 Fair value of previously held equity interest 13,039 Total consideration 499,527 Allocation of consideration Cash acquired 2,659 Capital assets 559,094 Exploration and evaluation assets 43,227 Deferred tax liabilities (97,891) Asset retirement obligations (1,440) Derivative liability (339) Acquired working capital deficiency (5,783) Net assets acquired 499,527 The results of operations from the assets acquired and liabilities assumed have been included in Vermilion’s consolidated financial statements beginning May 31, 2022 and have contributed revenues of $55.7 million and net earnings of $17.1 million. Had the acquisition occurred on January 1, 2022, consolidated petroleum and natural gas revenue would have been $3,444.7 million and consolidated net earnings would have been $1,322.0 million for the year ended December 31, 2022. |
Investment in securities
Investment in securities | 12 Months Ended |
Dec. 31, 2022 | |
Investment in securities [Abstract] | |
Investment in securities | 5. Investment in securities Vermilion holds investments in Coelacanth Energy Inc., a Montney-focused oil and natural gas exploration and development company listed on the TSX Venture exchange. Vermilion has acquired shares via a private placement concurrent with the closing of the purchase of Leucrotta and via open market purchases. Vermilion has made an optional election to subsequently measure the investment at fair value through other comprehensive income. The investment is classified as a level 1 instrument on the fair value hierarchy and therefore uses observable inputs when making fair value adjustments. The total consideration paid and the fair value of the investment acquired are detailed in the table below: Amount Balance at January 1 — Acquisition of securities 23,282 Fair value adjustment 33,084 Balance at December 31 56,366 |
Capital assets
Capital assets | 12 Months Ended |
Dec. 31, 2022 | |
Capital assets | |
Capital assets | 6. Capital assets The following table reconciles the change in Vermilion’s capital assets: 2022 2021 Balance at January 1 4,824,195 3,107,104 572,535 180,806 Additions 528,056 339,390 Increase in right-of-use assets 13,871 551 Transfers from exploration and evaluation assets 1,223 11,495 Impairment reversal 192,094 1,302,619 Depletion and depreciation (546,381) (538,704) Changes in asset retirement obligations 65,462 528,714 40,467 (107,780) Balance at December 31 5,691,522 4,824,195 12,058,520 10,849,047 Accumulated depletion, depreciation, and impairment (6,366,998) (6,024,852) Carrying amount at December 31, 2022 5,691,522 4,824,195 In the first quarter of 2022, indicators of impairment reversal were present in our Canada - Saskatchewan and France - Neocomian cash generating units ("CGUs") due to an increase and stabilization in forecast oil prices. As a result of the indicators of impairment reversal, the Company performed impairment reversal calculations on the identified CGUs and the recoverable amounts were determined using fair value less costs to sell, which considered future after-tax cash flows from proved plus probable reserves and an after-tax discount rate of 12.0%. Based on the results of the impairment reversal calculations completed, recoverable amounts were determined to be greater than the carrying values of the CGUs tested and $144.4 million (net of $47.7 million deferred income tax expense) of impairment reversal was recorded. Inputs used in the measurement of capital assets are not based on observable market data and fall within level 3 of the fair value hierarchy. The following benchmark price forecasts were used to calculate the recoverable amounts: 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 (2) Brent Crude ($ US/bbl) (1) 100.50 89.50 79.64 81.23 82.86 84.51 86.21 87.94 89.69 91.48 WTI Crude ($ US/bbl) (1) 95.00 85.00 75.64 77.15 78.70 80.27 81.88 83.52 85.19 86.89 Exchange rate (CAD/USD) 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 (1) The forecast benchmark prices listed are adjusted for quality differentials, heat content, transportation and marketing costs and other factors specific to the Company’s operations when determining recoverable amounts. (2) In 2032 and beyond, commodity price forecasts are inflated at a rate of 2.0% per annum. In 2032 and beyond there is no escalation of exchange rates. The following are the results of tests completed, recoverable amounts, and sensitivity impacts which would decrease impairment reversals taken: Operating Segment CGU Impairment Reversal (1) Recoverable Amount 1% increase in discount rate 5% decrease in pricing Canada Saskatchewan 159,985 2,150,936 — — France Neocomian 32,109 166,818 — — Total 192,094 2,317,754 — — (1) Impairment reversals are subject to the lower of the recoverable amount and the carrying value, which includes depletion and depreciation of the CGU had no impairment charges been previously taken. 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, 2022: As at Dec 31, 2022 As at Dec 31, 2021 ($M) Depreciation Balance Depreciation Balance Office space 8,328 31,199 8,921 38,216 Gas processing facilities 7,691 13,415 7,691 20,504 Oil storage facilities 2,429 8,970 2,644 11,480 Vehicles and equipment 4,716 13,944 3,629 6,038 Total 23,164 67,528 22,885 76,238 |
Exploration and evaluation asse
Exploration and evaluation assets | 12 Months Ended |
Dec. 31, 2022 | |
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: 2022 2021 Balance at January 1 233,290 254,094 Acquisitions 43,227 — Additions 23,761 35,406 Changes in asset retirement obligations 646 110 Transfers to capital assets (1,223) (11,495) Depreciation (30,503) (35,549) Foreign exchange 1,395 (9,276) Balance at December 31 270,593 233,290 Cost 476,571 408,494 Accumulated depreciation (205,978) (175,204) Carrying amount at December 31 270,593 233,290 |
Asset retirement obligations
Asset retirement obligations | 12 Months Ended |
Dec. 31, 2022 | |
Asset retirement obligations | |
Asset retirement obligations | 8. Asset retirement obligations The following table reconciles the change in Vermilion’s asset retirement obligations: 2022 2021 Balance at January 1 1,000,554 467,737 Additional obligations recognized 5,184 28,655 Changes in estimated abandonment timing and costs 207,919 85,022 Obligations settled (37,514) (28,525) Accretion 58,170 43,552 Changes in rates (145,555) 439,849 Foreign exchange (1,001) (35,736) Balance at December 31 1,087,757 1,000,554 Vermilion calculated the present value of the obligations using a credit-adjusted risk-free rate, calculated using a credit spread of 4.5% as at December 31, 2022 (December 31, 2021 – 4.9%) added to risk-free rates based on long-term, risk-free government bonds. Vermilion’s credit spread is determined using the Company’s expected cost of borrowing at the end of the reporting period. The country-specific risk-free rates used as inputs to discount the obligations were as follows: Dec 31, 2022 Dec 31, 2021 Canada 3.3 % 1.8 % United States 4.1 % 1.9 % France 3.4 % 0.8 % Netherlands 2.7 % (0.3) % Germany 2.5 % 0.1 % Ireland 3.2 % 0.5 % Australia 4.2 % 1.9 % Vermilion has estimated the asset retirement obligations based on current cost estimates of $2.3 billion (2021 - $2.0 billion). Current cost estimates are inflated to the estimated time of abandonment using inflation rates of between 1.6% and 4.2% (2021 - between 1.1% and 3.1%), resulting in inflated cost estimates of $3.7 billion (2021 - $3.1 billion). These payments are expected to be made over the next 60 years, with the majority of the costs incurred in the first 40 years. A 0.5% increase/decrease in the discount rate applied to asset retirement obligations would decrease/increase asset retirement obligations by approximately $64.8 million. A one-year increase/decrease in the expected timing of abandonment spend would decrease/increase asset retirement obligations by approximately $54.0 million. |
Derivative instruments
Derivative instruments | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Dec 31, 2021 Fair value of contracts, beginning of year (300,865) (119,772) Reversal of opening contracts settled during the year 164,208 112,679 Assumed in acquisitions (339) — Realized loss on contracts settled during the year (405,894) (327,384) Unrealized gain (loss) during the year on contracts outstanding at the end of the year 376,593 (293,773) Net receipt from counterparties on contract settlements during the year 405,893 327,385 Fair value of contracts, end of year 239,596 (300,865) Comprised of: Current derivative asset 162,843 19,321 Current derivative liability (55,845) (268,973) Non-current derivative asset 132,598 — Non-current derivative liability — (51,213) Fair value of contracts, end of year 239,596 (300,865) The (gain) loss on derivative instruments for 2022 and 2021 were comprised of the following: Year Ended Dec 31, 2022 Dec 31, 2021 Realized loss on contracts settled during the year 405,894 327,384 Reversal of opening contracts settled during the year (164,208) (112,679) Unrealized (gain) loss on contracts outstanding at the end of the year (376,593) 293,773 (Gain) loss on derivative instruments (134,907) 508,478 Vermilion executes derivative instruments where there is an underlying exposure to offset the position. Consistent with our accounting policy we do not match unrealized gains / losses on these contracts with the underlying exposure. Please refer to Note 19 (Supplemental information) for a listing of Vermilion's outstanding derivative instruments as at December 31, 2022. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 10. Leases Vermilion had the following future commitments associated with its lease obligations: As at ($M) Dec 31, 2022 Dec 31, 2021 Less than 1 year 23,588 19,045 1 - 3 years 40,374 38,136 3 - 5 years 16,246 25,226 After 5 years 177 3,686 Total lease payments 80,385 86,093 Amounts representing interest (9,392) (10,871) Present value of net lease payments 70,993 75,222 Current portion of lease obligations (19,486) (15,032) Non-current portion of lease obligations 51,507 60,190 Total cash outflow 25,422 27,368 Interest on lease liabilities 4,254 5,181 |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Taxes | |
Taxes | 11. Taxes The following table reconciles Vermilion’s deferred tax asset and liability: As at Dec 31, 2022 Dec 31, 2021 Deferred tax assets: Non-capital losses 200,781 477,903 Derivative contracts — 74,043 Other 39 2,879 Stock based compensation — 8,651 Asset retirement obligations 5,818 83,461 Capital assets (81,105) (268,615) Unrealized foreign exchange — (3,329) Deferred tax assets 125,533 374,993 Deferred tax liabilities: Derivative contracts 58,941 — Asset retirement obligations 100,670 104,258 Capital assets 734,146 322,641 Stock based compensation (5,805) — Other (16,322) (10,518) Unrealized foreign exchange (4,282) — Non-capital losses (390,008) (87,542) Deferred tax liabilities 477,340 328,839 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, 2022 Dec 31, 2021 Earnings before income taxes 2,051,099 1,381,893 Canadian corporate tax rate 24.60 % 24.61 % Expected tax expense 504,570 340,084 Increase (decrease) in taxes resulting from: Petroleum resource rent tax rate (PRRT) differential (1) 13,729 27,281 Foreign tax rate differentials (2) (3) 101,701 43,301 Equity based compensation expense (11,610) 6,794 Amended returns and changes to estimated tax pools and tax positions (5,691) (14,391) Statutory rate changes and the estimated reversal rates on temporary differences (3) 14,274 5,862 Derecognition (recognition) of deferred tax assets (118,304) (190,423) Windfall taxes (3) 222,859 — Other non-deductible items 16,509 14,689 Provision for income taxes 738,037 233,197 (1) In Australia, current taxes include both corporate income tax rates and PRRT. For both 2022 and 2021, corporate income tax rates were applied at a rate of 30% and PRRT was applied at a rate of 40% . (2) The applicable tax rates for 2022 were: 25.8% in France, 50.0% in the Netherlands, 31.3% in Germany, 25.0% in Ireland, and 21.0% in the United States (2021: 27.4% in France, 50.0% in the Netherlands, 31.4% in Germany, 25.0% in Ireland, and 21.0% in the United States). (3) 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. On December 21, 2021, the Dutch Senate approved the 2022 Tax Plan that included an increase to the Dutch corporate tax rate from 25.0% in 2021 to 25.8% in 2022. Due to the tax regime applicable to natural gas producers in the Netherlands, the increase to the corporate tax rate is not expected to have a material impact to Vermilion taxes in the Netherlands. On September 30, 2022 the Council of the European Union agreed, by way of regulation, to the implementation of a temporary windfall tax on the profits of oil and gas producers resident in the European Union. This windfall tax is referred to as a temporary solidarity contribution and is calculated on the amount by which the taxable profits for the elected years exceeds the greater of zero and 120% of the average taxable profits for the 2018 to 2021 period. The regulation requires Member States to implement the temporary solidarity contribution at a minimum rate of 33% while providing Member States with the option to apply the temporary solidarity contribution to fiscal years beginning on or after January 1, 2022, January 1, 2023, or both. The temporary solidarity contribution is considered a tax pursuant to IAS 12 “Income Taxes”. The related legislation became substantively enacted during the fourth quarter of 2022 resulting in a full year of windfall taxes being recognized during the fourth quarter. The following table summarizes the manner of implementation of the temporary solidarity contribution by the Member States in which Vermilion operates: Jurisdiction 2023 2022 France N/A 33.0 % Netherlands (1) N/A 33.0 % Germany 33.0 % 33.0 % Ireland (2) N/A N/A (1) For 2023 and 2024, Netherlands has implemented a windfall royalty. This royalty applies if annual realized pricing (net of hedges) exceeds €0.50 /Nm3. This royalty is assessed annually at a rate of 65% on realized pricing (net of hedges) less €0.50 /Nm3 and payments on this royalty are deductible in calculating current income taxes. (2) As at December 31, 2022, Ireland has not legislated a windfall tax rate. A rate of 75% was announced in November 2022. At December 31, 2022, Vermilion had $2.4 billion (2021 - $2.7 billion) of unused tax losses of which $1.4 billion (2021 - $1.4 billion) relates to Vermilion's Canada segment and expire between 2025 and 2042. The majority of the remaining unused tax losses relate to Vermilion's Ireland segment and do not expire. At December 31, 2022, Vermilion recognized $118.3 million (2021 - recognized $190.4 million) of deferred income tax assets primarily relating to the aforementioned non-expiring tax loss in Ireland that are expected to be utilized due to an increase in forecasted commodity prices. The aggregate amount of temporary differences associated with investments in subsidiaries for which deferred tax liabilities have not been recognized as at December 31, 2022 is approximately $0.7 billion (2021 – approximately $0.4 billion). |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2022 | |
Long-term debt | |
Long-term debt | 12. Long-term debt The following table summarizes Vermilion’s outstanding long-term debt: As at Dec 31, 2022 Dec 31, 2021 Revolving credit facility 147,666 1,273,755 2025 senior unsecured notes 404,463 377,814 2030 senior unsecured notes 529,222 — Long-term debt 1,081,351 1,651,569 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 2025 senior unsecured notes as at December 31, 2022 was $391.3 million (December 31, 2021 - $387.0 million). The fair value of the 2030 senior unsecured notes as at December 31, 2022 was $496.8 million (December 31, 2021 - nil). The following table reconciles the change in Vermilion’s long-term debt: 2022 2021 Balance at January 1 1,651,569 1,933,848 Repayments on the revolving credit facility (1,121,868) (341,259) Issuance of 2030 senior unsecured notes 499,037 — Amortization of transaction costs 1,833 778 Foreign exchange 50,780 58,202 Balance at December 31 1,081,351 1,651,569 Revolving credit facility As at December 31, 2022, Vermilion had in place a bank revolving credit facility maturing May 29, 2026 with the following terms: As at Dec 31, 2022 Dec 31, 2021 Total facility amount 1,600,000 2,100,000 Amount drawn (147,666) (1,273,755) Letters of credit outstanding (13,527) (11,035) Unutilized capacity 1,438,807 815,210 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. On April 26, 2022, contemporaneous with the issuance of the 2030 senior unsecured notes and at Vermilion's election, the maturity date of the facility was extended to May 29, 2026 (previously May 31, 2024) and the total facility amount was reduced to $1.6 billion (previously $2.1 billion). The facility bears interest at a rate applicable to demand loans plus applicable margins. As at December 31, 2022, the revolving credit facility was subject to the following financial covenants: As at Financial covenant Limit Dec 31, 2022 Dec 31, 2021 Consolidated total debt to consolidated EBITDA Less than 4.0 0.51 1.61 Consolidated total senior debt to consolidated EBITDA Less than 3.5 0.07 1.24 Consolidated EBITDA to consolidated interest expense Greater than 2.5 27.10 14.78 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 consolidated balance sheet. ● Consolidated total senior debt: Consolidated total debt excluding unsecured and subordinated debt. ● Consolidated EBITDA: 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 excludes interest on operating leases as defined under IAS 17. In addition, our revolving credit facility has provisions relating to our liability management ratings in Alberta and Saskatchewan whereby if our security adjusted liability management ratings fall below specified limits in a province, a portion of the asset retirement obligations are included in the definitions of consolidated total debt and consolidated total senior debt. An event of default occurs if our security adjusted liability management ratings breach additional lower limits for a period greater than 90 days. As of December 31, 2022, Vermilion’s liability management ratings were higher than the specified levels, and as such, no amounts relating to asset retirement obligations were included in the calculation of consolidated total debt and consolidated total senior debt. As at December 31, 2022 and December 31, 2021, Vermilion was in compliance with the above covenants. 2025 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 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, if redeemed during the twelve-month period beginning on March 15 of each of the years indicated below: Year Redemption price 2022 101.406 % 2023 and thereafter 100.000 % 2030 senior unsecured notes On April 26, 2022, Vermilion closed a private offering of US $400.0 million 8-year senior unsecured notes. The notes were priced at 99.241% of par, mature on May 1, 2030, and bear interest at a rate of 6.875% per annum. Interest is paid semi-annually on May 1 and November 1, commencing on November 1, 2022. The notes are senior unsecured obligations of Vermilion and rank equally with existing and future senior unsecured indebtedness. The senior unsecured notes were recognized at amortized cost and include the transaction costs directly related to the issuance. Vermilion may, at its option, redeem the notes prior to maturity as follows: ● On or after May 1, 2025, Vermilion may redeem some or all of the senior unsecured notes at the redemption prices set forth below, together with accrued and unpaid interest. ● Prior to May 1, 2025, Vermilion may redeem up to 35% of the original principal amount of the notes with an amount of cash not greater than the net cash proceeds of certain equity offerings at a redemption price of 106.875% of the principal amount of the notes, together with accrued and unpaid interest. ● Prior to May 1, 2025, Vermilion may also redeem some or all of the notes at a price equal to 100% of the principal amount of the notes, plus a “make-whole premium,” together with applicable premium, accrued and unpaid interest. Year Redemption price 2025 103.438 % 2026 102.292 % 2027 101.146 % 2028 and thereafter 100.000 % |
Shareholders' capital
Shareholders' capital | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' capital | |
Shareholders' capital | 13. Shareholders’ capital The following table reconciles the change in Vermilion’s shareholders’ capital: 2022 2021 Shareholders’ capital Shares (‘000s) Amount ($M) Shares (‘000s) Amount ($M) Balance at January 1 162,261 4,241,773 158,724 4,181,160 Vesting of equity based awards 2,578 44,811 2,385 49,922 Shares issued for equity based compensation 549 13,699 911 8,365 Share-settled dividends on vested equity based awards 178 4,377 241 2,326 Repurchase of shares (2,339) (60,866) — — Balance at December 31 163,227 4,243,794 162,261 4,241,773 Vermilion is authorized to issue an unlimited number of common shares with no par value. Dividends declared to shareholders for the year ended December 31, 2022 were $45.8 Subsequent to December 31, 2022 Vermilion declared a dividend of $0.10 per share to be paid April 17, 2023. On July 4, 2022, the Toronto Stock Exchange approved our notice of intention to commence a normal course issuer bid ("the NCIB"). The NCIB allows Vermilion to purchase up to 16,076,666 common shares representing approximately 10% of its public float as at June 22, 2022 beginning July 6, 2022 and ending July 5, 2023. In 2022, Vermilion purchased and cancelled 2.34 million common shares under the NCIB for total consideration of $71.7 million. The surplus between the total consideration and the carrying value of the shares repurchased was recorded as an increase to deficit. Subsequent to December 31, 2022 Vermilion purchased and cancelled 1.14 million common shares under the NCIB for total consideration of $22.4 million. |
Capital disclosures
Capital disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Capital disclosures | |
Capital disclosures | 14. Capital disclosures Vermilion defines capital as net debt (long-term debt (excluding unrealized foreign exchange on swapped USD borrowings) plus adjusted working capital (defined as current assets less current liabilities, excluding current derivatives and current lease liabilities)) and shareholders’ capital. In managing capital, Vermilion reviews whether fund flows from operations is sufficient to fund capital expenditures, dividends, and asset retirement obligations. Vermilion monitors the ratio of net debt to fund flows from operations. As at December 31, 2022, our ratio of net debt to trailing fund flows from operations is 0.82 (2021 – 1.79). Vermilion manages the ratio of net debt to fund flows from operations (refer to Note 3 – 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 1.0 over time. The following table calculates Vermilion’s ratio of net debt to fund flows from operations: Year Ended Dec 31, 2022 Dec 31, 2021 Long-term debt 1,081,351 1,651,569 Adjusted working capital (1) 265,111 9,284 Unrealized FX on swapped USD borrowings (1,876) (16,067) Net debt 1,344,586 1,644,786 Ratio of net debt to four quarter trailing fund flows from operations 0.82 1.79 (1) Adjusted working capital is defined as current assets (excluding current derivatives), less current liabilities (excluding current derivatives and current lease liabilities). |
Equity based compensation
Equity based compensation | 12 Months Ended |
Dec. 31, 2022 | |
Equity based compensation | |
Equity based compensation | 15. Equity based compensation The following table summarizes the number of awards outstanding under the LTIP: Number of LTIP and Five Year Compensation Awards (‘000s) 2022 2021 Opening balance 6,405 6,244 Granted 1,108 2,745 Vested (1,733) (1,520) Forfeited (277) (1,064) Closing balance 5,503 6,405 For the year ended December 31, 2022, the awards had a weighted average grant date fair value of $25.60 (2021 - $9.53). 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 (2022 – 1.0; 2021 – 1.1) adjusted by an estimated annual forfeiture rate (2022 – 3.8%; 2021 – 4.2%). Equity based compensation expense of $29.2 million was recorded during the year ended December 31, 2022 (2021 - $31.3 million) relating to the awards. As at December 31, 2022, there were 392,757 DSUs outstanding with a weighted average grant date fair value of $12.89. In 2022, there were 56,262 DSU grants with a weighted average grant date fair value of $26.70. Equity based compensation expense of $1.5 million was recorded during the year ended December 31, 2022 (2021 - $1.9 million) relating to the DSUs. |
Per share amounts
Per share amounts | 12 Months Ended |
Dec. 31, 2022 | |
Per share amounts | |
Per share amounts | 16. Per share amounts Basic and diluted net earnings per share have been determined based on the following: Year Ended Dec 31, 2022 Dec 31, 2021 Net earnings 1,313,062 1,148,696 Basic weighted average shares outstanding (‘000s) 163,489 161,172 Dilutive impact of equity based compensation (‘000s) 4,937 3,593 Diluted weighted average shares outstanding (‘000s) 168,426 164,765 Basic earnings per share 8.03 7.13 Diluted earnings per share 7.80 6.97 |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments | |
Financial instruments | 17. Financial instruments Classification of financial instruments The following table summarizes the carrying value relating to Vermilion’s financial instruments: As at Dec 31, 2022 As at Dec 31, 2021 Amortized Amortized ($M) FVTPL FVTOCI Cost Total FVTPL FVTOCI Cost Total Cash and cash equivalents 13,836 — — 13,836 6,028 — — 6,028 Derivative assets 295,441 — — 295,441 19,321 — — 19,321 Investment in securities — 56,366 — 56,366 — — — — Derivative liabilities (55,845) — — (55,845) (320,186) — — (320,186) Accounts receivable — — 373,651 373,651 — — 328,584 328,584 Accounts payable and accrued liabilities — — (481,444) (481,444) — — (440,658) (440,658) Dividends payable — — (13,058) (13,058) — — — — Lease obligations — — (51,507) (51,507) — — (60,190) (60,190) Long-term debt (1) — — (1,081,351) (1,081,351) — — (1,651,569) (1,651,569) (1) The carrying value of the above equals fair value except for long-term debt. The fair value of long-term debt was $1,035,671 (2021 - $1,660,778 ). 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 , investment in securities, 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, 2022 and 2021. 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, 2022 Dec 31, 2021 Currency risk - Euro to Canadian dollar $0.01 increase in strength of the Canadian dollar against the Euro 5,640 (273) $0.01 decrease in strength of the Canadian dollar against the Euro (5,640) 273 Currency risk - US dollar to Canadian dollar $0.01 increase in strength of the Canadian dollar against the US $ 5,441 2,086 $0.01 decrease in strength of the Canadian dollar against the US $ (5,441) (2,086) Commodity price risk - Crude oil US $5.00/bbl increase in crude oil price used to determine the fair value of derivatives — (9,324) US $5.00/bbl decrease in crude oil price used to determine the fair value of derivatives — 1,636 Commodity price risk - European natural gas € 5.0/GJ increase in European natural gas price used to determine the fair value of derivatives (88,524) (10,554) € 5.0/GJ decrease in European natural gas price used to determine the fair value of derivatives 91,828 10,554 Share price risk - Equity swaps $1.00 increase from initial share price of the equity swap 3,750 3,750 $1.00 decrease from initial share price of the equity swap (3,750) (3,750) 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, 2022, Vermilion’s maximum exposure to receivable credit risk was $669.1 million (December 31, 2021 - $347.9 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, 2022 and 2021 is not material. As at the balance sheet date, approximately 0.5% (2021 –0.8%) 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, 2022 192,572 278,520 23,412 607,796 December 31, 2021 191,297 223,885 25,475 1,718,475 |
Related party disclosures
Related party disclosures | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021: Year Ended Dec 31, 2022 Dec 31, 2021 Short-term benefits 5,124 4,654 Equity based compensation 8,951 14,570 14,075 19,224 Number of individuals included in the above amounts 16 18 During the year ended December 31, 2022, Vermilion recorded $0.1 million of office rent recoveries (2021 - $0.2 million) relating to an office sub-lease to a company whose Managing Director was also a member of Vermilion’s Board of Directors during the year, but is no longer as at December 31, 2022. 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, 2022 | |
Supplemental information | |
Supplemental information | 19. Supplemental information Changes in non-cash working capital was comprised of the following: Year Ended Dec 31, 2022 Dec 31, 2021 Changes in: Accounts receivable (45,067) (132,507) Crude oil inventory 413 (6,668) Prepaid expenses (45,617) (71,156) Accounts payable and accrued liabilities 40,786 142,988 Income taxes payable 304,516 32,643 Foreign exchange (12,046) 14,540 Changes in non-cash working capital 242,985 (20,160) Changes in non-cash operating working capital 216,869 (56,884) Changes in non-cash investing working capital 26,116 36,724 Changes in non-cash working capital 242,985 (20,160) As at December 31, 2022, prepaid expenses includes a deposit of $68.5 million related to a previously announced transaction to acquire an additional working interest within the Corrib natural gas project and $23.0 million for a land acquisition. Cash and cash equivalents was comprised of the following: As at Dec 31, 2022 Dec 31, 2021 Cash on deposit with financial institutions 13,701 5,901 Guaranteed investment certificates 135 127 Cash and cash equivalents 13,836 6,028 Wages and benefits included in operating expenses and general and administration expenses were: Year Ended Dec 31, 2022 Dec 31, 2021 Operating expense 75,165 73,739 General and administration expense 45,525 54,771 Wages and benefits 120,690 128,510 As at December 31, 2022, we had the following contractual obligations and commitments: ($M) Less than 1 year 1 - 3 years 3 - 5 years After 5 years Total Long-term debt (1) 69,235 533,362 225,861 634,875 1,463,333 Lease obligations 46,245 49,730 29,062 8,597 133,634 Processing and transportation agreements 40,267 52,786 23,133 101,629 217,815 Purchase obligations 27,481 4,907 444 285 33,117 Drilling and service agreements 5,051 58,122 — — 63,173 Total contractual obligations and commitments 188,279 698,907 278,500 745,386 1,911,072 (1) Interest on revolving credit facility calculated assuming an annual interest rate of 6.19% . (2) Commitments denominated in foreign currencies have been translated using the related spot rates on December 31, 2022. The following tables summarize Vermilion’s outstanding risk management positions as at December 31, 2022: Weighted Weighted Weighted Weighted Daily Weighted Daily Average Daily Average Daily Average Daily Average Bought Average Bought Put Bought Put Sold Call Sold Call Sold Put Sold Put Sold Swap Sold Swap Swap Bought Unit Currency Volume Price Volume Price Volume Price Volume Price Volume Swap Price AECO Q1 2023 mcf CAD 4,739 3.69 4,739 7.70 — — 28,435 4.95 — — Q2 2023 mcf CAD — — — — — — 14,217 4.19 — — Q3 2023 mcf CAD — — — — — — 14,217 4.19 — — Q4 2023 mcf CAD — — — — — — 4,791 4.19 — — AECO Basis (AECO less NYMEX Henry Hub) Q2 2023 mcf USD — — — — — — 23,000 (1.13) — — Q3 2023 mcf USD — — — — — — 23,000 (1.13) — — Q4 2023 mcf USD — — — — — — 7,750 (1.13) — — NYMEX Henry Hub Q1 2023 mcf USD 24,000 4.00 24,000 8.44 — — — — — — Q2 2023 mcf USD 5,000 4.00 5,000 8.75 — — — — — — Q3 2023 mcf USD 5,000 4.00 5,000 8.75 — — — — — — Q4 2023 mcf USD 1,685 4.00 1,685 8.75 — — — — — — Weighted Weighted Weighted Weighted Daily Weighted Daily Average Daily Average Daily Average Daily Average Bought Average Bought Put Bought Put Sold Call Sold Call Sold Put Sold Put Sold Swap Sold Swap Swap Bought Unit Currency Volume Price Volume Price Volume Price Volume Price Volume Swap Price NBP Q1 2023 mcf EUR 18,426 11.76 18,426 19.54 14,740 4.10 — — — — Q2 2023 mcf EUR 7,370 11.48 7,370 17.46 4,913 4.40 — — — — Q3 2023 mcf EUR 2,457 22.71 2,457 35.90 — — — — — — Q1 2024 mcf EUR 4,913 41.03 4,913 84.26 — — — — — — TTF Q1 2023 mcf EUR 14,740 24.01 14,740 46.12 2,457 3.52 — — — — Q2 2023 mcf EUR 19,654 34.53 19,654 53.21 — — — — — — Q3 2023 mcf EUR 19,654 34.53 19,654 53.21 — — — — — — Q4 2023 mcf EUR 12,284 44.84 12,284 84.99 — — 3,685 67.41 — — Q1 2024 mcf EUR 31,938 40.69 31,938 78.00 — — 3,685 67.41 — — Q2 2024 mcf EUR 3,593 37.56 3,593 74.66 — — — — — — Q3 2024 mcf EUR 3,593 37.56 3,593 74.66 — — — — — — VET Equity Swaps Initial Share Price Share Volume Swap Jan 2020 - Apr 2023 20.9788 CAD 2,250,000 Swap Jan 2020 - Jul 2024 22.4587 CAD 1,500,000 Cross Currency Interest Rate Receive Notional Amount Receive Rate Pay Notional Amount Pay Rate Swap January 2023 111,600,000 USD SOFR + 1.35% 150,000,000 CAD CDOR + 0.88% |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent events | |
Subsequent events | 20. Subsequent events In the first quarter of 2022, we signed an agreement to sell an asset package in southeast Saskatchewan. The assets are comprised of approximately 5,500 boe/d of non-core light oil production in the greater Arcola and Queensdale areas of southeast Saskatchewan. Total cash consideration is $225 million, before closing adjustments. The transaction has an effective date of September 1, 2022 and is expected to close in March 2023. The net proceeds will be used to pay down our revolving credit facility. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 3 (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 |
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. Transaction costs under this classification are expensed as incurred. ● Fair value through other comprehensive income ("FVTOCI"): Financial instruments under this classification include derivative assets, investment in securities, and liabilities where hedge accounting is applied. Transaction costs under this classification are expensed as incurred. ● Amortized cost: Financial instruments under this classification include accounts receivable, accounts payable and accrued liabilities, dividends payable, lease obligations, and long-term debt. Transaction costs under this classification are included in the measurement of the financial instrument. 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 Long-term Incentive Plan (“LTIP”) and the Deferred Share Unit Plan ("DSU"). Equity-settled awards issued under the LTIP vest over a period of one three years 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 LTIP 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 in the statement of comprehensive income. 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 values. 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 determination of whether indicators of impairment or impairment reversals: ● Determining whether there are indicators of impairment or impairment reversals are based on management's assessments of the changes in estimates for future commodity prices, costs, discount rates, or reserves. Changes in these estimates and assumptions can directly impact the calculated fair value of capital assets and therefore could be indicators of impairment or impairment reversals. In addition, change in the Vermilion's market capitalization relative to its book value could be an indicator of impairment. 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 ("CGU"): ● Calculating the fair value of capital assets acquired in a business combination and the recoverable amount of CGUs (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. Reserve 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, 2022 | |
Segmented information | |
Summary of segment operations | Year Ended December 31, 2022 Canada USA France Netherlands Germany Ireland Australia Corporate Total Total assets 3,612,487 618,116 823,544 240,276 398,612 465,643 249,253 583,127 6,991,058 Drilling and development 275,203 63,353 44,250 21,629 25,087 3,030 95,173 331 528,056 Exploration and evaluation — — 2 23 1,070 — — 22,666 23,761 Crude oil and condensate sales 910,863 130,150 365,431 2,119 62,464 15 221,187 — 1,692,229 NGL sales 114,128 19,385 — — — — — — 133,513 Natural gas sales 319,293 16,698 — 560,738 418,796 324,330 — 10,797 1,650,652 Sales of purchased commodities — — — — — — — 244,834 244,834 Royalties (196,005) (44,427) (40,353) (512) (21,232) — — (3,488) (306,017) Revenue from external customers 1,148,279 121,806 325,078 562,345 460,028 324,345 221,187 252,143 3,415,211 Purchased commodities — — — — — — — (244,834) (244,834) Transportation (44,849) (618) (20,100) — (9,751) (3,578) — — (78,896) Operating (240,899) (27,372) (57,588) (45,903) (41,523) (16,580) (57,478) (1,691) (489,034) General and administration (28,643) (5,863) (16,444) (4,255) (6,949) 122 (4,964) 9,319 (57,677) PRRT — — — — — — (18,318) — (18,318) Corporate income taxes (10) — (29,889) (150,647) (31,513) — 5,016 (1,110) (208,153) Windfall taxes — — — — — — — (222,859) (222,859) Interest expense — — — — — — — (82,858) (82,858) Realized loss on derivative instruments — — — — — — — (405,894) (405,894) Realized foreign exchange gain — — — — — — — 15,195 15,195 Realized other income — — — — — — — 12,982 12,982 Fund flows from operations 833,878 87,953 201,057 361,540 370,292 304,309 145,443 (669,607) 1,634,865 Year Ended December 31, 2021 Canada USA France Netherlands Germany Ireland Australia Corporate Total Total assets 3,100,322 545,296 771,707 227,779 422,030 427,362 217,852 192,975 5,905,323 Drilling and development 190,242 32,540 39,587 20,198 19,234 1,261 34,785 1,543 339,390 Exploration and evaluation — — 121 6,839 1,073 — — 27,373 35,406 Crude oil and condensate sales 625,053 80,208 279,263 2,640 32,607 23 143,014 — 1,162,808 NGL sales 86,932 17,723 — — — — — — 104,655 Natural gas sales 189,790 14,484 — 293,083 99,328 214,402 — 1,211 812,298 Sales of purchased commodities — — — — — — — 147,091 147,091 Royalties (113,651) (30,747) (37,666) (873) (2,847) — — (338) (186,122) Revenue from external customers 788,124 81,668 241,597 294,850 129,088 214,425 143,014 147,964 2,040,730 Purchased commodities — — — — — — — (147,091) (147,091) Transportation (38,764) (1,336) (26,497) — (6,359) (4,205) — — (77,161) Operating (215,378) (16,992) (52,147) (35,269) (27,149) (14,889) (50,748) (441) (413,013) General and administration (18,380) (4,563) (10,954) (1,243) (5,257) 9 (3,457) (9,032) (52,877) PRRT — — — — — — (15,688) — (15,688) Corporate income taxes — — 9,120 (46,567) — — 5,759 1,522 (30,166) Interest expense — — — — — — — (73,075) (73,075) Realized loss on derivative instruments — — — — — — — (327,384) (327,384) Realized foreign exchange loss — — — — — — — (6,613) (6,613) Realized other income — — — — — — — 22,200 22,200 Fund flows from operations 515,602 58,777 161,119 211,771 90,323 195,340 78,880 (391,950) 919,862 Reconciliation of fund flows from operations to net earnings: Year Ended Dec 31, 2022 Dec 31, 2021 Fund flows from operations 1,634,865 919,862 Equity based compensation (44,390) (41,565) Unrealized gain (loss) on derivative instruments 540,801 (181,094) Unrealized foreign exchange (loss) gain (84,464) (64,963) Accretion (58,170) (43,552) Depletion and depreciation (577,134) (571,688) Deferred tax expense (288,707) (187,343) Gain on business combinations — 17,198 Impairment reversal 192,094 1,302,619 Unrealized other expense (1,833) (778) Net earnings 1,313,062 1,148,696 |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statement [Line Items] | |
Summary of consideration paid and fair value of assets acquired and liabilities assumed | Consideration Cash consideration paid 486,488 Fair value of previously held equity interest 13,039 Total consideration 499,527 Allocation of consideration Cash acquired 2,659 Capital assets 559,094 Exploration and evaluation assets 43,227 Deferred tax liabilities (97,891) Asset retirement obligations (1,440) Derivative liability (339) Acquired working capital deficiency (5,783) Net assets acquired 499,527 |
Investment in securities (Table
Investment in securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment in securities [Abstract] | |
Summary of fair value measurement | The total consideration paid and the fair value of the investment acquired are detailed in the table below: Amount Balance at January 1 — Acquisition of securities 23,282 Fair value adjustment 33,084 Balance at December 31 56,366 |
Capital assets (Tables)
Capital assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Capital assets | |
Schedule of changes in Vermilion's capital assets | The following table reconciles the change in Vermilion’s capital assets: 2022 2021 Balance at January 1 4,824,195 3,107,104 572,535 180,806 Additions 528,056 339,390 Increase in right-of-use assets 13,871 551 Transfers from exploration and evaluation assets 1,223 11,495 Impairment reversal 192,094 1,302,619 Depletion and depreciation (546,381) (538,704) Changes in asset retirement obligations 65,462 528,714 40,467 (107,780) Balance at December 31 5,691,522 4,824,195 12,058,520 10,849,047 Accumulated depletion, depreciation, and impairment (6,366,998) (6,024,852) Carrying amount at December 31, 2022 5,691,522 4,824,195 |
Summary of carrying balance and depreciation charge relating to right-of-use assets | As at Dec 31, 2022 As at Dec 31, 2021 ($M) Depreciation Balance Depreciation Balance Office space 8,328 31,199 8,921 38,216 Gas processing facilities 7,691 13,415 7,691 20,504 Oil storage facilities 2,429 8,970 2,644 11,480 Vehicles and equipment 4,716 13,944 3,629 6,038 Total 23,164 67,528 22,885 76,238 |
Schedule of benchmark price forecasts used to calculate the recoverable amounts | 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 (2) Brent Crude ($ US/bbl) (1) 100.50 89.50 79.64 81.23 82.86 84.51 86.21 87.94 89.69 91.48 WTI Crude ($ US/bbl) (1) 95.00 85.00 75.64 77.15 78.70 80.27 81.88 83.52 85.19 86.89 Exchange rate (CAD/USD) 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80 |
Schedule of sensitivity impacts on impairment charges | Operating Segment CGU Impairment Reversal (1) Recoverable Amount 1% increase in discount rate 5% decrease in pricing Canada Saskatchewan 159,985 2,150,936 — — France Neocomian 32,109 166,818 — — Total 192,094 2,317,754 — — |
Exploration and evaluation as_2
Exploration and evaluation assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: 2022 2021 Balance at January 1 233,290 254,094 Acquisitions 43,227 — Additions 23,761 35,406 Changes in asset retirement obligations 646 110 Transfers to capital assets (1,223) (11,495) Depreciation (30,503) (35,549) Foreign exchange 1,395 (9,276) Balance at December 31 270,593 233,290 Cost 476,571 408,494 Accumulated depreciation (205,978) (175,204) Carrying amount at December 31 270,593 233,290 |
Asset retirement obligations (T
Asset retirement obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: 2022 2021 Balance at January 1 1,000,554 467,737 Additional obligations recognized 5,184 28,655 Changes in estimated abandonment timing and costs 207,919 85,022 Obligations settled (37,514) (28,525) Accretion 58,170 43,552 Changes in rates (145,555) 439,849 Foreign exchange (1,001) (35,736) Balance at December 31 1,087,757 1,000,554 |
Schedule of risk free rates used to discount the obligations | The country-specific risk-free rates used as inputs to discount the obligations were as follows: Dec 31, 2022 Dec 31, 2021 Canada 3.3 % 1.8 % United States 4.1 % 1.9 % France 3.4 % 0.8 % Netherlands 2.7 % (0.3) % Germany 2.5 % 0.1 % Ireland 3.2 % 0.5 % Australia 4.2 % 1.9 % |
Derivative instruments (Tables)
Derivative instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Dec 31, 2021 Fair value of contracts, beginning of year (300,865) (119,772) Reversal of opening contracts settled during the year 164,208 112,679 Assumed in acquisitions (339) — Realized loss on contracts settled during the year (405,894) (327,384) Unrealized gain (loss) during the year on contracts outstanding at the end of the year 376,593 (293,773) Net receipt from counterparties on contract settlements during the year 405,893 327,385 Fair value of contracts, end of year 239,596 (300,865) Comprised of: Current derivative asset 162,843 19,321 Current derivative liability (55,845) (268,973) Non-current derivative asset 132,598 — Non-current derivative liability — (51,213) Fair value of contracts, end of year 239,596 (300,865) |
Summary of loss (gain) on derivative instruments | The (gain) loss on derivative instruments for 2022 and 2021 were comprised of the following: Year Ended Dec 31, 2022 Dec 31, 2021 Realized loss on contracts settled during the year 405,894 327,384 Reversal of opening contracts settled during the year (164,208) (112,679) Unrealized (gain) loss on contracts outstanding at the end of the year (376,593) 293,773 (Gain) loss on derivative instruments (134,907) 508,478 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Dec 31, 2021 Less than 1 year 23,588 19,045 1 - 3 years 40,374 38,136 3 - 5 years 16,246 25,226 After 5 years 177 3,686 Total lease payments 80,385 86,093 Amounts representing interest (9,392) (10,871) Present value of net lease payments 70,993 75,222 Current portion of lease obligations (19,486) (15,032) Non-current portion of lease obligations 51,507 60,190 Total cash outflow 25,422 27,368 Interest on lease liabilities 4,254 5,181 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Taxes | |
Summary of deferred tax asset and liability | The following table reconciles Vermilion’s deferred tax asset and liability: As at Dec 31, 2022 Dec 31, 2021 Deferred tax assets: Non-capital losses 200,781 477,903 Derivative contracts — 74,043 Other 39 2,879 Stock based compensation — 8,651 Asset retirement obligations 5,818 83,461 Capital assets (81,105) (268,615) Unrealized foreign exchange — (3,329) Deferred tax assets 125,533 374,993 Deferred tax liabilities: Derivative contracts 58,941 — Asset retirement obligations 100,670 104,258 Capital assets 734,146 322,641 Stock based compensation (5,805) — Other (16,322) (10,518) Unrealized foreign exchange (4,282) — Non-capital losses (390,008) (87,542) Deferred tax liabilities 477,340 328,839 |
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, 2022 Dec 31, 2021 Earnings before income taxes 2,051,099 1,381,893 Canadian corporate tax rate 24.60 % 24.61 % Expected tax expense 504,570 340,084 Increase (decrease) in taxes resulting from: Petroleum resource rent tax rate (PRRT) differential (1) 13,729 27,281 Foreign tax rate differentials (2) (3) 101,701 43,301 Equity based compensation expense (11,610) 6,794 Amended returns and changes to estimated tax pools and tax positions (5,691) (14,391) Statutory rate changes and the estimated reversal rates on temporary differences (3) 14,274 5,862 Derecognition (recognition) of deferred tax assets (118,304) (190,423) Windfall taxes (3) 222,859 — Other non-deductible items 16,509 14,689 Provision for income taxes 738,037 233,197 (1) In Australia, current taxes include both corporate income tax rates and PRRT. For both 2022 and 2021, corporate income tax rates were applied at a rate of 30% and PRRT was applied at a rate of 40% . (2) The applicable tax rates for 2022 were: 25.8% in France, 50.0% in the Netherlands, 31.3% in Germany, 25.0% in Ireland, and 21.0% in the United States (2021: 27.4% in France, 50.0% in the Netherlands, 31.4% in Germany, 25.0% in Ireland, and 21.0% in the United States). (3) 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. On December 21, 2021, the Dutch Senate approved the 2022 Tax Plan that included an increase to the Dutch corporate tax rate from 25.0% in 2021 to 25.8% in 2022. Due to the tax regime applicable to natural gas producers in the Netherlands, the increase to the corporate tax rate is not expected to have a material impact to Vermilion taxes in the Netherlands. On September 30, 2022 the Council of the European Union agreed, by way of regulation, to the implementation of a temporary windfall tax on the profits of oil and gas producers resident in the European Union. This windfall tax is referred to as a temporary solidarity contribution and is calculated on the amount by which the taxable profits for the elected years exceeds the greater of zero and 120% of the average taxable profits for the 2018 to 2021 period. The regulation requires Member States to implement the temporary solidarity contribution at a minimum rate of 33% while providing Member States with the option to apply the temporary solidarity contribution to fiscal years beginning on or after January 1, 2022, January 1, 2023, or both. The temporary solidarity contribution is considered a tax pursuant to IAS 12 “Income Taxes”. The related legislation became substantively enacted during the fourth quarter of 2022 resulting in a full year of windfall taxes being recognized during the fourth quarter. |
Summary of temporary solidarity contribution | The following table summarizes the manner of implementation of the temporary solidarity contribution by the Member States in which Vermilion operates: Jurisdiction 2023 2022 France N/A 33.0 % Netherlands (1) N/A 33.0 % Germany 33.0 % 33.0 % Ireland (2) N/A N/A (1) For 2023 and 2024, Netherlands has implemented a windfall royalty. This royalty applies if annual realized pricing (net of hedges) exceeds €0.50 /Nm3. This royalty is assessed annually at a rate of 65% on realized pricing (net of hedges) less €0.50 /Nm3 and payments on this royalty are deductible in calculating current income taxes. (2) As at December 31, 2022, Ireland has not legislated a windfall tax rate. A rate of 75% was announced in November 2022. |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Dec 31, 2021 Revolving credit facility 147,666 1,273,755 2025 senior unsecured notes 404,463 377,814 2030 senior unsecured notes 529,222 — Long-term debt 1,081,351 1,651,569 |
Summary of change in long-term debt | The following table reconciles the change in Vermilion’s long-term debt: 2022 2021 Balance at January 1 1,651,569 1,933,848 Repayments on the revolving credit facility (1,121,868) (341,259) Issuance of 2030 senior unsecured notes 499,037 — Amortization of transaction costs 1,833 778 Foreign exchange 50,780 58,202 Balance at December 31 1,081,351 1,651,569 |
Summary of financial covenants | As at December 31, 2022, the revolving credit facility was subject to the following financial covenants: As at Financial covenant Limit Dec 31, 2022 Dec 31, 2021 Consolidated total debt to consolidated EBITDA Less than 4.0 0.51 1.61 Consolidated total senior debt to consolidated EBITDA Less than 3.5 0.07 1.24 Consolidated EBITDA to consolidated interest expense Greater than 2.5 27.10 14.78 |
Summary of redemption price of unsecured notes | Year Redemption price 2022 101.406 % 2023 and thereafter 100.000 % |
Summary of detailed information about redemption price of unsecured notes option | Year Redemption price 2025 103.438 % 2026 102.292 % 2027 101.146 % 2028 and thereafter 100.000 % |
Revolving Credit Facilities [Member] | |
Disclosure of Long-term Debt [Line Items] | |
Summary of outstanding long-term debt | As at December 31, 2022, Vermilion had in place a bank revolving credit facility maturing May 29, 2026 with the following terms: As at Dec 31, 2022 Dec 31, 2021 Total facility amount 1,600,000 2,100,000 Amount drawn (147,666) (1,273,755) Letters of credit outstanding (13,527) (11,035) Unutilized capacity 1,438,807 815,210 |
Shareholders' capital (Tables)
Shareholders' capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' capital | |
Summary of changes in shareholders' capital | The following table reconciles the change in Vermilion’s shareholders’ capital: 2022 2021 Shareholders’ capital Shares (‘000s) Amount ($M) Shares (‘000s) Amount ($M) Balance at January 1 162,261 4,241,773 158,724 4,181,160 Vesting of equity based awards 2,578 44,811 2,385 49,922 Shares issued for equity based compensation 549 13,699 911 8,365 Share-settled dividends on vested equity based awards 178 4,377 241 2,326 Repurchase of shares (2,339) (60,866) — — Balance at December 31 163,227 4,243,794 162,261 4,241,773 |
Capital disclosures (Tables)
Capital disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Dec 31, 2021 Long-term debt 1,081,351 1,651,569 Adjusted working capital (1) 265,111 9,284 Unrealized FX on swapped USD borrowings (1,876) (16,067) Net debt 1,344,586 1,644,786 Ratio of net debt to four quarter trailing fund flows from operations 0.82 1.79 (1) Adjusted working capital is defined as current assets (excluding current derivatives), less current liabilities (excluding current derivatives and current lease liabilities). |
Equity based compensation (Tabl
Equity based compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 LTIP: Number of LTIP and Five Year Compensation Awards (‘000s) 2022 2021 Opening balance 6,405 6,244 Granted 1,108 2,745 Vested (1,733) (1,520) Forfeited (277) (1,064) Closing balance 5,503 6,405 |
Per share amounts (Tables)
Per share amounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 Dec 31, 2021 Net earnings 1,313,062 1,148,696 Basic weighted average shares outstanding (‘000s) 163,489 161,172 Dilutive impact of equity based compensation (‘000s) 4,937 3,593 Diluted weighted average shares outstanding (‘000s) 168,426 164,765 Basic earnings per share 8.03 7.13 Diluted earnings per share 7.80 6.97 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments | |
Summary of financial instruments | The following table summarizes the carrying value relating to Vermilion’s financial instruments: As at Dec 31, 2022 As at Dec 31, 2021 Amortized Amortized ($M) FVTPL FVTOCI Cost Total FVTPL FVTOCI Cost Total Cash and cash equivalents 13,836 — — 13,836 6,028 — — 6,028 Derivative assets 295,441 — — 295,441 19,321 — — 19,321 Investment in securities — 56,366 — 56,366 — — — — Derivative liabilities (55,845) — — (55,845) (320,186) — — (320,186) Accounts receivable — — 373,651 373,651 — — 328,584 328,584 Accounts payable and accrued liabilities — — (481,444) (481,444) — — (440,658) (440,658) Dividends payable — — (13,058) (13,058) — — — — Lease obligations — — (51,507) (51,507) — — (60,190) (60,190) Long-term debt (1) — — (1,081,351) (1,081,351) — — (1,651,569) (1,651,569) |
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, 2022 Dec 31, 2021 Currency risk - Euro to Canadian dollar $0.01 increase in strength of the Canadian dollar against the Euro 5,640 (273) $0.01 decrease in strength of the Canadian dollar against the Euro (5,640) 273 Currency risk - US dollar to Canadian dollar $0.01 increase in strength of the Canadian dollar against the US $ 5,441 2,086 $0.01 decrease in strength of the Canadian dollar against the US $ (5,441) (2,086) Commodity price risk - Crude oil US $5.00/bbl increase in crude oil price used to determine the fair value of derivatives — (9,324) US $5.00/bbl decrease in crude oil price used to determine the fair value of derivatives — 1,636 Commodity price risk - European natural gas € 5.0/GJ increase in European natural gas price used to determine the fair value of derivatives (88,524) (10,554) € 5.0/GJ decrease in European natural gas price used to determine the fair value of derivatives 91,828 10,554 Share price risk - Equity swaps $1.00 increase from initial share price of the equity swap 3,750 3,750 $1.00 decrease from initial share price of the equity swap (3,750) (3,750) |
Schedule of undiscounted non-derivative financial liabilities and their contractual maturities | The following table summarizes Vermilion’s undiscounted non-derivative financial liabilities and their contractual maturities: 1 month to 3 months to 1 year to ($M) 1 month 3 months 1 year 5 years December 31, 2022 192,572 278,520 23,412 607,796 December 31, 2021 191,297 223,885 25,475 1,718,475 |
Related party disclosures (Tabl
Related party disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021: Year Ended Dec 31, 2022 Dec 31, 2021 Short-term benefits 5,124 4,654 Equity based compensation 8,951 14,570 14,075 19,224 Number of individuals included in the above amounts 16 18 |
Supplemental information (Table
Supplemental information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental information | |
Summary of changes in non-working capital | Changes in non-cash working capital was comprised of the following: Year Ended Dec 31, 2022 Dec 31, 2021 Changes in: Accounts receivable (45,067) (132,507) Crude oil inventory 413 (6,668) Prepaid expenses (45,617) (71,156) Accounts payable and accrued liabilities 40,786 142,988 Income taxes payable 304,516 32,643 Foreign exchange (12,046) 14,540 Changes in non-cash working capital 242,985 (20,160) Changes in non-cash operating working capital 216,869 (56,884) Changes in non-cash investing working capital 26,116 36,724 Changes in non-cash working capital 242,985 (20,160) |
Schedule of components of cash and cash equivalents | Cash and cash equivalents was comprised of the following: As at Dec 31, 2022 Dec 31, 2021 Cash on deposit with financial institutions 13,701 5,901 Guaranteed investment certificates 135 127 Cash and cash equivalents 13,836 6,028 |
Summary of wages and benefits | Wages and benefits included in operating expenses and general and administration expenses were: Year Ended Dec 31, 2022 Dec 31, 2021 Operating expense 75,165 73,739 General and administration expense 45,525 54,771 Wages and benefits 120,690 128,510 |
Summary of contractual obligations and commitments | As at December 31, 2022, we had the following contractual obligations and commitments: ($M) Less than 1 year 1 - 3 years 3 - 5 years After 5 years Total Long-term debt (1) 69,235 533,362 225,861 634,875 1,463,333 Lease obligations 46,245 49,730 29,062 8,597 133,634 Processing and transportation agreements 40,267 52,786 23,133 101,629 217,815 Purchase obligations 27,481 4,907 444 285 33,117 Drilling and service agreements 5,051 58,122 — — 63,173 Total contractual obligations and commitments 188,279 698,907 278,500 745,386 1,911,072 (1) Interest on revolving credit facility calculated assuming an annual interest rate of 6.19% . (2) Commitments denominated in foreign currencies have been translated using the related spot rates on December 31, 2022. |
Summary of outstanding risk management positions | The following tables summarize Vermilion’s outstanding risk management positions as at December 31, 2022: Weighted Weighted Weighted Weighted Daily Weighted Daily Average Daily Average Daily Average Daily Average Bought Average Bought Put Bought Put Sold Call Sold Call Sold Put Sold Put Sold Swap Sold Swap Swap Bought Unit Currency Volume Price Volume Price Volume Price Volume Price Volume Swap Price AECO Q1 2023 mcf CAD 4,739 3.69 4,739 7.70 — — 28,435 4.95 — — Q2 2023 mcf CAD — — — — — — 14,217 4.19 — — Q3 2023 mcf CAD — — — — — — 14,217 4.19 — — Q4 2023 mcf CAD — — — — — — 4,791 4.19 — — AECO Basis (AECO less NYMEX Henry Hub) Q2 2023 mcf USD — — — — — — 23,000 (1.13) — — Q3 2023 mcf USD — — — — — — 23,000 (1.13) — — Q4 2023 mcf USD — — — — — — 7,750 (1.13) — — NYMEX Henry Hub Q1 2023 mcf USD 24,000 4.00 24,000 8.44 — — — — — — Q2 2023 mcf USD 5,000 4.00 5,000 8.75 — — — — — — Q3 2023 mcf USD 5,000 4.00 5,000 8.75 — — — — — — Q4 2023 mcf USD 1,685 4.00 1,685 8.75 — — — — — — Weighted Weighted Weighted Weighted Daily Weighted Daily Average Daily Average Daily Average Daily Average Bought Average Bought Put Bought Put Sold Call Sold Call Sold Put Sold Put Sold Swap Sold Swap Swap Bought Unit Currency Volume Price Volume Price Volume Price Volume Price Volume Swap Price NBP Q1 2023 mcf EUR 18,426 11.76 18,426 19.54 14,740 4.10 — — — — Q2 2023 mcf EUR 7,370 11.48 7,370 17.46 4,913 4.40 — — — — Q3 2023 mcf EUR 2,457 22.71 2,457 35.90 — — — — — — Q1 2024 mcf EUR 4,913 41.03 4,913 84.26 — — — — — — TTF Q1 2023 mcf EUR 14,740 24.01 14,740 46.12 2,457 3.52 — — — — Q2 2023 mcf EUR 19,654 34.53 19,654 53.21 — — — — — — Q3 2023 mcf EUR 19,654 34.53 19,654 53.21 — — — — — — Q4 2023 mcf EUR 12,284 44.84 12,284 84.99 — — 3,685 67.41 — — Q1 2024 mcf EUR 31,938 40.69 31,938 78.00 — — 3,685 67.41 — — Q2 2024 mcf EUR 3,593 37.56 3,593 74.66 — — — — — — Q3 2024 mcf EUR 3,593 37.56 3,593 74.66 — — — — — — VET Equity Swaps Initial Share Price Share Volume Swap Jan 2020 - Apr 2023 20.9788 CAD 2,250,000 Swap Jan 2020 - Jul 2024 22.4587 CAD 1,500,000 Cross Currency Interest Rate Receive Notional Amount Receive Rate Pay Notional Amount Pay Rate Swap January 2023 111,600,000 USD SOFR + 1.35% 150,000,000 CAD CDOR + 0.88% |
Significant accounting polici_3
Significant accounting policies - Additional Information (Details) | Dec. 31, 2022 item |
Statement [Line Items] | |
Depreciated period of exploration and evaluation | 5 years |
Conversion ratio of cubic feet natural gas to one barrel of oil equivalent | 6 |
Bottom of range [member] | |
Statement [Line Items] | |
Equity settled awards issued period of Vermilion Incentive Plan, Period | 1 year |
Top of range [member] | |
Statement [Line Items] | |
Equity settled awards issued period of Vermilion Incentive Plan, Period | 3 years |
Segmented information - Segment
Segmented information - Segment Operations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Segmented Information [Line Items] | ||
Total assets | $ 6,991,058 | $ 5,905,323 |
Drilling and development | 528,056 | 339,390 |
Exploration and evaluation | 23,761 | 35,406 |
Royalties | (306,017) | (186,122) |
Revenue from external customers | 3,415,211 | 2,040,730 |
Transportation | (78,896) | (77,161) |
Operating | (489,034) | (413,013) |
General and administration | (57,677) | (52,877) |
Corporate income taxes | 226,471 | 45,854 |
Corporate income taxes | (226,471) | (45,854) |
Windfall taxes | 222,859 | |
Interest expense | (82,858) | (73,075) |
Fund flows from operations | 1,634,865 | 919,862 |
Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 6,991,058 | 5,905,323 |
Drilling and development | 528,056 | 339,390 |
Exploration and evaluation | 23,761 | 35,406 |
Crude oil and condensate sales | 1,692,229 | 1,162,808 |
NGL sales | 133,513 | 104,655 |
Natural gas sales | 1,650,652 | 812,298 |
Sales of purchased commodities | 244,834 | 147,091 |
Royalties | (306,017) | (186,122) |
Revenue from external customers | 3,415,211 | 2,040,730 |
Purchased commodities | (244,834) | (147,091) |
Transportation | (78,896) | (77,161) |
Operating | (489,034) | (413,013) |
General and administration | (57,677) | (52,877) |
Windfall taxes | (222,859) | |
Interest expense | (82,858) | (73,075) |
Realized loss on derivative instruments | (405,894) | (327,384) |
Realized other income | 12,982 | 22,200 |
Fund flows from operations | 1,634,865 | 919,862 |
Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange loss | 15,195 | (6,613) |
PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 18,318 | 15,688 |
Corporate income taxes | (18,318) | (15,688) |
Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 208,153 | 30,166 |
Corporate income taxes | (208,153) | (30,166) |
Canada | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 3,612,487 | 3,100,322 |
Drilling and development | 275,203 | 190,242 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 910,863 | 625,053 |
NGL sales | 114,128 | 86,932 |
Natural gas sales | 319,293 | 189,790 |
Sales of purchased commodities | 0 | 0 |
Royalties | (196,005) | (113,651) |
Revenue from external customers | 1,148,279 | 788,124 |
Purchased commodities | 0 | 0 |
Transportation | (44,849) | (38,764) |
Operating | (240,899) | (215,378) |
General and administration | (28,643) | (18,380) |
Windfall taxes | 0 | |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 833,878 | 515,602 |
Canada | Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange loss | 0 | 0 |
Canada | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 0 | 0 |
Corporate income taxes | 0 | 0 |
Canada | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 10 | 0 |
Corporate income taxes | (10) | 0 |
USA | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 618,116 | 545,296 |
Drilling and development | 63,353 | 32,540 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 130,150 | 80,208 |
NGL sales | 19,385 | 17,723 |
Natural gas sales | 16,698 | 14,484 |
Sales of purchased commodities | 0 | 0 |
Royalties | (44,427) | (30,747) |
Revenue from external customers | 121,806 | 81,668 |
Purchased commodities | 0 | 0 |
Transportation | (618) | (1,336) |
Operating | (27,372) | (16,992) |
General and administration | (5,863) | (4,563) |
Windfall taxes | 0 | |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 87,953 | 58,777 |
USA | Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange loss | 0 | 0 |
USA | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 0 | 0 |
Corporate income taxes | 0 | 0 |
USA | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 0 | 0 |
Corporate income taxes | $ 0 | $ 0 |
France | ||
Disclosure Of Segmented Information [Line Items] | ||
Revenue (as a percentage) | 10% | 10% |
France | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | $ 823,544 | $ 771,707 |
Drilling and development | 44,250 | 39,587 |
Exploration and evaluation | 2 | 121 |
Crude oil and condensate sales | 365,431 | 279,263 |
NGL sales | 0 | 0 |
Natural gas sales | 0 | 0 |
Sales of purchased commodities | 0 | 0 |
Royalties | (40,353) | (37,666) |
Revenue from external customers | 325,078 | 241,597 |
Purchased commodities | 0 | 0 |
Transportation | (20,100) | (26,497) |
Operating | (57,588) | (52,147) |
General and administration | (16,444) | (10,954) |
Windfall taxes | 0 | |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 201,057 | 161,119 |
France | Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange loss | 0 | 0 |
France | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 0 | 0 |
Corporate income taxes | 0 | 0 |
France | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 29,889 | (9,120) |
Corporate income taxes | (29,889) | 9,120 |
Netherlands | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 240,276 | 227,779 |
Drilling and development | 21,629 | 20,198 |
Exploration and evaluation | 23 | 6,839 |
Crude oil and condensate sales | 2,119 | 2,640 |
NGL sales | 0 | 0 |
Natural gas sales | 560,738 | 293,083 |
Sales of purchased commodities | 0 | 0 |
Royalties | (512) | (873) |
Revenue from external customers | 562,345 | 294,850 |
Purchased commodities | 0 | 0 |
Transportation | 0 | 0 |
Operating | (45,903) | (35,269) |
General and administration | (4,255) | (1,243) |
Windfall taxes | 0 | |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 361,540 | 211,771 |
Netherlands | Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange loss | 0 | 0 |
Netherlands | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 0 | 0 |
Corporate income taxes | 0 | 0 |
Netherlands | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 150,647 | 46,567 |
Corporate income taxes | (150,647) | (46,567) |
Germany | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 398,612 | 422,030 |
Drilling and development | 25,087 | 19,234 |
Exploration and evaluation | 1,070 | 1,073 |
Crude oil and condensate sales | 62,464 | 32,607 |
NGL sales | 0 | 0 |
Natural gas sales | 418,796 | 99,328 |
Sales of purchased commodities | 0 | 0 |
Royalties | (21,232) | (2,847) |
Revenue from external customers | 460,028 | 129,088 |
Purchased commodities | 0 | 0 |
Transportation | (9,751) | (6,359) |
Operating | (41,523) | (27,149) |
General and administration | (6,949) | (5,257) |
Windfall taxes | 0 | |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 370,292 | 90,323 |
Germany | Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange loss | 0 | 0 |
Germany | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 0 | 0 |
Corporate income taxes | 0 | 0 |
Germany | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 31,513 | 0 |
Corporate income taxes | (31,513) | 0 |
Ireland | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 465,643 | 427,362 |
Drilling and development | 3,030 | 1,261 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 15 | 23 |
NGL sales | 0 | 0 |
Natural gas sales | 324,330 | 214,402 |
Sales of purchased commodities | 0 | 0 |
Royalties | 0 | 0 |
Revenue from external customers | 324,345 | 214,425 |
Purchased commodities | 0 | 0 |
Transportation | (3,578) | (4,205) |
Operating | (16,580) | (14,889) |
General and administration | 122 | 9 |
Windfall taxes | 0 | |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 304,309 | 195,340 |
Ireland | Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange loss | 0 | 0 |
Ireland | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 0 | 0 |
Corporate income taxes | 0 | 0 |
Ireland | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 0 | 0 |
Corporate income taxes | 0 | 0 |
Australia | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 249,253 | 217,852 |
Drilling and development | 95,173 | 34,785 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 221,187 | 143,014 |
NGL sales | 0 | 0 |
Natural gas sales | 0 | 0 |
Sales of purchased commodities | 0 | 0 |
Royalties | 0 | 0 |
Revenue from external customers | 221,187 | 143,014 |
Purchased commodities | 0 | 0 |
Transportation | 0 | 0 |
Operating | (57,478) | (50,748) |
General and administration | (4,964) | (3,457) |
Windfall taxes | 0 | |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 145,443 | 78,880 |
Australia | Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange loss | 0 | 0 |
Australia | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 18,318 | 15,688 |
Corporate income taxes | (18,318) | (15,688) |
Australia | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | (5,016) | (5,759) |
Corporate income taxes | 5,016 | 5,759 |
Corporate | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 583,127 | 192,975 |
Drilling and development | 331 | 1,543 |
Exploration and evaluation | 22,666 | 27,373 |
Crude oil and condensate sales | 0 | 0 |
NGL sales | 0 | 0 |
Natural gas sales | 10,797 | 1,211 |
Sales of purchased commodities | 244,834 | 147,091 |
Royalties | (3,488) | (338) |
Revenue from external customers | 252,143 | 147,964 |
Purchased commodities | (244,834) | (147,091) |
Transportation | 0 | 0 |
Operating | (1,691) | (441) |
General and administration | 9,319 | (9,032) |
Windfall taxes | (222,859) | |
Interest expense | (82,858) | (73,075) |
Realized loss on derivative instruments | (405,894) | (327,384) |
Realized other income | 12,982 | 22,200 |
Fund flows from operations | (669,607) | (391,950) |
Corporate | Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange loss | 15,195 | (6,613) |
Corporate | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 0 | 0 |
Corporate income taxes | 0 | 0 |
Corporate | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Corporate income taxes | 1,110 | (1,522) |
Corporate income taxes | $ (1,110) | $ 1,522 |
Segmented information - Reconci
Segmented information - Reconciliation of Fund Flows from Operations to Net Earnings (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Segmented information | ||
Fund flows from operations | $ 1,634,865 | $ 919,862 |
Equity based compensation | (44,390) | (41,565) |
Unrealized gain (loss) on derivative instruments | 540,801 | (181,094) |
Unrealized foreign exchange (loss) gain | (84,464) | (64,963) |
Accretion | (58,170) | (43,552) |
Depletion and depreciation | (577,134) | (571,688) |
Deferred tax expense | (288,707) | (187,343) |
Gain on business combinations | 17,198 | |
Impairment reversal | 192,094 | 1,302,619 |
Unrealized other expense | (1,833) | (778) |
Net earnings | $ 1,313,062 | $ 1,148,696 |
Business combinations - Conside
Business combinations - Consideration Paid and Fair Value of Assets Acquired and Liabilities Assumed (Details) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about business combination [line items] | ||
Exploration and evaluation assets | $ 270,593 | $ 233,290 |
Leucrotta Exploration Inc. [Member] | ||
Disclosure of detailed information about business combination [line items] | ||
Cash consideration paid | 486,488 | |
Fair value of previously held equity interest | 13,039 | |
Total consideration | 499,527 | |
Cash acquired | 2,659 | |
Capital assets | 559,094 | |
Exploration and evaluation assets | 43,227 | |
Deferred tax liabilities | (97,891) | |
Asset retirement obligations | (1,440) | |
Derivative liability | (339) | |
Acquired working capital deficiency | (5,783) | |
Net assets acquired | $ 499,527 |
Business combinations - Additio
Business combinations - Additional Information (Details) - Leucrotta Exploration Inc. [Member] $ in Millions | 5 Months Ended | 8 Months Ended | 12 Months Ended |
May 30, 2022 shares | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 CAD ($) a | |
Statement [Line Items] | |||
Mica property acres acquired, gross | a | 81,000 | ||
Mica property acres acquired, net | a | 77,000 | ||
Common shares | shares | 7,536,800 | ||
Cash flows from used in operations | $ 1,322 | ||
Revenue of acquiree since acquisition date | $ 55.7 | ||
Revenue of combined entity as if combination | $ 3,444.7 | ||
Profit (loss) of acquire | $ 17.1 |
Investment in securities (Detai
Investment in securities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investment in securities [Abstract] | ||
Acquisition of securities | $ 23,282 | $ 0 |
Fair value adjustment | 33,084 | |
Investment in securities | $ 56,366 |
Capital assets - Change in Verm
Capital assets - Change in Vermilion's capital assets (Details) - CAD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Capital assets [Line Items] | |||
Balance at January 1 | $ 4,824,195 | ||
Impairment reversal | $ 144,400 | ||
Balance at December 31 | 5,691,522 | 5,691,522 | $ 4,824,195 |
Property, plant and equipment | 5,691,522 | 5,691,522 | 4,824,195 |
Capital assets [Member] | |||
Disclosure of Capital assets [Line Items] | |||
Balance at January 1 | 4,824,195 | 3,107,104 | |
Acquisitions | 572,535 | 180,806 | |
Additions | 528,056 | 339,390 | |
Increase in right-of-use assets | 13,871 | 551 | |
Transfers from exploration and evaluation assets | 1,223 | 11,495 | |
Impairment reversal | 192,094 | 1,302,619 | |
Depletion and depreciation | (546,381) | (538,704) | |
Changes in asset retirement obligations | 65,462 | 528,714 | |
Foreign exchange | 40,467 | (107,780) | |
Balance at December 31 | 5,691,522 | 5,691,522 | 4,824,195 |
Property, plant and equipment | 5,691,522 | 5,691,522 | 4,824,195 |
Capital assets [Member] | Cost | |||
Disclosure of Capital assets [Line Items] | |||
Balance at January 1 | 10,849,047 | ||
Balance at December 31 | 12,058,520 | 12,058,520 | 10,849,047 |
Property, plant and equipment | 12,058,520 | 12,058,520 | 10,849,047 |
Capital assets [Member] | Accumulated depletion, depreciation, and impairment | |||
Disclosure of Capital assets [Line Items] | |||
Balance at January 1 | (6,024,852) | ||
Balance at December 31 | (6,366,998) | (6,366,998) | (6,024,852) |
Property, plant and equipment | $ (6,366,998) | $ (6,366,998) | $ (6,024,852) |
Capital assets - Recovery Amoun
Capital assets - Recovery Amounts (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2022 $ / bbl $ / $ | |
2022 | ||
Disclosure of Capital assets [Line Items] | ||
Exchange rate (CAD/USD) | $ / $ | 0.80 | |
2022 | Brent Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 100.50 | |
2022 | WTI Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 95 | |
2023 | ||
Disclosure of Capital assets [Line Items] | ||
Exchange rate (CAD/USD) | $ / $ | 0.80 | |
2023 | Brent Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 89.50 | |
2023 | WTI Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 85 | |
2024 | ||
Disclosure of Capital assets [Line Items] | ||
Exchange rate (CAD/USD) | $ / $ | 0.80 | |
2024 | Brent Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 79.64 | |
2024 | WTI Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 75.64 | |
2025 | ||
Disclosure of Capital assets [Line Items] | ||
Exchange rate (CAD/USD) | $ / $ | 0.80 | |
2025 | Brent Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 81.23 | |
2025 | WTI Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 77.15 | |
2026 | ||
Disclosure of Capital assets [Line Items] | ||
Exchange rate (CAD/USD) | $ / $ | 0.80 | |
2026 | Brent Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 82.86 | |
2026 | WTI Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 78.70 | |
2027 | ||
Disclosure of Capital assets [Line Items] | ||
Exchange rate (CAD/USD) | $ / $ | 0.80 | |
2027 | Brent Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 84.51 | |
2027 | WTI Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 80.27 | |
2028 | ||
Disclosure of Capital assets [Line Items] | ||
Exchange rate (CAD/USD) | $ / $ | 0.80 | |
2028 | Brent Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 86.21 | |
2028 | WTI Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 81.88 | |
2029 | ||
Disclosure of Capital assets [Line Items] | ||
Exchange rate (CAD/USD) | $ / $ | 0.80 | |
2029 | Brent Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 87.94 | |
2029 | WTI Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 83.52 | |
2030 | ||
Disclosure of Capital assets [Line Items] | ||
Exchange rate (CAD/USD) | $ / $ | 0.80 | |
2030 | Brent Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 89.69 | |
2030 | WTI Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 85.19 | |
2031 and beyond | ||
Disclosure of Capital assets [Line Items] | ||
Exchange rate (CAD/USD) | $ / $ | 0.80 | |
Commodity price forecast inflation rate percentage | 2% | |
2031 and beyond | Brent Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 91.48 | |
2031 and beyond | WTI Crude ($US/bbl) (1) | ||
Disclosure of Capital assets [Line Items] | ||
Benchmark price forecasts used to calculate the recoverable amounts | 86.89 |
Capital assets - Impairment tes
Capital assets - Impairment tests and sensitivity impacts (Details) - Operating Segments [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
Disclosure of Capital assets [Line Items] | |
Impairment Reversal | $ 192,094 |
Recoverable Amount | 2,317,754 |
Canada | |
Disclosure of Capital assets [Line Items] | |
Impairment Reversal | 159,985 |
Recoverable Amount | 2,150,936 |
France | |
Disclosure of Capital assets [Line Items] | |
Impairment Reversal | 32,109 |
Recoverable Amount | $ 166,818 |
Capital assets - Carrying Balan
Capital assets - Carrying Balance and Depreciation (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Capital assets [Line Items] | ||
Depreciation | $ 23,164 | $ 22,885 |
Balance | 67,528 | 76,238 |
Office space | ||
Disclosure of Capital assets [Line Items] | ||
Depreciation | 8,328 | 8,921 |
Balance | 31,199 | 38,216 |
Gas processing facilities | ||
Disclosure of Capital assets [Line Items] | ||
Depreciation | 7,691 | 7,691 |
Balance | 13,415 | 20,504 |
Oil storage facilities | ||
Disclosure of Capital assets [Line Items] | ||
Depreciation | 2,429 | 2,644 |
Balance | 8,970 | 11,480 |
Vehicles and equipment | ||
Disclosure of Capital assets [Line Items] | ||
Depreciation | 4,716 | 3,629 |
Balance | $ 13,944 | $ 6,038 |
Capital assets - Additional Inf
Capital assets - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 CAD ($) | |
Disclosure of detailed information about business combination [line items] | |
Discount rate applied to cash flow projections | 12% |
Impairment reversal | $ 144.4 |
Deferred income tax expense | $ 47.7 |
Exploration and evaluation as_3
Exploration and evaluation assets - Reconciliation of Change in Carrying Amount (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Balance at January 1 | $ 4,824,195 | |
Balance at December 31 | 5,691,522 | $ 4,824,195 |
Property, plant and equipment | 5,691,522 | 4,824,195 |
Exploration and evaluation assets [member] | ||
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Balance at January 1 | 233,290 | 254,094 |
Acquisitions | 43,227 | |
Additions | 23,761 | 35,406 |
Changes in asset retirement obligations | 646 | 110 |
Transfers to capital assets | (1,223) | (11,495) |
Depreciation | (30,503) | (35,549) |
Foreign exchange | 1,395 | (9,276) |
Balance at December 31 | 270,593 | 233,290 |
Property, plant and equipment | 270,593 | 233,290 |
Exploration and evaluation assets [member] | Cost | ||
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Balance at January 1 | 408,494 | |
Balance at December 31 | 476,571 | 408,494 |
Property, plant and equipment | 476,571 | 408,494 |
Exploration and evaluation assets [member] | Accumulated depreciation | ||
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Balance at January 1 | (175,204) | |
Balance at December 31 | (205,978) | (175,204) |
Property, plant and equipment | $ (205,978) | $ (175,204) |
Asset retirement obligations -
Asset retirement obligations - Reconciliation of Change in Carrying Amount (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Beginning balance | $ 1,000,554 | $ 467,737 |
Additional obligations recognized | 5,184 | 28,655 |
Changes in estimated abandonment timing and costs | 207,919 | 85,022 |
Obligations settled | (37,514) | (28,525) |
Accretion | 58,170 | 43,552 |
Changes in rates | (145,555) | 439,849 |
Foreign exchange | (1,001) | (35,736) |
Ending balance | $ 1,087,757 | $ 1,000,554 |
Asset retirement obligations _2
Asset retirement obligations - Risk Free Rates (Details) - Provision for decommissioning, restoration and rehabilitation costs [member] | Dec. 31, 2022 | Dec. 31, 2021 |
Canada | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 3.30% | 1.80% |
United States | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 4.10% | 1.90% |
France | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 3.40% | 0.80% |
Netherlands | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 2.70% | (0.30%) |
Germany | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 2.50% | 0.10% |
Ireland | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 3.20% | 0.50% |
Australia | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 4.20% | 1.90% |
Asset retirement obligations _3
Asset retirement obligations - Additional Information (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Asset Retirement Obligations Based On Current Cost Estimates | $ 2,300 | $ 2,000 |
Credit Risk Rate Used In Determining Other Provisions | 4.50% | 4.90% |
Increase decrease in discount rate, asset retirement obligations | 0.50% | |
Increase decrease in asset retirement obligations | $ 64.8 | |
Increase (Decrease) in Expected Timing of Abandonment Spend which Affects Asset Retirement Obligations, Period | 1 year | |
Scenario Forecasts [Member] | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Increase decrease in asset retirement obligations | $ 54 | |
Expected To Be Made Over The Next 60 years [Member] | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Asset retirement obligations based on a total undiscounted future liability | $ 3,700 | $ 3,100 |
Bottom of range [member] | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Inflation rates used in determining the cash flow estimates | 1.60% | 1.10% |
Top of range [member] | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Inflation rates used in determining the cash flow estimates | 4.20% | 3.10% |
Derivative instruments - Change
Derivative instruments - Changes in Fair Value (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative instruments | ||
Fair value of contracts, beginning of year | $ (300,865) | $ (119,772) |
Reversal of opening contracts settled during the year | 164,208 | 112,679 |
Assumed in acquisitions | (339) | |
Realized loss on contracts settled during the year | (405,894) | (327,384) |
Unrealized gain (loss) during the year on contracts outstanding at the end of the year | 376,593 | (293,773) |
Net receipt from counterparties on contract settlements during the year | 405,893 | 327,385 |
Fair value of contracts, end of year | 239,596 | (300,865) |
Current derivative asset | 162,843 | 19,321 |
Current derivative liability | (55,845) | (268,973) |
Non-current derivative asset | 132,598 | |
Non-current derivative liability | $ 0 | $ (51,213) |
Derivative instruments - Loss(G
Derivative instruments - Loss(Gain) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative instruments | ||
Realized loss on contracts settled during the year | $ 405,894 | $ 327,384 |
Reversal of opening contracts settled during the year | (164,208) | (112,679) |
Unrealized (gain) loss on contracts outstanding at the end of the year | (376,593) | 293,773 |
(Gain) loss on derivative instruments | $ (134,907) | $ 508,478 |
Leases - Future Commitments (De
Leases - Future Commitments (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of leases [Line Items] | ||
Total lease payments | $ 80,385 | $ 86,093 |
Amounts representing interest | (9,392) | (10,871) |
Present value of net lease payments | 70,993 | 75,222 |
Current portion of lease obligations | (19,486) | (15,032) |
Non-current portion of lease obligations | 51,507 | 60,190 |
Less than 1 year | ||
Disclosure Of leases [Line Items] | ||
Total lease payments | 23,588 | 19,045 |
1 - 3 years | ||
Disclosure Of leases [Line Items] | ||
Total lease payments | 40,374 | 38,136 |
3 - 5 years | ||
Disclosure Of leases [Line Items] | ||
Total lease payments | 16,246 | 25,226 |
After 5 years | ||
Disclosure Of leases [Line Items] | ||
Total lease payments | $ 177 | $ 3,686 |
Leases - Additional Information
Leases - Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | ||
Total cash outflow | $ 25,422 | $ 27,368 |
Interest on lease liabilities | $ 4,254 | $ 5,181 |
Taxes - Reconciliation of Defer
Taxes - Reconciliation of Deferred Tax Asset and Liability (Details) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | $ 125,533 | $ 374,993 |
Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 477,340 | 328,839 |
Non-capital losses [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 200,781 | 477,903 |
Non-capital losses [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | (390,008) | (87,542) |
Derivative contracts [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 74,043 | |
Derivative contracts [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 58,941 | |
Capital assets [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | (81,105) | (268,615) |
Capital assets [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 734,146 | 322,641 |
Stock based compensation | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 8,651 | |
Stock based compensation | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | (5,805) | |
Asset retirement obligations [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 5,818 | 83,461 |
Asset retirement obligations [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | 100,670 | 104,258 |
Unrealized foreign exchange [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | (3,329) | |
Unrealized foreign exchange [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | (4,282) | |
Other deferred tax liabilities [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | (16,322) | (10,518) |
Other deferred tax assets [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax asset/liabilities | $ 39 | $ 2,879 |
Taxes - Reconciliation of Accou
Taxes - Reconciliation of Accounting Profit (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Taxes | ||
Earnings before income taxes | $ 2,051,099 | $ 1,381,893 |
Canadian corporate tax rate (1) | 24.60% | 24.61% |
Expected tax expense | $ 504,570 | $ 340,084 |
Petroleum resource rent tax rate (PRRT) differential (2) | 13,729 | 27,281 |
Foreign tax rate differentials (2) (3) | 101,701 | 43,301 |
Equity based compensation expense | (11,610) | 6,794 |
Amended returns and changes to estimated tax pools and tax positions | (5,691) | (14,391) |
Statutory rate changes and the estimated reversal rates on temporary differences (4) | 14,274 | 5,862 |
Derecognition (recognition) of deferred tax assets | (118,304) | (190,423) |
Windfall tax | 222,859 | |
Other non-deductible items | 16,509 | 14,689 |
Provision for income taxes | $ 738,037 | $ 233,197 |
Taxes - Temporary Solidarity Co
Taxes - Temporary Solidarity Contribution Windfall Tax (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
France | ||
Disclosure of income tax [Line Items] | ||
Temporary solidarity contribution | 33% | |
Netherlands | ||
Disclosure of income tax [Line Items] | ||
Temporary solidarity contribution | 33% | |
Germany | ||
Disclosure of income tax [Line Items] | ||
Temporary solidarity contribution | 33% | 33% |
Ireland | ||
Disclosure of income tax [Line Items] | ||
Temporary solidarity contribution | 75% |
Taxes - Additional Information
Taxes - Additional Information (Details) $ in Thousands, € in Millions | 12 Months Ended | ||||
Dec. 31, 2023 € / m³ | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 CAD ($) | Sep. 30, 2022 | |
Disclosure of income tax [Line Items] | |||||
Applicable tax rate | 24.60% | 24.60% | 24.61% | ||
Unused tax losses for which no deferred tax asset recognised | $ 2,400,000 | $ 2,700,000 | |||
Deductible temporary differences, unused tax losses and unused tax credits expired | 118,300 | 190,400 | |||
Maximum sales limit to companies for applicability of progressive decrease of the french corporate income tax rate | € | € 250 | ||||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | 700,000 | 400,000 | |||
Windfall tax | 222,859 | ||||
Vermilions Canada Segment [Member] | |||||
Disclosure of income tax [Line Items] | |||||
Deductible temporary differences, unused tax losses and unused tax credits expired | $ 1,400,000 | $ 1,400,000 | |||
Bottom of range [member] | |||||
Disclosure of income tax [Line Items] | |||||
Windfall royalty annual realized pricing | € / m³ | 0.50 | ||||
France | |||||
Disclosure of income tax [Line Items] | |||||
Applicable tax rate | 25.80% | 25.80% | 27.40% | ||
Temporary solidarity contribution | 33% | 33% | |||
Netherlands | |||||
Disclosure of income tax [Line Items] | |||||
Applicable tax rate | 50% | 50% | 50% | ||
Temporary solidarity contribution | 33% | 33% | |||
Windfall royalty rate | 65% | ||||
Netherlands | Bottom of range [member] | |||||
Disclosure of income tax [Line Items] | |||||
Windfall royalty annual realized pricing | € / m³ | 0.50 | ||||
Germany | |||||
Disclosure of income tax [Line Items] | |||||
Applicable tax rate | 31.30% | 31.30% | 31.40% | ||
Temporary solidarity contribution | 33% | 33% | 33% | ||
Ireland | |||||
Disclosure of income tax [Line Items] | |||||
Applicable tax rate | 25% | 25% | 25% | ||
Temporary solidarity contribution | 75% | ||||
United States | |||||
Disclosure of income tax [Line Items] | |||||
Applicable tax rate | 21% | 21% | 21% | ||
European Union | Bottom of range [member] | |||||
Disclosure of income tax [Line Items] | |||||
Average taxable profits | 0% | ||||
Temporary solidarity contribution | 33% | 33% | |||
European Union | Top of range [member] | |||||
Disclosure of income tax [Line Items] | |||||
Average taxable profits | 120% | ||||
Corporate income tax [Member] | Australia | |||||
Disclosure of income tax [Line Items] | |||||
Applicable tax rate | 30% | 30% | |||
PRRT [Member] | Australia | |||||
Disclosure of income tax [Line Items] | |||||
Applicable tax rate | 40% | 40% | |||
FrenchCorporate Income tax [Member] | |||||
Disclosure of income tax [Line Items] | |||||
Applicable tax rate | 25.80% | 25.80% | 32% | ||
Dutch Corporate Tax Rate [Member] | |||||
Disclosure of income tax [Line Items] | |||||
Applicable tax rate | 25.80% | 25.80% | 25% |
Long-term debt - Outstanding Am
Long-term debt - Outstanding Amount (Details) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Long-term Debt [Line Items] | ||
Revolving credit facility | $ 147,666 | $ 1,273,755 |
Long-term debt | 1,081,351 | 1,651,569 |
Senior unsecured notes 2025 [Member] | ||
Disclosure of Long-term Debt [Line Items] | ||
Senior unsecured notes | 404,463 | $ 377,814 |
Senior unsecured notes 2030 [Member] | ||
Disclosure of Long-term Debt [Line Items] | ||
Senior unsecured notes | $ 529,222 |
Long-term debt - Change in Outs
Long-term debt - Change in Outstanding Amount (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Long-term Debt [Line Items] | ||
Balance at January 1 | $ 1,651,569 | $ 1,933,848 |
Repayments on the revolving credit facility | (1,121,868) | (341,259) |
Issuance of 2030 senior unsecured notes | 499,037 | 0 |
Amortization of transaction costs | 1,833 | 778 |
Foreign exchange | 50,780 | 58,202 |
Balance at December 31 | $ 1,081,351 | $ 1,651,569 |
Long-term debt - Terms of Revol
Long-term debt - Terms of Revolving Credit Facility (Details) - CAD ($) $ in Thousands | Dec. 31, 2022 | Apr. 26, 2022 | Dec. 31, 2021 |
Revolving Credit Facilities [Member] | |||
Disclosure of Long-term Debt [Line Items] | |||
Total facility amount | $ 1,600,000 | $ 2,100,000 | |
Amount drawn | (147,666) | (1,273,755) | |
Letters of credit outstanding | (13,527) | (11,035) | |
Unutilized capacity | $ 1,438,807 | $ 815,210 | |
Senior unsecured notes 2030 [Member] | |||
Disclosure of Long-term Debt [Line Items] | |||
Total facility amount | $ 400,000 |
Long-term debt - Financial Cove
Long-term debt - Financial Covenants (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Long-term Debt [Line Items] | ||
Consolidated total debt to consolidated EBITDA | 0.51 | 1.61 |
Consolidated total senior debt to consolidated EBITDA | 0.07 | 1.24 |
Consolidated EBITDA to consolidated interest expense | 27.10 | 14.78 |
Top of range [member] | ||
Disclosure of Long-term Debt [Line Items] | ||
Consolidated EBITDA to consolidated interest expense | 2.5 | |
Bottom 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 |
Long-term debt - Maturity Analy
Long-term debt - Maturity Analysis (Details) | 12 Months Ended | 40 Months Ended | |
Apr. 26, 2022 | Dec. 31, 2022 | Apr. 30, 2025 | |
Disclosure of Long-term Debt [Line Items] | |||
Redemption price Percentage of senior unsecured notes | 99.241% | ||
Senior unsecured notes 2030 [Member] | |||
Disclosure of Long-term Debt [Line Items] | |||
Redemption price Percentage of senior unsecured notes | 106.875% | ||
2022 | Senior unsecured notes 2025 [Member] | |||
Disclosure of Long-term Debt [Line Items] | |||
Redemption price Percentage of senior unsecured notes | 101.406% | ||
2023 and thereafter | Senior unsecured notes 2025 [Member] | |||
Disclosure of Long-term Debt [Line Items] | |||
Redemption price Percentage of senior unsecured notes | 100% | ||
2025 | Senior unsecured notes 2030 [Member] | |||
Disclosure of Long-term Debt [Line Items] | |||
Redemption price Percentage of senior unsecured notes | 103.438% | ||
2026 | Senior unsecured notes 2030 [Member] | |||
Disclosure of Long-term Debt [Line Items] | |||
Redemption price Percentage of senior unsecured notes | 102.292% | ||
2027 | Senior unsecured notes 2030 [Member] | |||
Disclosure of Long-term Debt [Line Items] | |||
Redemption price Percentage of senior unsecured notes | 101.146% | ||
Year 2028 and thereafter | Senior unsecured notes 2030 [Member] | |||
Disclosure of Long-term Debt [Line Items] | |||
Redemption price Percentage of senior unsecured notes | 100% |
Long-term debt - Additional Inf
Long-term debt - Additional Information (Details) $ in Thousands, $ in Millions | Apr. 30, 2025 | Dec. 31, 2022 CAD ($) | Apr. 26, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | Mar. 13, 2017 USD ($) |
Disclosure of Long-term Debt [Line Items] | |||||
Revolving credit facility | $ 147,666 | $ 1,273,755 | |||
Redemption 100% option | |||||
Disclosure of Long-term Debt [Line Items] | |||||
Percentage of the principle amount of the notes | 100% | ||||
Senior unsecured notes 2025 [Member] | |||||
Disclosure of Long-term Debt [Line Items] | |||||
Fair value of senior unsecured notes | 391,300 | 387,000 | |||
Notional amount | $ 300 | ||||
Borrowings, interest rate | 5.625% | ||||
Senior unsecured notes 2030 [Member] | |||||
Disclosure of Long-term Debt [Line Items] | |||||
Fair value of senior unsecured notes | $ 496,800 | $ 0 | |||
Notional amount | $ 400,000 | ||||
Borrowings, interest rate | 6.875% | ||||
Senior unsecured notes 2030 [Member] | Redemption 35% option | |||||
Disclosure of Long-term Debt [Line Items] | |||||
Percentage of the principle amount of the notes | 35% |
Shareholders' capital - Reconci
Shareholders' capital - Reconciliation of Change in Balance (Details) - CAD ($) $ in Thousands | 12 Months Ended | |||
Jul. 04, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Shareholder's Capital [Line Items] | ||||
Balance, beginning of year | $ 4,243,794 | $ 4,241,773 | $ 4,181,160 | |
Balance at January 1 (shares) | 163,227,000 | 162,261,000 | 158,724,000 | |
Vesting of equity based awards (shares) | 2,578,000 | 2,385,000 | ||
Share-settled dividends on vested equity based awards (shares) | 178,000 | 241,000 | ||
Repurchase of shares | $ 71,659 | $ 0 | ||
Balance, end of year | $ 4,243,794 | $ 4,241,773 | ||
Balance at December 31 (shares) | 163,227,000 | 162,261,000 | ||
NCIB purchasable common shares | 16,076,666 | |||
NCIB common shares acquired and cancelled | 1,140,000 | 2,340,000 | ||
NCIB common shares acquired and cancelled, value | $ 22,400 | $ 71,700 | ||
Equity based compensation [Member] | ||||
Disclosure Of Shareholder's Capital [Line Items] | ||||
Shares issued for equity based compensation (shares) | 549,000 | 911,000 | ||
Issued capital [member] | ||||
Disclosure Of Shareholder's Capital [Line Items] | ||||
Vesting of equity based awards | $ 44,811 | $ 49,922 | ||
Shares issued for equity based compensation | 13,699 | 8,365 | ||
Share-settled dividends on vested equity based awards | 4,377 | 2,326 | ||
Repurchase of shares | $ (60,866) | $ 0 | ||
Repurchase of shares (in shares) | (2,339,000) |
Shareholders' capital - Additio
Shareholders' capital - Additional Information (Details) - CAD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jul. 04, 2022 | |
Shareholders' capital | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | $ 0.10 | ||
Dividends paid, ordinary shares | $ 0 | $ 0 | |
Dividends paid, per share | $ 0.28 | ||
Public float | 10% |
Capital disclosures - Ratio of
Capital disclosures - Ratio of Net Debt to Fund Flows Operations (Details) $ in Thousands | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 CAD ($) |
Capital disclosures | |||
Long-term debt | $ 1,081,351 | $ 1,651,569 | $ 1,933,848 |
Adjusted working capital (1) | (265,111) | (9,284) | |
Unrealized FX on swapped USD borrowings | (1,876) | (16,067) | |
Current liabilities | 892,045 | 746,813 | |
Current assets | (714,446) | (472,845) | |
Net debt | $ 1,344,586 | $ 1,644,786 | |
Ratio of net debt to four quarter trailing fund flows from operations | 0.82 | 1.79 |
Capital disclosures - Additiona
Capital disclosures - Additional Information (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Capital Disclosures [Line Items] | ||
Ratio of net debt to funds from operations | 0.82 | 1.79 |
Top of range [member] | ||
Disclosure Of Capital Disclosures [Line Items] | ||
Ratio of net debt to funds from operations | 1 |
Equity based compensation - Awa
Equity based compensation - Awards Outstanding (Details) - Vermilion incentive plan [Member] - EquityInstruments EquityInstruments in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Equity Based Compensation [Line Items] | ||
Opening balance | 6,405 | 6,244 |
Granted | 1,108 | 2,745 |
Vested | (1,733) | (1,520) |
Forfeited | (277) | (1,064) |
Closing balance | 5,503 | 6,405 |
Equity based compensation - Add
Equity based compensation - Additional Information (Details) EquityInstruments in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CAD ($) USD ($) EquityInstruments | Dec. 31, 2021 CAD ($) EquityInstruments | Dec. 31, 2020 EquityInstruments | |
Disclosure Of Equity Based Compensation [Line Items] | |||
Expense from share-based payment transactions with employees | $ 44,390,000 | $ 41,565,000 | |
Vermilion incentive plan [Member] | |||
Disclosure Of Equity Based Compensation [Line Items] | |||
Weighted average fair value at measurement date, other equity instruments granted | $ 25.60 | $ 9.53 | |
Performance factor (ratio) | 1.0 | 1.1 | |
Annual forfeiture rate share options granted | 3.80% | 4.20% | |
Expense from share-based payment transactions with employees | $ 29,200,000 | $ 31,300,000 | |
Number of other equity instruments outstanding in share-based payment arrangement | EquityInstruments | 5,503 | 6,405 | 6,244 |
Number of other equity instruments granted in share-based payment arrangement | EquityInstruments | 1,108 | 2,745 | |
Deferred Share Units [Member] | |||
Disclosure Of Equity Based Compensation [Line Items] | |||
Weighted average fair value at measurement date, other equity instruments outstanding | $ 12.89 | ||
Weighted average fair value at measurement date, other equity instruments granted | 26.70 | ||
Expense from share-based payment transactions with employees | $ 1,500,000 | $ 1,900,000 | |
Number of other equity instruments outstanding in share-based payment arrangement | 392,757 | ||
Number of grants outstanding in share-based payment arrangement | 56,262 |
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, 2022 | Dec. 31, 2021 | |
Per share amounts | ||
Net earnings | $ 1,313,062 | $ 1,148,696 |
Basic weighted average shares outstanding ('000s) | 163,489 | 161,172 |
Dilutive impact of equity based compensation ('000s) | 4,937 | 3,593 |
Diluted weighted average shares outstanding ('000s) | 168,426 | 164,765 |
Basic earnings per share | $ 8.03 | $ 7.13 |
Diluted earnings per share | $ 7.80 | $ 6.97 |
Financial instruments - Fair Va
Financial instruments - Fair Value and Amortized Cost (Details) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, FVTPL | $ (55,845) | $ (320,186) |
Financial liabilities, Total | (55,845) | (320,186) |
Dividends payable [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, Amortized Cost | (13,058) | |
Financial liabilities, Total | (13,058) | |
Accounts payable and accrued liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, Amortized Cost | (481,444) | (440,658) |
Financial liabilities, Total | (481,444) | (440,658) |
Lease obligations | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, Amortized Cost | (51,507) | (60,190) |
Financial liabilities, Total | (51,507) | (60,190) |
Long-term debt [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities, Amortized Cost | (1,081,351) | (1,651,569) |
Financial liabilities, Total | (1,081,351) | (1,651,569) |
Cash and cash equivalents [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, FVTPL | 13,836 | 6,028 |
Financial assets, Total | 13,836 | 6,028 |
Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, FVTPL | 295,441 | 19,321 |
Financial assets, Total | 295,441 | 19,321 |
Investment in securities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, FVTOCI | 56,366 | |
Financial assets, Total | 56,366 | |
Accounts receivable | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, Amortized Cost | 373,651 | 328,584 |
Financial assets, Total | $ 373,651 | $ 328,584 |
Financial instruments - Increas
Financial instruments - Increase (Decrease) to Net Earnings Before Tax (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
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 | $ 5,640 | $ (273) |
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 | 5,441 | 2,086 |
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 | (5,640) | 273 |
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 | (5,441) | (2,086) |
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 | (88,524) | (10,554) |
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 | (9,324) | |
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 | 91,828 | 10,554 |
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 | 1,636 | |
$1.00 increase from initial share price of the equity swap | ||
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 | 3,750 | 3,750 |
$1.00 decrease from initial share price of the equity swap | 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 | $ (3,750) | $ (3,750) |
Financial instruments - Undisco
Financial instruments - Undiscounted Non-derivative Financial Liabilities and Contractual Maturities (Details) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Not later than one month [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | $ 192,572 | $ 191,297 |
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 | 278,520 | 223,885 |
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 | 23,412 | 25,475 |
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 | $ 607,796 | $ 1,718,475 |
Financial instruments - Additio
Financial instruments - Additional Information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | $ 669,100 | $ 347,900 |
Percentage of trade and other current receivables | 0.50% | 0.80% |
Transfer out of level 1 to level 2, assets | $ 0 | $ 0 |
Transfer out of level 2 to level 1, assets | 0 | 0 |
Transfer out of level 1 to level 2, liabilities | 0 | 0 |
Transfer out of level 2 to level 1, liabilities Transfer into level 3 assets | 0 | 0 |
Transfer into level 3 assets | 0 | 0 |
Transfer out of level 3 assets | 0 | 0 |
Transfer into level 3 liabilities | 0 | 0 |
Transfer out of level 3 liabilities | 0 | 0 |
Long-term debt [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Fair value of long-term debt | $ 1,035,671 | $ 1,660,778 |
Related party disclosures - Com
Related party disclosures - Compensation of Directors and Other Members (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 CAD ($) individual | Dec. 31, 2021 CAD ($) individual | |
Disclosure Of Related Party Disclosures [Line Items] | ||
Short-term benefits | $ 5,124 | $ 4,654 |
Equity based compensation | 8,951 | 14,570 |
Key management personnel compensation | $ 14,075 | $ 19,224 |
Key management personnel [member] | ||
Disclosure Of Related Party Disclosures [Line Items] | ||
Number of individuals included in the above amounts | individual | 16 | 18 |
Related party disclosures - Add
Related party disclosures - Additional Information (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related party disclosures | ||
Income from subleasing right-of-use assets | $ 0.1 | $ 0.2 |
Supplemental information - Chan
Supplemental information - Changes in Non-cash Working Capital (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental information . | ||
Accounts receivable | $ (45,067) | $ (132,507) |
Crude oil inventory | 413 | (6,668) |
Prepaid expenses | (45,617) | (71,156) |
Accounts payable and accrued liabilities | 40,786 | 142,988 |
Income taxes payable | 304,516 | 32,643 |
Foreign exchange | (12,046) | 14,540 |
Changes in non-cash working capital | 242,985 | (20,160) |
Changes in non-cash operating working capital | 216,869 | (56,884) |
Changes in non-cash investing working capital | 26,116 | 36,724 |
Changes in non-cash working capital | 242,985 | $ (20,160) |
Deposit Related to Previously Announced Transaction to Acquire Working Interest | 68,500 | |
Deposit for a land acquisition | $ 23,000 |
Supplemental information - Comp
Supplemental information - Components of Cash and Cash Equivalents (Details) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Supplemental Information [Line Items] | |||
Cash on deposit with financial institutions | $ 13,701 | $ 5,901 | |
Guaranteed investment certificates | 135 | 127 | |
Cash and cash equivalents | $ 13,836 | $ 6,028 | $ 6,904 |
Supplemental information - Wage
Supplemental information - Wages and Benefits (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Supplemental Information [Line Items] | ||
Wages and benefits | $ 120,690 | $ 128,510 |
Operating expense [Member] | ||
Disclosure Of Supplemental Information [Line Items] | ||
Wages and benefits | 75,165 | 73,739 |
General and administration expense [Member] | ||
Disclosure Of Supplemental Information [Line Items] | ||
Wages and benefits | $ 45,525 | $ 54,771 |
Supplemental information - cont
Supplemental information - contractual obligations and commitments (Details) $ in Millions | Dec. 31, 2022 CAD ($) |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | $ 1,911,072 |
Revolving credit facility | |
Disclosure Of Supplemental Information [Line Items] | |
Annual interest rate | 6.19% |
Long-term debt | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | $ 1,463,333 |
Lease obligations | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 133,634 |
Processing and transportation agreements | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 217,815 |
Purchase obligations | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 33,117 |
Drilling and services agreements | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 63,173 |
Less than 1 year | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 188,279 |
Less than 1 year | Long-term debt | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 69,235 |
Less than 1 year | Lease obligations | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 46,245 |
Less than 1 year | Processing and transportation agreements | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 40,267 |
Less than 1 year | Purchase obligations | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 27,481 |
Less than 1 year | Drilling and services agreements | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 5,051 |
1 - 3 years | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 698,907 |
1 - 3 years | Long-term debt | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 533,362 |
1 - 3 years | Lease obligations | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 49,730 |
1 - 3 years | Processing and transportation agreements | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 52,786 |
1 - 3 years | Purchase obligations | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 4,907 |
1 - 3 years | Drilling and services agreements | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 58,122 |
3 - 5 years | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 278,500 |
3 - 5 years | Long-term debt | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 225,861 |
3 - 5 years | Lease obligations | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 29,062 |
3 - 5 years | Processing and transportation agreements | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 23,133 |
3 - 5 years | Purchase obligations | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 444 |
After 5 years | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 745,386 |
After 5 years | Long-term debt | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 634,875 |
After 5 years | Lease obligations | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 8,597 |
After 5 years | Processing and transportation agreements | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | 101,629 |
After 5 years | Purchase obligations | |
Disclosure Of Supplemental Information [Line Items] | |
Total contractual obligations and commitments | $ 285 |
Supplemental information - Outs
Supplemental information - Outstanding Risk Management Positions (Details) - 12 months ended Dec. 31, 2022 | USD ($) item € / Mcf $ / Mcf $ / bbl $ / Mcf shares | CAD ($) item € / Mcf $ / Mcf $ / bbl $ / Mcf $ / shares shares |
North American Gas AECO Year 2 Q1[Member] | ||
Statement [Line Items] | ||
Description of presentation currency | CAD | CAD |
Derivative, daily bought put volume | 4,739 | 4,739 |
Derivative, weighted average bought put | $ / Mcf | 3.69 | 3.69 |
Derivative, daily sold call volume | 4,739 | 4,739 |
Derivative, weighted average sold call | $ / Mcf | 7.70 | 7.70 |
Derivative, daily sold put volume | 0 | 0 |
Derivatives, daily sold swap volume | 28,435 | 28,435 |
Derivative, weighted average sold swap price | $ / Mcf | 4.95 | 4.95 |
North American Gas AECO Year 2 Q2[Member] | ||
Statement [Line Items] | ||
Description of presentation currency | CAD | CAD |
Derivative, daily bought put volume | 0 | 0 |
Derivative, weighted average bought put | $ / Mcf | 0 | 0 |
Derivative, daily sold call volume | 0 | 0 |
Derivative, weighted average sold call | $ / Mcf | 0 | 0 |
Derivative, daily sold put volume | 0 | 0 |
Derivatives, daily sold swap volume | 14,217 | 14,217 |
Derivative, weighted average sold swap price | $ / Mcf | 4.19 | 4.19 |
North American Gas AECO Year 2 Q3[Member] | ||
Statement [Line Items] | ||
Description of presentation currency | CAD | CAD |
Derivative, daily bought put volume | 0 | 0 |
Derivative, weighted average bought put | $ / bbl | 0 | 0 |
Derivative, daily sold call volume | 0 | 0 |
Derivative, weighted average sold call | $ / bbl | 0 | 0 |
Derivative, daily sold put volume | 0 | 0 |
Derivatives, daily sold swap volume | 14,217 | 14,217 |
Derivative, weighted average sold swap price | $ / Mcf | 4.19 | 4.19 |
North American Gas AECO Year 2 Q4[Member] | ||
Statement [Line Items] | ||
Description of presentation currency | CAD | CAD |
Derivative, daily bought put volume | 0 | 0 |
Derivative, weighted average bought put | $ / bbl | 0 | 0 |
Derivative, daily sold call volume | 0 | 0 |
Derivative, weighted average sold call | $ / bbl | 0 | 0 |
Derivative, daily sold put volume | 0 | 0 |
Derivatives, daily sold swap volume | 4,791 | 4,791 |
Derivative, weighted average sold swap price | $ / Mcf | 4.19 | 4.19 |
North American Gas Aeco Basis Year Two Q2 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | USD | USD |
Derivative, daily bought put volume | 0 | 0 |
Derivative, weighted average bought put | $ / bbl | 0 | 0 |
Derivative, daily sold call volume | 0 | 0 |
Derivative, weighted average sold call | $ / bbl | 0 | 0 |
Derivative, daily sold put volume | 0 | 0 |
Derivatives, daily sold swap volume | 23,000 | 23,000 |
Derivative, weighted average sold swap price | $ / bbl | (1.13) | (1.13) |
North American Gas Aeco Basis Year Two Q3 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | USD | USD |
Derivative, daily bought put volume | 0 | 0 |
Derivative, weighted average bought put | $ / bbl | 0 | 0 |
Derivative, daily sold call volume | 0 | 0 |
Derivative, weighted average sold call | $ / bbl | 0 | 0 |
Derivative, daily sold put volume | 0 | 0 |
Derivatives, daily sold swap volume | 23,000 | 23,000 |
Derivative, weighted average sold swap price | $ / bbl | (1.13) | (1.13) |
North American Gas Aeco Basis Year Two Q4 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | USD | USD |
Derivative, daily bought put volume | 0 | 0 |
Derivative, weighted average bought put | $ / bbl | 0 | 0 |
Derivative, daily sold call volume | 0 | 0 |
Derivative, weighted average sold call | $ / bbl | 0 | 0 |
Derivative, daily sold put volume | 0 | 0 |
Derivatives, daily sold swap volume | 7,750 | 7,750 |
Derivative, weighted average sold swap price | $ / bbl | (1.13) | (1.13) |
North American Gas NYMEX HH Year 2 Q1 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | USD | USD |
Derivative, daily bought put volume | 24,000 | 24,000 |
Derivative, weighted average bought put | $ / Mcf | 4 | 4 |
Derivative, daily sold call volume | 24,000 | 24,000 |
Derivative, weighted average sold call | $ / Mcf | 8.44 | 8.44 |
Derivative, daily sold put volume | 0 | 0 |
Derivatives, daily sold swap volume | 0 | 0 |
North American Gas NYMEX HH Year 2 Q2 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | USD | USD |
Derivative, daily bought put volume | 5,000 | 5,000 |
Derivative, weighted average bought put | $ / Mcf | 4 | 4 |
Derivative, daily sold call volume | 5,000 | 5,000 |
Derivative, weighted average sold call | $ / Mcf | 8.75 | 8.75 |
Derivative, daily sold put volume | 0 | 0 |
Derivatives, daily sold swap volume | 0 | 0 |
North American Gas NYMEX HH Year 2 Q3 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | USD | USD |
Derivative, daily bought put volume | 5,000 | 5,000 |
Derivative, weighted average bought put | $ / Mcf | 4 | 4 |
Derivative, daily sold call volume | 5,000 | 5,000 |
Derivative, weighted average sold call | $ / Mcf | 8.75 | 8.75 |
Derivative, daily sold put volume | 0 | 0 |
Derivatives, daily sold swap volume | 0 | 0 |
North American Gas NYMEX HH Year 2 Q4 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | USD | USD |
Derivative, daily bought put volume | 1,685 | 1,685 |
Derivative, weighted average bought put | $ / Mcf | 4 | 4 |
Derivative, daily sold call volume | 1,685 | 1,685 |
Derivative, weighted average sold call | $ / Mcf | 8.75 | 8.75 |
Derivative, daily sold put volume | 0 | 0 |
Derivatives, daily sold swap volume | 0 | 0 |
European Gas Nbp 1 Year Two Q1 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | EUR | EUR |
Derivative, daily bought put volume | 18,426 | 18,426 |
Derivative, weighted average bought put | € / Mcf | 11.76 | 11.76 |
Derivative, daily sold call volume | 18,426 | 18,426 |
Derivative, weighted average sold call | € / Mcf | 19.54 | 19.54 |
Derivative, daily sold put volume | 14,740 | 14,740 |
Derivative, weighted average sold put | € / Mcf | 4.10 | 4.10 |
European Gas Nbp 1 Year Two Q2 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | EUR | EUR |
Derivative, daily bought put volume | 7,370 | 7,370 |
Derivative, weighted average bought put | € / Mcf | 11.48 | 11.48 |
Derivative, daily sold call volume | 7,370 | 7,370 |
Derivative, weighted average sold call | € / Mcf | 17.46 | 17.46 |
Derivative, daily sold put volume | 4,913 | 4,913 |
Derivative, weighted average sold put | € / Mcf | 4.40 | 4.40 |
European Gas Nbp 1 Year Two Q3 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | EUR | EUR |
Derivative, daily bought put volume | 2,457 | 2,457 |
Derivative, weighted average bought put | € / Mcf | 22.71 | 22.71 |
Derivative, daily sold call volume | 2,457 | 2,457 |
Derivative, weighted average sold call | € / Mcf | 35.90 | 35.90 |
European Gas Nbp 1 Year Three Q1 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | EUR | EUR |
Derivative, daily bought put volume | 4,913 | 4,913 |
Derivative, weighted average bought put | € / Mcf | 41.03 | 41.03 |
Derivative, daily sold call volume | 4,913 | 4,913 |
Derivative, weighted average sold call | € / Mcf | 84.26 | 84.26 |
European Gas TTF Year Two Q1 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | EUR | EUR |
Derivative, daily bought put volume | 14,740 | 14,740 |
Derivative, weighted average bought put | € / Mcf | 24.01 | 24.01 |
Derivative, daily sold call volume | 14,740 | 14,740 |
Derivative, weighted average sold call | € / Mcf | 46.12 | 46.12 |
Derivative, daily sold put volume | 2,457 | 2,457 |
Derivative, weighted average sold put | € / Mcf | 3.52 | 3.52 |
European Gas TTF Year Two Q2 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | EUR | EUR |
Derivative, daily bought put volume | 19,654 | 19,654 |
Derivative, weighted average bought put | € / Mcf | 34.53 | 34.53 |
Derivative, daily sold call volume | 19,654 | 19,654 |
Derivative, weighted average sold call | € / Mcf | 53.21 | 53.21 |
European Gas TTF Year Two Q3 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | EUR | EUR |
Derivative, daily bought put volume | 19,654 | 19,654 |
Derivative, weighted average bought put | € / Mcf | 34.53 | 34.53 |
Derivative, daily sold call volume | 19,654 | 19,654 |
Derivative, weighted average sold call | € / Mcf | 53.21 | 53.21 |
European Gas TTF Year Two Q4 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | EUR | EUR |
Derivative, daily bought put volume | 12,284 | 12,284 |
Derivative, weighted average bought put | € / Mcf | 44.84 | 44.84 |
Derivative, daily sold call volume | 12,284 | 12,284 |
Derivative, weighted average sold call | € / Mcf | 84.99 | 84.99 |
Derivatives, daily sold swap volume | 3,685 | 3,685 |
Derivative, weighted average sold swap price | € / Mcf | 67.41 | 67.41 |
European Gas TTF Year Three Q1 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | EUR | EUR |
Derivative, daily bought put volume | 31,938 | 31,938 |
Derivative, weighted average bought put | € / Mcf | 40.69 | 40.69 |
Derivative, daily sold call volume | 31,938 | 31,938 |
Derivative, weighted average sold call | € / Mcf | 78 | 78 |
Derivatives, daily sold swap volume | 3,685 | 3,685 |
Derivative, weighted average sold swap price | € / Mcf | 67.41 | 67.41 |
European Gas TTF Year Three Q2 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | EUR | EUR |
Derivative, daily bought put volume | 3,593 | 3,593 |
Derivative, weighted average bought put | € / Mcf | 37.56 | 37.56 |
Derivative, daily sold call volume | 3,593 | 3,593 |
Derivative, weighted average sold call | € / Mcf | 74.66 | 74.66 |
European Gas TTF Year Three Q3 [Member] | ||
Statement [Line Items] | ||
Description of presentation currency | EUR | EUR |
Derivative, daily bought put volume | 3,593 | 3,593 |
Derivative, weighted average bought put | € / Mcf | 37.56 | 37.56 |
Derivative, daily sold call volume | 3,593 | 3,593 |
Derivative, weighted average sold call | € / Mcf | 74.66 | 74.66 |
European Gas cross currency interest rate [Member] | ||
Statement [Line Items] | ||
Canadian Dollar Offered Rate | 0.88% | 0.88% |
Secured Overnight Financing Rate | 1.35% | 1.35% |
Swap Contract One [Member] | Foreign Currency Swap [Member] | ||
Statement [Line Items] | ||
Derivative interest maturity period | January 2023 | January 2023 |
Proceeds from sales or maturity of financial instruments, classified as investing activities | $ | $ 111,600,000 | |
Purchase of financial instruments, classified as investing activities | $ | $ 150,000,000 | |
Swap Contract One [Member] | VET Equity Swaps [Member] | ||
Statement [Line Items] | ||
Derivative interest maturity period | Jan 2020 - Apr 2023 | Jan 2020 - Apr 2023 |
Initial Share Price | $ / shares | $ 20.9788 | |
Share Volume | shares | 2,250,000 | 2,250,000 |
Swap Contract Two [Member] | VET Equity Swaps [Member] | ||
Statement [Line Items] | ||
Derivative interest maturity period | Jan 2020 - Jul 2024 | Jan 2020 - Jul 2024 |
Initial Share Price | $ / shares | $ 22.4587 | |
Share Volume | shares | 1,500,000 | 1,500,000 |
Subsequent events (Details)
Subsequent events (Details) - Other disposals of assets - Oil production assets in southeast saskatchewan $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) Boe | |
Disclosure of non-adjusting events after reporting period [line items] | |
Comprised assets | Boe | 5,500 |
Total cash consideration | $ | $ 225 |