Vermilion is a publicly traded, widely held, international energy producer that seeks to create value through the acquisition, exploration, development and optimization of producing properties in North America, Europe and Australia. Founded in 1994, we have been delivering outstanding financial and operational performance for nearly 25 years.
At the core of our business is our purpose: we believe that producing energy for the many people and businesses that rely upon it to meet their daily needs and sustain their quality of life is both a great privilege and a great responsibility.
Vermilion is part of the energy transition that is currently occurring. Our strategy focuses on reducing the environmental impacts of traditional energy production while developing renewable energy projects closely related to our core competencies. We believe that sustainability-oriented investors, governments and citizens will effect their greatest positive impact by turning to Best-In-Class operators like Vermilion during the transition.
Vermilion is headquartered in Calgary, Alberta, Canada, with onshore and offshore operations located around the world in regions noted for their stable, well-developed fiscal and regulatory policies related to oil and gas exploration and development.
Our approach to sustainability, and to our business in general, is to prioritize health and safety, the environment, and profitability, in that order. Nothing is more important to us than the safety of the public and those who work with us, and the protection of our natural surroundings.
This is reflected in our recognition as a top decile performer amongst Canadian publicly listed companies in governance practices, as a 2016 Climate "A" List performer by CDP, and our regular appearances as a Best Workplace in the Great Place to Work® Institute's annual rankings in Canada, France, The Netherlands and Germany. In addition, we emphasize strategic community investment in each of our operating areas.
We believe that this approach is an integral part of our company’s success, and is closely aligned with the ideals and goals expressed in the Sustainable Development Goals, which you will see us refer to throughout this report. 102-15
Our business model focuses on annual organic production growth, along with providing a reliable, increasing dividend, and generating strong returns from accretive acquisitions. In 2018, we are targeting production of 86,000 to 90,000 boe/d (approximately 29% growth over 2017), primarily through:
Vermilion’s asset base comprises a diversified product and project portfolio that receives premium pricing. This increases the stability of our cash flows and our flexibility in allocating our exploration and development capital. The result is a consistently strong return on capital, reliable growth, and exposure to robust end markets that include:
Our success is made possible by the superlative efforts of more than 900 staff (employees and contractors, as of August 2018) located throughout our operations, and through an extensive supply chain.
In 2017, our supply chain represented more than 6,157 entities and an investment from Vermilion of more than $588 million. This encompassed a wide range of inputs, including specialized field expertise and technology, supplies ranging from drilling mud to event facilities, and expert consultant advice. It is extremely important to us that our suppliers not only deliver a sound financial investment in their goods and services, but operate in a manner that aligns with the values that guide our own corporate culture. As a result, we have strict requirements for third-party vendors who do business for Vermilion.102-29
Vermilion’s Strategic Plan includes six key Strategic Objectives:
These objectives provide short, mid- and long term targets for the company as a whole, and for our staff. We set annual commitments within each of the objectives, and track our achievements against these quarterly, reporting to the senior management team and our Board of Directors. Progress is reported on annually in our Information Circular, and is also tracked using key performance indicators within our Short and Long Term Scorecards to assess company and individual performance, which is linked directly to compensation.
In addition to economic and investment metrics, we analyze external stakeholder feedback, including external recognition (listed in detail in the Awards section of this report), voting results at our Annual General Meeting, and input from governance, investment and sustainability analysts, and our communities.