Quarterly Report 2026 Q3 Financials

‌Consolidated Interim Financial Statements

thousands of Canadian dollars, unaudited

(Signed "Manjit Sharma") (Signed "Dion Hatcher")

Manjit Sharma, Director Dion Hatcher, Director

thousands of Canadian dollars, except share and per share amounts, unaudited

thousands of Canadian dollars, unaudited

Supplementary information for cash flows from operating activities

thousands of Canadian dollars, unaudited

Balance, end of period (2,072,934) (1,530,379)

Total shareholders' equity 2,068,030 2,708,243

Represents the recognized amount for common shares issued (net of equity issuance costs and deferred taxes) less the weighted-average carrying value of shares repurchased. The price paid to repurchase common shares is compared to the carrying value of the shares and the difference is recorded against deficit.

Represents the recognized value of unvested equity based awards that will be settled in shares. Once vested, the value of the awards are transferred to shareholders' capital.

Represents currency translation adjustments, hedge accounting reserve and fair value adjustments on investments.

Currency translation adjustments result from translating the balance sheets of subsidiaries with a foreign functional currency to Canadian dollars at period-end rates. These amounts may be reclassified to net (loss) earnings if there is a disposal or partial disposal of a subsidiary.

The hedge accounting reserve represents the effective portion of the change in fair value related to cash flow and net investment hedges recognized in other comprehensive income, net of tax and reclassified to the consolidated statement of net (loss) earnings in the same period in which the transaction associated with the hedged item occurs.

Fair value adjustment on investment in securities, net of tax, are a result of changes in the fair value of investments that have been elected to be subsequently measured at fair value through other comprehensive income.

Represents the cumulative net (loss) earnings less distributed earnings and surplus of the price paid to repurchase common shares of Vermilion Energy Inc. over the weighted-average carrying value of the shares repurchased.

tabular amounts in thousands of Canadian dollars, except share and per share amounts, unaudited

1. Basis of presentation

   Vermilion Energy Inc. (the "Company" or "Vermilion") is a corporation governed by the laws of the Province of Alberta and is actively engaged in the business of crude oil and natural gas exploration, development, acquisition, and production.

   These condensed consolidated interim financial statements are in compliance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting". These condensed consolidated interim financial statements have been prepared using the same accounting policies and methods of computation as Vermilion's consolidated financial statements for the year ended December 31, 2025 other than the new accounting policy adopted during the period as discussed in Note 7.

   The operating results attributable to the Company's Saskatchewan, United States, and SA-07 in Croatia operations have been classified and presented as discontinued operations, with all other operating results presented as continuing operations. The prior period presented the results from the Saskatchewan and United States assets as discontinued operations and have been recast to include the SA-07 assets in Croatia as discontinued operations. See Note 3 - "Discontinued Operations" for additional information.

   These condensed consolidated interim financial statements should be read in conjunction with Vermilion's consolidated financial statements for the year ended December 31, 2025, which are contained within Vermilion's Annual Report for the year ended December 31, 2025 and are available on SEDAR+ at www.sedarplus.ca or on Vermilion's website at www.vermilionenergy.com.

   These condensed consolidated interim financial statements were approved and authorized for issuance by the Board of Directors of Vermilion on November 3, 2026.

2. Segmented information

   ‌The following tables present capital expenditures and reconcile fund flows from operations for our continuing and discontinued operations:

   Three Months Ended September 30, 2026
   	Canada	France	Netherlands	Germany	Ireland	Australia	CEE	Corporate	Continuing operations	Discontinued operations (1)	Total
   Drilling and development	90,806	13,428	6,562	8,388	9,550	12,031	(71)	-	140,694	1,949	142,643
   Exploration and evaluation	-	-	-	3,823	-	-	-	-	3,823	-	3,823
   Crude oil and condensate sales	135,666	90,442	484	26,783	-	47,181	(5)	-	300,551	-	300,551
   NGL sales	34,971	-	-	-	-	-	-	-	34,971	-	34,971
   Natural gas sales	70,530	-	47,141	68,845	61,805	-	10,013	-	258,334	-	258,334
   Sales of purchased commodities	-	-	-	-	-	-	-	15,432	15,432	-	15,432
   Royalties	(23,476)	(11,290)	-	(5,283)	-	-	(3,420)	-	(43,469)	-	(43,469)
   Revenue from external customers	217,691	79,152	47,625	90,345	61,805	47,181	6,588	15,432	565,819	-	565,819
   Purchased commodities	-	-	-	-	-	-	-	(15,432)	(15,432)	-	(15,432)
   Transportation	(31,043)	(6,884)	-	(3,684)	(1,891)	-	-	-	(43,502)	-	(43,502)
   Operating	(57,821)	(16,544)	(9,980)	(17,734)	(13,528)	(44,838)	(499)	-	(160,944)	(2)	(160,946)
   General and administration	(7,407)	(4,005)	(821)	(3,111)	(2,374)	(1,609)	(793)	-	(20,120)	(141)	(20,261)
   Petroleum resource rent tax	-	-	-	-	-	2,781	-	-	2,781	-	2,781
   Corporate income tax (expense) recovery	-	(4,350)	(5,149)	(8,830)	1,511	(261)	-	(11)	(17,090)	-	(17,090)
   Interest expense	-	-	-	-	-	-	-	(26,593)	(26,593)	-	(26,593)
   Equity based compensation	-	-	-	-	-	-	-	(536)	(536)	-	(536)
   Realized loss on derivative instruments	-	-	-	-	-	-	-	(46,865)	(46,865)	-	(46,865)
   Realized foreign exchange loss	-	-	-	-	-	-	-	(585)	(585)	-	(585)
   Realized other income	-	-	-	-	-	-	-	129	129	-	129

   Fund flows from operations 121,420 47,369 31,675 56,986 45,523 3,254 5,296 (74,461) 237,062 (143) 236,919

   Three Months Ended September 30, 2025
   	Canada	France	Netherlands	Germany	Ireland	Australia	CEE	Corporate	Continuing operations	Discontinued operations (1)	Total
   Drilling and development	92,293	10,619	19,421	11,820	1,027	10,888	643	-	146,711	(1,920)	144,791
   Exploration and evaluation	-	-	-	406	-	-	195	-	601	170	771
   Crude oil and condensate sales	108,984	56,583	172	16,791	-	53,755	7	-	236,292	17,172	253,464
   NGL sales	22,027	-	-	-	-	-	-	-	22,027	1,210	23,237
   Natural gas sales	46,451	-	24,543	34,133	66,250	-	19,806	-	191,183	967	192,150
   Sales of purchased commodities	-	-	-	-	-	-	-	15,036	15,036	-	15,036
   Royalties	(10,932)	(8,605)	-	(3,806)	-	-	(4,055)	-	(27,398)	(4,387)	(31,785)
   Revenue from external customers	166,530	47,978	24,715	47,118	66,250	53,755	15,758	15,036	437,140	14,962	452,102
   Purchased commodities	-	-	-	-	-	-	-	(15,036)	(15,036)	-	(15,036)
   Transportation	(23,302)	(5,223)	-	(3,997)	(2,330)	-	-	-	(34,852)	(1,025)	(35,877)
   Operating	(54,943)	(16,251)	(8,869)	(14,388)	(13,196)	(30,230)	(538)	-	(138,415)	(5,656)	(144,071)
   General and administration (2)	(7,117)	(3,654)	(567)	(3,165)	(1,606)	(1,585)	(1,153)	-	(18,847)	(4,788)	(23,635)
   Petroleum resource rent tax	-	-	-	-	-	(1,663)	-	-	(1,663)	-	(1,663)
   Corporate income tax recovery (expense)	-	388	(155)	(145)	(177)	(230)	(2,225)	(2,132)	(4,676)	-	(4,676)
   Interest expense	-	-	-	-	-	-	-	(34,408)	(34,408)	-	(34,408)
   Realized gain on derivative instruments	-	-	-	-	-	-	-	61,793	61,793	-	61,793
   Realized foreign exchange loss	-	-	-	-	-	-	-	(882)	(882)	-	(882)

   Realized other income - - - - - - - 163 163 - 163

   Fund flows from operations 81,168 23,238 15,124 25,423 48,941 20,047 11,842 24,534 250,317 3,493 253,810

   (1) Fund flows from discontinued operations is comprised of the fund flows from operations from the assets disposed of in the United States, Saskatchewan and SA-07 assets in Croatia. The prior period results have been presented to conform with current period presentation. Refer to Note 3 "Discontinued operations" for additional information.

   (2) General and administrative expenses previously presented within the Corporate segment have been reclassified to our Canadian segment. The prior period results have been presented to conform with current period presentation.

   ‌Nine Months Ended September 30, 2026 Continuing Discontinued Canada France Netherlands Germany Ireland Australia CEE Corporate operations operations (1) Total
   Drilling and development	278,092	29,962	16,094	18,605	15,113	26,397	217	-	384,480	1,823	386,303
   Exploration and evaluation	-	-	-	4,005	-	-	-	-	4,005	314	4,319
   Crude oil and condensate sales	428,823	225,945	1,021	67,900	75	79,498	21	-	803,283	-	803,283
   NGL sales	89,429	-	-	-	-	-	-	-	89,429	-	89,429
   Natural gas sales	259,581	-	115,978	150,866	217,556	-	24,837	-	768,818	-	768,818
   Sales of purchased commodities	-	-	-	-	-	-	-	29,952	29,952	-	29,952
   Royalties	(70,039)	(28,442)	(3)	(12,518)	-	-	(7,930)	-	(118,932)	-	(118,932)
   Revenue from external customers	707,794	197,503	116,996	206,248	217,631	79,498	16,928	29,952	1,572,550	-	1,572,550
   Purchased commodities	-	-	-	-	-	-	-	(29,952)	(29,952)	-	(29,952)
   Transportation	(79,168)	(19,277)	-	(10,933)	(5,664)	-	-	-	(115,042)	-	(115,042)
   Operating	(181,731)	(47,011)	(28,615)	(44,858)	(36,934)	(82,871)	(2,134)	-	(424,154)	(236)	(424,390)
   General and administration (2)	(25,756)	(12,336)	(2,953)	(10,344)	(4,428)	(4,395)	(2,917)	-	(63,129)	(500)	(63,629)
   Petroleum resource rent tax	-	-	-	-	-	5,215	-	-	5,215	-	5,215
   Corporate income tax (expense) recovery	(1)	(5,814)	(16,163)	(18,270)	1,181	(517)	-	(794)	(40,378)	-	(40,378)
   Interest expense	-	-	-	-	-	-	-	(79,404)	(79,404)	-	(79,404)
   Equity based compensation	-	-	-	-	-	-	-	(11,240)	(11,240)	-	(11,240)
   Realized loss on derivative instruments	-	-	-	-	-	-	-	(120,227)	(120,227)	-	(120,227)
   Realized foreign exchange loss	-	-	-	-	-	-	-	(5,362)	(5,362)	-	(5,362)
   Realized other income	-	-	-	-	-	-	-	12,277	12,277	-	12,277

   Fund flows from operations 421,138 113,065 69,265 121,843 171,786 (3,070) 11,877 (204,750) 701,154 (736) 700,418

   Nine Months Ended September 30, 2025
   	Canada	France	Netherlands	Germany	Ireland	Australia	CEE	Corporate	Continuing operations	Discontinued operations (1)	Total
   Drilling and development	257,656	27,621	41,041	38,238	2,172	29,345	5,621	-	401,694	21,799	423,493
   Exploration and evaluation	-	-	-	17,310	-	-	1,874	-	19,184	493	19,677
   Crude oil and condensate sales	301,621	172,126	694	43,752	53	105,440	36	-	623,722	189,862	813,584
   NGL sales	65,299	-	-	-	-	-	-	-	65,299	12,397	77,696
   Natural gas sales	189,175	-	95,095	105,311	234,977	-	48,450	-	673,008	7,557	680,565
   Sales of purchased commodities	-	-	-	-	-	-	-	59,783	59,783	-	59,783
   Royalties	(45,911)	(24,929)	(10)	(8,135)	-	-	(7,772)	-	(86,757)	(40,386)	(127,143)
   Revenue from external customers	510,184	147,197	95,779	140,928	235,030	105,440	40,714	59,783	1,335,055	169,430	1,504,485
   Purchased commodities	-	-	-	- -		-	-	(59,783)	(59,783)	-	(59,783)
   Transportation	(62,496)	(16,683)	-	(10,706)	(6,820)	-	-	-	(96,705)	(6,969)	(103,674)
   Operating	(160,344)	(49,385)	(26,404)	(40,174)	(41,014)	(55,423)	(2,348)	-	(375,092)	(59,581)	(434,673)
   General and administration (2)	(36,514)	(10,161)	(3,419)	(9,950)	(4,551)	(4,452)	(3,112)	-	(72,159)	(20,407)	(92,566)
   Petroleum resource rent tax	-	-	-	-	-	(5,436)	-	-	(5,436)	-	(5,436)
   Corporate income tax recovery (expense)	1	313	(13,982)	(10,408)	(674)	(790)	(4,418)	(4,893)	(34,851)	-	(34,851)
   Interest expense	-	-	-	-	-	-	-	(105,078)	(105,078)	-	(105,078)
   Equity based compensation	-	-	-	-	-	-	-	(5,692)	(5,692)	-	(5,692)
   Realized gain on derivative instruments	-	-	-	-	-	-	-	120,611	120,611	-	120,611
   Realized foreign exchange gain	-	-	-	-	-	-	-	1,130	1,130	-	1,130

   Realized other expense - - - - - - - (14,956) (14,956) - (14,956)

   Fund flows from operations 250,831 71,281 51,974 69,690 181,971 39,339 30,836 (8,878) 687,044 82,473 769,517

   (1) Fund flows from discontinued operations is comprised of the fund flows from operations from the United States and Saskatchewan segments. The prior period results have been presented to conform with current period presentation. Refer to Note 3 "Discontinued operations" for additional information.

   (2) General and administration expenses previously presented within the Corporate segment have been reclassified to our Canadian segment. The prior period results have been presented to conform with current period presentation.

   ‌Reconciliation of fund flows from continuing operations to net (loss) earnings from continuing operations:

   	Three Months Ended Sep 30, 2026 Sep 30, 2025		Nine Month Sep 30, 2026	s Ended Sep 30, 2025
   Fund flows from continuing operations	237,062	250,317	701,154	687,044
   Equity based compensation	(4,921)	(5,937)	(4,326)	(13,154)
   Unrealized (loss) gain on derivative instruments	(245,187)	5,511	(356,581)	62,405
   Unrealized foreign exchange gain (loss)	12,178	(41,499)	(22,348)	(71,491)
   Accretion	(14,530)	(18,901)	(52,760)	(52,402)
   Depletion and depreciation	(148,724)	(174,030)	(478,659)	(488,070)
   Gain on acquisition	16,221	-	16,221	-
   Deferred tax recovery (expense)	115,317	(20,312)	159,292	(48,824)

   Unrealized other (expense) income (2,915) 299 (4,099) (1,414)

   Net (loss) earnings from continuing operations (35,499) (4,552) (42,106) 74,094

3. Discontinued operations Croatia

   On August 17, 2026, Vermilion closed the sale of the block SA-07 assets in Croatia for net proceeds of $26.5 million. The closing of the sale resulted in the derecognition of the net assets and the book value of the net assets disposed was $26.5 million.

   ‌The following table reconciles the book value of the net assets disposed of during the three and nine months ended September 30, 2026:

   24,257

   Exploration and evaluation assets

   September 30, 2026

Capital assets 2,927

On July 10, 2025, Vermilion closed the sale of the Saskatchewan and Manitoba assets for net proceeds of $392.6 million with resulting impairment of

$230.9 million. The closing of the sale resulted in the derecognition of the net assets, and a gain on disposition of $2.5 million, recognized in other expense within net (loss) earnings from discontinued operations. The book value of the net assets disposed was $379.0 million.

On July 31, 2025, Vermilion closed the sale of the United States assets for net proceeds of $90.9 million with resulting impairment of $141.5 million. The closing of the sale resulted in derecognition of the net assets and a loss on disposition of $6.5 million, recognized in other expense within net (loss) earnings from discontinued operations. The book value of the net assets disposed was $97.5 million.

The following table summarizes the Company's financial results from discontinued operations:

188 3,761 (842) (54,764)

Net earnings (loss) from discontinued operations 859 7,109 (3,834) (290,042)

The following table summarizes cash flows from discontinued operations reported in the consolidated statements of cash flows:

Cash flows used in investing activities 1,949 (4,390) 2,137 (49,474)

Cash flows from discontinued operations 1,655 20,490 1,313 32,837

1. Investments

Investments are comprised of Vermilion's ownership interest in Coelacanth Energy Inc. ("CEI"), an oil and natural gas company, actively engaged in the acquisition, development, exploration, and production of oil and natural gas reserves in northeastern British Columbia, Canada.

Balance at September 30 36,300

(1) Investments in securities are classified as a level 1 instrument on the fair value hierarchy and use observable inputs when making fair value adjustments. A deferred tax recovery of $0.9 million was recorded on the fair value adjustment for the nine months ended September 30, 2026.

Balance at September 30 4,583,682

(1) Refer to Note 3 "Discontinued Operations" for additional information.

On July 1, 2026, Vermilion completed the acquisition of certain producing assets in Germany for gross consideration substantially offset by closing adjustments. As the acquisition had an effective date preceding the closing date, the consideration was adjusted for activity attributable to the acquired interests during the intervening period.

The acquisition resulted in a gain primarily reflecting the remeasurement of Vermilion's previously held interests and adjustments arising from the period between the effective date and closing.

(1) Refer to Note 3 "Discontinued Operations" for additional information.

1. Asset retirement obligations Adoption of accounting policy - Asset retirement reimbursement assets

   Asset retirement reimbursement assets represent amounts recoverable from third parties in respect of expenditures required to settle asset retirement obligations. A reimbursement asset is recognized when it is virtually certain that reimbursement will be received if the related obligation is settled. The amount recognized does not exceed the amount of the related asset retirement obligation.

   Asset retirement reimbursement assets are measured at the present value of expected future reimbursements using assumptions consistent with those applied in measuring the related asset retirement obligations, as applicable. The assets are remeasured at each reporting date for changes in the amount and timing of expected future reimbursements and applicable discount rates. The effect of the passage of time is recognized in the statement of net earnings and reduces the accretion expense recognized on the related asset retirement obligation.

   The following table reconciles the change in Vermilion's asset retirement obligations and asset retirement reimbursement:

   	Asset retirement obligations	Asset retirement reimbursement	Net ARO exposure
   	2026	2026	2026
   Balance at January 1	959,736	-	959,736
   Additional obligations recognized	1,700	-	1,700
   Acquisitions	118,967	98,716	20,251
   Dispositions (1)	(651)	-	(651)
   Obligations settled	(46,780)	-	(46,780)
   Accretion	60,196	1,701	58,495
   Changes in rates through net earnings	-	5,735	(5,735)
   Changes in rates	149,750	-	149,750

   Foreign exchange	6,513	(662)	7,175
   Balance at September 30	1,249,431	105,490	1,143,941

   Long-term portion 1,198,709 105,490 1,093,219

   Current portion 50,722 - 50,722

   Balance at September 30 1,249,431 105,490 1,143,941

   (1) Refer to Note 3 "Discontinued Operations" for additional information.

   In connection with the German asset acquisition (Note 5), Vermilion acquired a contractual right to reimbursement for certain asset retirement costs, subject to an aggregate nominal limit of €97.0 million ($157.3 million). The unused portion of this limit increases by 2% per annum. The carrying amount of the reimbursement asset reflects the present value of the estimated amounts recoverable using rates consistent with the applicable German asset retirement obligations.

   In Australia, eligible asset retirement expenditures are expected to generate tax benefits under the Petroleum Resource Rent Tax regime at the applicable 40% tax rate. The asset retirement obligations are recognized on a gross basis and no corresponding deferred tax asset has been recognized, as the related tax benefits do not currently meet the recognition criteria.

   Vermilion calculated the present value of the obligations using a credit-adjusted risk-free rate, calculated using a credit spread of 2.6% as at September 30, 2026 (December 31, 2025 - 4.4%) 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:
   	Sep 30, 2026	Dec 31, 2025
   Canada	4.3 %	3.9 %
   France	5.0 %	4.5 %
   Netherlands	4.1 %	3.2 %
   Germany	4.0 %	3.4 %
   Ireland	3.8 %	3.2 %
   Australia	5.5 %	4.9 %
   Central and Eastern Europe	4.9 %	4.8 %

2. Capital disclosures

   Vermilion defines capital as net debt and shareholders' capital. Net debt consists of 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, current asset retirement obligations and current lease liabilities). In managing capital, Vermilion reviews whether fund flows from operations is sufficient to fund capital expenditures, dividends, share buybacks, and asset retirement obligations.

   The following table calculates Vermilion's ratio of net debt to four quarter trailing fund flows from operations:
   	Sep 30, 2026	Dec 31, 2025
   Long-term debt	1,181,468	1,243,397
   Adjusted working capital (deficit) (1)	(12,784)	96,091

   Unrealized FX on swapped USD borrowings (2)	(3,297)	2,902
   Net debt	1,165,387	1,342,390
   Ratio of net debt to four quarter trailing fund flows from operations (3)	1.2	1.4

   (1) Adjusted working capital (deficit) is defined as current assets less current liabilities (excluding current derivatives, current asset retirement obligations and current lease liabilities).

   (2) Vermilion may enter into cross currency interest rate swaps to hedge the foreign exchange movements on USD borrowings on our revolving credit facility. Unrealized FX on swapped USD borrowings relates to the unrealized gains and losses on our cross currency interest swaps. At September 30, 2026, there was

   $152.8 million of swapped USD borrowings on our revolving credit facility. (December 31, 2025 - $196.7 million).

   (3) Subsequent to February 26, 2025, net debt to four quarter trailing fund flows from operations is calculated inclusive of Westbrick Energy's pre-acquisition four quarter trailing fund flows from operations, as if the acquisition of Westbrick Energy occurred at the beginning of the four quarter trailing period, and exclusive of the four quarter trailing fund flows from discontinued operations to reflect the Company's ability to repay debt on a pro forma basis.

   ‌9. Long-term debt
   The following table summarizes Vermilion's outstanding long-term debt:
   	As at Sep 30, 2026	Dec 31, 2025
   Revolving credit facility	182,736	222,724
   2030 senior unsecured notes	478,267	504,962
   2033 senior unsecured notes	520,465	515,711

   Long-term debt 1,181,468 1,243,397

   The fair value of the 2030 senior unsecured notes as at September 30, 2026 was $477.9 million (December 31, 2025 - $506.2 million). The fair value of the 2033 senior notes as at September 30, 2026 was $512.1 million (December 31, 2025 - $491.3 million).

   The following table reconciles the change in Vermilion's long-term debt, net of costs:
   		2026
   Balance at January 1		1,243,397
   Repayments on the revolving credit facility		(47,970)
   Repayment of 2030 senior unsecured notes		(43,626)
   Repayment of 2033 senior unsecured notes		(13,460)
   Amortization of transaction costs		2,951
   Foreign exchange		40,176
   Balance at September 30 1,181,468
   Revolving credit facility As at September 30, 2026, Vermilion had in place a bank revolving credit facility maturing May 30, 2030 with the following terms:
   	As at Sep 30, 2026	Dec 31, 2025
   Total facility amount	1,350,000	1,350,000
   Amount drawn (182,736)		(222,724)

   Letters of credit outstanding (41,224) (49,263)

   Unutilized capacity 1,126,040 1,078,013

   The facility can be extended from time to time at the option of the lenders and upon notice from Vermilion. If no extension is granted by the lenders, the amounts owing pursuant to the facility are due at the maturity date. The facility is secured by various fixed and floating charges against the subsidiaries of Vermilion. The facility bears interest at a rate applicable to demand loans plus applicable margins.

   On April 24, 2026, the maturity date of the revolving credit facility was extended to May 30, 2030 (previously May 25, 2029) with no other changes to the existing terms and conditions.

   As at September 30, 2026, the revolving credit facility was subject to the following financial covenants:

   Financial covenant	Limit	As at Sep 30, 2026	Dec 31, 2025
   Consolidated total debt to consolidated EBITDA	Less than 4.0	1.12	1.14
   Consolidated total senior debt to consolidated EBITDA	Less than 3.5	0.17	0.21
   Consolidated EBITDA to consolidated interest expense	Greater than 2.5	10.21	8.44

   The financial covenants include financial measures defined within the revolving credit facility agreement that are not defined under IFRS® Accounting Standards. 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 (loss) 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.

As at September 30, 2026 and December 31, 2025, Vermilion was in compliance with the above covenants.

On April 26, 2022, Vermilion closed a private offering of US $400.0 million of senior unsecured notes, priced at 99.241% of par. The notes bear interest at a rate of 6.875% per annum, to be paid semi-annually on May 1 and November 1. The notes mature on May 1, 2030. 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.

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.

On February 11, 2025, Vermilion closed a private offering of US $400.0 million of senior unsecured notes at par. The notes bear interest at a rate of 7.250% per annum, to be paid semi-annually on February 15 and August 15. The notes mature on February 15, 2033. As direct senior unsecured obligations of Vermilion, the notes rank equally with existing and future senior unsecured indebtedness of the Company.

The senior unsecured notes were recognized at amortized cost and include the transaction costs directly related to the issuance. Vermilion may, at its option, redeem the notes prior to maturity as follows:

• Prior to February 15, 2028, Vermilion may redeem up to 40% 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 107.250% of the principal amount of the notes, together with accrued and unpaid interest.

• Prior to February 15, 2028, 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.

• On or after February 15, 2028, Vermilion may redeem some or all of the senior unsecured notes at the redemption prices set forth below, together with accrued and unpaid interest.

On March 13, 2017, Vermilion issued US $300.0 million of senior unsecured notes at par. The notes bore interest at a rate of 5.625% per annum paid semi-annually on March 15 and September 15. The notes matured on March 15, 2025 and the balance was repaid in full.

Concurrent with the completion of the Westbrick acquisition on February 26, 2025, Vermilion's credit facility agreement was amended to incorporate a new $450.0 million term loan (the "Term Loan") which was immediately drawn. The Term Loan balance was repaid in full in 2025.

1. Shareholders' capital

   The following table reconciles the change in Vermilion's shareholders' capital:

   Shareholders' Capital	2026 Shares ('000s)	Amount
   Balance at January 1	152,950	3,871,914
   Vesting of equity based awards	598	9,346
   Share-settled dividends on vested equity based awards	121	2,317
   Repurchase of shares (1)	(1,847)	(47,242)
   Balance at September 30	151,822	3,836,335

   (1) Share capital is reduced on the repurchase of shares at the weighted-average carrying value.

   Dividends are approved by the Board of Directors and are paid quarterly. Dividends declared and paid to shareholders for the nine months ended September 30, 2026 were $61.8 million or $0.405 per common share (nine months ended September 30, 2025 - declared $60.0 million or $0.390 per common share).

   On July 8, 2026, the Toronto Stock Exchange approved the Company's notice of intention to renew its normal course issuer bid ("the NCIB"). The NCIB renewal allows Vermilion to purchase up to 15,157,179 common shares (representing approximately 10% of outstanding common shares) beginning July 12, 2026 and ending July 11, 2027. Common shares purchased under the NCIB will be cancelled.

   In the three months ended September 30, 2026, Vermilion purchased 1.2 million common shares under the NCIB for total consideration of $19.7 million. In the nine months ended September 30, 2026 Vermilion purchased 1.8 million shares under the NCIB for total consideration of $29.8 million. The common shares purchased under the NCIB were cancelled.

   Subsequent to September 30, 2026, Vermilion purchased and cancelled 0.5 million shares under the NCIB for total consideration of $8.2 million.

2. Financial instruments

The following table summarizes the increase (positive values) or decrease (negative values) to net (loss) 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.

‌DIRECTORS

Myron Stadnyk 1

Calgary, Alberta

Corey Bieber, 3, 7

Calgary, Alberta

Dion Hatcher Calgary, Alberta

James J. Kleckner Jr. 5, 8

Edwards, Colorado

Stephen P. Larke 4, 9

Calgary, Alberta

Paul Myers 6, 9

Calgary, Alberta

Manjit Sharma 2, 5

Toronto, Ontario

Judy Steele 3, 7

Halifax, Nova Scotia

Mindy Wight 3, 5

Prince George, British Columbia

1 Chairman (Independent)

2 Audit Committee Chair (Independent)

3 Audit Committee Member (Independent)

4 Governance and Human Resources Committee Chair (Independent)

5 Governance and Human Resources Committee Member (Independent)

6 Safety & Sustainability Committee Chair (Independent)

7 Safety & Sustainability Committee Member (Independent)

8 Technical Committee Chair (Independent)

9 Technical Committee Member (Independent)

OFFICERS / CORPORATE SECRETARY

Dion Hatcher

President & Chief Executive Officer

Lars Glemser

Vice President & Chief Financial Officer

Lara Conrad

Vice President Business Development

Tamar Epstein

General Counsel & Corporate Secretary

Darcy Kerwin

Vice President International & HSE

Geoff MacDonald

Vice President Geosciences

Randy McQuaig

Vice President North America

Averyl Schraven

Vice President People & Culture

Gerard Schut

Vice President European Operations

AUDITORS

Deloitte LLP Calgary, Alberta

BANKERS

The Toronto-Dominion Bank The Bank of Nova Scotia

Canadian Imperial Bank of Commerce National Bank of Canada

Royal Bank of Canada

Wells Fargo Bank N.A., Canadian Branch ATB Financial

Bank of America N.A., Canada Branch Export Development Canada

Fédération des caisses Desjardins du Québec Citibank, N.A., Canadian Branch

JPMorgan Chase Bank, N.A., Toronto Branch Goldman Sachs Lending Partners LLC

EVALUATION ENGINEERS

McDaniel & Associates Calgary, Alberta

LEGAL COUNSEL

Norton Rose Fulbright Canada LLP Calgary, Alberta

TRANSFER AGENT

Odyssey Trust Company

STOCK EXCHANGE LISTINGS

The Toronto Stock Exchange ("VET") The New York Stock Exchange ("VET")

INVESTOR RELATIONS

Travis Thorgeirson

Director, Investor Relations & Corporate Planning 403-476-8214 TEL

403-476-8100 FAX

1-866-895-8101 IR TOLL FREE

[email protected]