Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | VERMILION ENERGY INC. |
Entity Central Index Key | 1,293,135 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Trading Symbol | VET |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheet
Consolidated Balance Sheet - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current | ||
Cash and cash equivalents | $ 26,809 | $ 46,561 |
Accounts receivable | 260,322 | 165,760 |
Crude oil inventory | 27,751 | 17,105 |
Derivative instruments | 95,667 | 17,988 |
Prepaid expenses | 19,328 | 14,432 |
Total current assets | 429,877 | 261,846 |
Derivative instruments | 1,215 | 2,552 |
Deferred taxes | 219,411 | 80,324 |
Exploration and evaluation assets | 303,295 | 292,278 |
Capital assets | 5,316,873 | 3,337,965 |
Total assets | 6,270,671 | 3,974,965 |
Current | ||
Accounts payable and accrued liabilities | 449,651 | 219,084 |
Dividends payable | 35,122 | 26,256 |
Derivative instruments | 41,016 | 78,905 |
Income taxes payable | 37,410 | 39,061 |
Total current liabilities | 563,199 | 363,306 |
Derivative instruments | 17,527 | 12,348 |
Long-term debt | 1,796,207 | 1,270,330 |
Lease obligations | 108,189 | 15,807 |
Asset retirement obligations | 650,164 | 517,180 |
Deferred taxes | 318,134 | 253,108 |
Total liabilities | 3,453,420 | 2,432,079 |
Shareholders' equity | ||
Shareholders' capital | 4,008,828 | 2,650,706 |
Contributed surplus | 78,478 | 84,354 |
Accumulated other comprehensive income | 118,182 | 71,829 |
Deficit | (1,388,237) | (1,264,003) |
Total shareholders' equity | 2,817,251 | 1,542,886 |
Total liabilities and shareholders' equity | $ 6,270,671 | $ 3,974,965 |
Consolidated Statements of Net
Consolidated Statements of Net Earnings and Comprehensive Income - CAD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue | ||
Petroleum and natural gas sales | $ 1,678,117 | $ 1,098,838 |
Royalties | (152,167) | (74,476) |
Petroleum and natural gas revenue | 1,525,950 | 1,024,362 |
Expenses | ||
Operating | 357,014 | 242,267 |
Transportation | 51,887 | 43,448 |
Equity based compensation | 60,746 | 61,579 |
Loss (gain) on derivative instruments | 1,932 | (3,659) |
Interest expense | 72,759 | 57,313 |
General and administration | 51,929 | 54,373 |
Foreign exchange loss (gain) | 63,000 | (74,058) |
Other income | (82) | (37) |
Accretion | 31,219 | 26,971 |
Depletion and depreciation | 609,056 | 491,683 |
Gain on business combinations | (128,208) | 0 |
Expenses, by nature | 1,171,252 | 899,880 |
Earnings before income taxes | 354,698 | 124,482 |
Taxes | ||
Deferred | 39,471 | 30,117 |
Current | 43,577 | 32,107 |
Tax expense (income), continuing operations | 83,048 | 62,224 |
Net earnings | 271,650 | 62,258 |
Other comprehensive income | ||
Currency translation adjustments | 46,353 | 41,490 |
Comprehensive income | $ 318,003 | $ 103,748 |
Net earnings per share | ||
Basic | $ 1.93 | $ 0.52 |
Diluted | $ 1.91 | $ 0.51 |
Weighted average shares outstanding ('000s) | ||
Basic | 140,619 | 120,582 |
Diluted | 142,335 | 122,408 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating | ||
Net earnings | $ 271,650 | $ 62,258 |
Adjustments: | ||
Accretion | 31,219 | 26,971 |
Depletion and depreciation | 609,056 | 491,683 |
Gain on business combinations | (128,208) | 0 |
Unrealized (gain) loss on derivative instruments | (109,326) | 1,062 |
Equity based compensation | 60,746 | 61,579 |
Unrealized foreign exchange loss (gain) | 63,243 | (71,742) |
Unrealized other expense | 801 | 637 |
Deferred taxes | 39,471 | 30,117 |
Asset retirement obligations settled | (15,765) | (9,334) |
Changes in non-cash operating working capital | (6,876) | 665 |
Cash flows from operating activities | 816,011 | 593,896 |
Investing | ||
Drilling and development | (503,842) | (290,593) |
Exploration and evaluation | (14,372) | (29,856) |
Acquisitions | (276,308) | (27,637) |
Changes in non-cash investing working capital | 55,491 | 407 |
Cash flows used in investing activities | (739,031) | (347,679) |
Financing | ||
Borrowings (repayments) on the revolving credit facility | 251,155 | (450,646) |
Issuance of senior unsecured notes | 0 | 391,906 |
Payments on lease obligations | (18,884) | (4,874) |
Cash dividends | (330,194) | (200,074) |
Cash flows used in financing activities | (97,923) | (263,688) |
Foreign exchange gain on cash held in foreign currencies | 1,191 | 1,257 |
Net change in cash and cash equivalents | (19,752) | (16,214) |
Cash and cash equivalents, beginning of year | 46,561 | 62,775 |
Cash and cash equivalents, end of year | 26,809 | 46,561 |
Supplementary information for cash flows from operating activities | ||
Interest paid | 70,049 | 49,721 |
Income taxes paid | $ 45,228 | $ 29,265 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - CAD ($) $ in Thousands | Total | Issued capital [member] | Share premium [member] | Retained Earnings [Member] |
Balance, beginning of year at Dec. 31, 2016 | $ 2,452,722 | |||
Shareholders' capital | ||||
Shares issued for acquisition | 0 | |||
Shares issued for the Dividend Reinvestment Plan | 110,493 | |||
Vesting of equity based awards | $ 69,743 | $ (69,743) | ||
Equity based compensation | 9,270 | 52,309 | ||
Share-settled dividends on vested equity based awards | 8,478 | $ (8,478) | ||
Balance, end of year at Dec. 31, 2017 | 2,650,706 | |||
Balance, beginning of year at Dec. 31, 2016 | 101,788 | |||
Contributed surplus | ||||
Equity based compensation | 9,270 | 52,309 | ||
Vesting of equity based awards | 69,743 | (69,743) | ||
Balance, end of year at Dec. 31, 2017 | 84,354 | |||
Balance, beginning of year at Dec. 31, 2016 | 30,339 | |||
Accumulated other comprehensive income | ||||
Currency translation adjustments | 41,490 | |||
Balance, end of year at Dec. 31, 2017 | 71,829 | |||
Balance, beginning of year at Dec. 31, 2016 | (1,006,386) | |||
Deficit | ||||
Net earnings | 62,258 | |||
Dividends declared | (311,397) | |||
Share-settled dividends on vested equity based awards | 8,478 | (8,478) | ||
Balance, end of year at Dec. 31, 2017 | (1,264,003) | |||
Deficit | ||||
TOTAL SHAREHOLDERS' EQUITY | 1,542,886 | |||
Shares issued for acquisition | 1,234,676 | |||
Shares issued for the Dividend Reinvestment Plan | 49,051 | |||
Vesting of equity based awards | 54,057 | (54,057) | ||
Equity based compensation | 12,565 | 48,181 | ||
Share-settled dividends on vested equity based awards | 7,773 | (7,773) | ||
Balance, end of year at Dec. 31, 2018 | 4,008,828 | |||
Contributed surplus | ||||
Equity based compensation | 12,565 | 48,181 | ||
Vesting of equity based awards | 54,057 | $ (54,057) | ||
Balance, end of year at Dec. 31, 2018 | 78,478 | |||
Accumulated other comprehensive income | ||||
Currency translation adjustments | 46,353 | |||
Balance, end of year at Dec. 31, 2018 | 118,182 | |||
Deficit | ||||
Net earnings | 271,650 | |||
Dividends declared | (388,111) | |||
Share-settled dividends on vested equity based awards | $ 7,773 | $ (7,773) | ||
Balance, end of year at Dec. 31, 2018 | (1,388,237) | |||
Deficit | ||||
TOTAL SHAREHOLDERS' EQUITY | $ 2,817,251 |
Basis of presentation
Basis of presentation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Basis Of Presentation [Abstract] | |
Disclosure of basis of preparation of financial statements [text block] | 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 February 27, 2019. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Disclosure of significant accounting policies [text block] | 2. Significant accounting policies Accounting framework The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Principles of consolidation The consolidated financial statements include the accounts of Vermilion Energy Inc. and its subsidiaries. Vermilion’s subsidiaries include entities in each of the jurisdictions that Vermilion operates as described in Note 4 including: Canada, France, Netherlands, Germany, Ireland (through an Irish Branch of a Cayman Islands incorporated company), Australia, the United States, Hungary, Slovakia, and Croatia. Vermilion Energy Inc. directly or indirectly through holding companies owns all of the voting securities of each material subsidiary. Transactions between Vermilion Energy Inc. and its subsidiaries have been eliminated. Vermilion accounts for joint operations by recognizing the Company’s share of assets, liabilities, income, and expenses. Exploration and evaluation assets Vermilion classifies costs as exploration and evaluation (“E&E”) assets when they relate to exploring and evaluating an area for which the Company has the license or right to explore and extract resources. E&E costs may include: geological and geophysical costs; land and license acquisition costs; and costs for the drilling, completion, and testing of exploration wells. E&E costs are reclassified to capital assets if the technical feasibility and commercial viability of the area can be determined. E&E assets are assessed for impairment prior to any reclassification. The technical feasibility and commercial viability of extracting the reserves is considered to be determinable when proved and probable reserves are identified. Costs incurred prior to the acquisition of the legal rights to explore an area are expensed as incurred. If reserves are not found within the license area or the area is abandoned, the related E&E costs are depreciated over a period not greater than five years. If an exploration license expires prior to the commencement of exploration activities, the cost of the exploration license is written off through depreciation in the year of expiration. Capital assets Vermilion recognizes capital assets at cost less accumulated depletion, depreciation and impairment losses. Costs include directly attributable costs incurred for the drilling, completion, and tie-in of wells and the construction of production and processing facilities. When components of capital assets are replaced, disposed of, or no longer in use, they are derecognized. Gains and losses on disposal of capital assets are determined by comparing the proceeds of disposal compared to the carrying amount. Depletion and depreciation Capital assets are grouped into depletion units, which are groups of assets within a specific production area that have similar economic lives. Depletion units represent the lowest level of disaggregation for which costs are accumulated for the purposes of calculating depletion and depreciation. The net carrying value of each depletion unit is depleted using the unit of production method by reference to the ratio of production in the period to the total proved and probable reserves, taking into account the future development costs necessary to bring the applicable reserves into production. For the purposes of the depletion calculations, oil and gas reserves are converted to a common unit of measure on the basis of their relative energy content based on a conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent. Impairment of capital assets and exploration and evaluation assets Depletion units are aggregated into cash generating units (“CGUs”) for impairment testing. CGUs are the lowest level for which there are identifiable cash inflows that are largely independent of cash inflows of other groups of assets. CGUs are reviewed for indicators of potential impairment at each reporting date. E&E assets are tested for impairment when reclassified to capital assets or when indicators of potential impairment are identified. E&E assets are reviewed for indicators of potential impairment at each reporting date. If indicators of potential impairment are identified, E&E assets are tested for impairment as part of the CGU attributable to the jurisdiction in which the exploration area resides. If an indicator of potential impairment exists, the CGU’s carrying value is compared to its recoverable amount. A CGU’s recoverable amount is the higher of its fair value less costs of disposal and its value-in-use. If the carrying amount of a CGU exceeds its recoverable amount, an impairment loss is recognized to reduce the carrying value of the CGU to its recoverable amount. If an impairment loss has been recognized in a prior period, an assessment is performed at each reporting date to determine if there are indicators that the circumstances which led to the impairment loss have reversed. If the change in circumstances results in the recoverable amount being higher than the carrying value after the impairment loss, then the impairment loss (net of depletion that would otherwise have been recorded) is reversed. Lease obligations and right-of-use assets A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the lease commencement date, a lease obligation is recognized at the present value of future lease payments, typically using the applicable incremental borrowing rate. A corresponding right-of-use asset is recognized at the amount of the lease obligation, adjusted for lease incentives received and initial direct costs. 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: Financial instruments under this classification include cash and cash equivalents and derivative assets and liabilities. • Amortized cost: Financial instruments under this classification include accounts receivable, accounts payable and accrued liabilities, dividends payable, lease obligations, and long-term debt. Accounts receivable are measured net of a loss allowance equal to the lifetime expected credit loss. Equity based compensation Equity based compensation expense results from equity-settled awards issued under Vermilion’s long-term share-based compensation plans as well as the grant date fair value of Vermilion common shares issued under the Company’s bonus and employee share savings plans. Vermilion's long-term share-based compensation plans consist of the Vermilion Incentive Plan (“VIP”) and a security-based compensation arrangement ("Five-Year Compensation Arrangement"). Equity-settled awards issued under the VIP vest over a period of one to three years while awards issued under the Five-Year Compensation Arrangement vest in the fifth year following the grant date. Awards under both plans are adjusted upon vesting by a performance factor determined by the Company’s Board of Directors. Equity based compensation expense for both 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, and an estimate of forfeiture rates based on historical vesting data. Dividends notionally accrue to the awards and are excluded in the determination of grant date fair values. Upon vesting, the amount recognized in contributed surplus is reclassified to shareholders’ capital. The grant date fair value of the equity-settled awards issued under the VIP and the Five-Year Compensation Arrangement and the grant date fair value of Vermilion common shares issued under the Company’s bonus and employee share savings plans are 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 occur 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. Foreign currency transaction translation occurs as follows: • Income and expenses are translated at the prevailing rates on the date of the transaction • Non-monetary assets or liabilities are carried at the prevailing rates on the date of the transaction • Monetary items, including intercompany loans that are not deemed to represent net investments in a foreign subsidiary, are translated at the prevailing rates at the balance sheet date Foreign operation translation occurs when translating the financial statements of non-Canadian functional currency subsidiaries to the Canadian dollar and when translating intercompany loans that are deemed to represent net investments in a foreign subsidiary. Gains and losses from foreign operation translations are recorded as currency translation adjustments. Foreign operation translations occur as follows: • Income and expenses are translated at the average exchange rates for the period • Assets and liabilities are translated at the prevailing rates on the balance sheet date. Income taxes Deferred tax assets and liabilities are calculated using the balance sheet method. Deferred tax assets and liabilities are recognized for the estimated effect of any temporary differences between the amounts recognized on Vermilion’s consolidated balance sheet and the respective tax basis. This calculation uses enacted or substantively enacted tax rates that are expected to be in effect when the temporary differences are expected to reverse. The effect of a change in tax rates on deferred taxes is recognized in the period the related legislation is substantively enacted. Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent it is no longer probable that the related tax benefit will be realized. Business combinations Acquisitions of corporations or groups of assets are accounted for as business combinations using the acquisition method if the acquired assets constitute a business. Under the acquisition method, assets acquired and liabilities assumed in a business combination (with the exception of deferred tax assets and liabilities) are measured at their fair value. Deferred tax assets or liabilities arising from the assets acquired and liabilities assumed are measured in accordance with the policies described in "Income taxes" above. If applicable, the excess or deficiency of 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. Segmented information Vermilion has a decentralized business unit structure designed to manage assets in each country the Company operates in. Each of Vermilion's operating segments derives its revenues solely from the production and sale of petroleum and natural gas. Vermilion’s Corporate segment aggregates costs incurred at the Company’s Corporate head office located in Calgary, Alberta, Canada as well as costs incurred relating to Vermilion’s exploration and production activities in Hungary, Slovakia, and Croatia (Central and Eastern Europe). These operating segments have similar economic characteristics as they do not currently generate material revenue. Vermilion’s chief operating decision maker regularly reviews fund flows from operations generated by each of Vermilion’s operating segments. Fund flows from operations is a measure of profit or loss that provides the chief operating decision maker with the ability to assess the profitability of each operating segment and, correspondingly, the ability of each operating segment to fund its share of dividends, asset retirement obligations, and capital investments. Management judgments and estimation uncertainty The preparation of the consolidated financial statements in accordance with IFRS requires management to make judgments, estimates, and assumptions that affect the reported amount of assets, liabilities, income, and expenses. Actual results could differ significantly from these estimates. Key areas where management has made judgments, estimates, and assumptions are described below. The measurement of the fair value of capital assets acquired in a business combination and the determination of the recoverable amount of cash generating units: • Calculating the fair value of capital assets acquired in a business combination and the recoverable amount of cash generating units (in the assessment of impairments or reversals of previous impairments if indicators of impairment or impairment reversal are identified) are based on estimated future commodity prices and estimated reserves and resources. Reserve and resource estimates are based on: engineering data, estimated future commodity prices, expected future rates of production, and assumptions regarding the timing and amount of future expenditures. Changes in these estimates and assumptions can directly impact the calculated fair value of capital assets acquired (and thus the resulting goodwill or gain on business combination) and the recoverable amount of a CGU (and thus the resulting impairment loss or recovery). • In addition, the recoverable amount of a CGU is impacted by the composition of CGUs, which are subject to management’s judgment of the lowest level at which there are identifiable cash inflows that are largely independent of the cash inflows of other groups of assets. The factors used by Vermilion to determine CGUs vary by jurisdiction due to their unique operating and geographic conditions. In general, Vermilion will assess the following factors: geographic proximity of the assets within a group to one another, geographic proximity of the group of assets to other groups of assets, homogeneity of the production from the group of assets and the sharing of infrastructure used to process and/or transport production. Changes in these judgments can directly impact the calculated recoverable amount of a CGU (and thus the resulting impairment loss or recovery). The measurement of the carrying value of asset retirement obligations on the balance sheet, including the fair value and subsequent carrying value of asset retirement obligations assumed in a business combination: • Asset retirement obligations are based on judgments regarding regulatory requirements, estimates of future costs, assumptions on the expected timing of expenditures, and estimates of the underlying risk inherent to the obligation. The carrying balance of asset retirement obligations and accretion expense may differ due to changes in: laws and regulations, technology, the expected timing of expenditures, and market conditions affecting the discount rate applied. The recognition and measurement of deferred tax assets and liabilities: • Tax interpretations, regulations, and legislation in the various jurisdictions in which Vermilion and its subsidiaries operate are subject to change and interpretation. Changes in laws and interpretations can affect the timing of the reversal of temporary tax differences, the tax rates in effect when such differences reverse and Vermilion’s ability to use tax losses and other tax pools in the future. The Company’s income tax filings are subject to audit by taxation authorities in numerous jurisdictions and the results of such audits may increase or decrease the tax liability. The determination of tax amounts recognized in the consolidated financial statements are based on management’s assessment of the tax positions, which includes consideration of their technical merits, communications with tax authorities and management’s view of the most likely outcome. • The extent to which deferred tax assets are recognized are based on estimates of future profitability. These estimates are based on estimated future commodity prices and estimates of reserves. Judgments, estimates, and assumptions inherent in reserve estimates are described above. The measurement of lease obligations and corresponding right-of-use assets: • The measurement of lease obligations are subject to management's judgments of the applicable incremental borrowing rate and the expected lease term. The carrying balance of the right-of-use assets, lease obligations, and the resulting interest and depletion and depreciation expense, may differ due to changes in the market conditions and expected lease terms. Applicable incremental borrowing rates are based on judgments of the economic environment, term, currency, and the underlying risk inherent to the asset. Lease terms are based on assumptions regarding cancellation and extension terms that allow for operational flexibility based on future market conditions. |
Changes in accounting pronounce
Changes in accounting pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Changes To Accounting Pronouncements [Abstract] | |
Disclosure of expected impact of initial application of new standards or interpretations [text block] | 3. Changes in accounting pronouncements IFRS 9 "Financial instruments" On January 1, 2018, Vermilion adopted IFRS 9 "Financial instruments" as issued by the IASB. IFRS 9 includes a new classification and measurement approach for financial assets and a forward-looking 'expected credit loss' model. The adoption of IFRS 9 did not have a material impact on Vermilion's consolidated financial statements. IFRS 15 "Revenue from contracts with customers" On January 1, 2018, Vermilion adopted IFRS 15 " Revenue from contracts with customers ". IFRS 15 establishes a comprehensive framework for determining whether, how much, and when revenue from contracts with customers is recognized. Vermilion adopted IFRS 15 using the modified retrospective approach. Under this transitional provision, the cumulative effect of initially applying IFRS 15 is recognized on the date of initial application as an adjustment to retained earnings. No adjustment to retained earnings was required upon adoption of IFRS 15. IFRS 15 requires additional disclosure relating to the disaggregation of revenue - this additional disclosure is included in Note 4 (Segmented Information). IFRS 16 "Leases" Vermilion has elected to early adopt IFRS 16 effective January 1, 2018. IFRS 16 introduces a single lease accounting model for lessees which requires a right-of-use asset and lease liability to be recognized on the balance sheet for contracts that are, or contain, a lease. Vermilion adopted IFRS 16 using the modified retrospective approach, whereby the cumulative effect of initially applying the standard was recognized as a $97.1 million increase to right-of-use assets (included in "Capital assets") with a corresponding increase to lease obligations (the non-current portion of $86.1 million recorded in "lease obligations" and the current $11.0 million portion recorded in "Accounts payable and accrued liabilities"). The right-of-use assets recognized were measured at amounts equal to the lease obligations. The weighted average incremental borrowing rate used to determine the lease obligation at adoption was approximately 5.4%. The right-of-use assets and lease obligations recognized largely relate to the Company's head office lease in Calgary and long-term leases for oil storage facilities in France. The adoption of IFRS 16 included the following elections: • Vermilion elected to retain the classification of contracts previously identified as leases under IAS 17 and IFRIC 4. • Vermilion elected to use hindsight in determining lease term. • Vermilion elected to not apply lease accounting to certain leases for which the lease term ends within 12 months of the date of initial application. As at December 31, 2017, Vermilion disclosed operating lease commitments of $40.2 million, which would have resulted in a lease obligation of $34.3 million when discounted at the weighted average incremental borrowing rate at adoption of IFRS 16 of 5.4%. The total current and non-current lease liability recognized on January 1, 2018 of $97.1 million represented an increase of $62.8 million compared to the disclosed operating lease commitments due the application of IFRS 16 in determining lease terms. |
Segmented information
Segmented information | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Segmented Information [Abstract] | |
Disclosure of entity's operating segments [text block] | 4. Segmented information Vermilion has three major customers within the France, Netherlands, and Ireland operating segments that each comprise in excess of 10% of Vermilion's consolidated revenues. Substantially all sales in the France, Netherlands, and Ireland operating segments for the years ended December 31, 2018 and 2017 were to one customer in each respective segment. Year Ended December 31, 2018 ($M) Canada France Netherlands Germany Ireland Australia USA Corporate Total Total assets 3,060,291 918,398 277,348 284,063 709,585 263,739 407,323 349,924 6,270,671 Drilling and development 277,857 79,451 17,963 10,863 224 75,638 40,837 1,009 503,842 Exploration and evaluation — 307 (480 ) 4,943 — — — 9,602 14,372 Crude oil and condensate sales 541,844 360,471 2,462 32,704 — 150,733 31,142 — 1,119,356 NGL sales 56,554 — — — — — 4,622 — 61,176 Natural gas sales 72,774 131 163,454 49,745 205,150 — 2,701 3,630 497,585 Royalties (84,696 ) (46,781 ) (3,181 ) (6,626 ) — — (10,070 ) (813 ) (152,167 ) Revenue from external customers 586,476 313,821 162,735 75,823 205,150 150,733 28,395 2,817 1,525,950 Transportation (29,912 ) (10,426 ) — (6,420 ) (5,129 ) — — — (51,887 ) Operating (177,499 ) (54,690 ) (26,681 ) (23,048 ) (15,366 ) (53,199 ) (6,421 ) (110 ) (357,014 ) General and administration (6,057 ) (14,170 ) (1,947 ) (7,401 ) (8,386 ) (4,918 ) (6,306 ) (2,744 ) (51,929 ) PRRT — — — — — (4,824 ) — — (4,824 ) Corporate income taxes — (15,084 ) (16,561 ) — — (6,595 ) — (513 ) (38,753 ) Interest expense — — — — — — — (72,759 ) (72,759 ) Realized loss on derivative instruments — — — — — — — (111,258 ) (111,258 ) Realized foreign exchange gain — — — — — — — 243 243 Realized other income — — — — — — — 883 883 Fund flows from operations 373,008 219,451 117,546 38,954 176,269 81,197 15,668 (183,441 ) 838,652 Year Ended December 31, 2017 ($M) Canada France Netherlands Germany Ireland Australia USA Corporate Total Total assets 1,542,193 831,783 203,929 295,026 667,068 236,677 73,867 124,422 3,974,965 Drilling and development 148,667 71,087 15,107 6,165 551 29,942 19,074 — 290,593 Exploration and evaluation — 2,294 16,468 3,366 — — — 7,728 29,856 Crude oil and condensate sales 209,560 268,102 1,864 23,554 — 154,391 14,605 — 672,076 NGL sales 37,809 — — — — — 456 — 38,265 Natural gas sales 83,534 1 106,196 45,142 153,330 — 294 — 388,497 Royalties (33,258 ) (28,565 ) (1,722 ) (6,655 ) — — (4,276 ) — (74,476 ) Revenue from external customers 297,645 239,538 106,338 62,041 153,330 154,391 11,079 — 1,024,362 Transportation (17,368 ) (14,627 ) — (6,207 ) (5,205 ) — (41 ) — (43,448 ) Operating (80,444 ) (51,002 ) (21,212 ) (20,176 ) (17,596 ) (50,139 ) (1,698 ) — (242,267 ) General and administration (9,604 ) (13,585 ) (2,212 ) (7,767 ) (2,320 ) (8,194 ) (4,341 ) (6,350 ) (54,373 ) PRRT — — — — — (19,819 ) — — (19,819 ) Corporate income taxes — (10,556 ) 3,331 — — (4,536 ) — (527 ) (12,288 ) Interest expense — — — — — — — (57,313 ) (57,313 ) Realized gain on derivative instruments — — — — — — — 4,721 4,721 Realized foreign exchange gain — — — — — — — 2,316 2,316 Realized other income — — — — — — — 674 674 Fund flows from operations 190,229 149,768 86,245 27,891 128,209 71,703 4,999 (56,479 ) 602,565 Reconciliation of fund flows from operations to net earnings: Year Ended ($M) Dec 31, 2018 Dec 31, 2017 Fund flows from operations 838,652 602,565 Accretion (31,219 ) (26,971 ) Depletion and depreciation (609,056 ) (491,683 ) Gain on business combinations 128,208 — Unrealized gain (loss) on derivative instruments 109,326 (1,062 ) Equity based compensation (60,746 ) (61,579 ) Unrealized foreign exchange (loss) gain (63,243 ) 71,742 Unrealized other expense (801 ) (637 ) Deferred tax (39,471 ) (30,117 ) Net earnings 271,650 62,258 |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about business combination [abstract] | |
Disclosure of business combinations [text block] | 5. Business combinations Private Producer in Southeast Saskatchewan and Southwest Manitoba On February 15, 2018, Vermilion acquired all of the issued and outstanding common shares of a private producer with assets in southeast Saskatchewan and southwest Manitoba. The acquisition comprised of light oil producing fields near Vermilion’s existing operations in southeast Saskatchewan. The acquisition complements Vermilion’s existing southeast Saskatchewan operations and aligns with the Company's sustainable growth-and-income model. The acquisition was funded through Vermilion’s revolving credit facility. The total consideration paid and the fair value of the assets acquired and liabilities assumed at the date of acquisition are detailed in the table below. ($M) Consideration Cash paid to vendor 53,288 Total consideration 53,288 ($M) Allocation of consideration Capital assets 67,549 Deferred tax assets 26,914 Acquired working capital 1,577 Long-term debt (38,300 ) Asset retirement obligations (4,452 ) Net assets acquired 53,288 For the year ended December 31, 2018, the acquisition contributed revenues of $18.7 million and net earnings of $6.7 million. Had the acquisition occurred on January 1, 2018, revenues would have increased by $2.9 million and net earnings would have increased by $1.0 million for the year ended December 31, 2018. Spartan Energy Corp. On May 28, 2018, Vermilion acquired all of the issued and outstanding common shares of Spartan Energy Corp., a publicly traded oil and gas producer with light oil producing properties in southeast Saskatchewan as well as other areas in Saskatchewan, Alberta, and Manitoba. The acquisition increases Vermilion’s position in southeast Saskatchewan and aligns with the Company's sustainable growth-and-income model. Consideration consisted of the issuance of 27.9 million Vermilion common shares valued at approximately $1.2 billion (based on the closing price per Vermilion common share of $44.30 on the Toronto Stock Exchange on May 28, 2018). Acquisition-related costs of $1.3 million were incurred in the year ended December 31, 2018. The total consideration paid and the fair value of the assets acquired and liabilities assumed as at the date of the acquisition are detailed in the table below. ($M) Consideration Shares issued for acquisition 1,235,221 Total consideration 1,235,221 ($M) Allocation of consideration Capital assets 1,401,686 Deferred tax assets 123,813 Long-term debt (150,196 ) Asset retirement obligations (92,149 ) Lease obligations (25,455 ) Assumed working capital deficit (22,478 ) Net assets acquired 1,235,221 For the year ended December 31, 2018, the acquisition contributed revenues of $242.1 million and net earnings of $45.1 million. Had the acquisition occurred on January 1, 2018, revenues would have increased by $182.4 million and net earnings would have increased by $35.0 million for the year ended December 31, 2018. Assets in Wyoming In August 2018, Vermilion acquired oil and gas producing assets and mineral leasehold land from a private oil company for total cash consideration of approximately $189 million. The assets are located in Campbell County, Wyoming in the Powder River Basin, approximately 65 kilometres northwest of Vermilion’s existing operations. The acquired assets complement Vermilion's existing Powder River operations and align with the Company's sustainable growth-and-income model. The acquisition was funded through Vermilion’s revolving credit facility. The total consideration paid and the fair value of the assets acquired and liabilities assumed at the date of acquisition are detailed in the table below. ($M) Consideration Cash paid to vendor 189,014 Total consideration 189,014 ($M) Allocation of consideration Capital assets 284,333 Deferred tax liability (19,019 ) Asset retirement obligations (4,821 ) Assumed working capital deficit (2,651 ) Net assets acquired 257,842 Gain on business combination (68,828 ) Total net assets acquired, net of gain on business combination 189,014 The gain on the business combination primarily resulted from the recognition of additional reserve value when the acquisition closed compared to the estimated value when Vermilion entered into the purchase and sale agreement and the acquisition price was determined. For the year ended December 31, 2018, the acquisition contributed revenues of $11.6 million and net earnings of $0.3 million. Had the acquisition occurred on January 1, 2018, revenues would have increased by $11.1 million and net earnings would have decreased by $ 0.1 Shell E&P Ireland Limited In December 2018, Vermilion acquired all of the issued and outstanding common shares of Shell E&P Ireland Limited, along with an incremental 1.5% working interest in the Corrib Natural Gas Project ("Corrib") in Ireland from Nephin Energy Holdings Limited, a wholly owned subsidiary of Canada Pension Plan Investment Board. The acquisition increases Vermilion's total ownership in Corrib to 20% and aligns with the Company's sustainable growth-and-income model. In addition to this transaction, Vermilion has assumed operatorship of Corrib. The total consideration paid and the fair value of the assets acquired and liabilities assumed as at the date of the acquisition are detailed in the table below. ($M) Consideration Cash paid to vendor 40,805 Cash acquired (82,116 ) Contingent consideration 290 Total consideration (41,021 ) ($M) Allocation of consideration Capital assets 53,368 Deferred tax assets 4,239 Assumed working capital deficit (35,449 ) Lease obligations (2,234 ) Asset retirement obligations (1,565 ) Net assets acquired 18,359 Gain on business combination (59,380 ) Total net assets acquired, net of gain on business combination (41,021 ) The fair value of the contingent consideration obligation is estimated to be approximately $0.3 million based on estimated future commodity prices and estimated reserves. Maximum contingent payments are €5.8 million (approximately $9.1 million) through 2025. The gain on the business combination primarily resulted from increases in working capital and the fair value of capital assets from when the purchase and sale agreement was entered into in July 2017 and when the acquisition closed in December 2018. For the year ended December 31, 2018, the acquisition contributed revenues of $1.3 million and net earnings of $0.4 million. Had the acquisition occurred on January 1, 2018, revenues would have increased by $15.2 million and net earnings would have increased by $4.3 million for the year ended December 31, 2018. Minor acquisitions Vermilion completed a number of minor acquisitions during the year ended December 31, 2018 for total cash consideration of $56.0 million, in which $147.4 million of capital assets, $28.6 million of exploration and evaluation assets, and $104.0 million of asset retirement obligations were recognized. |
Capital assets
Capital assets | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Disclosure of property, plant and equipment [text block] | 6. Capital assets The following table reconciles the change in Vermilion's capital assets: ($M) 2018 2017 Balance at January 1 3,337,965 3,433,245 Acquisitions 1,975,327 25,390 Additions 503,842 290,593 Increase in right-of-use assets 98,343 — Transfers from exploration and evaluation assets 29,615 8,187 Depletion and depreciation (605,994 ) (479,698 ) Changes in asset retirement obligations (100,876 ) (48,187 ) Foreign exchange 78,651 108,435 Balance at December 31 5,316,873 3,337,965 Cost 9,202,604 6,539,052 Accumulated depletion and depreciation (3,885,731 ) (3,201,087 ) Carrying amount at December 31 5,316,873 3,337,965 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, 2018: ($M) Depreciation Balance Office space 9,119 62,279 Gas processing facilities 5,491 41,788 Oil storage facilities 2,728 20,758 Vehicles and equipment 2,020 9,121 Total 19,358 133,946 2018 and 2017 impairment assessment As at December 31, 2018 and 2017, Vermilion did not identify any indicators of impairment. |
Exploration and evaluation asse
Exploration and evaluation assets | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Exploration And Evaluation Assets [Abstract] | |
Disclosure of exploration and evaluation assets [text block] | 7. Exploration and evaluation assets The following table reconciles the change in Vermilion's exploration and evaluation assets: ($M) 2018 2017 Balance at January 1 292,278 274,830 Acquisitions 28,572 2,247 Additions 14,372 29,856 Changes in asset retirement obligations 629 (30 ) Transfers to capital assets (29,615 ) (8,187 ) Depreciation (5,942 ) (11,727 ) Foreign exchange 3,001 5,289 Balance at December 31 303,295 292,278 Cost 371,015 354,615 Accumulated depreciation (67,720 ) (62,337 ) Carrying amount at December 31 303,295 292,278 |
Asset retirement obligations
Asset retirement obligations | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Asset Retirement Obligations [Abstract] | |
Disclosure of other provisions, contingent liabilities and contingent assets [text block] | 8. Asset retirement obligations The following table reconciles the change in Vermilion’s asset retirement obligations: ($M) 2018 2017 Balance at January 1 517,180 525,022 Additional obligations recognized 211,580 3,273 Changes in estimated abandonment timing and costs (98,158 ) (48,904 ) Obligations settled (15,765 ) (9,334 ) Accretion 31,219 26,971 Changes in discount rates (6,646 ) (2,586 ) Foreign exchange 10,754 22,738 Balance at December 31 650,164 517,180 Vermilion has estimated the asset retirement obligations based on a total undiscounted future liability of $2.6 billion (2017 - $1.6 billion). These payments are expected to be made between 2020 and 2078, with the majority of spending occurring between 2029 and 2036 ($0.6 billion), 2047 to 2055 ($0.6 billion), and 2063 and 2068 ($0.9 billion). Inflation rates used in determining the cash flow estimates were between 0.5% and 2.9% (2017 - between 0.6% and 2.2%). Vermilion calculated the present value of the obligations using a credit-adjusted risk-free rate, calculated using a credit spread of 4.0% (2017 - 3.8%) added to risk-free rates based on long-term, risk-free government bonds. The risk-free rates used as inputs to discount the obligations were as follows: Dec 31, 2018 Dec 31, 2017 Canada 2.2 % 2.3 % France 1.6 % 1.8 % Netherlands 0.4 % 0.5 % Germany 0.9 % 1.0 % Ireland 1.6 % 0.4 % Australia 2.6 % 2.9 % USA 2.7 % 2.4 % A 0.5% increase/decrease in the discount rate applied to asset retirement obligations would decrease/increase asset retirement obligations by approximately $55.0 million. A one-year increase/decrease in the expected timing of abandonment spend would decrease/increase asset retirement obligations by approximately $25.0 million. |
Derivative instruments
Derivative instruments | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Derivative instruments [Abstract] | |
Disclosure of derivative financial instruments [text block] | 9. Derivative instruments The following table reconciles the change in the fair value of Vermilion’s derivative instruments: Year Ended ($M) Dec 31, 2018 Dec 31, 2017 Fair value of contracts, beginning of year (70,713 ) (69,651 ) Reversal of opening contracts settled during the year 57,719 43,324 Assumed in acquisitions (274 ) — Realized (loss) gain on contracts settled during the year (111,258 ) 4,721 Unrealized gain (loss) during the year on contracts outstanding at the end of the year 51,607 (44,386 ) Net receipt from counterparties on contract settlements during the year 111,258 (4,721 ) Fair value of contracts, end of year 38,339 (70,713 ) Comprised of: Current derivative asset 95,667 17,988 Current derivative liability (41,016 ) (78,905 ) Non-current derivative asset 1,215 2,552 Non-current derivative liability (17,527 ) (12,348 ) Fair value of contracts, end of year 38,339 (70,713 ) The loss (gain) on derivative instruments for 2018 and 2017 were comprised of the following: Year Ended ($M) Dec 31, 2018 Dec 31, 2017 Realized loss (gain) on contracts settled during the year 111,258 (4,721 ) Reversal of opening contracts settled during the year (57,719 ) (43,324 ) Unrealized (gain) loss on contracts outstanding at the end of the year (51,607 ) 44,386 Loss (gain) on derivative instruments 1,932 (3,659 ) Please refer to Note 19 (Supplemental information) for a listing of Vermilion's outstanding derivative instruments as at December 31, 2018. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of leases [Abstract] | |
Disclosure of leases [text block] | 10. Leases Vermilion had the following future commitments associated with its lease obligations: As at ($M) Dec 31, 2018 Dec 31, 2017 Less than 1 year 30,641 6,680 1 - 3 years 50,024 10,207 4 - 5 years 34,313 4,665 After 5 years 42,739 3,351 Total lease payments 157,717 24,903 Amounts representing interest (24,583 ) (3,526 ) Present value of net lease payments 133,134 21,377 Current portion of lease obligations (24,945 ) (5,570 ) Non-current portion of lease obligations 108,189 15,807 The significant increase in total lease payments as at December 31, 2018 compared to December 31, 2017 primarily relates to the adoption of IFRS 16 effective January 1, 2018 and lease obligations assumed on acquisitions. Please refer to Note 3 (Changes to accounting pronouncements), Note 5 (Business combinations), and Note 6 (Capital assets) for additional information. For the year ended December 31, 2018, interest expense of $7.2 million and total cash outflow of $28.0 million were recognized relating to lease obligations. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Taxes [Abstract] | |
Disclosure of income tax [text block] | 11. Taxes The following table reconciles Vermilion’s deferred tax asset and liability: As at ($M) Dec 31, 2018 Dec 31, 2017 Deferred tax assets: Non-capital losses 487,398 342,202 Capital assets (296,591 ) (294,178 ) Asset retirement obligations 38,429 28,056 Derivative contracts (11,937 ) 10,164 Unrealized foreign exchange (1,873 ) (7,927 ) Other 3,985 2,007 Deferred tax assets 219,411 80,324 Deferred tax liabilities: Capital assets (319,553 ) (259,236 ) Non-capital losses 57,785 34,703 Asset retirement obligations (51,031 ) (27,868 ) Unrealized foreign exchange (10,715 ) (13,355 ) Derivative contracts — 11,386 Other 5,380 1,262 Deferred tax liabilities (318,134 ) (253,108 ) 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 ($M) Dec 31, 2018 Dec 31, 2017 Earnings before income taxes 354,698 124,482 Canadian corporate tax rate 27.0 % 27.0 % Expected tax expense 95,768 33,610 Increase (decrease) in taxes resulting from: Petroleum resource rent tax rate (PRRT) differential (1) 5,349 3,531 Foreign tax rate differentials (1), (2) 3,086 7,146 Equity based compensation expense 13,883 10,343 Amended returns and changes to estimated tax pools and tax positions (873 ) (17,246 ) Statutory rate changes and the estimated reversal rates associated with temporary differences (3) — (16,449 ) (Re-recognition) de-recognition of deferred tax assets (26,931 ) 44,608 Adjustment for uncertain tax positions 8,080 2,191 Gain on business combinations (28,812 ) — Other non-deductible items 13,498 (5,510 ) Provision for income taxes 83,048 62,224 (1) In Australia, current taxes include both corporate income tax rates and PRRT. Corporate income tax rates were applied at a rate of 30% and PRRT was applied at a rate of 40%. (2) The applicable tax rates for 2018 were: 34.4% in France, 50.0% in the Netherlands, 30.2% in Germany, 25.0% in Ireland, and 21.0% in the United States. (3) On December 22, 2017, the Tax Cuts and Jobs Act was signed into law in the United States reducing the U.S. federal corporate income tax rate from 35% to 21%. On December 21, 2017, the French Parliament approved the Finance Bill for 2018. The Finance Bill for 2018 provides for a progressive decrease of the French standard corporate income tax rate from 34.43% to 25.825% by 2022 At December 31, 2018, Vermilion had $2.6 billion (2017 - $2.0 billion) of unused tax losses of which $1.1 billion (2017 - $0.5 billion) relates to Vermilion's Canada segment and expire between 2025 and 2038 and $1.3 billion (2017 - $1.3 billion) relates to Vermilion's Ireland segment and do not expire. The year-over-year increase in unused tax losses in Vermilion's Canada segment was the result of tax losses acquired in the business combinations described in Note 5. At December 31, 2018, Vermilion re-recognized $90.6 million (2017 - de-recognized $145.6 million) of relating to the aforementioned non-expiring tax loss pools in Ireland based on the Company’s expected ability to fully utilize such losses based on commodity price forecasts in effect as at December 31, 2018. The aggregate amount of temporary differences associated with investments in subsidiaries for which deferred tax liabilities have not been recognized as at December 31, 2018 is approximately $0.5 billion (2017 – approximately $0.4 billion). |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Long-Term Debt [Abstract] | |
Disclosure of debt instruments [text block] | 12. Long-term debt The following table summarizes Vermilion’s outstanding long-term debt: As at ($M) Dec 31, 2018 Dec 31, 2017 Revolving credit facility 1,392,206 899,595 Senior unsecured notes 404,001 370,735 Long-term debt 1,796,207 1,270,330 The following table reconciles the change in Vermilion’s long-term debt: ($M) 2018 2017 Balance at January 1 1,270,330 1,362,192 Borrowings (repayments) on the revolving credit facility 251,155 (450,646 ) Issuance of senior unsecured notes — 391,906 Assumed on acquisitions (1) 188,496 — Amortization of transaction costs and prepaid interest 2,286 2,012 Foreign exchange 83,940 (35,134 ) Balance at December 31 1,796,207 1,270,330 (1) Revolving credit facility At December 31, 2018, Vermilion had in place a bank revolving credit facility maturing May 31, 2022 with the following terms: As at ($M) Dec 31, 2018 Dec 31, 2017 Total facility amount 1,800,000 1,400,000 Amount drawn (1,392,206 ) (899,595 ) Letters of credit outstanding (15,400 ) (7,400 ) Unutilized capacity 392,394 493,005 The facility can be extended from time to time at the option of the lenders and upon notice from Vermilion. If no extension is granted by the lenders, the amounts owing pursuant to the facility are due at the maturity date. The facility is secured by various fixed and floating charges against the subsidiaries of Vermilion. The facility bears interest at a rate applicable to demand loans plus applicable margins. As at December 31, 2018, the revolving credit facility was subject to the following financial covenants: As at Financial covenant Limit Dec 31, 2018 Dec 31, 2017 Consolidated total debt to consolidated EBITDA 4.0 1.72 1.87 Consolidated total senior debt to consolidated EBITDA 3.5 1.34 1.30 Consolidated total senior debt to total capitalization 55% 30 % 32 % The financial covenants include financial measures defined within the revolving credit facility agreement that are not defined under IFRS. These financial measures are defined by the revolving credit facility agreement as follows: • Consolidated total debt: Includes all amounts classified as “Long-term debt” and “Lease obligations” (including the current portion included within "Accounts payable and accrued liabilities" but excluding operating leases as defined under IAS 17) on the balance sheet. • Consolidated total senior debt: Defined as consolidated total debt excluding unsecured and subordinated debt. • Consolidated EBITDA: Defined as consolidated net earnings before interest, income taxes, depreciation, accretion and certain other non-cash items, adjusted for the impact of the acquisition of a material subsidiary. • Total capitalization: Includes all amounts classified as “Shareholders’ equity” plus consolidated total debt as defined above. As at December 31, 2018 and 2017, Vermilion was in compliance with the above covenants. Senior unsecured notes On March 13, 2017, Vermilion issued US $300.0 million of senior unsecured notes at par. The notes bear interest at a rate of 5.625% per annum, to be paid semi-annually on March 15 and September 15. The notes mature on March 15, 2025. As direct senior unsecured obligations of Vermilion, the notes rank equally with existing and future senior unsecured indebtedness of the Company. The senior unsecured notes were recognized at amortized cost and include the transaction costs directly related to the issuance. Vermilion may, at its option, redeem the notes prior to maturity as follows: • Prior to March 15, 2020, Vermilion may redeem up to 35% of the original principal amount of the senior unsecured notes with the proceeds of certain equity offerings by the Company at a redemption price of 105.625% of the principal amount plus any accrued and unpaid interest to the applicable redemption date. • Prior to March 15, 2020, Vermilion may redeem some or all of the senior unsecured notes at a price equal to 100% of the principal amount of the senior unsecured notes, plus an applicable premium and any accrued and unpaid interest. • On or after March 15, 2020, Vermilion may redeem some or all of the senior unsecured notes at the redemption prices set forth in the following table plus any accrued and unpaid interest. Year Redemption price 2020 104.219 % 2021 102.813 % 2022 101.406 % 2023 and thereafter 100.000 % |
Shareholders' capital
Shareholders' capital | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Shareholder's Capital [Abstract] | |
Disclosure of share capital, reserves and other equity interest [text block] | 13. Shareholders' capital The following table reconciles the change in Vermilion’s shareholders’ capital: 2018 2017 Shareholders’ Capital Shares ('000s) Amount ($M) Shares ('000s) Amount ($M) Balance at January 1 122,119 2,650,706 118,263 2,452,722 Shares issued for acquisition 27,883 1,234,676 — — Shares issued for the Dividend Reinvestment Plan 1,179 49,051 2,429 110,493 Vesting of equity based awards 1,025 54,057 1,060 69,743 Shares issued for equity based compensation 314 12,565 197 9,270 Share-settled dividends on vested equity based awards 184 7,773 170 8,478 Balance at December 31 152,704 4,008,828 122,119 2,650,706 Vermilion is authorized to issue an unlimited number of common shares with no par value. Dividends are approved by the Board of Directors and are paid monthly. Dividends declared to shareholders for the year ended December 31, 2018 were $388.1 million or $2.72 per common share (2017 - $311.4 million or $2.58 per common share). Subsequent to the end of year-end and prior to the consolidated financial statements being authorized for issue on February 27, 2019, Vermilion declared dividends of $70.3 million or $0.230 per share for each of January and February of 2019. |
Capital disclosures
Capital disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Capital Disclosures [Abstract] | |
Disclosure of objectives, policies and processes for managing capital [text block] | 14. Capital disclosures Vermilion defines capital as net debt (long-term debt plus net working capital) and shareholders’ capital. Vermilion excludes from its definition of capital any obligations secured by an offsetting asset, such as lease obligations. Vermilion monitors the ratio of net debt to fund flows from operations. As at December 31, 2018, our ratio of net debt to trailing fund flows from operations is 2.30 (2017 - 2.28). Vermilion manages the ratio of net debt to fund flows from operations (refer to Note 4 - Segmented Information) by aligning capital expenditures, dividends, and asset retirement obligations with expected fund flows from operations. Vermilion intends for the ratio of net debt to fund flows from operations to trend towards 1.5 over time. The following table calculates Vermilion’s ratio of net debt to fund flows from operations: Year Ended ($M except as indicated) Dec 31, 2018 Dec 31, 2017 Long-term debt 1,796,207 1,270,330 Current liabilities 563,199 363,306 Current assets (429,877 ) (261,846 ) Net debt 1,929,529 1,371,790 Ratio of net debt to fund flows from operations 2.30 2.28 |
Equity based compensation
Equity based compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Equity Based Compensation [Abstract] | |
Disclosure of share-based payment arrangements [text block] | 15. Equity based compensation The following table summarizes the number of awards outstanding under the VIP and the Five-Year Compensation Arrangement: Number of Awards ('000s) 2018 2017 Opening balance 1,685 1,738 Granted 932 563 Vested (520 ) (539 ) Forfeited (166 ) (77 ) Closing balance 1,931 1,685 For the year ended December 31, 2018, the awards granted had a weighted average fair value of $40.57 (2017 - $49.44). Equity based compensation expense is calculated based on the number of awards outstanding multiplied by the estimated performance factor that will be realized upon vesting (2018 - 1.9; 2017 - 1.9 As at December 31, 2018, 36,845 awards included in the closing balance related to the Five-Year Compensation Arrangement. |
Per share amounts
Per share amounts | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Per Share Amounts [Abstract] | |
Disclosure of earnings per share [text block] | 16. Per share amounts Basic and diluted net earnings per share have been determined based on the following: Year Ended ($M except per share amounts) Dec 31, 2018 Dec 31, 2017 Net earnings 271,650 62,258 Basic weighted average shares outstanding ('000s) 140,619 120,582 Dilutive impact of equity based compensation ('000s) 1,716 1,826 Diluted weighted average shares outstanding ('000s) 142,335 122,408 Basic earnings per share 1.93 0.52 Diluted earnings per share 1.91 0.51 |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of financial instruments [text block] | 17. Financial instruments Classification of financial instruments The following table summarizes information relating to Vermilion’s financial instruments: As at Dec 31, 2018 As at Dec 31, 2017 ($M) Carrying value Fair value Carrying value Fair value Fair value through profit or loss Cash and cash equivalents 26,809 26,809 46,561 46,561 Derivative assets 96,882 96,882 20,540 20,540 Derivative liabilities (58,543 ) (58,543 ) (91,253 ) (91,253 ) Amortized cost Accounts receivable 260,322 260,322 165,760 165,760 Accounts payable and accrued liabilities (449,651 ) (449,651 ) (219,084 ) (219,084 ) Dividends payable (35,122 ) (35,122 ) (26,256 ) (26,256 ) Long-term debt (1,796,207 ) (1,781,809 ) (1,270,330 ) (1,274,891 ) On January 1, 2018, Vermilion adopted IFRS 9 "Financial instruments". As a result, Vermilion's financial instruments were re-categorized following IFRS 9's new measurement categories. There were no changes in the carry amounts of financial instruments as a result of this re-categorization. Under IAS 39 "Financial instruments: recognition and measurement", Vermilion's financial instruments were classified as follows: • Cash and cash equivalents and derivative assets were classified as held for trading. Held for trading financial instruments were subsequently measured at fair value on the consolidated balance sheet with gains and losses recognized in net earnings. • Accounts receivable were classified as loans and receivables while accounts payable and accrued liabilities, dividends payable, lease obligations, and long-term debt were classified as other financial liabilities. Loans and receivables and other financial liabilities were subsequently measured at amortized cost on the consolidated balance sheet. 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 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, 2018 and 2017. The carrying value of accounts receivable, accounts payable and accrued liabilities, and dividends payable 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. 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, 2018 Dec 31, 2017 Currency risk - Euro to Canadian dollar $0.01 increase in strength of the Canadian dollar against the Euro (2,205 ) (4,607 ) $0.01 decrease in strength of the Canadian dollar against the Euro 2,205 4,607 Currency risk - US dollar to Canadian dollar $0.01 increase in strength of the Canadian dollar against the US $ 2,981 2,239 $0.01 decrease in strength of the Canadian dollar against the US $ (2,981 ) (2,239 ) Commodity price risk - Crude oil US $5.00/bbl increase in crude oil price used to determine the fair value of derivatives (18,421 ) (21,616 ) US $5.00/bbl decrease in crude oil price used to determine the fair value of derivatives 17,351 19,845 Commodity price risk - European natural gas € 0.5/GJ increase in European natural gas price used to determine the fair value of derivatives (36,508 ) (32,642 ) € 0.5/GJ decrease in European natural gas price used to determine the fair value of derivatives 33,005 25,321 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, 2018, Vermilion’s maximum exposure to receivable credit risk was $357.2 million (December 31, 2017 - $186.3 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, 2018 and 2017 is not material. As at the balance sheet date, approximately 0.7% (2017 - 0.7%) of the accounts receivable balance was outstanding for more than 90 days. Vermilion considers the balance of accounts receivable to be collectible. Vermilion’s derivative assets primarily relates to the fair value of financial instruments used as part of the Company’s risk management program to mitigate the effects of changes in commodity prices on future cash flows. Vermilion manages this risk by monitoring the creditworthiness of counterparties, transacting primarily with counterparties that have investment grade third party credit ratings, and by limiting the concentration of financial exposure to individual counterparties. As a result, Vermilion has not obtained collateral or other security to support its financial derivatives. Vermilion’s cash deposited in financial institutions and guaranteed investment certificates are also subject to counterparty credit risk. Vermilion mitigates this risk by transacting with financial institutions with high third party credit ratings. Liquidity risk: Liquidity risk is the risk that Vermilion will encounter difficulty in meeting obligations associated with its financial liabilities. Vermilion does not consider this to be a significant risk as its financial position and available committed borrowing facility provide significant financial flexibility and allow Vermilion to meet its obligations as they come due. The following table summarizes Vermilion’s undiscounted non-derivative financial liabilities and their contractual maturities: 1 month to 3 months to 1 year to ($M) 1 month 3 months 1 year 5 years December 31, 2018 167,491 306,927 10,355 1,472,087 December 31, 2017 99,092 138,273 7,974 912,306 |
Related party disclosures
Related party disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Related Party Disclosures [Abstract] | |
Disclosure of related party [text block] | 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, 2018 and 2017: Year Ended ($M) Dec 31, 2018 Dec 31, 2017 Short-term benefits 6,018 5,183 Share-based payments 16,309 20,135 22,327 25,318 Number of individuals included in the above amounts 18 20 During the year ended December 31, 2018, Vermilion recorded $0.2 million of office rent recoveries (2017 - $0.2 million) relating to an office sub-lease to a company whose Managing Director is also a member of Vermilion's Board of Directors. This related party transaction is provided in the normal course of business under the same commercial terms and conditions as transactions with unrelated companies and is recorded at the exchange amount. |
Supplemental information
Supplemental information | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Supplemental Information [Abstract] | |
Disclosure Of Supplemental Information [text block] | 19. Supplemental information Changes in non-cash working capital was comprised of the following: Year Ended ($M) Dec 31, 2018 Dec 31, 2017 Changes in: Accounts receivable (94,562 ) (34,041 ) Crude oil inventory (10,646 ) (2,577 ) Prepaid expenses (4,896 ) (1,884 ) Accounts payable and accrued liabilities 230,567 37,527 Income taxes payable (1,651 ) 2,842 Working capital assumed from acquisitions (58,841 ) — Initial recognition of IFRS 16 liability (10,483 ) — Foreign exchange (873 ) (795 ) Changes in non-cash working capital 48,615 1,072 Changes in non-cash operating working capital (6,876 ) 665 Changes in non-cash investing working capital 55,491 407 Changes in non-cash working capital 48,615 1,072 Cash and cash equivalents was comprised of the following: As at ($M) Dec 31, 2018 Dec 31, 2017 Cash on deposit with financial institutions 26,604 46,229 Guaranteed investment certificates 205 332 Cash and cash equivalents 26,809 46,561 Wages and benefits included in operating expenses and general and administration expenses were: Year Ended ($M) 2018 2017 Operating expense 66,095 48,823 General and administration expense 42,496 36,708 Wages and benefits 108,591 85,531 The following tables summarize Vermilion's outstanding risk management positions as at December 31, 2018: Bought Put Volume Weighted Average Sold Call Volume Weighted Average Sold Put Volume Weighted Average Sold Put Swap Volume Weighted Average Swap Crude Oil Period Exercise date (1) Currency (bbl/d) Price / bbl (bbl/d) Price / bbl (bbl/d) Price / bbl (bbl/d) Price / bbl Dated Brent 3-Way Collar Sep 2018 - Jun 2019 CAD 2,500 91.20 2,500 98.63 2,500 76.00 — — Swap Jan 2019 - Dec 2019 CAD — — — — — — 1,350 91.76 3-Way Collar Aug 2018 - Jun 2019 USD 500 66.92 500 80.00 500 55.00 — — 3-Way Collar Jan 2019 - Dec 2019 USD 500 70.00 500 80.00 500 60.00 — — Swap Apr 2018 - Mar 2019 USD — — — — — — 750 61.33 Swap Jul 2018 - Jun 2019 USD — — — — — — 1,500 68.52 Swap Jan 2019 - Dec 2019 USD — — — — — — 2,250 73.17 WTI Swap Jan 2019 - Dec 2019 CAD — — — — — — 1,050 81.41 3-Way Collar Jan 2019 - Dec 2019 USD 250 70.00 250 80.25 250 60.00 — — Swap Apr 2018 - Mar 2019 USD — — — — — — 250 54.00 Bought Put Volume Weighted Average Bought Put Sold Call Volume Weighted Average Sold Call Sold Put Volume Weighted Average Sold Put Swap Volume Weighted Average Swap North American Gas Period Exercise date (1) Currency ( mcf /d) Price / mcf ( mcf /d) Price / mcf ( mcf d) Price / mcf (mcf/d) Price / mcf AECO Swap Dec 2018 - Mar 2019 CAD — — — — — — 2,500 2.41 AECO Basis (AECO less NYMEX Henry Hub) Swap Jan 2019 - Jun 2020 USD — — — — — — 2,500 (0.93 ) AECO Basis (AECO less Chicago NGI) Swap Nov 2018 - Mar 2019 USD — — — — — — 5,000 (1.46 ) NYMEX Henry Hub Swap Jan 2019 - Mar 2019 USD — — — — — — 5,000 4.00 Chicago NGI Swap Dec 2018 - Mar 2019 USD — — — — — — 5,000 4.40 SOCAL Border Swap (2) Jan 2019 USD — — — — — — 10,000 5.50 Swap (2) Feb 2019 USD — — — — — — 10,000 4.39 Swap (2) Mar 2019 USD — — — — — — 10,000 3.36 (1) (2) Bought Put Volume Weighted Average Bought Put Sold Call Volume Weighted Average Sold Call Sold Put Volume Weighted Average Sold Put Swap Volume Weighted Average Swap European Gas Period Exercise date (1) Currency (mcf/d) Price / mcf (mcf/d) Price / mcf (mcf/d) Price /mcf (mcf/d) Price / mcf NBP 3-Way Collar Jan 2019 - Dec 2019 EUR 17,197 4.97 17,197 5.65 17,197 3.79 — — 3-Way Collar Jan 2019 - Dec 2020 EUR 7,370 4.96 7,370 5.76 7,370 3.74 — — 3-Way Collar Jan 2020 - Dec 2020 EUR 19,654 5.10 19,654 5.92 19,654 4.01 — — Collar Oct 2018 - Mar 2019 EUR 3,685 6.40 2,457 7.62 — — — — Call Oct 2018 - Mar 2019 EUR — — 12,327 6.28 — — — — Swap Oct 2018 - Mar 2019 EUR — — — — — — 4,913 7.92 Swaption Jul 2019 - Jun 2021 June 28, 2019 EUR — — — — — — 9,827 5.64 Swaption Oct 2019 - Mar 2020 June 28, 2019 EUR — — — — — — 7,370 5.86 Swaption Oct 2020 - Mar 2021 June 28, 2019 EUR — — — — — — 7,370 5.86 Swaption Oct 2021 - Mar 2022 June 28, 2019 EUR — — — — — — 7,370 5.86 NBP Basis (NBP less NYMEX HH) Collar Jan 2019 - Sep 2020 USD 7,500 2.07 7,500 4.00 — — — — TTF 3-Way Collar Oct 2017 - Dec 2019 EUR 7,370 4.59 7,370 5.42 7,370 2.93 — — 3-Way Collar Jan 2018 - Dec 2019 EUR 3,685 4.74 3,685 5.52 3,685 3.13 — — 3-Way Collar Jan 2019 - Dec 2019 EUR 12,284 5.05 12,284 5.72 12,284 3.69 — — 3-Way Collar Jan 2020 - Dec 2020 EUR 7,370 5.37 7,370 6.25 7,370 3.81 — — Swap Oct 2017 - Dec 2019 EUR — — — — — — 7,370 4.87 Swap Jan 2018 - Dec 2019 EUR — — — — — — 1,228 5.00 Swap Jul 2018 - Dec 2019 EUR — — — — — — 4,913 4.98 Swap Jan 2019 - Dec 2019 EUR — — — — — — 2,457 4.92 Cross Currency Interest Rate Receive Notional Amount (USD) Rate (LIBOR +) Pay Notional Amount (CAD) Rate (CDOR +) Swap Jan 2019 1,018,563,000 1.70 % 1,354,900,000 1.02 % (1) The sold swaption instrument allows the counterparty, at the specified date, to enter into a swap with Vermilion at the above detailed terms. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Description of accounting policy for accounting framework [text block] | 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”). |
Description of accounting policy for principles of consolidation [text block] | Principles of consolidation The consolidated financial statements include the accounts of Vermilion Energy Inc. and its subsidiaries. Vermilion’s subsidiaries include entities in each of the jurisdictions that Vermilion operates as described in Note 4 including: Canada, France, Netherlands, Germany, Ireland (through an Irish Branch of a Cayman Islands incorporated company), Australia, the United States, 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. |
Description of accounting policy for exploration and evaluation expenditures [text block] | Exploration and evaluation assets Vermilion classifies costs as exploration and evaluation (“E&E”) assets when they relate to exploring and evaluating an area for which the Company has the license or right to explore and extract resources. E&E costs may include: geological and geophysical costs; land and license acquisition costs; and costs for the drilling, completion, and testing of exploration wells. E&E costs are reclassified to capital assets if the technical feasibility and commercial viability of the area can be determined. E&E assets are assessed for impairment prior to any reclassification. The technical feasibility and commercial viability of extracting the reserves is considered to be determinable when proved and probable reserves are identified. Costs incurred prior to the acquisition of the legal rights to explore an area are expensed as incurred. If reserves are not found within the license area or the area is abandoned, the related E&E costs are depreciated over a period not greater than five years. If an exploration license expires prior to the commencement of exploration activities, the cost of the exploration license is written off through depreciation in the year of expiration. |
Description of accounting policy for property, plant and equipment [text block] | 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. |
Description of accounting policy for depreciation expense [text block] | 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. |
Description of accounting policy for impairment of assets [text block] | 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. |
Description of accounting policy for Lease obligations and right-of-use assets [text block] | 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. 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. |
Description of accounting policy for determining components of cash and cash equivalents [text block] | Cash and cash equivalents Cash and cash equivalents include cash on deposit with financial institutions and guaranteed investment certificates. |
Description of accounting policy for measuring inventories [text block] | 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. |
Description of accounting policy for asset retirement obligation [text block] | 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. |
Description of accounting policy for recognition of revenue [text block] | 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. |
Description of accounting policy for financial instruments [text block] | 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: Financial instruments under this classification include cash and cash equivalents and derivative assets and liabilities. • Amortized cost: Financial instruments under this classification include accounts receivable, accounts payable and accrued liabilities, dividends payable, lease obligations, and long-term debt. Accounts receivable are measured net of a loss allowance equal to the lifetime expected credit loss. |
Description of accounting policy for share-based payment transactions [text block] | Equity based compensation Equity based compensation expense results from equity-settled awards issued under Vermilion’s long-term share-based compensation plans as well as the grant date fair value of Vermilion common shares issued under the Company’s bonus and employee share savings plans. Vermilion's long-term share-based compensation plans consist of the Vermilion Incentive Plan (“VIP”) and a security-based compensation arrangement ("Five-Year Compensation Arrangement"). Equity-settled awards issued under the VIP vest over a period of one to three years while awards issued under the Five-Year Compensation Arrangement vest in the fifth year following the grant date. Awards under both plans are adjusted upon vesting by a performance factor determined by the Company’s Board of Directors. Equity based compensation expense for both 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, and an estimate of forfeiture rates based on historical vesting data. Dividends notionally accrue to the awards and are excluded in the determination of grant date fair values. Upon vesting, the amount recognized in contributed surplus is reclassified to shareholders’ capital. The grant date fair value of the equity-settled awards issued under the VIP and the Five-Year Compensation Arrangement and the grant date fair value of Vermilion common shares issued under the Company’s bonus and employee share savings plans are determined as the closing price of Vermilion’s common shares on the Toronto Stock Exchange on the grant date. |
Description of accounting policy for earnings per share [text block] | 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. |
Description of accounting policy for foreign currency translation [text block] | 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 occur 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. Foreign currency transaction translation occurs as follows: • Income and expenses are translated at the prevailing rates on the date of the transaction • Non-monetary assets or liabilities are carried at the prevailing rates on the date of the transaction • Monetary items, including intercompany loans that are not deemed to represent net investments in a foreign subsidiary, are translated at the prevailing rates at the balance sheet date Foreign operation translation occurs when translating the financial statements of non-Canadian functional currency subsidiaries to the Canadian dollar and when translating intercompany loans that are deemed to represent net investments in a foreign subsidiary. Gains and losses from foreign operation translations are recorded as currency translation adjustments. Foreign operation translations occur 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. |
Description of accounting policy for income tax [text block] | 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. |
Description of accounting policy for business combinations [text block] | Business combinations Acquisitions of corporations or groups of assets are accounted for as business combinations using the acquisition method if the acquired assets constitute a business. Under the acquisition method, assets acquired and liabilities assumed in a business combination (with the exception of deferred tax assets and liabilities) are measured at their fair value. Deferred tax assets or liabilities arising from the assets acquired and liabilities assumed are measured in accordance with the policies described in "Income taxes" above. If applicable, the excess or deficiency of 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. |
Description of accounting policy for segment reporting [text block] | Segmented information Vermilion has a decentralized business unit structure designed to manage assets in each country the Company operates in. 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. |
Description of accounting policy for management judgements and estimation uncertainty [text block] | Management judgments and estimation uncertainty The preparation of the consolidated financial statements in accordance with IFRS requires management to make judgments, estimates, and assumptions that affect the reported amount of assets, liabilities, income, and expenses. Actual results could differ significantly from these estimates. Key areas where management has made judgments, estimates, and assumptions are described below. The measurement of the fair value of capital assets acquired in a business combination and the determination of the recoverable amount of cash generating units: • Calculating the fair value of capital assets acquired in a business combination and the recoverable amount of cash generating units (in the assessment of impairments or reversals of previous impairments if indicators of impairment or impairment reversal are identified) are based on estimated future commodity prices and estimated reserves and resources. Reserve and resource estimates are based on: engineering data, estimated future commodity prices, expected future rates of production, and assumptions regarding the timing and amount of future expenditures. Changes in these estimates and assumptions can directly impact the calculated fair value of capital assets acquired (and thus the resulting goodwill or gain on business combination) and the recoverable amount of a CGU (and thus the resulting impairment loss or recovery). • In addition, the recoverable amount of a CGU is impacted by the composition of CGUs, which are subject to management’s judgment of the lowest level at which there are identifiable cash inflows that are largely independent of the cash inflows of other groups of assets. The factors used by Vermilion to determine CGUs vary by jurisdiction due to their unique operating and geographic conditions. In general, Vermilion will assess the following factors: geographic proximity of the assets within a group to one another, geographic proximity of the group of assets to other groups of assets, homogeneity of the production from the group of assets and the sharing of infrastructure used to process and/or transport production. Changes in these judgments can directly impact the calculated recoverable amount of a CGU (and thus the resulting impairment loss or recovery). The measurement of the carrying value of asset retirement obligations on the balance sheet, including the fair value and subsequent carrying value of asset retirement obligations assumed in a business combination: • Asset retirement obligations are based on judgments regarding regulatory requirements, estimates of future costs, assumptions on the expected timing of expenditures, and estimates of the underlying risk inherent to the obligation. The carrying balance of asset retirement obligations and accretion expense may differ due to changes in: laws and regulations, technology, the expected timing of expenditures, and market conditions affecting the discount rate applied. The recognition and measurement of deferred tax assets and liabilities: • Tax interpretations, regulations, and legislation in the various jurisdictions in which Vermilion and its subsidiaries operate are subject to change and interpretation. Changes in laws and interpretations can affect the timing of the reversal of temporary tax differences, the tax rates in effect when such differences reverse and Vermilion’s ability to use tax losses and other tax pools in the future. The Company’s income tax filings are subject to audit by taxation authorities in numerous jurisdictions and the results of such audits may increase or decrease the tax liability. The determination of tax amounts recognized in the consolidated financial statements are based on management’s assessment of the tax positions, which includes consideration of their technical merits, communications with tax authorities and management’s view of the most likely outcome. • The extent to which deferred tax assets are recognized are based on estimates of future profitability. These estimates are based on estimated future commodity prices and estimates of reserves. Judgments, estimates, and assumptions inherent in reserve estimates are described above. The measurement of lease obligations and corresponding right-of-use assets: • The measurement of lease obligations are subject to management's judgments of the applicable incremental borrowing rate and the expected lease term. The carrying balance of the right-of-use assets, lease obligations, and the resulting interest and depletion and depreciation expense, may differ due to changes in the market conditions and expected lease terms. Applicable incremental borrowing rates are based on judgments of the economic environment, term, currency, and the underlying risk inherent to the asset. Lease terms are based on assumptions regarding cancellation and extension terms that allow for operational flexibility based on future market conditions. |
Segmented information (Tables)
Segmented information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Segmented Information [Abstract] | |
Disclosure of operating segments [text block] | Substantially all sales in the France, Netherlands, and Ireland operating segments for the years ended December 31, 2018 and 2017 were to one customer in each respective segment. Year Ended December 31, 2018 ($M) Canada France Netherlands Germany Ireland Australia USA Corporate Total Total assets 3,060,291 918,398 277,348 284,063 709,585 263,739 407,323 349,924 6,270,671 Drilling and development 277,857 79,451 17,963 10,863 224 75,638 40,837 1,009 503,842 Exploration and evaluation — 307 (480 ) 4,943 — — — 9,602 14,372 Crude oil and condensate sales 541,844 360,471 2,462 32,704 — 150,733 31,142 — 1,119,356 NGL sales 56,554 — — — — — 4,622 — 61,176 Natural gas sales 72,774 131 163,454 49,745 205,150 — 2,701 3,630 497,585 Royalties (84,696 ) (46,781 ) (3,181 ) (6,626 ) — — (10,070 ) (813 ) (152,167 ) Revenue from external customers 586,476 313,821 162,735 75,823 205,150 150,733 28,395 2,817 1,525,950 Transportation (29,912 ) (10,426 ) — (6,420 ) (5,129 ) — — — (51,887 ) Operating (177,499 ) (54,690 ) (26,681 ) (23,048 ) (15,366 ) (53,199 ) (6,421 ) (110 ) (357,014 ) General and administration (6,057 ) (14,170 ) (1,947 ) (7,401 ) (8,386 ) (4,918 ) (6,306 ) (2,744 ) (51,929 ) PRRT — — — — — (4,824 ) — — (4,824 ) Corporate income taxes — (15,084 ) (16,561 ) — — (6,595 ) — (513 ) (38,753 ) Interest expense — — — — — — — (72,759 ) (72,759 ) Realized loss on derivative instruments — — — — — — — (111,258 ) (111,258 ) Realized foreign exchange gain — — — — — — — 243 243 Realized other income — — — — — — — 883 883 Fund flows from operations 373,008 219,451 117,546 38,954 176,269 81,197 15,668 (183,441 ) 838,652 Year Ended December 31, 2017 ($M) Canada France Netherlands Germany Ireland Australia USA Corporate Total Total assets 1,542,193 831,783 203,929 295,026 667,068 236,677 73,867 124,422 3,974,965 Drilling and development 148,667 71,087 15,107 6,165 551 29,942 19,074 — 290,593 Exploration and evaluation — 2,294 16,468 3,366 — — — 7,728 29,856 Crude oil and condensate sales 209,560 268,102 1,864 23,554 — 154,391 14,605 — 672,076 NGL sales 37,809 — — — — — 456 — 38,265 Natural gas sales 83,534 1 106,196 45,142 153,330 — 294 — 388,497 Royalties (33,258 ) (28,565 ) (1,722 ) (6,655 ) — — (4,276 ) — (74,476 ) Revenue from external customers 297,645 239,538 106,338 62,041 153,330 154,391 11,079 — 1,024,362 Transportation (17,368 ) (14,627 ) — (6,207 ) (5,205 ) — (41 ) — (43,448 ) Operating (80,444 ) (51,002 ) (21,212 ) (20,176 ) (17,596 ) (50,139 ) (1,698 ) — (242,267 ) General and administration (9,604 ) (13,585 ) (2,212 ) (7,767 ) (2,320 ) (8,194 ) (4,341 ) (6,350 ) (54,373 ) PRRT — — — — — (19,819 ) — — (19,819 ) Corporate income taxes — (10,556 ) 3,331 — — (4,536 ) — (527 ) (12,288 ) Interest expense — — — — — — — (57,313 ) (57,313 ) Realized gain on derivative instruments — — — — — — — 4,721 4,721 Realized foreign exchange gain — — — — — — — 2,316 2,316 Realized other income — — — — — — — 674 674 Fund flows from operations 190,229 149,768 86,245 27,891 128,209 71,703 4,999 (56,479 ) 602,565 Reconciliation of fund flows from operations to net earnings: Year Ended ($M) Dec 31, 2018 Dec 31, 2017 Fund flows from operations 838,652 602,565 Accretion (31,219 ) (26,971 ) Depletion and depreciation (609,056 ) (491,683 ) Gain on business combinations 128,208 — Unrealized gain (loss) on derivative instruments 109,326 (1,062 ) Equity based compensation (60,746 ) (61,579 ) Unrealized foreign exchange (loss) gain (63,243 ) 71,742 Unrealized other expense (801 ) (637 ) Deferred tax (39,471 ) (30,117 ) Net earnings 271,650 62,258 |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Southeast Saskatchewan and Southwest Manitoba [Member] | |
Disclosure of detailed information about business combinations [text block] | The total consideration paid and the fair value of the assets acquired and liabilities assumed at the date of acquisition are detailed in the table below. ($M) Consideration Cash paid to vendor 53,288 Total consideration 53,288 ($M) Allocation of consideration Capital assets 67,549 Deferred tax assets 26,914 Acquired working capital 1,577 Long-term debt (38,300 ) Asset retirement obligations (4,452 ) Net assets acquired 53,288 |
Spartan Energy Corp [Member] | |
Disclosure of detailed information about business combinations [text block] | The total consideration paid and the fair value of the assets acquired and liabilities assumed as at the date of the acquisition are detailed in the table below. ($M) Consideration Shares issued for acquisition 1,235,221 Total consideration 1,235,221 ($M) Allocation of consideration Capital assets 1,401,686 Deferred tax assets 123,813 Long-term debt (150,196 ) Asset retirement obligations (92,149 ) Lease obligations (25,455 ) Assumed working capital deficit (22,478 ) Net assets acquired 1,235,221 |
Wyoming [Member] | |
Disclosure of detailed information about business combinations [text block] | The total consideration paid and the fair value of the assets acquired and liabilities assumed at the date of acquisition are detailed in the table below. ($M) Consideration Cash paid to vendor 189,014 Total consideration 189,014 ($M) Allocation of consideration Capital assets 284,333 Deferred tax liability (19,019 ) Asset retirement obligations (4,821 ) Assumed working capital deficit (2,651 ) Net assets acquired 257,842 Gain on business combination (68,828 ) Total net assets acquired, net of gain on business combination 189,014 |
Shell EP Ireland Limited [Member] | |
Disclosure of detailed information about business combinations [text block] | The total consideration paid and the fair value of the assets acquired and liabilities assumed as at the date of the acquisition are detailed in the table below. ($M) Consideration Cash paid to vendor 40,805 Cash acquired (82,116 ) Contingent consideration 290 Total consideration (41,021 ) ($M) Allocation of consideration Capital assets 53,368 Deferred tax assets 4,239 Assumed working capital deficit (35,449 ) Lease obligations (2,234 ) Asset retirement obligations (1,565 ) Net assets acquired 18,359 Gain on business combination (59,380 ) Total net assets acquired, net of gain on business combination (41,021 ) |
Capital assets (Tables)
Capital assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment [text block] | The following table reconciles the change in Vermilion's capital assets: ($M) 2018 2017 Balance at January 1 3,337,965 3,433,245 Acquisitions 1,975,327 25,390 Additions 503,842 290,593 Increase in right-of-use assets 98,343 — Transfers from exploration and evaluation assets 29,615 8,187 Depletion and depreciation (605,994 ) (479,698 ) Changes in asset retirement obligations (100,876 ) (48,187 ) Foreign exchange 78,651 108,435 Balance at December 31 5,316,873 3,337,965 Cost 9,202,604 6,539,052 Accumulated depletion and depreciation (3,885,731 ) (3,201,087 ) Carrying amount at December 31 5,316,873 3,337,965 |
Disclosure of detailed information about right of use assets [Table Text Block] | 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, 2018: ($M) Depreciation Balance Office space 9,119 62,279 Gas processing facilities 5,491 41,788 Oil storage facilities 2,728 20,758 Vehicles and equipment 2,020 9,121 Total 19,358 133,946 |
Exploration and evaluation as_2
Exploration and evaluation assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Exploration and evaluation assets [member] | |
Disclosure Of Exploration And Evaluation Assets [Line Items] | |
Disclosure of detailed information about exploration and evaluation assets [text block] | The following table reconciles the change in Vermilion's exploration and evaluation assets: ($M) 2018 2017 Balance at January 1 292,278 274,830 Acquisitions 28,572 2,247 Additions 14,372 29,856 Changes in asset retirement obligations 629 (30 ) Transfers to capital assets (29,615 ) (8,187 ) Depreciation (5,942 ) (11,727 ) Foreign exchange 3,001 5,289 Balance at December 31 303,295 292,278 Cost 371,015 354,615 Accumulated depreciation (67,720 ) (62,337 ) Carrying amount at December 31 303,295 292,278 |
Asset retirement obligations (T
Asset retirement obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Asset Retirement Obligations [Abstract] | |
Disclosure of other provisions [text block] | The following table reconciles the change in Vermilion’s asset retirement obligations: ($M) 2018 2017 Balance at January 1 517,180 525,022 Additional obligations recognized 211,580 3,273 Changes in estimated abandonment timing and costs (98,158 ) (48,904 ) Obligations settled (15,765 ) (9,334 ) Accretion 31,219 26,971 Changes in discount rates (6,646 ) (2,586 ) Foreign exchange 10,754 22,738 Balance at December 31 650,164 517,180 |
Disclosure of detailed information about risk free rates used to discount the obligations [text block] | The risk-free rates used as inputs to discount the obligations were as follows: Dec 31, 2018 Dec 31, 2017 Canada 2.2 % 2.3 % France 1.6 % 1.8 % Netherlands 0.4 % 0.5 % Germany 0.9 % 1.0 % Ireland 1.6 % 0.4 % Australia 2.6 % 2.9 % USA 2.7 % 2.4 % |
Derivative instruments (Tables)
Derivative instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Derivative instruments [Abstract] | |
Disclosure of detailed information about change in fair value of derivative instruments [text block] | The following table reconciles the change in the fair value of Vermilion’s derivative instruments: Year Ended ($M) Dec 31, 2018 Dec 31, 2017 Fair value of contracts, beginning of year (70,713 ) (69,651 ) Reversal of opening contracts settled during the year 57,719 43,324 Assumed in acquisitions (274 ) — Realized (loss) gain on contracts settled during the year (111,258 ) 4,721 Unrealized gain (loss) during the year on contracts outstanding at the end of the year 51,607 (44,386 ) Net receipt from counterparties on contract settlements during the year 111,258 (4,721 ) Fair value of contracts, end of year 38,339 (70,713 ) Comprised of: Current derivative asset 95,667 17,988 Current derivative liability (41,016 ) (78,905 ) Non-current derivative asset 1,215 2,552 Non-current derivative liability (17,527 ) (12,348 ) Fair value of contracts, end of year 38,339 (70,713 ) |
Disclosure of detailed information of about loss gain on derivative instruments [text block] | The loss (gain) on derivative instruments for 2018 and 2017 were comprised of the following: Year Ended ($M) Dec 31, 2018 Dec 31, 2017 Realized loss (gain) on contracts settled during the year 111,258 (4,721 ) Reversal of opening contracts settled during the year (57,719 ) (43,324 ) Unrealized (gain) loss on contracts outstanding at the end of the year (51,607 ) 44,386 Loss (gain) on derivative instruments 1,932 (3,659 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of leases [Abstract] | |
Disclosure of finance lease and operating lease by lessee [text block] | Vermilion had the following future commitments associated with its lease obligations: As at ($M) Dec 31, 2018 Dec 31, 2017 Less than 1 year 30,641 6,680 1 - 3 years 50,024 10,207 4 - 5 years 34,313 4,665 After 5 years 42,739 3,351 Total lease payments 157,717 24,903 Amounts representing interest (24,583 ) (3,526 ) Present value of net lease payments 133,134 21,377 Current portion of lease obligations (24,945 ) (5,570 ) Non-current portion of lease obligations 108,189 15,807 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Taxes [Abstract] | |
Disclosure of detailed information of deferred tax asset and liability [text block] | The following table reconciles Vermilion’s deferred tax asset and liability: As at ($M) Dec 31, 2018 Dec 31, 2017 Deferred tax assets: Non-capital losses 487,398 342,202 Capital assets (296,591 ) (294,178 ) Asset retirement obligations 38,429 28,056 Derivative contracts (11,937 ) 10,164 Unrealized foreign exchange (1,873 ) (7,927 ) Other 3,985 2,007 Deferred tax assets 219,411 80,324 Deferred tax liabilities: Capital assets (319,553 ) (259,236 ) Non-capital losses 57,785 34,703 Asset retirement obligations (51,031 ) (27,868 ) Unrealized foreign exchange (10,715 ) (13,355 ) Derivative contracts — 11,386 Other 5,380 1,262 Deferred tax liabilities (318,134 ) (253,108 ) |
Disclosure of detailed information about reconciliation of accounting profit multiplied by applicable tax rates [text block] | Income tax expense differs from the amount that would have been expected if the reported earnings had been subject only to the statutory Canadian income tax rate as follows: Year Ended ($M) Dec 31, 2018 Dec 31, 2017 Earnings before income taxes 354,698 124,482 Canadian corporate tax rate 27.0 % 27.0 % Expected tax expense 95,768 33,610 Increase (decrease) in taxes resulting from: Petroleum resource rent tax rate (PRRT) differential (1) 5,349 3,531 Foreign tax rate differentials (1), (2) 3,086 7,146 Equity based compensation expense 13,883 10,343 Amended returns and changes to estimated tax pools and tax positions (873 ) (17,246 ) Statutory rate changes and the estimated reversal rates associated with temporary differences (3) — (16,449 ) (Re-recognition) de-recognition of deferred tax assets (26,931 ) 44,608 Adjustment for uncertain tax positions 8,080 2,191 Gain on business combinations (28,812 ) — Other non-deductible items 13,498 (5,510 ) Provision for income taxes 83,048 62,224 (1) In Australia, current taxes include both corporate income tax rates and PRRT. Corporate income tax rates were applied at a rate of 30% and PRRT was applied at a rate of 40%. (2) The applicable tax rates for 2018 were: 34.4% in France, 50.0% in the Netherlands, 30.2% in Germany, 25.0% in Ireland, and 21.0% in the United States. (3) On December 22, 2017, the Tax Cuts and Jobs Act was signed into law in the United States reducing the U.S. federal corporate income tax rate from 35% to 21%. On December 21, 2017, the French Parliament approved the Finance Bill for 2018. The Finance Bill for 2018 provides for a progressive decrease of the French standard corporate income tax rate from 34.43% to 25.825% by 2022 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Long-Term Debt [Line Items] | |
Disclosure of detailed information about borrowings [text block] | The following table summarizes Vermilion’s outstanding long-term debt: As at ($M) Dec 31, 2018 Dec 31, 2017 Revolving credit facility 1,392,206 899,595 Senior unsecured notes 404,001 370,735 Long-term debt 1,796,207 1,270,330 |
Disclosure of detailed information about change long-term debt [text block] | The following table reconciles the change in Vermilion’s long-term debt: ($M) 2018 2017 Balance at January 1 1,270,330 1,362,192 Borrowings (repayments) on the revolving credit facility 251,155 (450,646 ) Issuance of senior unsecured notes — 391,906 Assumed on acquisitions (1) 188,496 — Amortization of transaction costs and prepaid interest 2,286 2,012 Foreign exchange 83,940 (35,134 ) Balance at December 31 1,796,207 1,270,330 (1) |
Disclosure of detailed information about borrowings financial covenants [text block] | As at December 31, 2018, the revolving credit facility was subject to the following financial covenants: As at Financial covenant Limit Dec 31, 2018 Dec 31, 2017 Consolidated total debt to consolidated EBITDA 4.0 1.72 1.87 Consolidated total senior debt to consolidated EBITDA 3.5 1.34 1.30 Consolidated total senior debt to total capitalization 55% 30 % 32 % |
Disclosure of detailed information about redemption price of unsecured notes [text block] | Year Redemption price 2020 104.219 % 2021 102.813 % 2022 101.406 % 2023 and thereafter 100.000 % |
Revolving Credit Facilities [Member] | |
Disclosure of Long-Term Debt [Line Items] | |
Disclosure of detailed information about borrowings [text block] | At December 31, 2018, Vermilion had in place a bank revolving credit facility maturing May 31, 2022 with the following terms: As at ($M) Dec 31, 2018 Dec 31, 2017 Total facility amount 1,800,000 1,400,000 Amount drawn (1,392,206 ) (899,595 ) Letters of credit outstanding (15,400 ) (7,400 ) Unutilized capacity 392,394 493,005 |
Shareholders' capital (Tables)
Shareholders' capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Shareholder's Capital [Abstract] | |
Disclosure of classes of share capital [text block] | The following table reconciles the change in Vermilion’s shareholders’ capital: 2018 2017 Shareholders’ Capital Shares ('000s) Amount ($M) Shares ('000s) Amount ($M) Balance at January 1 122,119 2,650,706 118,263 2,452,722 Shares issued for acquisition 27,883 1,234,676 — — Shares issued for the Dividend Reinvestment Plan 1,179 49,051 2,429 110,493 Vesting of equity based awards 1,025 54,057 1,060 69,743 Shares issued for equity based compensation 314 12,565 197 9,270 Share-settled dividends on vested equity based awards 184 7,773 170 8,478 Balance at December 31 152,704 4,008,828 122,119 2,650,706 |
Capital disclosures (Tables)
Capital disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Capital Disclosures [Abstract] | |
Disclosure of detailed information about debt to funds flow ratio [text block] | The following table calculates Vermilion’s ratio of net debt to fund flows from operations: Year Ended ($M except as indicated) Dec 31, 2018 Dec 31, 2017 Long-term debt 1,796,207 1,270,330 Current liabilities 563,199 363,306 Current assets (429,877 ) (261,846 ) Net debt 1,929,529 1,371,790 Ratio of net debt to fund flows from operations 2.30 2.28 |
Equity based compensation (Tabl
Equity based compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Vermilion incentive plan [Member] | |
Disclosure Of Equity Based Compensation [Line Items] | |
Disclosure of number and weighted average exercise prices of other equity instruments [text block] | The following table summarizes the number of awards outstanding under the VIP and the Five-Year Compensation Arrangement: Number of Awards ('000s) 2018 2017 Opening balance 1,685 1,738 Granted 932 563 Vested (520 ) (539 ) Forfeited (166 ) (77 ) Closing balance 1,931 1,685 |
Per share amounts (Tables)
Per share amounts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Per Share Amounts [Abstract] | |
Disclosure of detailed information about basic and diluted earnings per share [text block] | Basic and diluted net earnings per share have been determined based on the following: Year Ended ($M except per share amounts) Dec 31, 2018 Dec 31, 2017 Net earnings 271,650 62,258 Basic weighted average shares outstanding ('000s) 140,619 120,582 Dilutive impact of equity based compensation ('000s) 1,716 1,826 Diluted weighted average shares outstanding ('000s) 142,335 122,408 Basic earnings per share 1.93 0.52 Diluted earnings per share 1.91 0.51 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of detailed information about financial instruments [text block] | The following table summarizes information relating to Vermilion’s financial instruments: As at Dec 31, 2018 As at Dec 31, 2017 ($M) Carrying value Fair value Carrying value Fair value Fair value through profit or loss Cash and cash equivalents 26,809 26,809 46,561 46,561 Derivative assets 96,882 96,882 20,540 20,540 Derivative liabilities (58,543 ) (58,543 ) (91,253 ) (91,253 ) Amortized cost Accounts receivable 260,322 260,322 165,760 165,760 Accounts payable and accrued liabilities (449,651 ) (449,651 ) (219,084 ) (219,084 ) Dividends payable (35,122 ) (35,122 ) (26,256 ) (26,256 ) Long-term debt (1,796,207 ) (1,781,809 ) (1,270,330 ) (1,274,891 ) |
Disclosure Of Detailed Information On Sensitivity Of Fair Value Measures Explanatory [Text Block] | 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, 2018 Dec 31, 2017 Currency risk - Euro to Canadian dollar $0.01 increase in strength of the Canadian dollar against the Euro (2,205 ) (4,607 ) $0.01 decrease in strength of the Canadian dollar against the Euro 2,205 4,607 Currency risk - US dollar to Canadian dollar $0.01 increase in strength of the Canadian dollar against the US $ 2,981 2,239 $0.01 decrease in strength of the Canadian dollar against the US $ (2,981 ) (2,239 ) Commodity price risk - Crude oil US $5.00/bbl increase in crude oil price used to determine the fair value of derivatives (18,421 ) (21,616 ) US $5.00/bbl decrease in crude oil price used to determine the fair value of derivatives 17,351 19,845 Commodity price risk - European natural gas € 0.5/GJ increase in European natural gas price used to determine the fair value of derivatives (36,508 ) (32,642 ) € 0.5/GJ decrease in European natural gas price used to determine the fair value of derivatives 33,005 25,321 |
Disclosure of maturity analysis for non-derivative financial liabilities [text block] | The following table summarizes Vermilion’s undiscounted non-derivative financial liabilities and their contractual maturities: 1 month to 3 months to 1 year to ($M) 1 month 3 months 1 year 5 years December 31, 2018 167,491 306,927 10,355 1,472,087 December 31, 2017 99,092 138,273 7,974 912,306 |
Related party disclosures (Tabl
Related party disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Related Party Disclosures [Abstract] | |
Disclosure of information about key management personnel [text block] | The following table summarizes the compensation of directors and other members of key management personnel during the years ended December 31, 2018 and 2017: Year Ended ($M) Dec 31, 2018 Dec 31, 2017 Short-term benefits 6,018 5,183 Share-based payments 16,309 20,135 22,327 25,318 Number of individuals included in the above amounts 18 20 |
Supplemental information (Table
Supplemental information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Supplemental Information [Abstract] | |
Disclosure of cash flow statement [text block] | Changes in non-cash working capital was comprised of the following: Year Ended ($M) Dec 31, 2018 Dec 31, 2017 Changes in: Accounts receivable (94,562 ) (34,041 ) Crude oil inventory (10,646 ) (2,577 ) Prepaid expenses (4,896 ) (1,884 ) Accounts payable and accrued liabilities 230,567 37,527 Income taxes payable (1,651 ) 2,842 Working capital assumed from acquisitions (58,841 ) — Initial recognition of IFRS 16 liability (10,483 ) — Foreign exchange (873 ) (795 ) Changes in non-cash working capital 48,615 1,072 Changes in non-cash operating working capital (6,876 ) 665 Changes in non-cash investing working capital 55,491 407 Changes in non-cash working capital 48,615 1,072 |
Disclosure of cash and cash equivalents [text block] | Cash and cash equivalents was comprised of the following: As at ($M) Dec 31, 2018 Dec 31, 2017 Cash on deposit with financial institutions 26,604 46,229 Guaranteed investment certificates 205 332 Cash and cash equivalents 26,809 46,561 |
Disclosure of employee benefits [text block] | Wages and benefits included in operating expenses and general and administration expenses were: Year Ended ($M) 2018 2017 Operating expense 66,095 48,823 General and administration expense 42,496 36,708 Wages and benefits 108,591 85,531 |
Disclosure of detailed information about outstanding risk management positions [Text Block] | The following tables summarize Vermilion's outstanding risk management positions as at December 31, 2018: Bought Put Volume Weighted Average Sold Call Volume Weighted Average Sold Put Volume Weighted Average Sold Put Swap Volume Weighted Average Swap Crude Oil Period Exercise date (1) Currency (bbl/d) Price / bbl (bbl/d) Price / bbl (bbl/d) Price / bbl (bbl/d) Price / bbl Dated Brent 3-Way Collar Sep 2018 - Jun 2019 CAD 2,500 91.20 2,500 98.63 2,500 76.00 — — Swap Jan 2019 - Dec 2019 CAD — — — — — — 1,350 91.76 3-Way Collar Aug 2018 - Jun 2019 USD 500 66.92 500 80.00 500 55.00 — — 3-Way Collar Jan 2019 - Dec 2019 USD 500 70.00 500 80.00 500 60.00 — — Swap Apr 2018 - Mar 2019 USD — — — — — — 750 61.33 Swap Jul 2018 - Jun 2019 USD — — — — — — 1,500 68.52 Swap Jan 2019 - Dec 2019 USD — — — — — — 2,250 73.17 WTI Swap Jan 2019 - Dec 2019 CAD — — — — — — 1,050 81.41 3-Way Collar Jan 2019 - Dec 2019 USD 250 70.00 250 80.25 250 60.00 — — Swap Apr 2018 - Mar 2019 USD — — — — — — 250 54.00 Bought Put Volume Weighted Average Bought Put Sold Call Volume Weighted Average Sold Call Sold Put Volume Weighted Average Sold Put Swap Volume Weighted Average Swap North American Gas Period Exercise date (1) Currency ( mcf /d) Price / mcf ( mcf /d) Price / mcf ( mcf d) Price / mcf (mcf/d) Price / mcf AECO Swap Dec 2018 - Mar 2019 CAD — — — — — — 2,500 2.41 AECO Basis (AECO less NYMEX Henry Hub) Swap Jan 2019 - Jun 2020 USD — — — — — — 2,500 (0.93 ) AECO Basis (AECO less Chicago NGI) Swap Nov 2018 - Mar 2019 USD — — — — — — 5,000 (1.46 ) NYMEX Henry Hub Swap Jan 2019 - Mar 2019 USD — — — — — — 5,000 4.00 Chicago NGI Swap Dec 2018 - Mar 2019 USD — — — — — — 5,000 4.40 SOCAL Border Swap (2) Jan 2019 USD — — — — — — 10,000 5.50 Swap (2) Feb 2019 USD — — — — — — 10,000 4.39 Swap (2) Mar 2019 USD — — — — — — 10,000 3.36 (1) (2) Bought Put Volume Weighted Average Bought Put Sold Call Volume Weighted Average Sold Call Sold Put Volume Weighted Average Sold Put Swap Volume Weighted Average Swap European Gas Period Exercise date (1) Currency (mcf/d) Price / mcf (mcf/d) Price / mcf (mcf/d) Price /mcf (mcf/d) Price / mcf NBP 3-Way Collar Jan 2019 - Dec 2019 EUR 17,197 4.97 17,197 5.65 17,197 3.79 — — 3-Way Collar Jan 2019 - Dec 2020 EUR 7,370 4.96 7,370 5.76 7,370 3.74 — — 3-Way Collar Jan 2020 - Dec 2020 EUR 19,654 5.10 19,654 5.92 19,654 4.01 — — Collar Oct 2018 - Mar 2019 EUR 3,685 6.40 2,457 7.62 — — — — Call Oct 2018 - Mar 2019 EUR — — 12,327 6.28 — — — — Swap Oct 2018 - Mar 2019 EUR — — — — — — 4,913 7.92 Swaption Jul 2019 - Jun 2021 June 28, 2019 EUR — — — — — — 9,827 5.64 Swaption Oct 2019 - Mar 2020 June 28, 2019 EUR — — — — — — 7,370 5.86 Swaption Oct 2020 - Mar 2021 June 28, 2019 EUR — — — — — — 7,370 5.86 Swaption Oct 2021 - Mar 2022 June 28, 2019 EUR — — — — — — 7,370 5.86 NBP Basis (NBP less NYMEX HH) Collar Jan 2019 - Sep 2020 USD 7,500 2.07 7,500 4.00 — — — — TTF 3-Way Collar Oct 2017 - Dec 2019 EUR 7,370 4.59 7,370 5.42 7,370 2.93 — — 3-Way Collar Jan 2018 - Dec 2019 EUR 3,685 4.74 3,685 5.52 3,685 3.13 — — 3-Way Collar Jan 2019 - Dec 2019 EUR 12,284 5.05 12,284 5.72 12,284 3.69 — — 3-Way Collar Jan 2020 - Dec 2020 EUR 7,370 5.37 7,370 6.25 7,370 3.81 — — Swap Oct 2017 - Dec 2019 EUR — — — — — — 7,370 4.87 Swap Jan 2018 - Dec 2019 EUR — — — — — — 1,228 5.00 Swap Jul 2018 - Dec 2019 EUR — — — — — — 4,913 4.98 Swap Jan 2019 - Dec 2019 EUR — — — — — — 2,457 4.92 Cross Currency Interest Rate Receive Notional Amount (USD) Rate (LIBOR +) Pay Notional Amount (CAD) Rate (CDOR +) Swap Jan 2019 1,018,563,000 1.70 % 1,354,900,000 1.02 % (1) The sold swaption instrument allows the counterparty, at the specified date, to enter into a swap with Vermilion at the above detailed terms. |
Changes in accounting pronoun_2
Changes in accounting pronouncements (Details Textual) $ in Thousands, $ in Millions | Dec. 31, 2018CAD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) |
Changes In Accounting Pronouncements [Line Items] | ||||
Right-of-use assets | $ 133,946 | |||
Non-current lease liabilities | $ 108,189 | $ 15,807 | ||
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16 | 5.40% | 5.40% | 5.40% | |
Current lease liabilities | $ 11,000 | |||
Operating Lease Commitment | $ 40.2 | |||
Lease liabilities | 28,000 | $ 34.3 | ||
Increase in Lease Liability | $ 62.8 | |||
At cost or in accordance with IFRS 16 within fair value model [member] | ||||
Changes In Accounting Pronouncements [Line Items] | ||||
Lease liabilities | $ 97.1 | |||
Capital assets [Member] | ||||
Changes In Accounting Pronouncements [Line Items] | ||||
Right-of-use assets | 97,100 | |||
Lease Obligations [Member] | ||||
Changes In Accounting Pronouncements [Line Items] | ||||
Non-current lease liabilities | $ 86,100 |
Segmented information (Details)
Segmented information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Segmented Information [Line Items] | ||
Total assets | $ 6,270,671 | $ 3,974,965 |
Drilling and development | 503,842 | 290,593 |
Exploration and evaluation | 14,372 | 29,856 |
Royalties | (152,167) | (74,476) |
Revenue from external customers | 1,525,950 | 1,024,362 |
Transportation | (51,887) | (43,448) |
Operating | (357,014) | (242,267) |
General and administration | (51,929) | (54,373) |
Current tax income (expense) | (43,577) | (32,107) |
Interest expense | (72,759) | (57,313) |
Fund flows from operations | 838,652 | 602,565 |
Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 6,270,671 | 3,974,965 |
Drilling and development | 503,842 | 290,593 |
Exploration and evaluation | 14,372 | 29,856 |
Crude oil and condensate sales | 1,119,356 | 672,076 |
NGL sales | 61,176 | 38,265 |
Natural gas sales | 497,585 | 388,497 |
Royalties | (152,167) | (74,476) |
Revenue from external customers | 1,525,950 | 1,024,362 |
Transportation | (51,887) | (43,448) |
Operating | (357,014) | (242,267) |
General and administration | (51,929) | (54,373) |
Interest expense | (72,759) | (57,313) |
Realized loss on derivative instruments | (111,258) | 4,721 |
Realized other income | 883 | 674 |
Fund flows from operations | 838,652 | 602,565 |
Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange gain | 243 | 2,316 |
PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | (4,824) | (19,819) |
Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | (38,753) | (12,288) |
CANADA | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 3,060,291 | 1,542,193 |
Drilling and development | 277,857 | 148,667 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 541,844 | 209,560 |
NGL sales | 56,554 | 37,809 |
Natural gas sales | 72,774 | 83,534 |
Royalties | (84,696) | (33,258) |
Revenue from external customers | 586,476 | 297,645 |
Transportation | (29,912) | (17,368) |
Operating | (177,499) | (80,444) |
General and administration | (6,057) | (9,604) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 373,008 | 190,229 |
CANADA | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
CANADA | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
FRANCE | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 918,398 | 831,783 |
Drilling and development | 79,451 | 71,087 |
Exploration and evaluation | 307 | 2,294 |
Crude oil and condensate sales | 360,471 | 268,102 |
NGL sales | 0 | 0 |
Natural gas sales | 131 | 1 |
Royalties | (46,781) | (28,565) |
Revenue from external customers | 313,821 | 239,538 |
Transportation | (10,426) | (14,627) |
Operating | (54,690) | (51,002) |
General and administration | (14,170) | (13,585) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 219,451 | 149,768 |
FRANCE | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
FRANCE | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | (15,084) | (10,556) |
NETHERLANDS | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 277,348 | 203,929 |
Drilling and development | 17,963 | 15,107 |
Exploration and evaluation | (480) | 16,468 |
Crude oil and condensate sales | 2,462 | 1,864 |
NGL sales | 0 | 0 |
Natural gas sales | 163,454 | 106,196 |
Royalties | (3,181) | (1,722) |
Revenue from external customers | 162,735 | 106,338 |
Transportation | 0 | 0 |
Operating | (26,681) | (21,212) |
General and administration | (1,947) | (2,212) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 117,546 | 86,245 |
NETHERLANDS | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
NETHERLANDS | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | (16,561) | 3,331 |
GERMANY | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 284,063 | 295,026 |
Drilling and development | 10,863 | 6,165 |
Exploration and evaluation | 4,943 | 3,366 |
Crude oil and condensate sales | 32,704 | 23,554 |
NGL sales | 0 | 0 |
Natural gas sales | 49,745 | 45,142 |
Royalties | (6,626) | (6,655) |
Revenue from external customers | 75,823 | 62,041 |
Transportation | (6,420) | (6,207) |
Operating | (23,048) | (20,176) |
General and administration | (7,401) | (7,767) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 38,954 | 27,891 |
GERMANY | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
GERMANY | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
IRELAND | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 709,585 | 667,068 |
Drilling and development | 224 | 551 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 0 | 0 |
NGL sales | 0 | 0 |
Natural gas sales | 205,150 | 153,330 |
Royalties | 0 | 0 |
Revenue from external customers | 205,150 | 153,330 |
Transportation | (5,129) | (5,205) |
Operating | (15,366) | (17,596) |
General and administration | (8,386) | (2,320) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 176,269 | 128,209 |
IRELAND | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
IRELAND | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
AUSTRALIA | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 263,739 | 236,677 |
Drilling and development | 75,638 | 29,942 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 150,733 | 154,391 |
NGL sales | 0 | 0 |
Natural gas sales | 0 | 0 |
Royalties | 0 | 0 |
Revenue from external customers | 150,733 | 154,391 |
Transportation | 0 | 0 |
Operating | (53,199) | (50,139) |
General and administration | (4,918) | (8,194) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 81,197 | 71,703 |
AUSTRALIA | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | (4,824) | (19,819) |
AUSTRALIA | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | (6,595) | (4,536) |
UNITED STATES | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 407,323 | 73,867 |
Drilling and development | 40,837 | 19,074 |
Exploration and evaluation | 0 | 0 |
Crude oil and condensate sales | 31,142 | 14,605 |
NGL sales | 4,622 | 456 |
Natural gas sales | 2,701 | 294 |
Royalties | (10,070) | (4,276) |
Revenue from external customers | 28,395 | 11,079 |
Transportation | 0 | (41) |
Operating | (6,421) | (1,698) |
General and administration | (6,306) | (4,341) |
Interest expense | 0 | 0 |
Realized loss on derivative instruments | 0 | 0 |
Realized foreign exchange gain | 0 | 0 |
Realized other income | 0 | 0 |
Fund flows from operations | 15,668 | 4,999 |
UNITED STATES | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
UNITED STATES | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
Corporate | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Total assets | 349,924 | 124,422 |
Drilling and development | 1,009 | 0 |
Exploration and evaluation | 9,602 | 7,728 |
Crude oil and condensate sales | 0 | 0 |
NGL sales | 0 | 0 |
Natural gas sales | 3,630 | 0 |
Royalties | (813) | 0 |
Revenue from external customers | 2,817 | 0 |
Transportation | 0 | 0 |
Operating | (110) | 0 |
General and administration | (2,744) | (6,350) |
Interest expense | (72,759) | (57,313) |
Realized loss on derivative instruments | (111,258) | 4,721 |
Realized other income | 883 | 674 |
Fund flows from operations | (183,441) | (56,479) |
Corporate | Reportable segments [member] | Operating Segments [Member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Realized foreign exchange gain | 243 | 2,316 |
Corporate | PRRT [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | 0 | 0 |
Corporate | Corporate income tax [Member] | Reportable segments [member] | ||
Disclosure Of Segmented Information [Line Items] | ||
Current tax income (expense) | $ (513) | $ (527) |
Segmented information (Details
Segmented information (Details 1) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Segmented Information [Abstract] | ||
Fund flows from operations | $ 838,652 | $ 602,565 |
Accretion | (31,219) | (26,971) |
Depletion and depreciation | (609,056) | (491,683) |
Gain on business combinations | 128,208 | 0 |
Unrealized gain (loss) on derivative instruments | 109,326 | (1,062) |
Equity based compensation | (60,746) | (61,579) |
Unrealized foreign exchange (loss) gain | (63,243) | 71,742 |
Unrealized other expense | (801) | (637) |
Deferred tax | (39,471) | (30,117) |
Net earnings | $ 271,650 | $ 62,258 |
Business combinations (Details)
Business combinations (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2018 | May 28, 2018 | Feb. 15, 2018 | |
Disclosure of detailed information about business combination [line items] | |||||
Lease obligations | $ (108,189) | $ (15,807) | |||
Gain on business combination | 128,208 | $ 0 | |||
Southeast Saskatchewan and Southwest Manitoba [Member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash paid to vendor | $ 53,288 | ||||
Total consideration | 53,288 | ||||
Capital assets | 67,549 | ||||
Deferred tax assets | 26,914 | ||||
Acquired working capital | 1,577 | ||||
Long-term debt | (38,300) | ||||
Asset retirement obligations | (4,452) | ||||
Net assets acquired | $ 53,288 | ||||
Spartan Energy Corp [Member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Shares issued for acquisition | $ 1,235,221 | ||||
Total consideration | 1,235,221 | ||||
Capital assets | 1,401,686 | ||||
Deferred tax assets | 123,813 | ||||
Long-term debt | (150,196) | ||||
Asset retirement obligations | (92,149) | ||||
Lease obligations | (25,455) | ||||
Assumed working capital deficit | (22,478) | ||||
Net assets acquired | $ 1,235,221 | ||||
Wyoming [Member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash paid to vendor | $ 189,014 | ||||
Total consideration | 189,014 | ||||
Capital assets | 284,333 | ||||
Deferred tax liability | (19,019) | ||||
Asset retirement obligations | (4,821) | ||||
Assumed working capital deficit | (2,651) | ||||
Net assets acquired | 257,842 | ||||
Gain on business combination | (68,828) | ||||
Total net assets acquired, net of gain on business combination | $ 189,014 | ||||
Shell E&P Ireland Limited [Member] | |||||
Disclosure of detailed information about business combination [line items] | |||||
Cash paid to vendor | 40,805 | ||||
Cash acquired | (82,116) | ||||
Contingent consideration | 290 | ||||
Total consideration | (41,021) | ||||
Capital assets | 53,368 | ||||
Deferred tax assets | 4,239 | ||||
Asset retirement obligations | (1,565) | ||||
Lease obligations | (2,234) | ||||
Assumed working capital deficit | (35,449) | ||||
Net assets acquired | 18,359 | ||||
Gain on business combination | (59,380) | ||||
Total net assets acquired, net of gain on business combination | $ (41,021) |
Business combinations (Details
Business combinations (Details Textual) $ / shares in Units, $ in Thousands, € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
May 28, 2018CAD ($)$ / shares | Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Aug. 31, 2018CAD ($) | Feb. 15, 2018CAD ($) | |
Southeast Saskatchewan and Southwest Manitoba [Member] | ||||||
Cash flows from used in operations | $ 1,000 | |||||
Revenue of acquiree since acquisition date | 18,700 | |||||
Revenue of combined entity as if combination occurred at beginning of period | 2,900 | |||||
Profit (loss) of combined entity as if combination occurred at beginning of period | 1,000 | |||||
Consideration transferred, acquisition-date fair value | $ 53,288 | |||||
Cash transferred | 53,288 | |||||
Property, plant and equipment recognised as of acquisition date | 67,549 | |||||
Profit (loss) of acquiree since acquisition date | 6,700 | |||||
Asset Retirement Obligations Recognized On Acquisition Date | $ 4,452 | |||||
Spartan Energy Corp [Member] | ||||||
Cash flows from used in operations | 35,000 | |||||
Revenue of acquiree since acquisition date | 242,100 | |||||
Revenue of combined entity as if combination occurred at beginning of period | 182,400 | |||||
Profit (loss) of combined entity as if combination occurred at beginning of period | 35,000 | |||||
Equity interests of acquirer | $ 1,235,221 | |||||
Acquisition-related costs for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | 1,300 | |||||
Consideration transferred, acquisition-date fair value | 1,235,221 | |||||
Property, plant and equipment recognised as of acquisition date | 1,401,686 | |||||
Profit (loss) of acquiree since acquisition date | 45,100 | |||||
Asset Retirement Obligations Recognized On Acquisition Date | 92,149 | |||||
Spartan Energy Corp [Member] | Vermilion Common Shares [Member] | ||||||
Equity interests of acquirer | 27,900 | |||||
Stock issued during period Value as of the acquistion date | $ 1,200,000 | |||||
Par value per share | $ / shares | $ 44.30 | |||||
Wyoming [Member] | ||||||
Cash flows from used in operations | (100) | $ 0.1 | ||||
Revenue of acquiree since acquisition date | 11,600 | |||||
Revenue of combined entity as if combination occurred at beginning of period | 11,100 | |||||
Profit (loss) of combined entity as if combination occurred at beginning of period | (100) | $ 0.1 | ||||
Consideration transferred, acquisition-date fair value | $ 189,014 | |||||
Cash transferred | 189,014 | |||||
Property, plant and equipment recognised as of acquisition date | 284,333 | |||||
Profit (loss) of acquiree since acquisition date | 300 | |||||
Asset Retirement Obligations Recognized On Acquisition Date | $ 4,821 | |||||
Shell E&P Ireland Limited [Member] | ||||||
Cash flows from used in operations | 4,300 | |||||
Revenue of acquiree since acquisition date | 1,300 | |||||
Revenue of combined entity as if combination occurred at beginning of period | 15,200 | |||||
Profit (loss) of combined entity as if combination occurred at beginning of period | 4,300 | |||||
Consideration transferred, acquisition-date fair value | $ (41,021) | |||||
Incremental Working interest | 1.50% | |||||
Proportion of ownership interest in subsidiary | 20.00% | 20.00% | 20.00% | |||
Contingent consideration arrangements and indemnification assets recognised as of acquisition date | $ 290 | |||||
Maximum Contingent Consideration | 9,100 | € 5.8 | ||||
Cash transferred | 40,805 | |||||
Property, plant and equipment recognised as of acquisition date | 53,368 | |||||
Profit (loss) of acquiree since acquisition date | 400 | |||||
Asset Retirement Obligations Recognized On Acquisition Date | 1,565 | |||||
Minor [Member] | ||||||
Cash transferred | 56,000 | |||||
Property, plant and equipment recognised as of acquisition date | 147,400 | |||||
Asset Retirement Obligations Recognized On Acquisition Date | 104,000 | |||||
Minor [Member] | Exploration and evaluation assets [member] | ||||||
Non-current assets recognised as of acquisition date | $ 28,600 |
Capital assets (Details)
Capital assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Capital assets [Line Items] | ||
Beginning balance | $ 3,337,965 | |
Ending balance | 5,316,873 | $ 3,337,965 |
Property, plant and equipment | 5,316,873 | 3,337,965 |
Capital assets [Member] | ||
Disclosure of Capital assets [Line Items] | ||
Beginning balance | 3,337,965 | 3,433,245 |
Acquisitions | 1,975,327 | 25,390 |
Additions | 503,842 | 290,593 |
Increase in right-of-use assets | 98,343 | 0 |
Transfers from exploration and evaluation assets | 29,615 | 8,187 |
Depletion and depreciation | (605,994) | (479,698) |
Changes in asset retirement obligations | (100,876) | (48,187) |
Foreign exchange | 78,651 | 108,435 |
Ending balance | 5,316,873 | 3,337,965 |
Property, plant and equipment | 3,337,965 | 3,337,965 |
Capital assets [Member] | Gross carrying amount [member] | ||
Disclosure of Capital assets [Line Items] | ||
Beginning balance | 6,539,052 | |
Ending balance | 9,202,604 | 6,539,052 |
Property, plant and equipment | 9,202,604 | 6,539,052 |
Capital assets [Member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of Capital assets [Line Items] | ||
Beginning balance | (3,201,087) | |
Ending balance | (3,885,731) | (3,201,087) |
Property, plant and equipment | $ (3,885,731) | $ (3,201,087) |
Capital assets (Details 1)
Capital assets (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2018CAD ($) | |
Disclosure of Capital assets [Line Items] | |
Depreciation | $ 19,358 |
Balance | 133,946 |
Office space [Member] | |
Disclosure of Capital assets [Line Items] | |
Depreciation | 9,119 |
Balance | 62,279 |
Gas processing facilities [Member] | |
Disclosure of Capital assets [Line Items] | |
Depreciation | 5,491 |
Balance | 41,788 |
Oil storage facilities [Member] | |
Disclosure of Capital assets [Line Items] | |
Depreciation | 2,728 |
Balance | 20,758 |
Vehicles and equipment [Member] | |
Disclosure of Capital assets [Line Items] | |
Depreciation | 2,020 |
Balance | $ 9,121 |
Exploration and evaluation as_3
Exploration and evaluation assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Beginning balance | $ 3,337,965 | |
Ending balance | 5,316,873 | $ 3,337,965 |
Property, plant and equipment | 5,316,873 | 3,337,965 |
Exploration and evaluation assets [member] | ||
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Beginning balance | 292,278 | 274,830 |
Acquisitions | 28,572 | 2,247 |
Additions | 14,372 | 29,856 |
Changes in asset retirement obligations | 629 | (30) |
Transfers to capital assets | (29,615) | (8,187) |
Depreciation | (5,942) | (11,727) |
Foreign exchange | 3,001 | 5,289 |
Ending balance | 303,295 | 292,278 |
Property, plant and equipment | 292,278 | 292,278 |
Exploration and evaluation assets [member] | Gross carrying amount [member] | ||
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Beginning balance | 354,615 | |
Ending balance | 371,015 | 354,615 |
Property, plant and equipment | 371,015 | 354,615 |
Exploration and evaluation assets [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure Of Exploration And Evaluation Assets [Line Items] | ||
Beginning balance | (62,337) | |
Ending balance | (67,720) | (62,337) |
Property, plant and equipment | $ (67,720) | $ (62,337) |
Asset retirement obligations (D
Asset retirement obligations (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Beginning balance | $ 517,180 | $ 525,022 |
Additional obligations recognized | 211,580 | 3,273 |
Changes in estimated abandonment timing and costs | (98,158) | (48,904) |
Obligations settled | (15,765) | (9,334) |
Accretion | 31,219 | 26,971 |
Changes in discount rates | (6,646) | (2,586) |
Foreign exchange | 10,754 | 22,738 |
Ending balance | $ 650,164 | $ 517,180 |
Asset retirement obligations _2
Asset retirement obligations (Details 1) - Provision for decommissioning, restoration and rehabilitation costs [member] | Dec. 31, 2018 | Dec. 31, 2017 |
CANADA | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 2.20% | 2.30% |
FRANCE | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 1.60% | 1.80% |
NETHERLANDS | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 0.40% | 0.50% |
GERMANY | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 0.90% | 1.00% |
IRELAND | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 1.60% | 0.40% |
AUSTRALIA | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 2.60% | 2.90% |
UNITED STATES | ||
Disclosure Of Asset Retirement Obligations [Line Items] | ||
Discount rate used in current measurement of fair value less costs of disposal | 2.70% | 2.40% |
Asset retirement obligations _3
Asset retirement obligations (Details Textual) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Asset Retirement Obligations [Line Items] | |||
Credit Risk Rate Used In Determining Other Provisions | 4.00% | 3.80% | |
Increase decrease in discount rate, asset retirement obligations | 0.50% | ||
Increase (Decrease) in Asset Retirement Obligations | $ 55 | ||
Scenerio Forecasts [Member] | |||
Disclosure Of Asset Retirement Obligations [Line Items] | |||
Increase (Decrease) in Asset Retirement Obligations | $ 25 | ||
Two Thousand Twenty And Two Thousand Seventy Eight [Member] | |||
Disclosure Of Asset Retirement Obligations [Line Items] | |||
Asset retirement obligations based on a total undiscounted future liability | 2,600 | $ 1,600 | |
Two Thousand Twenty Nine And Two Thousand Thirty Six [Member] | |||
Disclosure Of Asset Retirement Obligations [Line Items] | |||
Asset retirement obligations based on a total undiscounted future liability | 600 | ||
Two Thousand Forty Seven And Two Thousand Fifty Five [Member] | |||
Disclosure Of Asset Retirement Obligations [Line Items] | |||
Asset retirement obligations based on a total undiscounted future liability | 600 | ||
Two Thousand Sixty Three And Two Thousand Sixty Eight [Member] | |||
Disclosure Of Asset Retirement Obligations [Line Items] | |||
Asset retirement obligations based on a total undiscounted future liability | $ 900 | ||
Bottom of range [member] | |||
Disclosure Of Asset Retirement Obligations [Line Items] | |||
Inflation rates used in determining the cash flow estimates | 0.50% | 0.60% | |
Top of range [member] | |||
Disclosure Of Asset Retirement Obligations [Line Items] | |||
Inflation rates used in determining the cash flow estimates | 2.90% | 2.20% |
Derivative instruments (Details
Derivative instruments (Details) - CAD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Derivative instruments [Abstract] | ||||
Fair value of contracts, beginning of year | $ (70,713) | $ (69,651) | ||
Reversal of opening contracts settled during the year | 57,719 | 43,324 | ||
Assumed in acquisitions | $ (274) | $ 0 | ||
Realized (loss) gain on contracts settled during the year | (111,258) | 4,721 | ||
Unrealized gain (loss) during the year on contracts outstanding at the end of the year | 51,607 | (44,386) | ||
Net receipt from counterparties on contract settlements during the year | 111,258 | (4,721) | ||
Fair value of contracts, end of year | 38,339 | (70,713) | ||
Current derivative asset | 95,667 | 17,988 | ||
Current derivative liability | (41,016) | (78,905) | ||
Non-current derivative asset | 1,215 | 2,552 | ||
Non-current derivative liability | (17,527) | (12,348) | ||
Fair value of contracts, end of year | $ (70,713) | $ (70,713) | $ 38,339 | $ (70,713) |
Derivative instruments (Detai_2
Derivative instruments (Details 1) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Derivative instruments [Abstract] | ||
Realized loss (gain) on contracts settled during the year | $ 111,258 | $ (4,721) |
Reversal of opening contracts settled during the year | (57,719) | (43,324) |
Unrealized (gain) loss on contracts outstanding at the end of the year | (51,607) | 44,386 |
Loss (gain) on derivative instruments | $ 1,932 | $ (3,659) |
Leases (Details)
Leases (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of leases [Line Items] | ||
Total lease payments | $ 157,717 | $ 24,903 |
Amounts representing interest | (24,583) | (3,526) |
Present value of net minimum lease payments | 133,134 | 21,377 |
Current portion of finance lease obligation | (24,945) | (5,570) |
Non-current portion of finance lease obligation | 108,189 | 15,807 |
Not later than one year [member] | ||
Disclosure Of leases [Line Items] | ||
Total lease payments | 30,641 | 6,680 |
Later than one year and not later than three years [member] | ||
Disclosure Of leases [Line Items] | ||
Total lease payments | 50,024 | 10,207 |
Later than four years and not later than five years [member] | ||
Disclosure Of leases [Line Items] | ||
Total lease payments | 34,313 | 4,665 |
Later than five years [member] | ||
Disclosure Of leases [Line Items] | ||
Total lease payments | $ 42,739 | $ 3,351 |
Leases (Details Textual)
Leases (Details Textual) $ in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2018CAD ($) | Dec. 31, 2017USD ($) | |
Disclosure of leases [Abstract] | ||
Interest expense on lease liabilities | $ 7.2 | |
Lease liabilities | $ 28 | $ 34.3 |
Taxes (Details)
Taxes (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | $ 219,411 | $ 80,324 |
Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | (318,134) | (253,108) |
Non-capital losses [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | 487,398 | 342,202 |
Non-capital losses [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | 57,785 | 34,703 |
Capital assets [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | (296,591) | (294,178) |
Capital assets [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | (319,553) | (259,236) |
Asset retirement obligations [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | 38,429 | 28,056 |
Asset retirement obligations [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | (51,031) | (27,868) |
Derivative contracts [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | (11,937) | 10,164 |
Derivative contracts [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | 0 | 11,386 |
Unrealized foreign exchange [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | (1,873) | (7,927) |
Unrealized foreign exchange [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | (10,715) | (13,355) |
Other deferred tax assets [Member] | Deferred Tax Assets [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | 3,985 | 2,007 |
Other deferred tax liabilities [Member] | Deferred Tax Liabilities [Member] | ||
Disclosure of income tax [Line Items] | ||
Deferred tax liability (asset) | $ 5,380 | $ 1,262 |
Taxes (Details 1)
Taxes (Details 1) - CAD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure Of Taxes [Abstract] | ||||
Earnings before income taxes | $ 354,698 | $ 124,482 | ||
Canadian corporate tax rate | 22.55% | 27.00% | 27.00% | |
Expected tax expense | $ 95,768 | $ 33,610 | ||
Petroleum resource rent tax rate (PRRT) differential | [1] | 5,349 | 3,531 | |
Foreign tax rate differentials | [1],[2] | 3,086 | 7,146 | |
Equity based compensation expense | 13,883 | 10,343 | ||
Amended returns and changes to estimated tax pools and tax positions | (873) | (17,246) | ||
Statutory rate changes and the estimated reversal rates associated with temporary differences | [3] | 0 | (16,449) | |
(Re-recognition) de-recognition of deferred tax assets | (26,931) | 44,608 | ||
Adjustment for uncertain tax positions | 8,080 | 2,191 | ||
Gain on business combinations | (28,812) | 0 | ||
Other non-deductible items | 13,498 | (5,510) | ||
Provision for income taxes | $ 83,048 | $ 62,224 | ||
[1] | In Australia, current taxes include both corporate income tax rates and PRRT. Corporate income tax rates were applied at a rate of 30% and PRRT was applied at a rate of 40%. | |||
[2] | The applicable tax rates for 2018 were: 34.4% in France, 50.0% in the Netherlands, 30.2% in Germany, 25.0% in Ireland, and 21.0% in the United States. | |||
[3] | On December 22, 2017, the Tax Cuts and Jobs Act was signed into law in the United States reducing the U.S. federal corporate income tax rate from 35% to 21%. On December 21, 2017, the French Parliament approved the Finance Bill for 2018. The Finance Bill for 2018 provides for a progressive decrease of the French standard corporate income tax rate from 34.43% to 25.825% by 2022. On December 18, 2018, the Dutch government approved the 2019 Tax Plan. The Bill provides for reduced corporate tax rates from 25.0% to 20.5% by 2021, with the first reduction planned for 2020 to 22.55%. Due to the tax regime applicable to natural gas producers in the Netherlands, the reduction to the corporate tax rate is not expected to have a material impact to Vermilion taxes in the Netherlands. |
Taxes (Details Textual)
Taxes (Details Textual) - CAD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of income tax [Line Items] | ||||||
Applicable tax rate | 22.55% | 27.00% | 27.00% | |||
Unused tax losses for which no deferred tax asset recognised | $ 2,600 | $ 2,000 | ||||
Deductible temporary differences for which no deferred tax asset is recognised | 90.6 | 145.6 | ||||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | 500 | 400 | ||||
Vermilion's Canada Segment [Member] | ||||||
Disclosure of income tax [Line Items] | ||||||
Deductible temporary differences, unused tax losses and unused tax credits expired | 1,100 | 500 | ||||
Vermilion's Ireland Segment [Member] | ||||||
Disclosure of income tax [Line Items] | ||||||
Deductible temporary differences, unused tax losses and unused tax credits expired | $ 1,300 | $ 1,300 | ||||
Bottom of range [member] | Vermilion's Canada Segment [Member] | ||||||
Disclosure of income tax [Line Items] | ||||||
Description of expiry date of deductible temporary differences, unused tax losses and unused tax credits | 2,025 | |||||
Top of range [member] | Vermilion's Canada Segment [Member] | ||||||
Disclosure of income tax [Line Items] | ||||||
Description of expiry date of deductible temporary differences, unused tax losses and unused tax credits | 2,038 | |||||
FRANCE | ||||||
Disclosure of income tax [Line Items] | ||||||
Applicable tax rate | 34.40% | |||||
NETHERLANDS | ||||||
Disclosure of income tax [Line Items] | ||||||
Applicable tax rate | 50.00% | |||||
GERMANY | ||||||
Disclosure of income tax [Line Items] | ||||||
Applicable tax rate | 30.20% | |||||
IRELAND | ||||||
Disclosure of income tax [Line Items] | ||||||
Applicable tax rate | 25.00% | |||||
UNITED STATES | ||||||
Disclosure of income tax [Line Items] | ||||||
Applicable tax rate | 21.00% | |||||
Corporate Income tax [Member] | ||||||
Disclosure of income tax [Line Items] | ||||||
Applicable tax rate | 20.50% | 25.00% | ||||
Corporate Income tax [Member] | AUSTRALIA | ||||||
Disclosure of income tax [Line Items] | ||||||
Applicable tax rate | 30.00% | |||||
Petroleum Resource Rent Tax [Member] | AUSTRALIA | ||||||
Disclosure of income tax [Line Items] | ||||||
Applicable tax rate | 40.00% | |||||
United states Corporate Income tax [Member] | ||||||
Disclosure of income tax [Line Items] | ||||||
Applicable tax rate | 35.00% | 21.00% | ||||
FrenchCorporate Income tax [Member] | ||||||
Disclosure of income tax [Line Items] | ||||||
Applicable tax rate | 25.825% | 34.43% |
Long-term debt (Details)
Long-term debt (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Long-Term Debt [Abstract] | ||
Revolving credit facility | $ 1,392,206 | $ 899,595 |
Senior unsecured notes | 404,001 | 370,735 |
Long-term debt | $ 1,796,207 | $ 1,270,330 |
Long-term debt (Details 1)
Long-term debt (Details 1) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of Long-Term Debt [Line Items] | |||
Beginning balance | $ 1,270,330 | $ 1,362,192 | |
Borrowings (repayments) on the revolving credit facility | 251,155 | (450,646) | |
Issuance of senior unsecured notes | 0 | 391,906 | |
Assumed on acquisitions | [1] | 188,496 | 0 |
Amortization of transaction costs and prepaid interest | 2,286 | 2,012 | |
Foreign exchange | 83,940 | (35,134) | |
Ending balance | $ 1,796,207 | $ 1,270,330 | |
[1] | Pursuant to the acquisitions described in Note 5 (Business Combinations), Vermilion assumed the credit facilities of the acquired companies and immediately extinguished them following the respective acquisitions using proceeds from Vermilion's revolving credit facility. |
Long-term debt (Details 2)
Long-term debt (Details 2) - Revolving Credit Facilities [Member] - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Long-Term Debt [Line Items] | ||
Total facility amount | $ 1,800,000 | $ 1,400,000 |
Amount drawn | (1,392,206) | (899,595) |
Letters of credit outstanding | (15,400) | (7,400) |
Unutilized capacity | $ 392,394 | $ 493,005 |
Long-term debt (Details 3)
Long-term debt (Details 3) - Limit | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Long-Term Debt [Line Items] | ||
Consolidated total debt to consolidated EBITDA | 1.72 | 1.87 |
Consolidated total senior debt to consolidated EBITDA | 1.34 | 1.30 |
Consolidated total senior debt to total capitalization | 30.00% | 32.00% |
Top of range [member] | ||
Disclosure of Long-Term Debt [Line Items] | ||
Consolidated total debt to consolidated EBITDA | 4 | |
Consolidated total senior debt to consolidated EBITDA | 3.5 | |
Consolidated total senior debt to total capitalization | 55.00% |
Long-term debt (Details 4)
Long-term debt (Details 4) | 12 Months Ended |
Dec. 31, 2018 | |
2020 [Member] | |
Disclosure of Long-Term Debt [Line Items] | |
Redemption price Percentage of senior unsecured notes | 104.219% |
2021 [Member] | |
Disclosure of Long-Term Debt [Line Items] | |
Redemption price Percentage of senior unsecured notes | 102.813% |
2022 [Member] | |
Disclosure of Long-Term Debt [Line Items] | |
Redemption price Percentage of senior unsecured notes | 101.406% |
2023 and thereafter [Member] | |
Disclosure of Long-Term Debt [Line Items] | |
Redemption price Percentage of senior unsecured notes | 100.00% |
Long-term debt (Details Textual
Long-term debt (Details Textual) - USD ($) $ in Millions | Mar. 15, 2020 | Dec. 31, 2018 | Mar. 13, 2017 |
Disclosure of Long-Term Debt [Line Items] | |||
Borrowings Repayment Description Prior Maturity | Prior to March 15, 2020, Vermilion may redeem up to 35% of the original principal amount of the senior unsecured notes with the proceeds of certain equity offerings by the Company at a redemption price of 105.625% of the principal amount plus any accrued and unpaid interest to the applicable redemption date. Prior to March 15, 2020, Vermilion may redeem some or all of the senior unsecured notes at a price equal to 100% of the principal amount of the senior unsecured notes, plus an applicable premium and any accrued and unpaid interest. On or after March 15, 2020, Vermilion may redeem some or all of the senior unsecured notes at the redemption prices set forth in the following table plus any accrued and unpaid interest. | ||
Unsecured notes [Member] | |||
Disclosure of Long-Term Debt [Line Items] | |||
Notional amount | $ 300 | ||
Borrowings, interest rate | 5.625% | ||
Borrowings Repayment Description Prior Maturity | March 15, 2025 |
Shareholders' capital (Details)
Shareholders' capital (Details) - CAD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Shareholder's Capital [Line Items] | ||
Balance, beginning of year | $ 2,650,706 | $ 2,452,722 |
Balance at January 1 (shares) | 122,119 | 118,263 |
Shares issued for acquisition | $ 1,234,676 | $ 0 |
Shares issued for acquisition (shares) | 27,883 | 0 |
Shares issued for the Dividend Reinvestment Plan | $ 49,051 | $ 110,493 |
Vesting of equity based awards (shares) | 1,025 | 1,060 |
Share-settled dividends on vested equity based awards (shares) | 184 | 170 |
Balance, end of year | $ 4,008,828 | $ 2,650,706 |
Balance at December 31 (shares) | 152,704 | 122,119 |
Equity based compensation [Member] | ||
Disclosure Of Shareholder's Capital [Line Items] | ||
Shares issued for equity based compensation (shares) | 314 | 197 |
Dividend reinvestment plan [Member] | ||
Disclosure Of Shareholder's Capital [Line Items] | ||
Shares issued for the Dividend Reinvestment Plan (shares) | 1,179 | 2,429 |
Issued capital [member] | ||
Disclosure Of Shareholder's Capital [Line Items] | ||
Vesting of equity based awards | $ 54,057 | $ 69,743 |
Shares issued for equity based compensation | 12,565 | 9,270 |
Share-settled dividends on vested equity based awards | $ 7,773 | $ 8,478 |
Shareholders' capital (Details
Shareholders' capital (Details Textual) - CAD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 27, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Shareholder's Capital [Abstract] | |||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ 70.3 | ||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | $ 0.230 | ||
Dividends paid, ordinary shares | $ 388.1 | $ 311.4 | |
Dividends paid, ordinary shares per share | $ 2.72 | $ 2.58 |
Capital disclosures (Details)
Capital disclosures (Details) $ in Thousands | Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2016CAD ($) |
Disclosure Of Capital Disclosures [Abstract] | |||
Long-term debt | $ 1,796,207 | $ 1,270,330 | $ 1,362,192 |
Current liabilities | 563,199 | 363,306 | |
Current assets | (429,877) | (261,846) | |
Net debt | $ 1,929,529 | $ 1,371,790 | |
Ratio of net debt to fund flows from operations | 2.30 | 2.28 |
Capital disclosures (Details Te
Capital disclosures (Details Textual) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Capital Disclosures [Line Items] | ||
Ratio of net debt to funds from operations | 2.30 | 2.28 |
Top of range [member] | ||
Disclosure Of Capital Disclosures [Line Items] | ||
Ratio of net debt to funds from operations | 1.5 |
Equity based compensation (Deta
Equity based compensation (Details) - Vermilion incentive plan [Member] - Awards Awards in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Equity Based Compensation [Line Items] | ||
Opening balance | 1,685 | 1,738 |
Granted | 932 | 563 |
Vested | (520) | (539) |
Forfeited | (166) | (77) |
Closing balance | 1,931 | 1,685 |
Equity based compensation (De_2
Equity based compensation (Details Textual) | 12 Months Ended | ||
Dec. 31, 2018CAD ($)Awards | Dec. 31, 2017CAD ($)Awards | Dec. 31, 2016Awards | |
Disclosure Of Equity Based Compensation [Line Items] | |||
Expense from share-based payment transactions with employees | $ 60,746,000 | $ 61,579,000 | |
Vermilion incentive plan [Member] | |||
Disclosure Of Equity Based Compensation [Line Items] | |||
Weighted average fair value at measurement date, other equity instruments granted | $ 40.57 | $ 49.44 | |
Performance factor (ratio) | 1.9 | 1.9 | |
Annual forfeiture rate share options granted | 4.60% | 4.40% | |
Expense from share-based payment transactions with employees | $ 48,200,000 | $ 52,300,000 | |
Number of other equity instruments outstanding in share-based payment arrangement | Awards | 1,931,000 | 1,685,000 | 1,738,000 |
Five-Year Compensation Arrangement [member] | |||
Disclosure Of Equity Based Compensation [Line Items] | |||
Number of other equity instruments outstanding in share-based payment arrangement | Awards | 36,845 |
Per share amounts (Details)
Per share amounts (Details) - CAD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Per Share Amounts [Abstract] | ||
Net earnings | $ 271,650 | $ 62,258 |
Basic weighted average shares outstanding ('000s) | 140,619 | 120,582 |
Dilutive impact of equity based compensation ('000s) | 1,716 | 1,826 |
Diluted weighted average shares outstanding ('000s) | 142,335 | 122,408 |
Basic earnings per share | $ 1.93 | $ 0.52 |
Diluted earnings per share | $ 1.91 | $ 0.51 |
Financial instruments (Details)
Financial instruments (Details) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative liabilities [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
FINANCIAL LIABILITIES, Carrying Value | $ (58,543) | $ (91,253) |
FINANCIAL LIABILITIES, Fair Value | (58,543) | (91,253) |
Dividends payable [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
FINANCIAL LIABILITIES, Carrying Value | (35,122) | (26,256) |
FINANCIAL LIABILITIES, Fair Value | (35,122) | (26,256) |
Accounts payable and accrued liabilities [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
FINANCIAL LIABILITIES, Carrying Value | (449,651) | (219,084) |
FINANCIAL LIABILITIES, Fair Value | (449,651) | (219,084) |
Long-term debt [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
FINANCIAL LIABILITIES, Carrying Value | (1,796,207) | (1,270,330) |
FINANCIAL LIABILITIES, Fair Value | (1,781,809) | (1,274,891) |
Cash and cash equivalents [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
FINANCIAL ASSETS, Carrying Value | 26,809 | 46,561 |
FINANCIAL ASSETS, Fair Value | 26,809 | 46,561 |
Derivative assets [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
FINANCIAL ASSETS, Carrying Value | 96,882 | 20,540 |
FINANCIAL ASSETS, Fair Value | 96,882 | 20,540 |
Loans and receivables [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
FINANCIAL ASSETS, Carrying Value | 260,322 | 165,760 |
FINANCIAL ASSETS, Fair Value | $ 260,322 | $ 165,760 |
Financial instruments (Details
Financial instruments (Details 1) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ (2,205) | $ (4,607) |
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 | 2,981 | 2,239 |
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 | 2,205 | 4,607 |
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 | (2,981) | (2,239) |
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 | (36,508) | (32,642) |
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 | (18,421) | (21,616) |
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 | 33,005 | 25,321 |
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 | $ 17,351 | $ 19,845 |
Financial instruments (Detail_2
Financial instruments (Details 2) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
1 month | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | $ 167,491 | $ 99,092 |
1 month to 3 months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 306,927 | 138,273 |
3 months to 1 year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 10,355 | 7,974 |
1 year to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | $ 1,472,087 | $ 912,306 |
Financial instruments (Detail_3
Financial instruments (Details Textual) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | $ 357.2 | $ 186.3 |
Percentage of trade and other current receivables | 0.70% | 0.70% |
Related party disclosures (Deta
Related party disclosures (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018CAD ($)Awards | Dec. 31, 2017CAD ($)Number | |
Disclosure Of Related Party Disclosures [Line Items] | ||
Short-term benefits | $ 6,018 | $ 5,183 |
Share-based payments | 16,309 | 20,135 |
Key management personnel compensation | $ 22,327 | $ 25,318 |
Key management personnel [member] | ||
Disclosure Of Related Party Disclosures [Line Items] | ||
Number of individuals included in the above amounts | 18 | 20 |
Related party disclosures (De_2
Related party disclosures (Details Textual) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Related Party Disclosures [Abstract] | ||
Income from subleasing right-of-use assets | $ 0.2 | $ 0.2 |
Supplemental information (Detai
Supplemental information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Increase Decrease In Working Capital [Abstract] | ||
Accounts receivable | $ (94,562) | $ (34,041) |
Crude oil inventory | (10,646) | (2,577) |
Prepaid expenses | (4,896) | (1,884) |
Accounts payable and accrued liabilities | 230,567 | 37,527 |
Income taxes payable | (1,651) | 2,842 |
Working capital assumed from acquisitions | (58,841) | 0 |
Initial recognition of IFRS 16 liability | (10,483) | 0 |
Foreign exchange | (873) | (795) |
Changes in non-cash working capital | 48,615 | 1,072 |
Changes in non-cash operating working capital | (6,876) | 665 |
Changes in non-cash investing working capital | 55,491 | 407 |
Changes in non-cash working capital | $ 48,615 | $ 1,072 |
Supplemental information (Det_2
Supplemental information (Details 1) - CAD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Supplemental Information [Line Items] | |||
Cash on deposit with financial institutions | $ 26,604 | $ 46,229 | |
Guaranteed investment certificates | 205 | 332 | |
Cash and cash equivalents | $ 26,809 | $ 46,561 | $ 62,775 |
Supplemental information (Det_3
Supplemental information (Details 2) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Supplemental Information [Line Items] | ||
Short-term employee benefits expense | $ 108,591 | $ 85,531 |
Operating expense [Member] | ||
Disclosure Of Supplemental Information [Line Items] | ||
Short-term employee benefits expense | 66,095 | 48,823 |
General and administration expense [Member] | ||
Disclosure Of Supplemental Information [Line Items] | ||
Short-term employee benefits expense | $ 42,496 | $ 36,708 |
Supplemental information (Det_4
Supplemental information (Details 3) - 12 months ended Dec. 31, 2018 | CAD ($) | USD ($) | Awards | mmbtu_d | $ / CallPrice_mmbtu | € / CallPrice_mmbtu | $ / CallPrice_mmbtu | |
Derivative, contract period | Nov 2018 - Mar 2019 | Nov 2018 - Mar 2019 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | 0 | 4 | ||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 5,000 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | (1.46) | |||||||
European Gas NBP [Member] | Purchased call options [member] | ||||||||
Derivative, contract period | Oct 2018 - Mar 2019 | Oct 2018 - Mar 2019 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | mmbtu_d | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 12,327 | |||||||
Derivative,weighted average sold call | € / CallPrice_mmbtu | 6.28 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
Swap Contract One [Member] | Crude oil dated brent [Member] | ||||||||
Derivative, contract period | Jan 2019 - Dec 2019 | Jan 2019 - Dec 2019 | ||||||
Description of presentation currency | CAD | CAD | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 1,350 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 91.76 | |||||||
Swap Contract One [Member] | Crude oil west texas intermediate [Member] | ||||||||
Derivative, contract period | Jan 2019 - Dec 2019 | Jan 2019 - Dec 2019 | ||||||
Description of presentation currency | CAD | CAD | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 1,050 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 81.41 | |||||||
Swap Contract One [Member] | North American Gas AECO [Member] | ||||||||
Derivative, contract period | Dec 2018 - Mar 2019 | Dec 2018 - Mar 2019 | ||||||
Description of presentation currency | CAD | CAD | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 2,500 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 2.41 | |||||||
Swap Contract One [Member] | North American Gas AECO basis [Member] | ||||||||
Derivative, contract period | Jan 2019 - Jun 2020 | Jan 2019 - Jun 2020 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 2,500 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | (0.93) | |||||||
Swap Contract One [Member] | North American Gas NYMEX HH [Member] | ||||||||
Derivative, contract period | Jan 2019 - Mar 2019 | Jan 2019 - Mar 2019 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 5,000 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 4 | |||||||
Swap Contract One [Member] | European Gas NBP [Member] | ||||||||
Derivative, contract period | Oct 2018 - Mar 2019 | Oct 2018 - Mar 2019 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 4,913 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 7.92 | |||||||
Swap Contract One [Member] | European Gas TTF [Member] | ||||||||
Derivative, contract period | Oct 2017 - Dec 2019 | Oct 2017 - Dec 2019 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 7,370 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 4.87 | |||||||
Swap Contract One [Member] | European Gas cross currency interest rate [Member] | ||||||||
Derivative interest maturity period | Jan 2,019 | Jan 2,019 | ||||||
Proceeds from sales or maturity of financial instruments, classified as investing activities | $ | $ 1,018,563,000 | |||||||
London Interbank Offered Rate | 1.70% | 1.70% | ||||||
Purchase of financial instruments, classified as investing activities | $ | $ 1,354,900,000 | |||||||
Canadian Dollar Offered Rate | 1.02% | 1.02% | ||||||
Swap Contract One [Member] | North American Gas Chicago NGI [Member] | ||||||||
Derivative, contract period | Dec 2018 - Mar 2019 | Dec 2018 - Mar 2019 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 5,000 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 4.40 | |||||||
Swap Contract One [Member] | North American Gas Socal Border [Member] | ||||||||
Derivative, contract period | [1] | Jan 2,019 | Jan 2,019 | |||||
Description of presentation currency | [1] | USD | USD | |||||
Derivative, bought put volume | [1] | 0 | ||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | [1] | 0 | ||||||
Derivative, sold call volume | [1] | 0 | ||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | [1] | 0 | ||||||
Derivative, sold put volume | [1] | 0 | ||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | [1] | 0 | ||||||
Derivative, swap volume | [1] | 10,000 | ||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | [1] | 5.50 | ||||||
3 Way Collar One | Crude oil dated brent [Member] | ||||||||
Derivative, contract period | Sep 2018 - Jun 2019 | Sep 2018 - Jun 2019 | ||||||
Description of presentation currency | CAD | CAD | ||||||
Derivative, bought put volume | 2,500 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 91.20 | |||||||
Derivative, sold call volume | 2,500 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 98.63 | |||||||
Derivative, sold put volume | 2,500 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 76 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
3 Way Collar One | Crude oil west texas intermediate [Member] | ||||||||
Derivative, contract period | Jan 2019 - Dec 2019 | Jan 2019 - Dec 2019 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 250 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 70 | |||||||
Derivative, sold call volume | 250 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 80.25 | |||||||
Derivative, sold put volume | 250 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 60 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
3 Way Collar One | European Gas NBP [Member] | ||||||||
Derivative, contract period | Jan 2019 - Dec 2019 | Jan 2019 - Dec 2019 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | mmbtu_d | 17,197 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 4.97 | |||||||
Derivative, sold call volume | 17,197 | |||||||
Derivative,weighted average sold call | € / CallPrice_mmbtu | 5.65 | |||||||
Derivative, sold put volume | 17,197 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 3.79 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
3 Way Collar One | European Gas TTF [Member] | ||||||||
Derivative, contract period | Oct 2017 - Dec 2019 | Oct 2017 - Dec 2019 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | 7,370 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 4.59 | |||||||
Derivative, sold call volume | 7,370 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 5.42 | |||||||
Derivative, sold put volume | 7,370 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 2.93 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
3 Way Collar Two | Crude oil dated brent [Member] | ||||||||
Derivative, contract period | Aug 2018 - Jun 2019 | Aug 2018 - Jun 2019 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 500 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 66.92 | |||||||
Derivative, sold call volume | 500 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 80 | |||||||
Derivative, sold put volume | 500 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 55 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
3 Way Collar Two | European Gas NBP [Member] | ||||||||
Derivative, contract period | Jan 2019 - Dec 2020 | Jan 2019 - Dec 2020 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | mmbtu_d | 7,370 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 4.96 | |||||||
Derivative, sold call volume | 7,370 | |||||||
Derivative,weighted average sold call | € / CallPrice_mmbtu | 5.76 | |||||||
Derivative, sold put volume | 7,370 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 3.74 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
3 Way Collar Two | European Gas TTF [Member] | ||||||||
Derivative, contract period | Jan 2018 - Dec 2019 | Jan 2018 - Dec 2019 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | 3,685 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 4.74 | |||||||
Derivative, sold call volume | 3,685 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 5.52 | |||||||
Derivative, sold put volume | 3,685 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 3.13 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
3 Way Collar Three | Crude oil dated brent [Member] | ||||||||
Derivative, contract period | Jan 2019 - Dec 2019 | Jan 2019 - Dec 2019 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 500 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 70 | |||||||
Derivative, sold call volume | 500 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 80 | |||||||
Derivative, sold put volume | 500 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 60 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
3 Way Collar Three | European Gas NBP [Member] | ||||||||
Derivative, contract period | Jan 2020 - Dec 2020 | Jan 2020 - Dec 2020 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | mmbtu_d | 19,654 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 5.10 | |||||||
Derivative, sold call volume | 19,654 | |||||||
Derivative,weighted average sold call | € / CallPrice_mmbtu | 5.92 | |||||||
Derivative, sold put volume | 19,654 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 4.01 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
3 Way Collar Three | European Gas TTF [Member] | ||||||||
Derivative, contract period | Jan 2019 - Dec 2019 | Jan 2019 - Dec 2019 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | 12,284 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 5.05 | |||||||
Derivative, sold call volume | 12,284 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 5.72 | |||||||
Derivative, sold put volume | 12,284 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 3.69 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
3 Way Collar Four | European Gas TTF [Member] | ||||||||
Derivative, contract period | Jan 2020 - Dec 2020 | Jan 2020 - Dec 2020 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | 7,370 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 5.37 | |||||||
Derivative, sold call volume | 7,370 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 6.25 | |||||||
Derivative, sold put volume | 7,370 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 3.81 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
Collar One [Member] | European Gas NBP [Member] | ||||||||
Derivative, contract period | Oct 2018 - Mar 2019 | Oct 2018 - Mar 2019 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | mmbtu_d | 3,685 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 6.40 | |||||||
Derivative, sold call volume | 2,457 | |||||||
Derivative,weighted average sold call | € / CallPrice_mmbtu | 7.62 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
Collar One [Member] | European Gas NBP basis [Member] | ||||||||
Derivative, contract period | Jan 2019 - Sep 2020 | Jan 2019 - Sep 2020 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 7,500 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 2.07 | |||||||
Derivative, sold call volume | 7,500 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 0 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 0 | |||||||
Swap Contract Two [Member] | Crude oil dated brent [Member] | ||||||||
Derivative, contract period | Apr 2018 - Mar 2019 | Apr 2018 - Mar 2019 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 750 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 61.33 | |||||||
Swap Contract Two [Member] | Crude oil west texas intermediate [Member] | ||||||||
Derivative, contract period | Apr 2018 - Mar 2019 | Apr 2018 - Mar 2019 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 250 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 54 | |||||||
Swap Contract Two [Member] | European Gas TTF [Member] | ||||||||
Derivative, contract period | Jan 2018 - Dec 2019 | Jan 2018 - Dec 2019 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 1,228 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 5 | |||||||
Swap Contract Two [Member] | North American Gas Socal Border [Member] | ||||||||
Derivative, contract period | [1] | Feb 2,019 | Feb 2,019 | |||||
Description of presentation currency | [1] | USD | USD | |||||
Derivative, bought put volume | [1] | 0 | ||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | [1] | 0 | ||||||
Derivative, sold call volume | [1] | 0 | ||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | [1] | 0 | ||||||
Derivative, sold put volume | [1] | 0 | ||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | [1] | 0 | ||||||
Derivative, swap volume | [1] | 10,000 | ||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | [1] | 4.39 | ||||||
Swap Contract Three [Member] | Crude oil dated brent [Member] | ||||||||
Derivative, contract period | Jul 2018 - Jun 2019 | Jul 2018 - Jun 2019 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 1,500 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 68.52 | |||||||
Swap Contract Three [Member] | European Gas TTF [Member] | ||||||||
Derivative, contract period | Jul 2018 - Dec 2019 | Jul 2018 - Dec 2019 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 4,913 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 4.98 | |||||||
Swap Contract Three [Member] | North American Gas Socal Border [Member] | ||||||||
Derivative, contract period | [1] | Mar 2,019 | Mar 2,019 | |||||
Description of presentation currency | [1] | USD | USD | |||||
Derivative, bought put volume | [1] | 0 | ||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | [1] | 0 | ||||||
Derivative, sold call volume | [1] | 0 | ||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | [1] | 0 | ||||||
Derivative, sold put volume | [1] | 0 | ||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | [1] | 0 | ||||||
Derivative, swap volume | [1] | 10,000 | ||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | [1] | 3.36 | ||||||
Swaption Contract One [Member] | European Gas NBP [Member] | ||||||||
Derivative, contract period | Jul 2019 - Jun 2021 | Jul 2019 - Jun 2021 | ||||||
Derivative, exercise date | [2] | Jun. 28, 2019 | Jun. 28, 2019 | |||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | mmbtu_d | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | € / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 9,827 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 5.64 | |||||||
Swaption Contract One [Member] | European Gas TTF [Member] | ||||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Swaption Contract Two [Member] | European Gas NBP [Member] | ||||||||
Derivative, contract period | Oct 2019 - Mar 2020 | Oct 2019 - Mar 2020 | ||||||
Derivative, exercise date | [2] | Jun. 28, 2019 | Jun. 28, 2019 | |||||
Description of presentation currency | EUR | EUR | ||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 7,370 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 5.86 | |||||||
Swaption Contract Two [Member] | European Gas TTF [Member] | ||||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Swap Contract Four [Member] | Crude oil dated brent [Member] | ||||||||
Derivative, contract period | Jan 2019 - Dec 2019 | Jan 2019 - Dec 2019 | ||||||
Description of presentation currency | USD | USD | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 2,250 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 73.17 | |||||||
Swap Contract Four [Member] | European Gas TTF [Member] | ||||||||
Derivative, contract period | Jan 2019 - Dec 2019 | Jan 2019 - Dec 2019 | ||||||
Description of presentation currency | EUR | EUR | ||||||
Derivative, bought put volume | 0 | |||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative,weighted average sold call | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 2,457 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 4.92 | |||||||
Swaption Contract Three [Member] | European Gas NBP [Member] | ||||||||
Derivative, contract period | Oct 2020 - Mar 2021 | Oct 2020 - Mar 2021 | ||||||
Derivative, exercise date | [2] | Jun. 28, 2019 | Jun. 28, 2019 | |||||
Description of presentation currency | EUR | EUR | ||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 7,370 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 5.86 | |||||||
Swaption Contract Four [Member] | European Gas NBP [Member] | ||||||||
Derivative, contract period | Oct 2021 - Mar 2022 | Oct 2021 - Mar 2022 | ||||||
Derivative, exercise date | [2] | Jun. 28, 2019 | Jun. 28, 2019 | |||||
Description of presentation currency | EUR | EUR | ||||||
Derivative,weighted average bought put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, sold call volume | 0 | |||||||
Derivative, sold put volume | 0 | |||||||
Derivative,weighted average sold put | $ / CallPrice_mmbtu | 0 | |||||||
Derivative, swap volume | 7,370 | |||||||
Derivative,weighted average swap | $ / CallPrice_mmbtu | 5.86 | |||||||
[1] | These swaps hedge a physical sales agreement to sell Alberta natural gas production at SOCAL Border pricing less a fixed differential. | |||||||
[2] | The sold swaption instrument allows the counterparty, at the specified date, to enter into a swap with Vermilion at the above detailed terms. |