Vermilion Energy, Inc. (NYSE:VET) Q2 2022 Results Conference Call August 12, 2022 9:00 AM ET
Company Participants
Dion Hatcher - President
Lars Glemser - Vice President and CFO
Darcy Kerwin - Vice President, International and HSE
Bryce Kremnica - Vice President, North America
Jenson Tan - Vice President, Business Development
Kyle Preston - Vice President of Investor Relations
Conference Call Participants
Menno Hulshof - TD Securities
Greg Pardy - RBC Capital Markets
Patrick O’Rourke - ATB Capital
Josef Schachter - Schachter Energy Research
Operator
Good morning. My name is Samara, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vermilion Energy Q2 Conference Call. [Operator Instructions] Thank you.
Mr. Dion Hatcher, you may begin your conference.
Dion Hatcher
Thank you, Samara. Well, good morning, ladies and gentlemen. Thank you for joining us. I'm Dion Hatcher, President of Vermilion Energy. With me today are Lars Glemser, Vice President and CFO; Darcy Kerwin, Vice President International and HSE; Bryce Kremnica, Vice President North America; Jenson Tan, Vice President of Business Development; and Kyle Preston. Vice President of Investor Relations.
We'll be referencing a PowerPoint presentation to discuss our Q2 2022 results and our return of capital framework we announced this morning. Presentation can be found on our website under Invest with Us and Events and Presentations. Please refer to our advisory and forwar-looking statements at the end of the presentation, it describes forward looking information, non-GAAP measures, and oil and gas terms used today. And it outlines the risk factors and assumptions relevant to this discussion.
As shown on Slide 2, we delivered another quarter with record fund flows of $453 million and record free cash flow of $340 million, which is over $2 a share, that's up 16% and 12% respectively from the previous quarter. The increase was mainly driven by strong commodity prices as global oil prices and North American gas prices were strengthened during the quarter.
European gas prices remained strong in Q2 and relatively consistent with the prior quarter with TTT -- TTF in excess of CAD38 per mmbtu. Over the past several months, European gas forward prices have nearly doubled, which will build well for Vermilion. I will review the fundamental drivers for this later in my presentation.
Production during Q2 averaged 84,868 boe/d, which is down slightly from the previous quarter, mainly due to planned and unplanned downtime. Key notable event during the quarter was the closing of the Leucrotta acquisition on May 31. We have successfully integrated the Leucrotta assets and assembled the Mica asset team, which is now focused on completing a six well pad that was drilled in Q2. We are excited to have these high-quality assets in our portfolio and look forward to scaling up our development.