Vermilion Energy Stock Price, News & Analysis

Vermilion Energy (TSX: VET) (NYSE: VET) has announced plans to issue US$400 million in eight-year senior unsecured notes through a private offering to qualified institutional buyers. The proceeds will be used flexibly for multiple purposes, including: redeeming existing 5.625% senior notes due 2025, funding part of the Westbrick Energy acquisition, paying transaction fees, and repaying outstanding credit facility borrowings.

The new notes will not be registered under the U.S. Securities Act or Canadian securities laws, and will only be offered to institutional 'accredited investors' in certain Canadian provinces and 'qualified institutional buyers' in the United States under Rule 144A, as well as to certain non-U.S. persons under Regulation S.

Vermilion Energy (TSX: VET) (NYSE: VET) has made two significant announcements. First, the company has filed financial information regarding its proposed acquisition of Westbrick Energy on SEDAR+. Second, Vermilion has secured increased commitments from lenders to expand its fully underwritten term loan from $250 million to $450 million, with the loan maintaining its original maturity date of May 2028.

Vermilion Energy (VET) has announced a strategic acquisition of Westbrick Energy for $1.075 billion, expected to close in Q1 2025. The acquisition adds 50,000 boe/d of stable production and approximately 1.1 million acres of land in the Deep Basin, with over 700 drilling locations identified.

Key highlights include: four operated gas plants with 102 mmcf/d capacity, proved developed producing reserves of 92 million boe, and proved plus probable reserves of 256 million boe. The acquisition will be funded through Vermilion's undrawn credit facility and new debt facilities. Post-acquisition, Vermilion will become a 135,000 boe/d entity with >80% of production from its global gas franchise.

The company forecasts pro forma 2025 fund flows from operations of $1.2 billion and free cash flow of approximately $450 million based on forward commodity prices.

Vermilion Energy has announced its 2025 budget with key highlights including a capital expenditure budget of $600-625 million and production guidance of 84,000-88,000 boe/d, representing 2% growth. The company projects fund flows from operations of $1.0 billion and free cash flow of $400 million for 2025.

The company increased its quarterly cash dividend by 8% to $0.13 CDN per share, effective Q1 2025. Vermilion continues its share buyback program, having repurchased 16.8 million shares since July 2022, reducing share count by 4.8%. The company reported successful testing of its second deep gas exploration well in Germany, which flow tested at 21 mmcf/d with a wellhead pressure of 6,150 psi.

Vermilion Energy reported Q3 2024 fund flows from operations of $275 million ($1.76/basic share), a 16% increase from previous quarter, driven by stronger European gas prices. Production averaged 84,173 boe/d, up 2% year-over-year. The company invested $121 million in exploration and development, generating free cash flow of $154 million. Net debt decreased by $73 million to $833 million. Notable operational highlights include successful testing of a German deep gas exploration well at 17 mmcf/d and increased production in Croatia averaging 1,855 boe/d. The company returned $59 million to shareholders through dividends and share buybacks, representing 45% of excess free cash flow.

Vermilion Energy (TSX: VET) (NYSE: VET) has declared a cash dividend of $0.12 CDN per common share. The dividend will be paid on January 15, 2025 to shareholders of record as of December 31, 2024. The dividend qualifies as an eligible dividend under the Income Tax Act (Canada).

Vermilion Energy (TSX: VET) (NYSE: VET) has announced it will release its 2024 third quarter operating and financial results on Wednesday, November 6, 2024, after North American markets close. The company will host a conference call and webcast to discuss these results on Thursday, November 7, 2024, at 9:00 AM MST. The unaudited interim financial statements and management discussion will be available on SEDAR, EDGAR, and Vermilion's website. Interested participants can join via phone or webcast, with a replay available until November 21, 2024.

Vermilion Energy Inc. (TSX: VET) (NYSE: VET) has provided an operational update on key projects. In Germany, their first deep gas exploration well tested at 17 mmcf/d of natural gas, with tie-in operations progressing for production in H1 2025. A second exploration well is being drilled, with a farmdown agreement reducing their working interest to 30%. A third well is planned for Q4 2024.

In Croatia, production on the SA-10 block now exceeds 2,000 boe/d, while the SA-7 block's third well tested at 5.6 mmcf/d. In Canada, five Mica Montney wells achieved an average IP30 rate of over 1,000 boe/d per well. The company remains on track for Q3 2024 production of 83,000 to 85,000 boe/d and full-year guidance of 83,000 to 86,000 boe/d.

Vermilion has repurchased 7.5 million shares year-to-date and reaffirmed its quarterly dividend of $0.12 per share.

Vermilion Energy reported a Q2 2024 production average of 84,974 boe/d, a 2% YoY increase, driven largely by assets in Australia and Mica Montney. North American assets contributed 54,987 boe/d, while international assets added 29,987 boe/d. Fund flows from operations reached $237 million, with free cash flow at $126 million. The company returned $66 million to shareholders via dividends and buybacks.

Net debt decreased by $38 million to $907 million, the lowest in over a decade. Vermilion increased its annual production guidance to 83,000-86,000 boe/d while maintaining a capital budget of $600-$625 million. Q2 saw significant operational milestones including the completion of the Mica Montney battery and the SA-10 gas plant in Croatia. The quarterly dividend was announced at $0.12 per share, payable on October 15, 2024.