Vermilion Energy Stock Price, News & Analysis

Vermilion Energy announced the results of its annual shareholder meeting held on April 28, 2021, where 40,454,887 shares, representing 25.46% of total shares, were voted. Key outcomes included:

• 98.76% approval to fix the number of directors at eight.
• Eight nominees were elected with votes ranging from 85.09% to 98.76%.
• 98.27% voted in favor of Deloitte LLP as auditors.
• An advisory resolution on executive compensation saw 41.77% in favor, 58.23% against.

The company emphasizes governance practices and community investment.

Vermilion Energy reported a 20% increase in fund flows from operations (FFO) to $162 million in Q1 2021, driven by rising global crude oil and European natural gas prices. The company generated $79 million in free cash flow despite investing $83 million in capital expenditures, achieving a payout ratio of 56%. Production averaged 86,276 boe/d, slightly exceeding guidance. Net debt decreased by 5% to just under $2 billion. Vermilion also set emissions targets aiming for net zero by 2050, with an initial 15-20% reduction in Scope 1 emissions by 2025.

Vermilion Energy Inc. (VET) will release its first quarter 2021 financial and operating results on April 28, 2021, after North American markets close. The unaudited interim financial statements will be available on SEDAR and EDGAR. Additionally, Vermilion will host its Annual General Meeting virtually on the same day at 3:00 pm MT, with participation details provided in their Proxy Statement. The company is recognized for its governance practices and commitment to safety and profitability, and employees hold about 5% of the outstanding shares.

Vermilion Energy reported its 2020 financial and operational results, generating $502 million in fund flows from operations and $135 million in free cash flow. Despite challenges from the COVID-19 pandemic, production averaged 95,190 boe/d for the year. The company reduced its debt by approximately $175 million in the second half of 2020 and ended the year with over $500 million in liquidity. In 2021, Vermilion plans a $300 million capital budget, focusing on maximizing returns and further debt reduction. Total proved plus probable reserves decreased by 7% to 467 mmboe.

Vermilion Energy has announced its 2021 exploration and development capital budget set at $300 million, down 17% from 2020. The company targets a production range of 83,000 to 85,000 boe/d while maintaining a strong focus on free cash flow (FCF) and reducing debt. Vermilion anticipates generating over $200 million in FCF with a payout ratio below 65%. Investment allocation sees $165 million in North America and $135 million internationally, with an emphasis on efficient capital deployment aligned with improving commodity prices.

Vermilion Energy has announced significant changes to its leadership team. Effective immediately, Michael Kaluza has stepped down as COO. Dion Hatcher is now Vice President, North America, overseeing operations in Canada and the U.S., while Darcy Kerwin has been appointed Vice President, International & HSE, responsible for global operations and health and safety efforts. These promotions aim to maintain operational continuity and focus on cost control and profitability. The leadership changes are expected to align with Vermilion's goals of promoting from within and enhancing strategic decision-making.

Vermilion Energy has responded to Total's announcement about the conversion of the Grandpuits refinery in France to a biofuels and bioplastics facility. This conversion, set to be completed by Q1 2021, affects Vermilion's crude oil production, currently at 5,000 bbl/d. Vermilion had anticipated this change and included contract provisions for a seamless transition to another Total refinery. The estimated increase in transportation costs due to this change is around $20 million annually. Vermilion remains committed to its operations in France, emphasizing long-term value potential.

Vermilion Energy reported Q2 2020 fund flows from operations of $82 million ($0.52/share), a 52% decline due to lower commodity prices from COVID-19 and the OPEC+ oil price war. Production increased by 3% to 100,366 boe/d, driven by North America, though European output dropped 13% due to curtailments. The company ended the quarter with $2.2 billion in net debt and $350 million in liquidity. Leadership changes included Lorenzo Donadeo as Executive Chairman. Vermilion maintained an AA ESG rating, reflecting its commitment to sustainability.