Vermilion Energy Inc. Reports Strong Q1 2026 Production and Advances Portfolio Repositioning with Germany Strategic Acquisition, Award of New Land Concessions and Croatia SA-07 Divestment

Rhea-AI Summary

Vermilion Energy (TSX: VET; NYSE: VET) reported Q1 2026 production of ~125,000 boe/d, above guidance of 122,000–124,000 boe/d, driven by Deep Basin, Montney and Germany output. Vermilion agreed to acquire German producing assets (~1,000 boe/d), added North German concessions doubling acreage, and signed Croatia SA-07 divestment for ~€15MM ($24MM).

The Germany acquisition and concessions expand TTF-linked gas exposure and development upside; the Croatia proceeds are earmarked for debt reduction. Management will release full Q1 financials and host a May 6, 2026 webcast and AGM.

Positive

• Production of ~125,000 boe/d exceeded guidance
• Germany acquisition adds ~1,000 boe/d low-decline production
• North German concessions double acreage to >1 million net acres
• Croatia SA-07 sale for €15MM ($24MM) to reduce debt

Negative

• Australia volumes reduced by cyclone-related downtime in Q1
• Germany acquisition closing expected in H2 2026, not immediate

News Market Reaction – VET

-7.20%

12 alerts

-7.20% Session close to close

-8.1% Trough in 14 hr 52 min

$2.14B Market Cap

0.1x Rel. Volume

In the Apr 8 session, VET declined 7.20%, reflecting a notable negative market reaction. Argus tracked a trough of -8.1% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -7.2% in the session following this news. A negative reaction despite solid Q1 2026 ...

Analysis

The stock moved -7.2% in the session following this news. A negative reaction despite solid Q1 2026 operational metrics, including 125,000 boe/d production and strong European gas pricing near $16/MMBtu, would fit a pattern where sizeable portfolio moves prompt reassessment of risk and capital allocation. The Germany acquisition adds gas-weighted output, while the Croatia SA-07 divestment raises €15MM ($24MM) from a non-producing block. Investors would need to monitor execution, integration risk and future capital commitments.

Key Figures

Q1 2026 production: 125,000 boe/d Production mix: 59% Canadian gas / 13% European gas / 28% liquids European gas price: $16/MMBtu +5 more

8 metrics

Q1 2026 production 125,000 boe/d Average Q1 2026 production, above 122,000–124,000 boe/d guidance range

Production mix 59% Canadian gas / 13% European gas / 28% liquids Q1 2026 average production composition

European gas price $16/MMBtu Average realized sales price for European gas in Q1 2026

Australia production 1,000 bbl/d Average Australian production in Q1 2026 amid cyclone downtime

Oil exported 300,000 barrels Oil exported from Australia in February 2026

Germany acquisition output 1,000 boe/d Current low-decline production from acquired German assets (85% gas)

Croatia SA-07 proceeds €15MM ($24MM) Net proceeds from divestment of non-producing SA-07 block

Germany acreage Well over 1 million net acres Resulting German land position after adding three new concessions

Previous Acquisition Reports

1 past event · Latest: Dec 23 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
Dec 23	Strategic acquisition	Positive	+0.3%	Announced Westbrick acquisition adding Deep Basin production and land base.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Limited history shows acquisition news has previously been received positively with a modestly positive price reaction.

Recent Company History

Over recent quarters Vermilion has focused on portfolio repositioning and growth via acquisitions. A prior December 23, 2024 deal (Westbrick/Deep Basin) aimed to scale gas-weighted production and drilling inventory and was funded with credit and new debt. That announcement saw a modestly positive 0.34% move. Today’s Germany-focused production acquisition and Croatia divestment continue this portfolio optimization theme.

Key Terms

boe/d, MMBtu, excess free cash flow, non-GAAP financial measures, +1 more

5 terms

boe/d technical

"Q1 2026 production averaged approximately 125,000 boe/d, exceeding the top end..."

A measure of energy production that converts oil and gas output into a single daily figure — barrels of oil equivalent per day — so different fuels can be compared on the same scale. Think of it like converting miles and kilometers into one unit before comparing distances: investors use boe/d to judge how much total hydrocarbon output a company generates, estimate revenue potential, and compare production efficiency across firms or projects.

MMBtu technical

"European gas production in Q1 2026 realized an average sales price of approximately $16/MMBtu..."

A MMBtu is a unit of energy equal to one million British thermal units, commonly used to measure natural gas and other fuel quantities for trading and contracts. For investors, it translates raw energy into a standardized price metric—think of it like gallons for gasoline—so changes in the MMBtu price affect producer revenues, utility costs, commodity derivatives, and the profitability of energy-related investments.

excess free cash flow financial

"enhances associated excess free cash flow(1), and provides strategic value..."

Excess free cash flow is the cash a company generates from its regular operations after paying all necessary expenses and investments, beyond the amount needed to keep the business running. Like the money left after paying bills and replacing worn-out appliances, this surplus matters to investors because it can be returned as dividends or share buybacks, used to pay down debt, or invested in growth — all actions that can increase shareholder value.

non-GAAP financial measures financial

"Excess free cash flow ("EFCF") is a non-GAAP financial measures most directly comparable..."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

asset retirement obligations financial

"less drilling and development costs, exploration and evaluation costs, payments on lease obligations and asset retirement obligations settled."

Asset retirement obligations are a company’s recorded promise to pay for dismantling, cleaning up, or restoring property when a long-lived asset is retired — for example decommissioning a plant or removing equipment. Companies estimate the future cleanup cost today and book it as a liability (and add the cost to the asset), so it affects the balance sheet, reported profits over time, and future cash needs; investors watch it like a planned bill that can reduce cash available for returns.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

CALGARY, AB, April 7, 2026 /PRNewswire/ - Vermilion Energy Inc. ("Vermilion", "We", "Our", or the "Company") (TSX: VET) (NYSE: VET) announces strong first quarter 2026 production, an asset acquisition and award of new land concessions in Germany, and the divestment of a non-producing asset in Croatia.

Operations Update

Q1 2026 production averaged approximately 125,000 boe/d, exceeding the top end of our quarterly guidance range of 122,000 to 124,000 boe/d. Production was comprised of approximately 59% Canadian gas, 13% European gas and 28% liquids. This strong production result is driven by outperformance in both the Deep Basin and Montney, robust production from the Osterheide well in Germany, and new Montney wells brought online sooner than anticipated, partially offset by lower volumes in Australia due to cyclone-related downtime.

European gas production in Q1 2026 realized an average sales price of approximately $16/MMBtu, reflecting significantly higher day-ahead gas prices during March 2026 amid heightened geopolitical developments in the Middle East. We remain on track to bring on new production from the first Wisselshorst well in Germany by mid-year, spud the next Netherlands well in the second half of 2026, and spud follow-up Germany Wisselshorst wells on the Bommelsen license in early 2027.

In Australia, production operations at Wandoo safely resumed in mid-March 2026 following downtime related to Cyclone Mitchell in February 2026. The facility was subsequently shut-in due to Cyclone Narelle in late March 2026. We are currently assessing the impact of this most recent event and expect to restore production in early Q2 2026. Average production in Australia during the quarter was approximately 1,000 bbl/d, and we exported approximately 300,000 barrels of oil in February 2026.

Portfolio Repositioning

In March 2026, we signed agreements to acquire certain producing assets in Germany from BEB Erdgas und Erdöl GmbH & Co. KG ("BEB") and Mobil Erdgas-Erdöl GmbH ("MEEG") in Germany, which are currently producing approximately 1,000 boe/d of low decline production (85% natural gas) with an effective date of January 1, 2025.

The acquisition increases Vermilion's European TTF-linked gas and Brent-linked oil production, enhances associated excess free cash flow⁽¹⁾, and provides strategic value through increased control over gathering infrastructure surrounding our Osterheide well. The assets are adjacent to our existing operations and offer future European natural gas development upside. The acquisition is expected to close in the second half of 2026.

During Q1 2026, Vermilion successfully added three concessions in the North German Basin that offer potential upside for our deep gas exploration program. These new concessions are located adjacent to existing Vermilion acreage in Germany and double Vermilion's acreage in the country to well over 1 million net acres.

Also in March 2026, we signed an agreement to divest our remaining 60% interest in the SA-07 block in Croatia for net proceeds of approximately €15MM ($24MM). The asset has no production. The proceeds will be primarily used for incremental debt reduction, with the transaction expected to close in the second half of 2026. We continue to produce and generate excess free cash flow from our SA-10 block (100% natural gas) in Croatia.

Q1 Release Date and Conference Call and Webcast Details

We will provide additional details when we release our 2026 first quarter operating and condensed financial results on Wednesday, May 6, 2026, before the open of North American markets. The unaudited interim financial statements and management discussion and analysis for the three months ended March 31, 2026, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR+") at www.sedarplus.ca, on EDGAR at www.sec.gov/edgar.shtml, and on Vermilion's website at www.vermilionenergy.com.

Vermilion will discuss these results in a conference call and webcast presentation on Wednesday, May 6, 2026, at 8:00 AM MT (10:00 AM ET). To participate, call 1-888-510-2154 (Canada and US Toll Free) or 1-437-900-0527 (International and Toronto Area). A recording of the conference call will be available for replay by calling 1-888-660-6345 (Canada and US Toll Free) or 1-289-819-1450 (International and Toronto Area) and using conference replay entry code 81761# from May 6, 2026, at 12:00 PM MT to May 13, 2026, at 12:00 PM MT.

To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4lXhj3k to receive an instant automated call back. You may also access the webcast at https://app.webinar.net/Z02K9Bq8g4m. The webcast link will be available on Vermilion's website at https://www.vermilionenergy.com/invest-with-us/events-presentations/ under Upcoming Events prior to the conference call. Participants who would like to submit questions ahead of time may do so by emailing investor_relations@vermilionenergy.com. 

Annual General Meeting

Vermilion will hold its Annual General Meeting on May 6, 2026 at 3:00 pm MT. Our Meeting will be held as a virtual only shareholder meeting with participation electronically as explained further in the Management Information Circular. As a reminder, proxies must be received by 3:00 pm MT on Monday, May 4, 2026.

Shareholders can participate electronically at https://meetings.lumiconnect.com/400-593-993-161. Please see our Virtual Meeting Guide at https://www.vermilionenergy.com/wp-content/uploads/2026/03/Meeting-Guide.pdf for detailed instructions on how to access the meeting, vote on resolutions and submit questions. Guests may also view the event at https://meetings.lumiconnect.com/400-593-993-161 by registering as a guest. The live webcast link, webcast slides, and archive link will be available on Vermilion's website at https://www.vermilionenergy.com/invest-with-us/events-presentations.

Please visit the Annual General Meeting page on our website under Invest with Us for complete details and links to all relevant documents ahead of the Meeting at https://www.vermilionenergy.com/annual-general-meeting.

The Board of Directors of Vermilion recommends that Shareholders
vote FOR ALL proposed items

Vermilion encourages shareholders to read the meeting material, which have been filed on SEDAR+ (www.sedarplus.ca) and on the Company's website at www.vermilionenergy.com.

(1)

Excess free cash flow ("EFCF") is a non-GAAP financial measures most directly comparable to cash flows from operating activities. EFCF is calculated as fund flows from operations less drilling and development costs, exploration and evaluation costs, payments on lease obligations and asset retirement obligations settled. EFCF is used by management to determine the funding available to return to shareholders after costs attributable to normal business operations.

About Vermilion

Vermilion is a global gas producer that seeks to create value through the acquisition, exploration and development of liquids-rich natural gas in Canada and conventional natural gas in Europe while optimizing low-decline oil assets. Our repositioned portfolio is focused on per share value creation, with long-life assets that deliver top decile realized gas prices and enhanced capital allocation optionality.

Vermilion's priorities are health and safety, the environment, and profitability, in that order. Nothing is more important than the safety of the public and those who work with Vermilion, and the protection of the natural surroundings. In addition, the Company emphasizes strategic community investment in each of its operating areas.

Vermilion trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET.

View original content to download multimedia:https://www.prnewswire.com/news-releases/vermilion-energy-inc-reports-strong-q1-2026-production-and-advances-portfolio-repositioning-with-germany-strategic-acquisition-award-of-new-land-concessions-and-croatia-sa-07-divestment-302736236.html

SOURCE Vermilion Energy Inc.

FAQ

What was Vermilion (VET) Q1 2026 production and how did it compare to guidance?

Vermilion reported approximately 125,000 boe/d, above the guidance top end. According to the company, this exceeded the 122,000–124,000 boe/d range, driven by stronger Deep Basin, Montney and German well performance in Q1 2026.

What German assets did Vermilion (VET) acquire and what production do they add?

Vermilion agreed to buy producing German assets adding about 1,000 boe/d of low-decline output. According to the company, the assets are adjacent to existing operations and increase TTF-linked gas and Brent-linked oil exposure.

How did the North German concessions announced by Vermilion (VET) affect acreage?

The company added three concessions that doubled Vermilion's Germany acreage to well over 1 million net acres. According to the company, the concessions sit adjacent to current acreage and support deep gas exploration upside.

What are the details and uses of the Croatia SA-07 divestment by Vermilion (VET)?

Vermilion signed to sell its remaining 60% SA-07 interest for ~€15MM ($24MM). According to the company, proceeds will be used primarily for incremental debt reduction and the transaction is expected to close in H2 2026.

How did cyclones affect Vermilion (VET) operations in Australia in Q1 2026?

Cyclone-related downtime lowered Australian output; average Q1 production was ~1,000 bbl/d. According to the company, Wandoo resumed mid-March, then shut-in late March, with production expected to be restored in early Q2 2026.

When will Vermilion (VET) release full Q1 2026 results and host its conference call?

Vermilion will release Q1 2026 operating and condensed financial results on May 6, 2026 before markets and hold a webcast/call the same day at 8:00 AM MT. According to the company, filings will be available on SEDAR+ and EDGAR.