What factors drove the changes in Vermilion Energy's revenue and profit?

What is Vermilion Energy's latest dividend and current dividend yield?

What is the market's earnings forecast for Vermilion Energy next quarter?

What is Vermilion Energy's gross profit margin?

What does Vermilion Energy do and what are its main business segments?

What were the key takeaways from Vermilion Energy’s earnings call?

What is the revenue and EPS growth rate for Vermilion Energy year over year?

What were the key takeaways from Vermilion Energy's earnings call?

- **Record Q3 Performance**: 119,062 BOE/day (67% gas), CAD 254M fund flows, and 30% unit cost reduction.
- **Gas Dominance**: 85% of production/capital in gas, realized price 9x AECO (CAD 5.62/MCF post-hedges).
- **Strategic Moves**: Deferred 3,000 BOE/day in Q3, 2026 budget cuts 30% in capital/opex, and 4% dividend hike.
- **European Growth**: Germany/Visselhöhe to add 45Mcf/day by 2028, Netherlands to add 16 BCF at CAD 1.50/MCF.
- **Free Cash Flow Pivot**: Montney to generate CAD 125M/year excess FCF from 2028, Deep Basin with minimal new capex.

**【CEO Summary Section】**
- **Strong Q3 Performance**: Achieved production of 119,062 BOE/day (67% gas), at the upper end of guidance, with fund flows of CAD 254 million.
- **Cost Efficiency**: Reduced 2025 capital guidance by CAD 20 million and operating cost guidance by CAD 10 million, driven by asset repositioning.
- **Global Gas Dominance**: 85% of production and capital allocated to gas, with realized gas prices 9x AECO (CAD 5.62/MCF post-hedges).
- **Strategic Production Management**: Deferred 3,000 BOE/day in Q3 to capitalize on Q4 pricing, with plans to resume in Q4.
- **2026 Outlook**: Budget of CAD 600-630 million, focusing on Montney, Deep Basin, and European gas, with 30% improvement in capital efficiency.

**【CFO Financial Commentary】**
- **Financial Strength**: Free cash flow of CAD 108 million, net debt reduced to CAD 1.4 billion (1.4x debt/FFO ratio), and CAD 26 million returned to shareholders.
- **Production Highlights**: North America at 88,763 BOE/day (post-divestments), International up 2% to 30,299 BOE/day, with Deep Basin drilling exceeding expectations (12 wells drilled, 6 >10 MMcf/day).
- **2026 Budget Details**: CAD 415 million for liquids-rich gas (49 wells), CAD 200 million for European exploration, and 30% unit cost reduction.
- **Dividend Growth**: 4% increase to CAD 0.135/share, with plans to balance buybacks and debt reduction.

**【Q&A Highlights】**
- **Australia Strategy**: 4,000 bbl/day in 2026, with next drill in mid-2027, targeting premium pricing ($10-$15/bbl over Brent).
- **Realized Gas Price Drivers**: Diversified portfolio (Canada: 2x AECO, Europe: 7x AECO), hedging gains, and strategic production deferrals.
- **Germany (Visselhöhe)**: First well online mid-2026, with 68 BCF recoverable. Follow-up wells in Q1 2027, targeting 20+ MMcf/day by 2028.
- **Netherlands (Alpenhuizen)**: 16 BCF discovered at CAD 1.50/MCF, with Q4 2025 production ramp-up.
- **Deep Basin Success**: 12 wells drilled in Q3, 6 >10 MMcf/day, under budget, with 3-rig program continuing in 2026.

Vermilion Energy Inc (VET) Q3 2025 Earnings Call Transcript

- **Production Surge**: Q2 2025 production up 32% YoY to 136,000 BOEs/day, driven by Montney/Mica developments and Westbrick integration.
- **Debt Reduction**: Sold $535M in non-core assets, reducing net debt by $750M to $1.3B by year-end.
- **Gas Dominance**: 70% of production now gas-focused, with 80% of capex allocated to high-margin Montney and Germany.
- **Cost Efficiency**: $8.5M/Montney well cost (down $1M/year), $30M annual synergies from Westbrick integration.
- **Future Cash Flow**: Target $125-150M annual free cash flow at $70 WTI/$3 AECO, with 10,000 BOEs/day Germany growth by 2030.

**【CEO Summary Section】**
- **Q2 Production Growth**: 32% YoY increase to 136,000 BOEs/day, driven by the Westbrick acquisition and Montney/Mica developments.
- **Strategic Asset Sales**: Sold Saskatchewan and U.S. assets for $535M, reducing net debt by $750M to $1.3B by year-end.
- **Global Gas Focus**: 70% of production now weighted to natural gas, with 80% of future capital allocated to liquids-rich Montney and Germany.
- **Cost Efficiency**: Achieved $8.5M/Montney well cost benchmark (down $1M/year), with $30M annual synergies from Westbrick integration.
- **Future Growth**: Target 28,000 BOEs/day in Montney by 2028, 10,000 BOEs/day in Germany by mid-2030s, and $125-150M annual free cash flow at $70 WTI/$3 AECO.

**【CFO Financial Commentary】**
- **Q2 Fund Flows**: $260M from operations, $144M free cash flow after E&D capex.
- **Capital Allocation**: 2025 capex guidance of $630-660M, with flexibility to reduce if needed.
- **Debt Reduction**: Ended Q2 with $1.4B net debt, targeting $1B by 2026 through asset sales and free cash flow.
- **Hedging**: 50% of 2025 production hedged, including 60% of Q3 Canadian gas at $2.65/Mcf floor.

**【Q&A Highlights】**
- **Portfolio Reshaping**: Exiting non-core European assets (Hungary, Slovakia) and focusing on high-return Montney/Deep Basin/Germany projects.
- **Shareholder Returns**: 40% of excess free cash flow allocated to buybacks, with dividend increases constrained to 15-20% of free cash flow.
- **European Acquisitions**: Eyeing $200M+ deals in Netherlands/Germany, leveraging $750M annual free cash flow and 1x leverage target.
- **Sustainability**: Achieved 16% Scope 1 emission reduction 1 year ahead of schedule, targeting 25-30% reduction by 2030.

Vermilion Energy Inc. (VET) Q2 2025 Earnings Call Transcript

- **Production Surge**: Q1 2025 production up 23% to 103,000 BOEs/day, driven by Westbrick acquisition. Full-year 2025 target of 135,000 BOEs/day.
- **Cash Flow Strength**: $256M funds flow and $74M free cash flow. $37M returned to shareholders via dividends and buybacks.
- **German Gas Discovery**: Wisselshorst well testing at 41 MMcf/day, with potential to add 85 Bcf net reserves and $150M NPV10.
- **Cost Efficiency**: Montney DCET costs reduced to $9M/well, saving $100M in future development costs.
- **Debt Reduction Focus**: 60% of free cash flow allocated to debt, with $2B net debt (1.7x funds flow). Evaluating asset sales to accelerate paydown.

**【Dion Hatcher - Business Update】**
- **Production Growth**: Q1 2025 production increased 23% to 103,000 BOEs/day, driven by the Westbrick acquisition (50,000 BOEs/day contribution). Full-year 2025 production expected to average 135,000 BOEs/day.
- **Financial Performance**: Generated $256M in funds flow and $74M in free cash flow. Returned $37M to shareholders via $20M dividends and $17M buybacks. Debt reduced to $2B (1.7x trailing funds flow).
- **Westbrick Synergies**: Identified $100M in operational and development synergies, including longer laterals and infrastructure optimization. Additional synergies expected as integration progresses.
- **Germany Deep Gas Exploration**: Successful testing of Wisselshorst well (41 MMcf/day combined rate) and Osterheide well (7 MMcf/day production). Potential to add 85 Bcf net reserves and $150M NPV10 from the program.
- **Montney Development**: Achieved $9M/DCET cost milestone (down from $9.6M prior). Phase 2 infrastructure expansion completed under budget, targeting 28,000 BOEs/day by 2028.
- **Debt Management**: 60% of excess free cash flow allocated to debt reduction. Evaluating divestment of Saskatchewan and Wyoming assets to accelerate debt paydown.

**【Q&A Highlights】**
- **Wisselshorst Well**: Initial production expected in H1 2026 with 5 MMcf/day capacity. Phase 2 pipeline expansion in 2027 and gas processing upgrade in 2028. Six appraisal wells planned.
- **Westbrick Cost Savings**: $5M/year in operational savings and $10M/year in development synergies. Total NPV10 of $100M from identified synergies.
- **Shareholder Value**: 80% of production and 70% of capital allocated to global gas portfolio. European gas assets generate premium prices with minimal decline rates, supporting strong free cash flow.


Vermilion Energy Inc (VET) Q1 2025 Earnings Call Transcript

- **Record 2024 Performance**: 84,543 BOEs/day production (+4% YoY), $1.2 billion funds flow, and $583 million free cash flow.
- **German Gas Breakthrough**: Wisselshorst well tests 41 MMcf/day, with potential to double European 2P reserves.
- **Westbrick Synergies**: 50,000 BOEs/day production, 700+ future wells, and 15+ year inventory in Deep Basin.
- **Debt Reduction Plan**: $200-$300 million organic deleveraging in 2025, targeting <1.0x FFO/Debt.
- **Shareholder Returns**: 8% dividend increase, $216 million returned in 2024, and 40% EFCF allocated to buybacks.
- **Low-Risk Portfolio**: 50%+ revenue outside Canada, $1-$1.50/McF F&D costs in Germany, and 1.6x PDP recycle ratio.


**【CEO Summary Section】**
- 2024 production averaged 84,543 BOEs/day, up 4% year-over-year, driven by 12% growth in international production (Australia, Croatia) and 50,000 BOEs/day from the Westbrick acquisition.
- Generated $1.2 billion ($7.63/share) in funds flow and $583 million ($3.69/share) in free cash flow, both up 9% year-over-year.
- Completed $623 million E&D program, including investments in Germany, Croatia, and Montney infrastructure.
- Returned $216 million (10% of market cap) to shareholders via dividends and buybacks, including an 8% dividend increase in Q1 2025.
- Net debt reduced 10% to $967 million, with net debt/FFO ratio of 0.8x, the lowest in over a decade.
- Reserves increased 1% to 435 million BOEs, with recycle ratios of 1.6x (PDP) and 2.3x (2P).
- Announced Westbrick acquisition, adding 50,000 BOEs/day and 770,000 net acres in the Deep Basin with 700+ future drilling locations.
- Germany deep gas exploration success: Wisselshorst well tested 41 MMcf/day, with potential to double European 2P reserves.

**【CFO Financial Commentary】**
- 2024 net debt reduced by $100 million to $967 million, with FFO/Debt ratio of 1.1x.
- 2025 guidance: $400 million FCF, $7.50 FFO/share (30% increase vs. 2024), and 50% production growth to 125,000-130,000 BOEs/day.
- Capital allocation framework: 60% of EFCF to debt reduction, 40% to shareholder returns (dividends + buybacks).
- Issued $400 million 7.25% senior notes to fund Westbrick acquisition, extending debt maturity to over 5 years.
- Launched non-core asset disposition program for SE Saskatchewan and Wyoming assets, with strong bidder interest.
- Unit OpEx expected to decline 15% in 2025 due to scale in Deep Basin and Montney.

**【Germany Deep Gas Exploration】**
- Wisselshorst well tested 41 MMcf/day (20 MMcf/day per zone), with 68 BCF (43 BCF net) recoverable.
- First gas expected Q2 2025 at 3-5 MMcf/day, with capacity expansion to 35 MMcf/day by 2027.
- Potential for 4-6 follow-up wells on Wisselshorst structure, and 30+ locations across 9 identified prospects.
- F&D cost target of $1-$1.50/McF, with EURs of 68 BCF (43 BCF net) per well.

**【Westbrick Acquisition Integration】**
- 50,000 BOEs/day production, 770,000 net acres, and 700+ future drilling locations with 40%-100%+ half-cycle returns.
- Unit OpEx of $650/BOE vs. Vermilion's $750/BOE, with potential synergies from shared infrastructure.
- 2025 capital program includes 28 gross (24.9 net) wells in Deep Basin, supporting 50% production growth.
- Integration on track to achieve $200-$300 million organic deleveraging in 2025.

**【Risk Management & Tariff Update】**
- <50% of revenue exposed to U.S. tariffs on Canadian energy exports; most Canadian gas sold domestically.
- 40% hedged for 2025 at strong prices, with 20% hedged for 2026.
- Diversified portfolio (50%+ revenue outside Canada) reduces commodity price risk.


VET

VET fundamentals

Earnings Call

You can ask Aime