Welcome to our dedicated page for Vermilion Energy news (Ticker: VET), a resource for investors and traders seeking the latest updates and insights on Vermilion Energy stock.
Vermilion Energy Inc. (TSX: VET, NYSE: VET) is an international energy producer with operations in North America, Europe, and Australia. The company specializes in the acquisition, exploration, development, and optimization of oil and gas-producing properties. Vermilion's diverse portfolio includes both conventional and unconventional resource plays, focusing on light oil and liquids-rich natural gas.
The company's core operations span from Canada and the United States to key European markets like Germany, Ireland, and Croatia, and even to Australia. Vermilion's business model aims to generate substantial free cash flow (FCF), which is strategically returned to investors through dividends and share buybacks. Notably, the company generated $1.1 billion in fund flows from operations in 2023, marking it as one of the strongest years in Vermilion's history.
Recent operational highlights include the successful restart of the Wandoo facility in Australia, the completion of a major turnaround at Ireland's Corrib facility, and the commencement of exciting new projects in North America's Mica Montney BC battery construction and Germany's gas exploration wells. These initiatives are expected to underpin Vermilion's long-term growth and sustainability.
Financially, the company has made significant strides in reducing debt and increasing operational efficiency. Q3 2023 results showed an 80% increase in free cash flow over the prior quarter, allowing Vermilion to fund dividends, reduce debt, and repurchase shares. Furthermore, the company has hedged a significant portion of its European gas production at favorable prices, providing stability and predictability to its revenue stream.
Vermilion is also committed to ESG (Environmental, Social, and Governance) principles, receiving recognition from leading rating agencies for its transparency and management of key environmental and social issues. The company places a high priority on health, safety, and environmental stewardship, aiming to mitigate risks and enhance operational sustainability.
With strategic community investments and a culture that emphasizes professional growth and safety, Vermilion has been recognized as one of the best workplaces in its operating regions. The strong leadership and collaborative spirit of its workforce continue to drive the company's success.
Vermilion Energy (VET) has completed the acquisition of Westbrick Energy , adding stable annual production of 50,000 boe/d (75% gas, 25% liquids) and approximately 1.1 million acres of land in Alberta's Deep Basin trend. The acquisition includes four operated gas plants with 102 mmcf/d total capacity.
The deal includes over 700 future drilling locations across multiple zones, with half-cycle IRRs ranging from 40% to over 100%. The acquired assets are expected to maintain flat production for over 15 years while generating significant free cash flow.
As part of the arrangement, Westbrick shareholders elected to receive 1.1 million Vermilion common shares valued at $14.2 million, with the remaining consideration paid in cash through available funds and credit facilities. Updated 2025 budget and financial guidance will be provided with Q4 2024 results on March 5, 2025.
Vermilion Energy (TSX: VET) (NYSE: VET) has successfully closed its private offering of US$400 million in senior unsecured notes. The eight-year notes, maturing on February 15, 2033, carry a fixed coupon rate of 7.250% per annum, with semi-annual payments starting August 15, 2025.
The notes are being offered exclusively to institutional 'accredited investors' in select Canadian provinces and 'qualified institutional buyers' in the United States under Rule 144A, as well as certain non-U.S. persons under Regulation S. The notes have not been registered under the U.S. Securities Act or Canadian securities laws and are being sold through exemptions from prospectus requirements.
Vermilion Energy (TSX: VET) (NYSE: VET) has announced the pricing of its private offering of US$400 million eight-year senior unsecured notes. The New Notes will mature on February 15, 2033, with a fixed coupon of 7.250% per annum, paid semi-annually. The offering is expected to close around February 11, 2025.
The proceeds will be used to: redeem existing 5.625% senior notes due 2025, fund part of the Westbrick Energy acquisition, pay transaction fees, repay credit facility borrowings, or a combination thereof. The notes will be offered exclusively to institutional accredited investors in Canada and qualified institutional buyers in the US under Rule 144A.
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.
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