Core Viewpoint - Vermilion Energy Inc. has sold 30 million common shares of Coelacanth Energy Inc. for $22.8 million, reducing its ownership from approximately 20.7% to 15.0% of Coelacanth's outstanding shares, as part of its strategy to reduce debt and enhance business resiliency [1][2][3]. Group 1: Transaction Details - Vermilion sold 30,000,000 common shares at a price of $0.76 per share, totaling $22,800,000 [1]. - The sale represents more than 2% of the issued and outstanding common shares of Coelacanth, necessitating the filing of an Early Warning Report [1]. Group 2: Ownership Changes - Prior to the transaction, Vermilion held 110,179,104 common shares, equating to approximately 20.7% of Coelacanth's shares [2]. - After the transaction, Vermilion's holdings decreased to 80,179,104 common shares, representing about 15.0% of the total [2]. Group 3: Strategic Intent - The sale aligns with Vermilion's priority of reducing debt to improve business resilience [3]. - Vermilion is restricted from selling more than 60,000,000 of its remaining shares until June 8, 2026, without Coelacanth's consent, but may adjust its holdings based on market and economic conditions [3]. Group 4: Company Overview - Vermilion is a global gas producer focused on acquiring, exploring, and developing liquids-rich natural gas in Canada and conventional natural gas in Europe, aiming to optimize low-decline oil assets [5]. - The company emphasizes health and safety, environmental protection, and profitability as its core priorities [6].

Core Insights - Vermilion Energy Inc. will host an Investor Day on December 10, 2025, featuring presentations by senior management regarding the company's global gas portfolio and future outlook [1][2]. Event Details - The Investor Day will take place virtually at 9:00 AM MT (11:00 AM ET) [2]. - A live webcast will be available, and participants can access it through the company's website [2]. - Dial-in options are provided for participants, including toll-free numbers for Canada and the US, as well as international options [3]. Company Overview - Vermilion is a global gas producer focused on creating value through the acquisition, exploration, and development of liquids-rich natural gas in Canada and conventional natural gas in Europe [4]. - The company aims to optimize low-decline oil assets, which contributes to significant free cash flow through exposure to global commodity prices [4]. - The company's priorities include health and safety, environmental protection, and profitability, emphasizing community investment in operational areas [5].

Financial Performance - Vermilion generated $254 million of fund flows from operations (FFO) in Q3 2025, with free cash flow (FCF) of $108 million reflecting E&D capital expenditures of $146 million[37]. - Fund flows from operations for Q3 2025 were $253,810 million, down from $275,024 million in Q3 2024, representing a decrease of 7.9%[60]. - Free cash flow for Q3 2025 was $108,248 million, compared to $153,755 million in Q3 2024, indicating a decline of 29.5%[60]. - The payout ratio as a percentage of fund flows from operations increased to 70% in Q3 2025 from 56% in Q3 2024[62]. - Net earnings for Q3 2025 were $2,557 million, a significant decrease from $51,697 million in Q3 2024[56]. - The company reported a net loss of $(234,264) million for the twelve months ended September 30, 2025, compared to a net loss of $(831,559) million in the prior year[63]. - The company reported a net loss of $2.56 million in Q3 2025, compared to a net earnings of $51.70 million in Q3 2024, reflecting a significant change in financial performance[86]. - The company recorded a net loss of $4.77 million from continuing operations in Q3 2025, compared to a profit of $39.79 million in Q3 2024[228]. Production and Operations - Production averaged 119,062 boe/d (67% gas) in Q3 2025, at the upper end of guidance, with North American operations averaging 88,763 boe/d and International operations averaging 30,299 boe/d, a 2% increase from the previous quarter[37]. - Vermilion expects Q4 2025 production to average 119,000 to 121,000 boe/d (69% natural gas), with full-year production of approximately 119,500 boe/d (65% natural gas)[47]. - In Q3 2025, total production increased by 41% year-over-year to 119,062 boe/d, with crude oil and condensate production decreasing by 6% to 28,197 bbls/d, while NGLs and natural gas production grew by 46% and 71%, respectively[86]. - Total production volume in Q3 2025 was 88,763 boe/d, a 17% decrease from Q2 2025, primarily due to asset divestitures in Saskatchewan and the United States[123]. - The total production in France for Q3 2025 was 6,811 boe/d, slightly down from 6,827 boe/d in Q2 2025, indicating a marginal decrease of 0.2%[217]. - Consolidated total production for Q3/25 was 120,833 boe/d, a 17.5% increase from 102,427 boe/d in Q1/25[222]. Capital Expenditures and Investments - The company reduced the upper end of its 2025 capital guidance by $20 million and lowered full-year operating cost guidance by over $10 million, reflecting structural improvements in capital and operating efficiencies[32]. - The 2026 budget is set at $600 to $630 million, with approximately 85% allocated to the global gas portfolio, expecting annual average production of 118,000 to 122,000 boe/d (70% natural gas)[41]. - In Canada, Vermilion plans to invest approximately $415 million in E&D capital, drilling a total of 49 wells and running a three-rig drilling program in the Deep Basin[43]. - The company plans to invest approximately $200 million across its International assets in 2026, focusing on European natural gas exploration and development[44]. - Capital expenditures for Q3 2025 totaled $145,562 million, up from $121,269 million in Q3 2024, reflecting a 20% increase[61]. - Year-to-date capital expenditures reached $443,170 million, up from $422,321 million in the same period last year, reflecting a growth of 4.0%[216]. Sales and Revenue - Q3 2025 sales reached $449,502 million, a 15.8% increase from $388,171 million in Q3 2024[55]. - The average sales price per boe in Q3 2025 was $24.10, a decrease from $40.67 in Q3 2024[125]. - Sales revenue for international operations was $272,040 million in Q3 2025, down from $288,291 million in Q3 2024, with a per boe price decrease from $97.85 to $92.21[135]. - Total sales volumes in North America reached 29,968 bbls/d in Q3/25, compared to 31,698 bbls/d in Q1/25, indicating a decrease of 5.5%[222]. Debt and Financial Ratios - Net debt rose by 66% year-over-year to $1.38 billion, with long-term debt increasing by 40% to $1.26 billion[86]. - The ratio of net debt to four-quarter trailing fund flows from operations increased to 1.4 as of September 30, 2025, compared to 0.8 at the end of 2024, reflecting higher net debt from acquisition activities[116]. - The company’s long-term debt as of September 30, 2025, was $1.26 billion, up from $963.5 million as of December 31, 2024[176]. - The company had a consolidated EBITDA to consolidated interest expense ratio of 9.23 as of September 30, 2025, compared to 16.59 in the prior year[178]. Dividends and Shareholder Returns - A planned 4% increase to the quarterly cash dividend to $0.135 CAD per share is expected, effective with the Q1 2026 dividend[45]. - The company purchased 0.6 million common shares for $6.3 million under its normal course issuer bid (NCIB) in Q3 2025, with an additional 0.3 million shares purchased for $2.7 million post-September 30, 2025[191]. - Vermilion's shareholders' capital decreased to approximately $3.88 billion as of September 30, 2025, down from $3.92 billion at the beginning of the year, with a total of 153.4 million common shares outstanding[189]. Risk Management and Hedging - The company has hedged 55% of its expected net-of-royalty production for the remainder of 2025, including 54% of European natural gas production and 59% of crude oil production[48]. - Realized gains on derivatives for Q3 2025 amounted to $61,793 million, up from $49,891 million in Q3 2024, reflecting improved commodity pricing[143]. - The company recorded a net unrealized gain on derivative instruments of $16.6 million for Q3 2025, including gains from various commodity derivatives[155]. Operational Efficiency - Cash flows from operating activities surged by 190% year-over-year to $389.45 million, indicating improved operational efficiency[86]. - Operating expenses in North America rose to $60,530 million in Q3 2025, compared to $58,937 million in Q3 2024, with a per boe cost decrease from $11.88 to $7.41[130]. - Transportation expenses in North America increased to $24,327 million in Q3 2025, up from $15,474 million in Q3 2024, with a per boe cost decrease from $3.12 to $2.98[127].

Financial Data and Key Metrics Changes - Vermilion generated CAD 254 million in fund flows from operations in Q3, with free cash flow of CAD 108 million after exploration and development capital expenditures of CAD 146 million [7] - Net debt has been reduced by over CAD 650 million since Q1 2023, bringing net debt to under CAD 1.4 billion as of September 30, resulting in a net debt to four-quarter trailing fund flows from operations ratio of 1.4 times [7][8] - The company returned CAD 26 million to shareholders through dividends and share buybacks during the quarter, comprising CAD 20 million in dividends and CAD 6 million in share buybacks [7] Business Line Data and Key Metrics Changes - Q3 production averaged 119,062 BOE per day with a 67% gas weighting, at the upper end of guidance [8] - In North America, production averaged 88,763 BOE per day, while international operations averaged 30,299 BOE per day, up 2% from the previous quarter [8] - The Deep Basin drilling program exceeded expectations, with 12 wells completed, six testing over 10 million cubic feet per day of gas production [36] Market Data and Key Metrics Changes - The realized gas price in Q3 was CAD 4.36 per MCF, significantly outperforming the AECO 5A pricing, with Canadian realized prices more than double the AECO benchmark [4][26] - Including hedging gains, the realized price increased to CAD 5.62 per MCF, highlighting the strategic advantage of being a global gas producer [4][28] Company Strategy and Development Direction - The company has repositioned its asset base, concentrating 85% of production and capital in its global gas business, which is expected to drive sustainable long-term success [4] - The 2026 budget includes an exploration and development capital budget of CAD 600 million to CAD 630 million, with approximately 85% allocated to the global gas portfolio [10] - The focus is on operational excellence and financial discipline, with plans to invest in high-return, liquids-rich gas wells in the Montney and Deep Basin [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain production guidance while reducing exploration and development capital guidance, reflecting improved capital efficiency [14][15] - The company is well-positioned to benefit from improving gas prices, with significant free cash flow expected from key development assets [29] - The intention to increase the quarterly cash dividend by 4% reflects confidence in operational activities and financial performance [13] Other Important Information - The company plans to bring the discovery well at Visselhöhe online in Germany in 2026 and expand takeaway capacity over the next two years [5][10] - In the Netherlands, two successful wells were drilled, discovering gas in two zones, with production expected to commence in Q4 2025 [9][35] Q&A Session Summary Question: Current volumes and setup for Australia through 2026 and 2027 - Management indicated that current volumes are around 4,000 barrels per day, with the next drilling program tentatively planned for 2027, depending on rig rates and commodity prices [18] Question: Balancing share buybacks and dividend growth - Management emphasized the focus on driving per share value through various means, including share buybacks and maintaining a strong balance sheet, while also reserving excess free cash flow for debt reduction [20][21] Question: Drivers behind the realized gas price being seven times the AECO price - The diversified portfolio, including strong Canadian and European gas operations, contributed to the high realized price, with strategic decisions to shut in and defer wells without impacting liquids production [26][27] Question: Next steps for the Visselhöhe prospect in Germany - The first discovery well is expected to be tied in and producing by Q2 2026, with follow-up wells planned for January 2027 [31][32] Question: Discoveries in the Netherlands - Two successful wells were drilled, discovering about 16 BCF gross of recoverable gas, with production expected to commence in Q4 [35] Question: Results of the Q3 drilling program in the Deep Basin - The program exceeded expectations, with strong initial test results and coming in under budget, indicating the benefits of a consistent drilling program [36]

Company Overview - Vermilion Energy Inc. (VET) is a Canadian oil and natural gas producer, with the majority of its production in Canada, complemented by higher-margin production in Australia and Europe [2][3]. Investment Strategy - The company focuses on turnaround investments in the natural resource sector, emphasizing value to provide downside protection while still allowing for significant upside potential [1][3]. - The investment portfolio has achieved a compounded annual growth rate of 34% over the past seven years, indicating strong performance in the sector [1]. Market Conditions - The current investment focus is driven by favorable monetary and fiscal policies, underinvestment in the sector, and attractive valuations, which present opportunities for investors [3].

VERMILION ENERGY INVESTOR PRESENTATION GLOBAL GAS PRODUCER FREE CASH FLOW FOCUSED FINANCIAL DISCIPLINE NOVEMBER 2025 WHY INVEST IN VERMILION? Repositioned Global Gas Portfolio o More efficient, long-life assets with direct exposure to premium-priced European gas Dominant Deep Basin Montney Momentum o Free cash flow inflection following infrastructure build-out Germany Production Growth o Positioned for organic growth with production from new discoveries, upside from additional prospects Return of Capital o ...

Core Insights - Vermilion Energy reported a quarterly loss of $0.02 per share, missing the Zacks Consensus Estimate of $0.04, and a significant decline from earnings of $0.24 per share a year ago, indicating an earnings surprise of -150.00% [1] - The company generated revenues of $326.42 million for the quarter ended September 2025, which was 14.63% below the Zacks Consensus Estimate and down from $359.27 million year-over-year [2] - Vermilion's stock has underperformed, losing approximately 21.7% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] Earnings Outlook - The future performance of Vermilion's stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $397.7 million, and for the current fiscal year, it is $0.90 on revenues of $1.64 billion [7] Industry Context - The Oil and Gas - Exploration and Production - International industry, to which Vermilion belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests that trends in earnings estimate revisions are strongly correlated with near-term stock movements, which could impact Vermilion's performance [5][6]

CALGARY, AB, Nov. 5, 2025 /PRNewswire/ - Vermilion Energy Inc. ("Vermilion", "We", "Our", "Us" or the "Company") (TSX: VET) (NYSE: VET) is pleased to report operating and condensed financial results for the three and nine months ended September 30, 2025. The unaudited interim financial statements and management discussion and analysis for the three and nine months ended September 30, 2025 will be available on the System for Electronic Document Analysis and Retrieval Plus ("SEDAR+") at www.sedarplus.ca, ...

Core Insights - Vermilion Energy is a Canadian producer with oil and gas assets across multiple countries including Canada, Germany, Ireland, The Netherlands, France, Australia, and Croatia [1] Group 1: Company Overview - The company is approaching a state of free cash flow, indicating potential financial stability and growth opportunities [1] Group 2: Analyst Background - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology, which enhances the credibility of the insights provided [1]

Core Thesis - Vermilion Energy Inc. (VET) is viewed positively due to recent insider buying, macroeconomic factors, and potential for strategic acquisitions, indicating management's confidence in the company's prospects [2][3][5] Insider Activity - A notable cluster of insider buying has been observed, including CAD 250,000 from VP of Business Development Lara Conrad, suggesting strong management conviction in Vermilion's future [2] - Independent director Stephen Larke's CAD 200,000 purchase and CEO Dion Hatcher's CAD 16,000 buy further support the notion that management believes the stock is undervalued [3] Strategic Acquisitions - Lara Conrad's previous experience with a significant acquisition at ARC Resources indicates that Vermilion may be preparing for strategic acquisitions, enhancing its growth potential [3] Macro Factors - The current Atlantic hurricane season has been unusually quiet, which historically correlates with colder winters in Europe, potentially increasing heating demand by 20-50% and benefiting Vermilion's natural gas operations in Europe [4] - The accelerating data center buildout in Canada is expected to provide structural support to domestic natural gas prices, positioning Vermilion to benefit from price appreciation in both European (TTF) and Canadian (AECO) markets [5] Financial Position - Despite a 3.70% depreciation in stock value since the last bullish thesis coverage, the company's strategic direction remains intact, with ongoing share buybacks and undervalued assets presenting a compelling investment opportunity [6]