Core Viewpoint - Vermilion Energy Inc. announced a private offering of up to US$400 million in eight-year senior unsecured notes with a fixed coupon of 7.250% per annum, aimed at refinancing existing debt and funding an acquisition [1]. Group 1: Offering Details - The New Notes will have a maturity date of February 15, 2033, and will be issued in an aggregate principal amount of US$400 million [1]. - The offering is expected to close on or about February 11, 2025, subject to customary closing conditions [1]. - The net proceeds from the New Notes will be used for various purposes, including redeeming existing senior notes, funding the acquisition of Westbrick Energy Ltd., and covering transaction fees [1]. Group 2: Regulatory Information - The New Notes have not been registered under the U.S. Securities Act and will only be offered to institutional accredited investors in Canada and qualified institutional buyers in the U.S. [2]. - The offering will be made on a prospectus-exempt basis, adhering to applicable securities laws [2]. Group 3: Company Overview - Vermilion is an international energy producer focused on creating value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia [8]. - The company's business model emphasizes free cash flow generation and returning capital to investors when economically warranted, alongside value-adding acquisitions [8]. - Vermilion prioritizes health and safety, environmental protection, and profitability in its operations [9].

Core Viewpoint - Vermilion Energy Inc. plans to issue up to US$400 million in senior unsecured notes to finance various corporate activities, including the redemption of existing notes and the acquisition of Westbrick Energy Ltd [1]. Group 1: Offering Details - The company intends to issue eight-year senior unsecured notes in a private offering to qualified institutional buyers [1]. - The net proceeds from the new notes will be used for multiple purposes, including redeeming existing senior notes, funding the Westbrick acquisition, and covering transaction fees [1]. Group 2: Company Overview - Vermilion is an international energy producer focused on creating value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia [7]. - The company's business model emphasizes free cash flow generation and returning capital to investors when economically justified, supplemented by value-adding acquisitions [8]. - Vermilion prioritizes health and safety, environmental protection, and profitability in its operations [9].

CALGARY, AB, Jan. 28, 2025 /PRNewswire/ - Vermilion Energy Inc. ("Vermilion" or the "Company") (TSX: VET) (NYSE: VET) has filed certain financial information relating to its proposed acquisition of Westbrick Energy Ltd. on its profile on SEDAR+ (www.sedarplus.ca). In addition, the Company has received commitments and consent from lenders to increase the previously announced fully underwritten term loan maturing May 2028 from $250 million to $450 million.About VermilionVermilion is an international energy pr ...

Vermilion Energy (NYSE: VET )(TSX: VET:CA ) has a significant asset base in Europe, with a large part of that being liquid natural gases. VET estimates that European gas production will be responsible for 37% of the total fund flowsMy name is Maxime and I like to write about finances and share my views on various companies and their potential as an investment opportunity. My preferred sector is industrial. I live and work in Europe and we have a very long and proud history of being an industrial superpower ...

Vermilion Energy (VET) , a Canada-based oil and gas producer, has announced the acquisition of a privately held oil and gas firm, Westbrick Energy Limited, which operates out of Alberta’s Deep Basin. The total consideration for the deal is approximately $1.075 billion. The acquisition of Westbrick Energy complements Vermilion’s overall strategy to expand its presence in the Deep Basin, where the company has been operating for almost 30 years. The deal is anticipated to be closed in the first quarter of 2025 ...

Core Viewpoint - The acquisition of Westbrick Energy Ltd. by Vermilion Energy Inc. is a strategic move aimed at enhancing operational scale and improving full-cycle margins in the liquids-rich Deep Basin, with expected production growth and significant free cash flow generation [30][41]. Group 1: Acquisition Details - Vermilion will acquire Westbrick for a total consideration of $1.075 billion, expected to close in Q1 2025 [41]. - The acquisition adds approximately 50,000 boe/d of stable production and around 1.1 million (770,000 net) acres of land, with over 700 identified drilling locations [30][31]. - The acquisition is expected to yield operational and financial synergies, including capital efficiency improvements and infrastructure optimization [31]. Group 2: Production and Financial Outlook - Upon closing, Vermilion's production is anticipated to be in the range of 126,000 to 133,000 boe/d, with over 80% derived from its global gas franchise [42]. - The company forecasts pro forma 2025 FFO of $1.2 billion (~$7.80 per share) and FCF of approximately $450 million (~$2.90 per share) [44]. - The acquisition is projected to generate more than $110 million of annual free cash flow based on forward commodity prices [32]. Group 3: Reserves and Inventory - Proved developed producing (PDP) reserves are estimated at 92 million boe (75% gas), while proved plus probable (2P) reserves are estimated at 256 million boe (74% gas) [35]. - The acquisition price per boe of PDP reserves is $11.70, indicating a recycle ratio of 1.3 times based on 2025 forecasted operating netbacks [35]. - The acquisition enhances Vermilion's drilling inventory, adding over 700 locations with half-cycle internal rates of return (IRRs) ranging from 40% to over 100% [34]. Group 4: Debt and Capital Management - Vermilion has reduced its debt by over $1 billion since 2020, creating capacity for this strategic acquisition [37]. - The acquisition will be funded through a combination of a $1.35 billion revolving credit facility and new term loans, with expected net debt of $2.0 billion post-acquisition [39]. - The company aims to reduce its net debt to fund flows from operations (FFO) ratio to 1.0 times or less through disciplined capital allocation and non-core asset divestments [39].

Core Viewpoint - Vermilion Energy Inc. has announced its 2025 budget, which includes an 8% increase in dividends and positive results from well tests in Germany, indicating strong operational performance and growth potential for the upcoming year [1][2]. 2025 Budget - The approved capital expenditure budget for 2025 is between $600 million and $625 million, focusing on drilling and infrastructure across major business units, including the BC Montney asset and European gas exploration [2][3]. - Production guidance for 2025 is set at 84,000 to 88,000 barrels of oil equivalent per day (boe/d), reflecting a 2% growth at the mid-point compared to the original 2024 guidance [2][3]. Financial Outlook - Fund flows from operations (FFO) are forecasted to be approximately $1.0 billion, with free cash flow (FCF) expected to be around $400 million based on forward commodity prices [2][11]. - The quarterly cash dividend has been increased by 8% to $0.13 CDN per share, effective from Q1 2025, amounting to approximately $80 million annually [2][12]. Shareholder Returns - The company aims to return 50% of excess free cash flow (EFCF) to shareholders, with the remainder allocated to debt reduction [2][13]. - Since initiating the share buyback program in July 2022, Vermilion has repurchased 16.8 million shares, reducing the share count by 4.8% to 154.5 million [2][14]. Production and Operations - In North America, approximately $380 million will be invested, with plans to drill 36 wells across various regions, including the BC Montney and Alberta Deep Basin [4][5]. - Internationally, about $230 million will be allocated for European natural gas exploration, with plans to drill ten wells in Germany, the Netherlands, Croatia, and Slovakia [7][8]. Germany Well Test Results - Vermilion successfully tested its second deep gas exploration well in Germany, achieving a flow rate of 21 million cubic feet per day (mmcf/d) with a wellhead pressure of 6,150 psi, indicating strong deliverability potential [2][18]. - The combined flow tests from the deep gas exploration program in Germany now total 38 mmcf/d, with further testing and tie-in operations planned [2][19].

Financial Data and Key Metrics Changes - Production during Q3 2024 averaged 84,173 BOEs per day, reflecting a 7% increase on a per share basis year-over-year [5][6] - Fund flows from operations reached $275 million, or $1.76 per share, representing a 19% increase over the prior quarter [6][9] - Free cash flow for the quarter was $154 million, with $59 million returned to shareholders, including $19 million in dividends and $40 million in share buybacks [9][10] - Net debt was reduced by $73 million to $833 million, resulting in a net debt trailing fund flow ratio of 0.6 times, the lowest in 15 years [11] Business Line Data and Key Metrics Changes - European gas production increased by over 40% in the last two years, with Q3 production averaging 30,237 BOEs per day [16][17] - North American operations averaged 53,936 BOEs per day in Q3, with a focus on increasing production from the Mica asset [29][35] - Production from the SA-10 block in Croatia averaged 1,855 BOEs per day, currently exceeding 2,000 BOEs per day [26] Market Data and Key Metrics Changes - The corporate realized gas price for the quarter was $6.57 per MCF, nearly 10 times higher than the AECO price of $0.69 per MCF [7][43] - European gas prices have increased over 30% year-to-date, with current prices around $17 to $18 per MCF for next year [14][65] Company Strategy and Development Direction - The company aims to grow organically in Europe, particularly in Germany, Croatia, and the Netherlands, while seeking strategic acquisitions [15][16] - The focus remains on maintaining a diversified portfolio to generate stable and higher cash flows [7][15] - The company plans to continue its share buyback program and return 50% of excess free cash to shareholders in 2024 [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about exploration success in Europe and the potential for future organic growth [44][46] - The company is well-positioned to execute its plans due to a robust asset base and strong balance sheet [48] - The outlook for European gas remains positive, with expectations of continued robust pricing and demand [66][69] Other Important Information - The company has identified over 1.7 million net acres of undeveloped land in Europe, providing a decade of drilling inventory [21] - The share buyback program has resulted in a reduction of the outstanding share count to approximately 155 million [10][37] Q&A Session Summary Question: Impact of the second exploration well in Germany - Management noted a successful discovery with a potential gas in place of over 100 BCF, indicating positive follow-up opportunities [50][51] Question: Capital allocation strategy regarding debt and share buybacks - The company maintains a 50-50 allocation policy for free cash flow between debt reduction and shareholder returns, emphasizing prudent fiscal management [55][56] Question: Production expectations from the SA-7 block in Croatia - Management anticipates a run rate of 5,000 to 8,000 BOEs per day if all wells on the SA-7 block are successful [60][61] Question: European gas market outlook and acquisition appetite - The company continues to evaluate acquisition opportunities, particularly in the Netherlands, while observing robust pricing in the European gas market [64][66] Question: Infrastructure capacity in Germany - Management confirmed existing infrastructure capacity is adequate for current operations, with potential for future upgrades as needed [71][73] Question: M&A strategy versus organic growth - The company focuses on sustainable free cash flow and considers both M&A and organic growth opportunities based on long-term value [84][87]

Group 1 - Vermilion Energy is a Canadian oil and natural gas producer with a diversified production profile [1] - The company is listed on both the U.S. and Canadian stock exchanges [1] - Vermilion Energy has production operations in Canada and the United States [1] Group 2 - The investment strategy focuses on turnarounds in natural resource industries with a typical holding period of 1-3 years [2] - The portfolio returns have shown significant fluctuations: 42% in 2019, 81% in 2020, 39% in 2021, -8% in 2022, 12% in 2023, and 14% year-to-date in 2024 [2]

Q3 2024 THIRD QUARTER REPORT excellence. trust. Respect. Responsibility. INTERNATIONALLY DIVERSIFIED | FREE CASH FLOW FOCUSED VERMILION Exhibit 99.1 Disclaimer Certain statements included or incorporated by reference in this document may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", or simila ...