Group 1 - Vermilion Energy (NYSE: VET) is a gas company that is trading near its 52-week low, despite the fact that gas companies are trading near their 52-week highs [1] - Two-thirds of Vermilion's funds from operations (FFO) come from gas, indicating a significant reliance on this segment [1] Group 2 - The article highlights the disparity in trading performance between Vermilion Energy and other gas companies, suggesting potential undervaluation [1]

Company Performance - Vermilion Energy reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.17 per share, and showing an earnings surprise of -58.82% [1] - The company posted revenues of $396.23 million for the quarter ended March 2025, which was 3.54% below the Zacks Consensus Estimate and an increase from $376.85 million year-over-year [2] - Over the last four quarters, Vermilion has not surpassed consensus EPS estimates and has topped revenue estimates only once [2] Stock Outlook - Vermilion shares have declined approximately 33.8% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $446.64 million, and for the current fiscal year, it is $0.04 on revenues of $1.8 billion [7] Industry Context - The Oil and Gas - Exploration and Production - International industry, to which Vermilion belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests that the performance of stocks in this industry can be significantly influenced by the overall industry outlook [8]

Core Viewpoint - Vermilion Energy Inc. reported its Q1 2025 operating and financial results, highlighting strong performance driven by the Westbrick acquisition and robust European gas prices, while maintaining a focus on free cash flow and debt reduction. Financial Performance - Fund flows from operations (FFO) for Q1 2025 were $256 million ($1.66 per basic share), a slight decrease from $263 million ($1.70 per basic share) in Q4 2024 [4][21] - Exploration and development (E&D) capital expenditures totaled $182 million, resulting in free cash flow (FCF) of $74 million, up from $62 million in the prior quarter [4][21] - Net debt increased to $2,063 million, with a net debt to trailing FFO ratio of 1.7 times [4][21] Production and Operations - Average production for Q1 2025 was 103,115 boe/d, a 23% increase from the previous quarter, primarily due to the Westbrick acquisition [22][4] - Production from North American assets averaged 73,760 boe/d, a 41% increase, while international production averaged 29,355 boe/d, a 6% decrease [22][4] - The company successfully tested the Wisselshorst deep gas exploration well in Germany, achieving a combined test flow rate of 41 mmcf/d [4][26] Strategic Acquisitions and Synergies - The Westbrick acquisition added approximately 50,000 boe/d of liquids-rich gas and identified operational synergies of about $100 million on a net present value (NPV10) basis [4][25] - The integration of Westbrick assets is progressing ahead of schedule, with ongoing identification of additional synergies [19][4] Market Position and Outlook - Vermilion's capital budget and guidance for 2025 remain unchanged, focusing on free cash flow and debt reduction while returning capital to shareholders [9][33] - The company anticipates Q2 2025 production to average between 134,000 to 136,000 boe/d, including full contributions from Westbrick assets [9][31] - Over 50% of net-of-royalty production is hedged for the remainder of 2025, providing stability amid market volatility [20][35]

Core Viewpoint - Vermilion Energy Inc. has announced a cash dividend of $0.13 CDN per common share, payable on July 15, 2025, to shareholders of record on June 30, 2025, indicating a commitment to returning capital to investors [1][2]. Group 1: Company Overview - Vermilion Energy Inc. is a global gas producer focused on creating value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia [2]. - The company's business model emphasizes free cash flow generation and returning capital to investors when economically warranted, supplemented by value-adding acquisitions [2]. - Vermilion's operations target the exploitation of light oil and liquids-rich natural gas in both conventional and unconventional resource plays in North America, as well as conventional natural gas and oil opportunities in Europe and Australia [2]. Group 2: Company Priorities - The company's priorities are health and safety, environmental protection, and profitability, in that order [3]. - Vermilion places a strong emphasis on the safety of the public and its workforce, as well as the protection of natural surroundings [3]. - The company also focuses on strategic community investment in each of its operating areas [3].

Core Viewpoint - Vermilion Energy (VET) is identified as a strong value stock, currently holding a Zacks Rank of 2 (Buy) and an A grade for Value, indicating its attractiveness to value investors [2]. Valuation Metrics - VET has a Price-to-Book (P/B) ratio of 0.48, which is significantly lower than the industry average of 0.81, suggesting it may be undervalued [3]. - The P/B ratio for VET has fluctuated between a high of 0.91 and a low of 0.41 over the past 12 months, with a median of 0.74 [3]. - The Price-to-Sales (P/S) ratio for VET stands at 0.64, which is also below the industry average of 0.68, reinforcing the notion of undervaluation [4]. Investment Outlook - The combination of VET's attractive valuation metrics and a strong earnings outlook positions it as a compelling investment opportunity for value investors [5].

Core Viewpoint - Vermilion Energy (VET) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - For the fiscal year ending December 2025, Vermilion is expected to earn $0.31 per share, reflecting a 240.9% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Vermilion has increased by 335.7%, indicating a positive trend in earnings expectations [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, and their investment actions based on these estimates can lead to significant price movements [4][5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Vermilion to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Vermilion Energy (VET) as a strong candidate for value investors due to its attractive valuation metrics and earnings outlook [2][3][6]. Valuation Metrics - Vermilion Energy has a Price-to-Book (P/B) ratio of 0.46, which is significantly lower than the industry average of 0.82, indicating that the stock may be undervalued [4]. - The P/B ratio for VET has fluctuated between a high of 0.91 and a low of 0.41 over the past 12 months, with a median of 0.75 [4]. - The Price-to-Sales (P/S) ratio for VET stands at 0.67, which is slightly below the industry average of 0.70, further suggesting potential undervaluation [5]. Investment Outlook - With a Zacks Rank of 2 (Buy) and an "A" grade for Value, Vermilion Energy is positioned as one of the highest-quality value stocks currently available [3][6]. - The combination of strong valuation metrics and a positive earnings outlook makes VET an appealing option for value investors [6].

Group 1 - Vermilion Energy shares increased by 21.2% to close at $6.58, following a significant trading volume compared to typical sessions, despite a 29.9% loss over the past four weeks [1] - The stock price surge is linked to a broader energy sector boost due to President Trump's decision to pause tariff hikes and implement a lower 10% tariff rate, alleviating trade tension concerns and driving up oil and natural gas prices [2] - The company is expected to report quarterly earnings of $0.23 per share, reflecting a year-over-year increase of 2200%, with revenues projected at $404.3 million, a 7.3% increase from the previous year [3] Group 2 - The consensus EPS estimate for Vermilion has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - Vermilion Energy is part of the Zacks Oil and Gas - Exploration and Production - International industry, with a current Zacks Rank of 3 (Hold) [4] - Vaalco Energy, another company in the same industry, saw a 10.7% increase in its stock price, closing at $3.43, but has returned -20.7% over the past month [4]

CALGARY, AB, April 7, 2025 /PRNewswire/ - Vermilion Energy Inc. ("Vermilion" or the "Company") (TSX: VET) (NYSE: VET) will release its 2025 first quarter operating and condensed financial results on Wednesday, May 7, 2025 after the close of North American markets. The unaudited interim financial statements and management discussion and analysis for the three months ended March 31, 2025 will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR+") at www.sedarplus.ca, on EDGAR at ...

Financial Data and Key Metrics Changes - Production averaged 84,543 BOEs per day, representing annual production per share growth of 4% [5] - Fund flow generated was $1.2 billion or $7.63 per share, and free cash flow was $583 million or $3.69 per share, both reflecting a 9% increase over 2023 on a per share basis [6] - Net debt decreased by 10% in 2024 to $967 million, resulting in a net debt to trailing funds flow ratio of 0.8 times, the lowest in over a decade [8] Business Line Data and Key Metrics Changes - International production increased by 12% year-over-year, driven by strong operational run times in Australia and the startup of the gas plant in Croatia [5] - North American production decreased by 5% year-over-year, primarily due to the divestment of 5,500 BOE per day in Southeast Saskatchewan [5] Market Data and Key Metrics Changes - The company announced an 8% increase to its quarterly dividend effective Q1 2025, marking the fourth consecutive increase since reinstating the dividend [8] - The after-tax net present value of PDP reserves discounted at 10% is $2.8 billion, while for 2P reserves it is $5.2 billion, translating to over $27 per share after deducting year-end net debt [11] Company Strategy and Development Direction - The company is focused on integrating the Westbrick acquisition to enhance operational scale and improve full cycle margins in the Deep Basin [24][40] - The strategy includes significant investments in growth projects in Germany, Croatia, and the BC Montney, which are expected to contribute strong free cash flow in future years [7] - The company aims to double its current European 2P gas reserves through successful development of follow-up locations identified in Germany [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational scale achieved, with 80% of production and 70% of capital investment directed towards the global gas portfolio [32] - The company anticipates strong demand dynamics for gas in the coming decades, particularly in Europe, where it expects to maintain pricing advantages [33] - For 2025, the company forecasts annual production between 125,000 to 130,000 BOEs per day, with capital expenditures of $730 million to $760 million [34] Other Important Information - The company successfully executed a $623 million E&D capital program within budget, focusing on new growth projects [7] - The company has launched a process to divest non-core assets to accelerate deleveraging efforts, with strong interest in these high-quality assets [30] Q&A Session Summary Question: Can you provide insight into the German gas exploration program and expected flow rates? - Management expects first production from the Osterheide well in Q2 2025, initially rate-restricted to 3-5 million cubic feet per day due to capacity constraints [47] - For the Wisselshorst well, initial tie-in is expected in early 2026, with potential to increase rates significantly through debottlenecking [49] Question: What is the status of the sales process for Saskatchewan and Wyoming assets? - The formal sales process is well-advanced, with management presentations ongoing and strong retention value for the assets [54] Question: What are the next exploration wells planned in Germany? - The company plans to drill two wells per year, with additional follow-up locations identified for future drilling [60] Question: How do the Westbrick assets compare to existing Deep Basin assets in terms of operating costs? - Westbrick assets have unit operating costs in the $650 per BOE range, compared to the company's existing assets at $750 per BOE [72] Question: What is the potential impact of U.S. tariffs on Canadian energy? - Management does not expect a material impact on cash flows due to diversification and operational scale, with over half of revenues coming from outside Canada [110] Question: Why does the stock seem impacted by oil price movements despite being a global gas company? - Management attributes this to timing issues related to recent acquisitions and ongoing developments, emphasizing the company's strong positioning in gas markets [120]