Core Viewpoint - Vermilion Energy Inc. has successfully completed the acquisition of Westbrick Energy Ltd., enhancing its production capacity and operational synergies in the Deep Basin trend of Alberta [1][2]. Acquisition Details - The acquisition adds stable annual production of 50,000 barrels of oil equivalent per day (boe/d), comprising 75% gas and 25% liquids, along with approximately 1.1 million acres of land [2]. - The deal includes four operated gas plants with a total capacity of 102 million cubic feet per day (mmcf/d) [2]. - Vermilion has identified over 700 future drilling locations on the acquired acreage, with half-cycle internal rates of return (IRRs) ranging from 40% to over 100% based on estimates from McDaniel & Associates [2]. Financial Considerations - Westbrick shareholders have the option to receive up to 1.7 million Vermilion common shares, with certain shareholders electing to receive 1.1 million shares valued at $14.2 million [3]. - The remaining consideration for the acquisition will be paid in cash, funded through cash on hand, a new $450 million term loan, and an undrawn $1.35 billion revolving credit facility [3]. Future Guidance - Vermilion plans to provide updated 2025 budget and financial guidance reflecting the increased scale of the company following the acquisition during the release of its Q4 2024 results on March 5, 2025 [4].

Core Viewpoint - Vermilion Energy (VET) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended December 2024, with actual results potentially impacting its near-term stock price [1][3]. Earnings Expectations - The consensus estimate for Vermilion's quarterly earnings is $0.36 per share, reflecting a year-over-year decrease of 62.1%. Revenues are projected to be $358.35 million, down 6.7% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 171.43% higher, indicating a reassessment by analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +19.44%, suggesting that analysts have recently become more optimistic about Vermilion's earnings [10][11]. Historical Performance - In the last reported quarter, Vermilion was expected to post earnings of $0.33 per share but only achieved $0.24, resulting in a surprise of -27.27%. Over the last four quarters, the company has only beaten consensus EPS estimates once [12][13]. Investment Considerations - While Vermilion is seen as a compelling earnings-beat candidate, investors are advised to consider other factors that may influence stock performance beyond just earnings results [14][16].

Core Viewpoint - Vermilion Energy Inc. has successfully closed a private offering of US$400 million in senior unsecured notes with a fixed coupon of 7.250% per annum, maturing on February 15, 2033 [1] Group 1: Offering Details - The offering consists of eight-year senior unsecured notes totaling US$400 million [1] - The notes will pay interest semi-annually starting August 15, 2025 [1] - The notes are not registered under the U.S. Securities Act and will be sold only to accredited investors in Canada and qualified institutional buyers in the U.S. [2] Group 2: Company Overview - Vermilion Energy 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 [4] - The company emphasizes free cash flow generation and returning capital to investors when economically justified, alongside value-adding acquisitions [4] - Vermilion's operations target light oil and liquids-rich natural gas resources, both conventional and unconventional, in North America, and conventional natural gas and oil opportunities in Europe and Australia [4] Group 3: Company Priorities - The company's priorities are health and safety, environmental protection, and profitability, in that order [5] - Vermilion places a strong emphasis on community investment in its operating areas [5] - The company is publicly traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET [5]

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].