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 ...

Company Performance - Vermilion Energy reported quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.33 per share, and showing a decrease from $0.25 per share a year ago, resulting in an earnings surprise of -27.27% [1] - The company posted revenues of $359.27 million for the quarter ended September 2024, which was 1.45% below the Zacks Consensus Estimate and slightly above year-ago revenues of $354.5 million [2] - Over the last four quarters, Vermilion has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - Vermilion shares have declined approximately 19.6% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] - The current Zacks Rank for Vermilion is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $386.66 million, while for the current fiscal year, the estimate is $0.35 on revenues of $1.46 billion [7] - The outlook for the industry, specifically the Oil and Gas - Exploration and Production - International sector, is currently in the bottom 38% of Zacks industries, which may impact the stock's performance [8]

Core Insights - Vermilion Energy Inc. reported strong financial and operational results for Q3 2024, driven by increased European gas prices and effective capital management strategies [3][24][25]. Financial Performance - Fund flows from operations (FFO) for Q3 2024 were $275 million ($1.76 per basic share), a 16% increase from the previous quarter, primarily due to stronger European gas prices [3][5]. - Net earnings for Q3 2024 were $52 million ($0.33 per basic share), an increase of $134 million from the prior quarter, attributed to normalized mark-to-market adjustments on the hedge book [3][5]. - Free cash flow (FCF) for Q3 2024 was $154 million, with $59 million returned to shareholders through dividends and share buybacks, representing 45% of excess free cash flow [3][5][25]. - Year-to-date, the company returned $180 million ($1.13 per basic share) to shareholders, representing 38% of excess free cash flow [3][5][25]. - Net debt decreased by $73 million to $833 million, with a net debt to trailing FFO ratio of 0.6 times, the lowest in 15 years [3][5][25]. Production and Operations - Average production in Q3 2024 was 84,173 boe/d, a 2% increase year-over-year, with 56% from natural gas and 44% from crude oil and liquids [3][5][30]. - Production from international assets increased by 16% year-over-year, driven by new production from the SA-10 block in Croatia and higher runtime in Ireland [3][5][35]. - In Germany, the first deep gas exploration well tested at a rate of 17 mmcf/d, with tie-in operations expected to bring it into production in the first half of 2025 [3][5][34]. - The company successfully completed drilling operations on a second deep gas exploration well in Germany, discovering gas within the reservoir [3][5][34]. Capital Expenditures and Guidance - Capital expenditures for Q3 2024 were $121 million, with a capital budget for 2024 remaining unchanged at $600 to $625 million [3][5][4]. - The company tightened its 2024 production guidance range to 84,000 to 85,000 boe/d, reflecting increased certainty on annual production levels [3][5][37]. - The company plans to maintain a return of capital payout target at 50% of excess free cash flow [3][5][29]. Safety and Operational Milestones - Vermilion achieved a major safety milestone in Ireland, celebrating two years and one million man-hours without a lost time incident [3][5][36]. - The company continues to focus on operational efficiency and safety standards across its diverse asset base [3][5][36].

Group 1 - Vermilion Energy Inc. announced a cash dividend of $0.12 CDN per common share, payable on January 15, 2025, to shareholders of record on December 31, 2024 [1] - The dividend is classified as an eligible dividend under the Income Tax Act (Canada) [1] Group 2 - 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 [2] - The company's business model emphasizes free cash flow generation and returning capital to investors when economically warranted, supported by value-adding acquisitions [2] - Vermilion's operations target the exploitation of light oil and liquids-rich natural gas in North America, along with conventional natural gas and oil opportunities in Europe and Australia [2] Group 3 - The company's priorities include health and safety, environmental protection, and profitability, with a strong emphasis on public safety and natural surroundings [3] - Vermilion has received recognition from leading ESG rating agencies for its transparency and management of key environmental, social, and governance issues [3] - The company emphasizes strategic community investment in its operating areas [3] Group 4 - Vermilion trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET [4]

Core Viewpoint - Vermilion Energy Inc. is set to release its third quarter operating and financial results for 2024 on November 6, 2024, after North American markets close [1] Group 1: Financial Results Announcement - The unaudited interim financial statements and management discussion for the three and nine months ended September 30, 2024, will be available on SEDAR, EDGAR, and Vermilion's website [1] - A conference call and webcast to discuss these results will take place on November 7, 2024, at 9:00 AM MST [2] - Participants can join the conference call via a toll-free number or an international line, with a recording available for replay after the call [2][3] 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 [4] - The company's business model emphasizes free cash flow generation and returning capital to investors when economically warranted, alongside value-adding acquisitions [4] - Vermilion prioritizes health and safety, environmental protection, and profitability, and has received recognition from ESG rating agencies for its transparency and management of key issues [5]

Core Viewpoint - Vermilion Energy Inc. has provided an operational update highlighting successful exploration and production activities in Germany, Croatia, Canada, and Australia, along with a focus on returning capital to shareholders through share buybacks and dividends. Exploration and Production Updates - In Germany, the first deep gas exploration well was completed at a depth of approximately 5,000 meters, flow testing at a restricted rate of 17 mmcf/d with a wellhead pressure of 4,625 psi, indicating strong reservoir potential [2] - The company has initiated drilling of a second deep exploration well in Germany and plans to accelerate drilling of a third well, expecting higher chances of success based on technical evaluations [3] - In Croatia, production on the SA-10 block has exceeded 2,000 boe/d, with strong cash flow contributions from high-value natural gas selling at a premium to the TTF benchmark [4] - The company has completed testing on the third well of a four-well program in Croatia, with encouraging results that de-risk future development [4] Financial Performance and Market Position - European natural gas production accounts for 22% of corporate production, with strong pricing dynamics supporting 2024 operating netbacks exceeding $55/boe [5] - The company has hedged approximately 45% of European natural gas production at a protection level of $17/mmcf for 2025, enhancing financial stability [5] Canadian Operations - In Canada, five wells from the Mica Montney asset were brought on production with an average IP30 rate of over 1,000 boe/d per well, aligning with the company's type curve [6] - The total cost for drilling, completing, and tying in these wells was approximately $9.6 million each, with ongoing efforts to reduce costs further [6] Shareholder Returns - The company has repurchased 1.4 million shares in August 2024, totaling 7.5 million shares year-to-date, resulting in a net share count reduction of 4.6% [8] - A quarterly dividend of $0.12 per share has been reaffirmed for October 15, 2024, demonstrating commitment to returning capital to shareholders [8] Future Outlook - Vermilion plans to release Q3 2024 results on November 6, 2024, after North American market close, indicating ongoing transparency and communication with investors [9]

L H mysticenergy Overview Vermilion Energy (NYSE:VET) is one of the cheapest Canadian oil & natural gas stocks around, at least in relation to its near-term cash flows. I have covered the company almost quarterly for the last couple of years, and my prior articles can be found here. The company released its Q2 2024 results yesterday after the close and will later today host a conference call. This article will primarily be focused on the most recent quarterly result, together with my general views on the co ...

Core Viewpoint - Vermilion Energy reported a quarterly loss of $0.38 per share, missing the Zacks Consensus Estimate of $0.31, and a significant decline from earnings of $0.57 per share a year ago, indicating a negative earnings surprise of -222.58% [1] Financial Performance - The company posted revenues of $350.04 million for the quarter ended June 2024, which was 7.04% below the Zacks Consensus Estimate and a slight decrease from $350.94 million in the same quarter last year [2] - Over the last four quarters, Vermilion has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Performance - Vermilion shares have declined approximately 14.5% since the beginning of the year, contrasting with the S&P 500's gain of 14% [3] - The current Zacks Rank for Vermilion is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $398.21 million, and for the current fiscal year, it is $1.24 on revenues of $1.55 billion [7] - The trend of estimate revisions for Vermilion is mixed, which could change following the recent earnings report [6] Industry Context - The Oil and Gas - Exploration and Production - International industry, to which Vermilion belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]