Vermilion Energy(US:VET) Prnewswireยท2024-11-06 22:01Core 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].