Vermilion Energy(VET) Prnewswire·2025-03-05 22:01Core Viewpoint - Vermilion Energy Inc. reported strong operational and financial results for the year ended December 31, 2024, with significant increases in fund flows from operations and free cash flow, alongside successful exploration activities in Europe and strategic acquisitions in North America [21][25][39]. Financial Performance - Petroleum and natural gas sales for Q4 2024 were 490.1 million in Q3 2024 and 1.98 billion for the year [6][7]. - Fund flows from operations (FFO) reached 7.63 per basic share, representing a 6% increase over the prior year [7][21]. - Free cash flow (FCF) was 47 million, a significant improvement from a net loss of 110 million to 2.8 billion, and for 2P reserves, it is 27.62 per basic share after deducting year-end net debt [7][35]. Exploration and Development - Vermilion executed its largest exploration drilling campaign in Europe in 2024, achieving 100% success on six exploration wells, notably in Germany [22][23]. - The Wisselshorst well tested at a restricted rate of 21 mmcf/d, with an estimated recoverable natural gas of 68 Bcf, marking Vermilion's largest discovery in Europe in the past decade [22][23][31]. - In Canada, the company expanded its Montney asset, nearly doubling production capacity to approximately 14,000 boe/d, with plans for further expansion [24][25]. Strategic Initiatives - The acquisition of Westbrick Energy Ltd. added approximately 50,000 boe/d of liquids-rich natural gas production, enhancing Vermilion's operational scale and inventory quality [25][39]. - The company launched a formal sales process for its southeast Saskatchewan and Wyoming assets, aiming to maximize shareholder value and accelerate deleveraging efforts [26][39]. - Vermilion's 2025 capital budget and production guidance have been revised to incorporate the Westbrick acquisition, with expected production ranging between 125,000 to 130,000 boe/d [7][39].