Core Viewpoint - Vermilion Energy Inc. has entered into a definitive agreement to sell its United States assets for cash proceeds of $120 million, aiming to strengthen its balance sheet through debt repayment [1][3][4]. Financial Summary - The net proceeds from the transaction will be used for debt repayment, with an expected net debt of $1.3 billion by the end of 2025, resulting in a trailing net debt to FFO ratio of 1.3 times [3][4]. - The updated 2025 capital budget is adjusted to a range of $630 to $660 million, reflecting a reduction of approximately $100 million from the previous range [6][7]. - Full year and second half 2025 production is expected to range between 117,000 to 122,000 boe/d, with 68% of production being natural gas-weighted in the second half of 2025 [6][7]. Asset Details - The assets sold consist of approximately 5,500 boe/d of production, with 81% being oil and liquids, and approximately 10 mmboe of Proved Developed Producing reserves [4][5]. - The transaction has an effective date of January 1, 2025, and is anticipated to close in Q3 2025, subject to customary closing conditions [4][5]. Strategic Focus - This transaction, along with the previous sale of East Finn assets in 2023, completes Vermilion's exit from the United States, allowing the company to concentrate on its core gas-weighted assets in Canada and Europe [5][11]. - Over 90% of future production is expected to come from the global gas portfolio, with over 80% of capital allocated to these assets [6][11]. Operational Metrics - The company expects to maintain a royalty rate of 8-10% of sales and has adjusted operating costs to $13.00 - $14.00 per boe [7][8]. - Cash taxes are projected to be between 4-8% of pre-tax FFO [7][8].
Vermilion Energy Inc. Announces Agreement to Sell United States Assets and Provides Updated 2025 Guidance