Company Performance - Vermilion Energy reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.17 per share, and showing an earnings surprise of -58.82% [1] - The company posted revenues of $396.23 million for the quarter ended March 2025, which was 3.54% below the Zacks Consensus Estimate and an increase from $376.85 million year-over-year [2] - Over the last four quarters, Vermilion has not surpassed consensus EPS estimates and has topped revenue estimates only once [2] Stock Outlook - Vermilion shares have declined approximately 33.8% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $446.64 million, and for the current fiscal year, it is $0.04 on revenues of $1.8 billion [7] Industry Context - The Oil and Gas - Exploration and Production - International industry, to which Vermilion belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests that the performance of stocks in this industry can be significantly influenced by the overall industry outlook [8]

Core Viewpoint - Vermilion Energy Inc. reported its Q1 2025 operating and financial results, highlighting strong performance driven by the Westbrick acquisition and robust European gas prices, while maintaining a focus on free cash flow and debt reduction. Financial Performance - Fund flows from operations (FFO) for Q1 2025 were $256 million ($1.66 per basic share), a slight decrease from $263 million ($1.70 per basic share) in Q4 2024 [4][21] - Exploration and development (E&D) capital expenditures totaled $182 million, resulting in free cash flow (FCF) of $74 million, up from $62 million in the prior quarter [4][21] - Net debt increased to $2,063 million, with a net debt to trailing FFO ratio of 1.7 times [4][21] Production and Operations - Average production for Q1 2025 was 103,115 boe/d, a 23% increase from the previous quarter, primarily due to the Westbrick acquisition [22][4] - Production from North American assets averaged 73,760 boe/d, a 41% increase, while international production averaged 29,355 boe/d, a 6% decrease [22][4] - The company successfully tested the Wisselshorst deep gas exploration well in Germany, achieving a combined test flow rate of 41 mmcf/d [4][26] Strategic Acquisitions and Synergies - The Westbrick acquisition added approximately 50,000 boe/d of liquids-rich gas and identified operational synergies of about $100 million on a net present value (NPV10) basis [4][25] - The integration of Westbrick assets is progressing ahead of schedule, with ongoing identification of additional synergies [19][4] Market Position and Outlook - Vermilion's capital budget and guidance for 2025 remain unchanged, focusing on free cash flow and debt reduction while returning capital to shareholders [9][33] - The company anticipates Q2 2025 production to average between 134,000 to 136,000 boe/d, including full contributions from Westbrick assets [9][31] - Over 50% of net-of-royalty production is hedged for the remainder of 2025, providing stability amid market volatility [20][35]

Core Viewpoint - Vermilion Energy Inc. has announced a cash dividend of $0.13 CDN per common share, payable on July 15, 2025, to shareholders of record on June 30, 2025, indicating a commitment to returning capital to investors [1][2]. Group 1: Company Overview - Vermilion Energy Inc. is a global gas 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, supplemented by value-adding acquisitions [2]. - Vermilion's operations target the exploitation of light oil and liquids-rich natural gas in both conventional and unconventional resource plays in North America, as well as conventional natural gas and oil opportunities in Europe and Australia [2]. Group 2: Company Priorities - The company's priorities are health and safety, environmental protection, and profitability, in that order [3]. - Vermilion places a strong emphasis on the safety of the public and its workforce, as well as the protection of natural surroundings [3]. - The company also focuses on strategic community investment in each of its operating areas [3].

2 2 • Production exceeded the mid-point of initial guidance • Generated $1.2 Billion of FFO ($7.63/share) and $583MM of FCF ($3.69/share) o Second strongest year on record • Invested $623MM of E&D capex, within budget o Included significant investment in future FCF generating projects in Germany, Croatia, and BC Montney • Returned ~10% of market capitalization to shareholders via dividends and share buybacks o Reduced share count by 5% in 2024 o Announced fourth consecutive dividend increase 2024 RESERVES - ...

Group 1 - Vermilion Energy is a Canadian oil and natural gas producer with significant production from Europe and Australia, expecting up to 50% of funds flow from international assets due to superior margins [1] Group 2 - The investment strategy focuses on turnarounds in natural resource industries with a typical holding period of 2-3 years, emphasizing value for downside protection and upside participation [2] - The portfolio has achieved a compounded annual growth rate of 26% over the last 6 years [2]

Core Viewpoint - Vermilion Energy reported a quarterly loss of $0.09 per share, significantly missing the Zacks Consensus Estimate of $0.36, and down from earnings of $0.95 per share a year ago, indicating a -125% earnings surprise [1] Financial Performance - The company posted revenues of $360.48 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.60%, but down from $384.17 million year-over-year [2] - Over the last four quarters, Vermilion has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Performance - Vermilion shares have declined approximately 18.2% since the beginning of the year, contrasting with the S&P 500's decline of -1.8% [3] - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $433.37 million, and for the current fiscal year, it is $0.55 on revenues of $1.81 billion [7] Industry Outlook - The Oil and Gas - Exploration and Production - International industry is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Vermilion's stock performance [5][6]

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].