Vermilion Energy(US:VET)2022-11-10 18:39Financial Performance - Vermilion Energy achieved a record Funds From Operations (FFO) of $508 million in Q3 2022, driven by strong European gas prices[5] - Free Cash Flow (FCF) was $324 million, a 5% decrease from the previous quarter due to the Australia offshore drilling program[5] - Including the incremental 36.5% ownership in Corrib, pro forma FFO and FCF were $611 million and $426 million, respectively[5] - The company returned $85 million to shareholders through dividends and share buybacks, representing 26% of FCF[5] - Net debt decreased by 11% from the prior quarter to $1.4 billion, resulting in a net debt to trailing FFO ratio of 0.8x, the lowest in ten years[5] Production and Operations - North American production averaged 57,142 boe/d, a 2% decrease from the prior quarter[6,34] - International production averaged 27,095 boe/d, a 1% increase from the prior quarter[6,28] - The company successfully completed two offshore wells in Australia, producing over 300,000 barrels in the first two months and generating approximately $30 million of operating cash, representing approximately 40% of invested capital[28,32] Market and Outlook - European natural gas prices reached all-time highs, exceeding $120/mmbtu (TTF) in late August[12] - The company anticipates a 2023 capital budget of approximately $550 million[40] - The company's 2022 pro forma FFO with Corrib and Windfall Tax is estimated at $2 billion, and FCF at $1.5 billion[25]