Vermilion Energy(US:VET)2025-12-10 16:00Business Strategy and Portfolio Repositioning - Vermilion Energy is focused on growing excess free cash flow (EFCF) by allocating capital to global gas assets, with approximately 85% of the 2026-2030 exploration & development (E&D) capital expenditures planned for these assets[6] - The company is repositioning its portfolio towards global gas assets, expecting a greater than 40% increase in production (mboe/d) and a greater than 30% decrease in cost structure and capex/flowing boe from 2024 to 2026e[44] - Vermilion aims to increase production per share by approximately 40% over five years, driven by an 8-10% annual production per share growth rate[50] Asset Performance and Outlook - The company anticipates cumulative EFCF of approximately $1.7 billion over the next five years, with annual capital expenditures between $600-630 million[50] - Vermilion's European gas assets are expected to grow organically by approximately 5,000 boe/d from 2026 to 2030, offsetting a decline of approximately 2,000 boe/d in Ireland[124] - The Montney asset is projected to reach a target production rate of 28,000 boe/d in 2028, transitioning to EFCF generation with approximately 8 wells per year to maintain production[156, 158] Financial Position and Capital Allocation - Vermilion plans a quarterly dividend of $0.135/share in 2026[8] - The company is committed to reducing net debt to FFO ratio to less than 10x, allocating 60% of EFCF to debt repayment[233, 239] - Vermilion has $11 billion of undrawn credit capacity on its revolving credit facility[205]