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Vermilion Energy Inc (VET)

  • Dec. 8, 2014, 10:36 AM
    • Vermilion Energy (VET -5.5%) says it plans to cut 2015 capital spending by 22% Y/Y while still expecting production growth of 15% Y/Y and a steady dividend.
    • VET says it will reduce capital outlays by $150M to $525M to help sustain its dividend, and switch emphasis to natural gas plays, including in Europe.
    • Despite the cut in spending, VET says that due to projects coming on line, production should rise 15% Y/Y to 55K-57K boe/day including first gas from the Corrib gas field in Ireland beginning in mid-2015.
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  • Mar. 19, 2014, 11:12 AM
    • Vermillion Energy's (VET +2.4%) $400M purchase of Saskatchewan oil producing assets could set the stage for more acquisitions in the region, TD Securities says as it upgrades shares to Buy from Hold with a new $75 price target, up from $66.
    • TD says the new Canadian development area should help drive VET's free cash flow given the ~$60/boe cash flow netback and relatively low sustaining capital requirements.
    • The firm views VET as a core oil holding, driven by "a sustainable dividend growth business that generates top-quartile return on common equity and profit margins, compounded by a suite of assets that... provides significant option value to shareholders."
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  • Mar. 18, 2014, 2:06 PM
    • Vermillion Energy (VET +3.2%) agrees to acquire light oil producing assets in Saskatchewan from a private producer for $345M in cash and stock plus the assumption of $55M in debt.
    • The assets include 57K net acres of land (~80% undeveloped), seven oil batteries and preferential access to 50% or greater capacity at a solution gas facility that is under construction; 2014 production from the assets is projected at ~3,750 boe/day, with more than 90% of the production base to be operated by VET.
    • Due to the acquisition, VET raises its 2014 production guidance to 47.5K-48.5K boe/day, assuming eight months of contribution from the new assets.
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  • Aug. 30, 2013, 5:34 PM
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Company Description
Vermilion Energy Inc is an international oil and gas producer engaged in the acquisition, development and optimization of producing properties in Western Canada, Europe, and Australia.