Vermilion Energy sells U.S. assets for $120M

Vermilion Energy (VET) announced that it has entered into a definitive agreement for the sale of its United States assets for cash proceeds of $120M. Net proceeds from the transaction will be directed towards debt repayment to further accelerate deleveraging efforts and strengthen Vermilion’s balance sheet. Based on current strip commodity pricing and operational plans, the company would expect to exit 2025 with net debt of $1.3B, with a trailing net debt to FFO of 1.3 times. The assets consist of approximately 5,500 boe/d of production and approximately 10 mmboe of proved developed producing reserves estimated as evaluated by McDaniel & Associates Consultants at December 31, 2024. The transaction has an effective date of January 1 and is anticipated to close in Q3, subject to the satisfaction of other customary closing conditions. The transaction agreement includes $10M of contingent payments based on WTI prices over the two-year period starting July 1.