Vermilion Energy (VET) AI Stock Analysis

• Market Cap: C$1.69B
• Dividend Yield: 4.55%
• Average Volume (3M): 689.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.67
• Revenue Growth: 1.04%
• EPS Growth: 94.48%
• Country: CA
• Employees: 743
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -1.51
• Shares Outstanding: 154,500,000
• 10 Day Avg. Volume: 584,413
• 30 Day Avg. Volume: 689,363
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$12.10
• Price Target Upside: 10.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: C$11.50 ▲(5.22% Upside)

Vermilion Energy's stock score reflects a mix of strengths and challenges. While the company benefits from positive cash flow and strategic acquisitions, concerns over profitability and market volatility weigh down the overall score. The recent asset sale and dividend policy support the stock’s long-term investment appeal, but financial performance and valuation remain key areas for improvement.

Positive Factors

Asset Portfolio

VET remains steadfast in building a balanced portfolio of assets, especially with the addition of Lara Conrad from ARX.

Exploration Success

The Wisselshorst test well shows encouraging rates and has the potential to be one of Vermilion's largest discoveries in Europe.

Production and Cost Management

A good production beat and in-line CFPS, along with improving Montney well costs, should be encouraging and should help offset the disappointing 'drill suspension' of the 3rd German exploration well.

Negative Factors

European Gas Market

Uncertainties related to European gas prices, leverage, and exploration success have all weighed on investor risk appetite for VET.

Financial Performance

For every dollar spent, there was a loss of $0.04 in value in 2024.

Market Volatility

With current leverage, the target is being lowered given market volatility.

Vermilion Energy Business Overview & Revenue Model

Company Description

Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas in North America, Europe, and Australia. The company owns 81% working interest in 636,714 net acres of developed land and 85% working interest in 301,026 net acres of undeveloped land in Canada; 130,715 net acres of land in the Powder River basin in the United States; 96% working interest in 248,873 net acres of developed land and 86% working interest in 134,160 net acres of undeveloped land in the Aquitaine and Paris Basins in France; 53% working interest in 901,791 net acres of land in the Netherlands; 54,625 net developed acres and 920,723 net undeveloped acres in Germany; 975,375 net acres land in Croatia; 946,666 net acres land in Hungary; and 48,954 net acres land in Slovakia. It also owns 20% interests in the offshore Corrib natural gas field located to the northwest coast of Ireland; and 100% working interest in the Wandoo offshore oil field and related production facilities that covers 59,553 acres located on Western Australia's northwest shelf. As of December 31, 2021, the company had 401 net producing conventional natural gas wells and 2,132 net producing light and medium crude oil wells in Canada; 167.6 net producing light and medium crude oil wells in the United States; 297.0 net producing light and medium crude oil wells and 3 net producing conventional natural gas wells in France; and 47 net producing natural gas wells in the Netherlands. Vermilion Energy Inc. was founded in 1994 and is headquartered in Calgary, Canada.

How the Company Makes Money

Vermilion Energy makes money primarily through the extraction and sale of crude oil, natural gas, and natural gas liquids (NGLs). The company's revenue streams are derived from the production and sale of these hydrocarbons, which are sold in domestic and international markets. Vermilion benefits from its geographic diversification, which allows it to capitalize on different regional market dynamics and pricing. Additionally, the company engages in strategic partnerships and joint ventures to enhance its operational capabilities and market reach. Factors such as fluctuating commodity prices, production levels, and operational efficiencies significantly influence Vermilion's earnings. The company also focuses on hedging strategies to manage price volatility and secure a stable cash flow.

Vermilion Energy Financial Statement Overview

Summary

Vermilion Energy faces profitability challenges with a negative net profit margin despite a stable asset base and positive operating cash flows. The company's leverage position requires careful management due to a moderately high debt-to-equity ratio.

Income Statement

Vermilion Energy shows a mixed performance in its income statement. The company has seen fluctuating revenue, with a recent decline in the TTM period compared to the previous annual data. Gross profit margin is moderate, and net profit margin is negative, indicating profitability issues. Although EBIT and EBITDA margins are positive, they are not strong enough to offset the negative net income, which raises concerns about operational efficiency.

Balance Sheet

The balance sheet indicates a relatively stable financial position with a reasonable equity base. The debt-to-equity ratio is moderately high, reflecting leverage that could pose risks if not managed properly, but the equity ratio remains healthy. Return on equity is negative due to the net loss, which impacts overall financial health. However, the company maintains a solid asset base, providing some level of stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, although the company is generating positive operating cash flow. The free cash flow to net income ratio is positive, but the overall net loss affects the cash flow metrics. The operating cash flow to net income ratio indicates that the company is generating cash despite profitability challenges, which is a positive sign.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.07B	1.93B	3.72B	2.23B	1.25B
Gross Profit	1.12B	359.39M	2.59B	1.32B	432.53M
EBITDA	835.80M	519.55M	2.55B	2.07B	-1.19B
Net Income	-46.74M	-237.59M	1.31B	1.15B	-1.52B
Balance Sheet
Total Assets	6.12B	6.24B	6.99B	5.91B	4.11B
Cash, Cash Equivalents and Short-Term Investments	131.73M	141.46M	13.84M	6.03M	6.90M
Total Debt	1.02B	947.02M	1.13B	1.71B	2.01B
Total Liabilities	3.30B	3.20B	3.59B	3.84B	3.18B
Stockholders Equity	2.81B	3.03B	3.40B	2.07B	925.40M
Cash Flow
Free Cash Flow	332.04M	292.06M	1.26B	459.66M	132.95M
Operating Cash Flow	967.75M	1.02B	1.81B	834.45M	500.15M
Investing Cash Flow	-634.87M	-576.43M	-1.06B	-469.70M	-401.43M
Financing Cash Flow	-344.08M	-320.34M	-748.37M	-363.45M	-120.60M

Vermilion Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VET, the sentiment is Neutral. The current price of 10.93 is below the 20-day moving average (MA) of 11.01, above the 50-day MA of 10.42, and below the 200-day MA of 11.51, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 34.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:VET.

Vermilion Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$15.09B	10.38	7.41%	5.57%	4.43%	-69.91%
VET	61 Neutral	C$1.69B	―	-1.19%	4.55%	1.04%	94.48%
BIREF	―	$1.30B	13.24	6.10%	3.86%	―	―
CDDRF	―	$1.21B	9.03	25.93%	5.71%	―	―
AOIFF	―	$875.15M	―	-25.82%	7.63%	―	―
KELTF	―	$1.01B	26.06	4.98%	―	―	―
PARXF	―	$1.15B	9.19	6.62%	9.81%	―	―

Vermilion Energy Corporate Events

Vermilion Energy Sells U.S. Assets, Refocuses on Gas-Weighted Operations

Vermilion Energy Inc. has announced the sale of its United States assets for $120 million, a move that completes its exit from the U.S. market and allows it to focus on its core gas-weighted assets in Canada and Europe. The transaction is expected to close in Q3 2025, with proceeds directed towards debt repayment, enhancing the company’s financial position. Additionally, Vermilion has updated its 2025 guidance, reducing its capital budget and adjusting production expectations, reflecting its strategic shift towards maximizing free cash flow over production growth amid market volatility.

The most recent analyst rating on (TSE:VET) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Vermilion Energy stock, see the TSE:VET Stock Forecast page.

Vermilion Energy Sells Saskatchewan Assets to Strengthen Financial Position

Vermilion Energy Inc. has announced a definitive agreement to sell its Saskatchewan and Manitoba assets for $415 million, with the proceeds directed towards accelerating debt repayment and strengthening its balance sheet. This transaction is part of Vermilion’s strategic plan to reposition its portfolio towards long-duration, scalable assets with high return opportunities, enhancing its global gas franchise and providing capital allocation flexibility for its core Canadian and European assets.

The most recent analyst rating on (TSE:VET) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Vermilion Energy stock, see the TSE:VET Stock Forecast page.

Vermilion Energy Announces AGM Voting Results and Board Changes

Vermilion Energy Inc. announced the results of its annual general meeting, where 50.03% of its common shares were voted. Key resolutions included the election of eight directors, the appointment of Deloitte LLP as auditors, and approval of executive compensation and the Omnibus Incentive Plan. The company also acknowledged the retirement of two directors, Robert B. Michaleski and Timothy R. Marchant, expressing gratitude for their contributions. These developments reflect Vermilion’s ongoing commitment to governance and strategic oversight, potentially impacting its operational focus and stakeholder relations.

Vermilion Energy Declares July 2025 Cash Dividend

Vermilion Energy Inc. announced a cash dividend of $0.13 CDN per common share, payable on July 15, 2025, to shareholders of record on June 30, 2025. This announcement reflects Vermilion’s commitment to returning capital to investors and may positively impact investor sentiment, reinforcing the company’s strategic focus on profitability and shareholder value.

Vermilion Energy Reports Q1 2025 Results and Strategic Acquisition

Vermilion Energy reported a slight decrease in fund flows from operations for Q1 2025 compared to the previous quarter, but saw an increase in free cash flow due to strong European gas prices. The company completed the acquisition of Westbrick, enhancing its position in Alberta’s Deep Basin and identifying significant operational synergies. Vermilion’s production increased, driven by the acquisition and successful exploration activities in Germany. The company remains focused on free cash flow and debt reduction, with a stable capital budget and guidance for 2025.