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Vermilion Energy (TSE:VET)
TSX:VET
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Vermilion Energy (VET) AI Stock Analysis

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TSE:VET

Vermilion Energy

(TSX:VET)

Rating:55Neutral
Price Target:
C$11.00
▲(3.87% Upside)
Vermilion Energy's overall stock score reflects a mixed financial performance with significant challenges in profitability and leverage. However, the positive earnings call, highlighting production growth and strategic asset sales, boosts the outlook. Technical analysis and valuation present moderate concerns, but the strong earnings call sentiment is a key positive factor.
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.
Negative Factors
European Gas Prices
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.

Vermilion Energy (VET) vs. iShares MSCI Canada ETF (EWC)

Vermilion Energy Business Overview & Revenue Model

Company DescriptionVermilion 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 MoneyVermilion Energy generates revenue primarily through the sale of crude oil, natural gas liquids, and natural gas. The company has a revenue model that is heavily dependent on commodity prices, which can fluctuate based on market conditions. Key revenue streams include production from its various operating regions, where it extracts and sells hydrocarbons. Additionally, Vermilion benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach. The company also focuses on optimizing its production costs and maintaining a balanced portfolio of assets to mitigate risks associated with price volatility in the energy sector.

Vermilion Energy Earnings Call Summary

Earnings Call Date:Aug 08, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant production growth, successful asset sales, cost reductions, and sustainability achievements. While there were some challenges related to deferred capital expenditures and lower gas price premiums, the overall outlook remains strong with strategic transitions positioning the company for future growth.
Q2-2025 Updates
Positive Updates
Strong Production Increase
Production for Q2 averaged 136,000 BOEs per day, a 32% increase from the prior quarter, due to the Westbrick acquisition.
Successful Asset Sales
Closed Saskatchewan and U.S. asset sales for $535 million, aiding strategic transition towards global gas production and debt reduction.
Cost Reductions in Montney Wells
Achieved a new cost benchmark of $8.5 million per well, reducing costs by $0.5 million per well from prior targets.
Significant Synergies Realized
Identified $200 million in synergies from Westbrick acquisition, with $100 million recognized in Q2.
Sustainability Milestone Achieved
Achieved Scope 1 emission reduction target of 16% one year ahead of plan.
Strong Gas Portfolio Performance
Realized gas price of $4.88 per Mcf in Q2, significantly higher than AECO benchmark of $1.69.
Negative Updates
Deferred Capital Expenditures
Capital expenditures were down due to seasonal factors and deferrals associated with divested assets.
Lower Q2 Gas Price Premium
Realized gas price premium relative to AECO was lower than in previous quarters.
Company Guidance
During the Vermilion Energy Q2 2025 conference call, the company provided several key performance metrics and guidance for the future. In Q2, Vermilion achieved an average production of 136,000 BOEs per day, marking a 32% increase from the previous quarter due to the Westbrick acquisition. The company closed asset sales in Saskatchewan and the U.S., generating $535 million in proceeds, contributing to debt reduction. Vermilion now has a production base of approximately 120,000 BOEs per day, with 70% weighted towards natural gas. The company reported $260 million in fund flows from operations and $144 million in free cash flow for Q2. Capital expenditure was lower, reflecting seasonal drilling activity and deferred spending. Vermilion set a new cost benchmark of $8.5 million per well for Montney wells, with future plans to invest $100 million in infrastructure and drill 40 wells by 2028. The company expects Q3 production to average between 117,000 to 120,000 BOEs per day, with full-year guidance remaining at 117,000 to 122,000 BOEs per day and capital guidance of $630 million to $660 million. Vermilion aims to end 2025 with approximately $1.3 billion in net debt, a decrease of $750 million from Q1, and plans to balance debt repayment with shareholder returns.

Vermilion Energy Financial Statement Overview

Summary
Vermilion Energy's financial performance is mixed. Revenue growth is positive, but profitability is a concern with negative net income and margins. The balance sheet shows stability but increased leverage, and cash flow generation is adequate but with declining free cash flow growth.
Income Statement
45
Neutral
Vermilion Energy's income statement shows a mixed performance. The company has experienced significant revenue growth in the TTM period, but profitability metrics such as net profit margin and EBIT margin are negative, indicating challenges in cost management or pricing. The gross profit margin has decreased compared to previous years, suggesting increased cost pressures. Overall, while revenue growth is a positive sign, the lack of profitability is a concern.
Balance Sheet
55
Neutral
The balance sheet reflects moderate financial stability. The debt-to-equity ratio has increased over the TTM period, indicating higher leverage, which could pose a risk if not managed properly. However, the company maintains a reasonable equity ratio, suggesting a solid asset base. Return on equity is negative, reflecting the company's current unprofitability. Overall, the balance sheet shows a stable asset base but increased leverage and negative returns are areas of concern.
Cash Flow
50
Neutral
Cash flow analysis reveals a decline in free cash flow growth, which is a negative indicator for liquidity. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from operations despite net losses. However, the free cash flow to net income ratio is low, indicating limited cash available after capital expenditures. Overall, the cash flow statement shows adequate operational cash generation but highlights challenges in maintaining free cash flow growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.08B2.07B1.93B3.72B2.23B1.25B
Gross Profit975.39M1.12B359.39M2.59B1.32B432.53M
EBITDA978.95M835.80M519.55M2.55B2.07B-1.19B
Net Income-185.12M-46.74M-237.59M1.31B1.15B-1.52B
Balance Sheet
Total Assets6.71B6.12B6.24B6.99B5.91B4.11B
Cash, Cash Equivalents and Short-Term Investments69.19M131.73M141.46M13.84M6.03M6.90M
Total Debt2.00B1.02B947.02M1.13B1.71B2.01B
Total Liabilities4.01B3.30B3.20B3.59B3.84B3.18B
Stockholders Equity2.69B2.81B3.03B3.40B2.07B925.40M
Cash Flow
Free Cash Flow141.55M332.04M292.06M1.26B459.66M132.95M
Operating Cash Flow767.99M967.75M1.02B1.81B834.45M500.15M
Investing Cash Flow-1.76B-634.87M-576.43M-1.06B-469.70M-401.43M
Financing Cash Flow786.30M-344.08M-320.34M-748.37M-363.45M-120.60M

Vermilion Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.59
Price Trends
50DMA
10.60
Negative
100DMA
9.82
Positive
200DMA
11.29
Negative
Market Momentum
MACD
-0.09
Negative
RSI
53.28
Neutral
STOCH
90.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VET, the sentiment is Positive. The current price of 10.59 is above the 20-day moving average (MA) of 10.44, below the 50-day MA of 10.60, and below the 200-day MA of 11.29, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 90.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VET.

Vermilion Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.26B7.313.02%5.32%4.27%-62.52%
55
Neutral
$1.60B4.40%4.75%-1.60%76.21%
$1.24B23.053.27%4.11%
$1.14B8.9025.93%6.16%
$869.32M-26.19%7.49%
$994.85M18.346.73%
$1.21B9.756.62%8.84%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:VET
Vermilion Energy
10.59
-2.75
-20.60%
BIREF
Birchcliff Energy
4.57
0.36
8.55%
CDDRF
Headwater Exploration
4.78
-0.09
-1.85%
AOIFF
Africa Oil
1.31
-0.07
-5.07%
KELTF
Kelt Exploration
5.00
0.28
5.93%
PARXF
Parex Resources
12.51
3.79
43.46%

Vermilion Energy Corporate Events

Dividends
Vermilion Energy Declares October 2025 Cash Dividend
Positive
Aug 7, 2025

Vermilion Energy Inc. announced a cash dividend of $0.13 CDN per common share, payable on October 15, 2025, to shareholders of record as of September 29, 2025. This dividend reflects Vermilion’s commitment to providing value to its shareholders and highlights its strong financial position in the energy sector, potentially enhancing investor confidence and market positioning.

The most recent analyst rating on (TSE:VET) stock is a Sell with a C$12.00 price target. To see the full list of analyst forecasts on Vermilion Energy stock, see the TSE:VET Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Vermilion Energy Reports Q2 2025 Results and Strategic Asset Divestments
Neutral
Aug 7, 2025

Vermilion Energy Inc. reported a net loss of $233 million for Q2 2025, primarily due to a non-cash adjustment related to assets held for sale in Saskatchewan and the United States. Despite this, the company generated $260 million in fund flows from operations, increased production from new wells, and reduced net debt significantly. Vermilion also completed asset divestments for $535 million, which were used to further reduce debt, aligning with their strategy of prioritizing free cash flow and debt reduction while returning capital to shareholders.

The most recent analyst rating on (TSE:VET) stock is a Sell with a C$12.00 price target. To see the full list of analyst forecasts on Vermilion Energy stock, see the TSE:VET Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Vermilion Energy Sells U.S. Assets, Refocuses on Gas-Weighted Operations
Neutral
Jun 5, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Vermilion Energy Sells Saskatchewan Assets to Strengthen Financial Position
Positive
May 23, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 24, 2025