Vermilion Energy announces renewal of share buyback program

Published 09/07/2025, 22:06
Vermilion Energy announces renewal of share buyback program

CALGARY - Vermilion Energy Inc. (TSX:VET) (NYSE:VET), currently trading below InvestingPro’s calculated Fair Value, received approval from the Toronto Stock Exchange for a normal course issuer bid to repurchase up to 15,259,187 common shares, representing approximately 10% of its public float.

The buyback program will commence on July 12, 2025, and expire no later than July 11, 2026. Daily purchases will be limited to 205,865 shares, with the exception that the company may make one block purchase per week exceeding this limit.

Vermilion will enter an automatic share purchase plan with its designated broker to allow for purchases during self-imposed blackout periods. The company had 154,018,623 common shares outstanding as of June 30, 2025.

Under its prior buyback program running from July 12, 2024, to July 11, 2025, Vermilion has repurchased 5,631,463 common shares at a weighted average price of $12.96 per share.

The company stated it anticipates returning 40% of excess free cash flow to shareholders in 2025, primarily through dividends and share repurchases. Vermilion noted in its press release statement that it believes its shares are trading below their appropriate value.

Vermilion also announced it will release its second quarter 2025 financial results on August 7, with a conference call to discuss the results scheduled for August 8.

The Calgary-based company describes itself as a global gas producer with operations in Canada and Europe, focusing on liquids-rich natural gas and conventional natural gas assets. According to InvestingPro’s comprehensive analysis, which includes over 30 key metrics and exclusive insights available in their Pro Research Report, Vermilion maintains a gross profit margin of 64% despite challenging market conditions.

In other recent news, Vermilion Energy has announced the sale of its United States oil and gas assets for $120 million in cash. This move is part of the company’s strategy to focus on core operations in Canada and Europe while reducing its debt. The assets sold include approximately 5,500 barrels of oil equivalent per day, with proven developed producing reserves estimated at 10 million barrels of oil equivalent. The transaction is expected to close in the third quarter of 2025, with Vermilion planning to use the proceeds to repay debt and strengthen its balance sheet.

Following this development, Desjardins analysts have upgraded Vermilion Energy’s stock from Hold to Buy, citing the positive impact of the asset sale on the company’s financial position. Desjardins also raised the price target for Vermilion Energy to C$11.50 from C$11.00. The analysts highlighted the transaction’s favorable terms and noted that it completes the company’s divestiture of non-core North American assets. Vermilion has also updated its 2025 guidance, reducing its capital budget and adjusting its production expectations. The company plans to allocate over 80% of its capital to its global gas portfolio, with more than 90% of production expected to come from this segment.

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