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CALGARY - Vermilion Energy Inc. (TSX:VET) (NYSE:VET) announced Thursday it has closed the previously announced sale of its Saskatchewan assets for gross proceeds of $415 million. The transaction comes at a crucial time for the company, which according to InvestingPro data, carries a total debt of $1.35 billion and faces short-term liquidity challenges.
The divested assets include approximately 10,500 barrels of oil equivalent per day (86% oil and liquids) of non-core light oil production located in Saskatchewan and Manitoba.
This transaction represents a significant step in Vermilion’s three-year strategic initiative to optimize its asset portfolio, with the company shifting focus toward long-duration, scalable assets with inventory of high-return capital opportunities.
The net cash proceeds will be used to strengthen the company’s balance sheet and provide additional capital allocation flexibility for its core Canadian and European assets, according to the company’s press release statement.
Vermilion Energy describes itself as a global gas producer focused on creating value through the acquisition, exploration and development of liquids-rich natural gas in Canada and conventional natural gas in Europe, while optimizing low-decline oil assets.
The company operates with a diversified portfolio across multiple regions, providing exposure to global commodity prices and capital allocation options.
In other recent news, Vermilion Energy announced the renewal of its share buyback program, allowing the company to repurchase up to 15,259,187 common shares, which represents about 10% of its public float. The program is set to begin on July 12, 2025, and will run until July 11, 2026. This announcement comes as Vermilion prepares to release its second quarter 2025 financial results on August 7. Additionally, the company has sold its United States oil and gas assets for $120 million in cash, a move aimed at reducing debt and focusing on core operations in Canada and Europe. Desjardins analysts responded to this sale by upgrading Vermilion Energy’s stock rating from Hold to Buy, citing improved financial positioning. The sale, effective January 1, 2025, is expected to close in the third quarter, with proceeds directed toward debt repayment. Vermilion’s 2025 guidance has been updated to reflect a reduced capital budget, now estimated between $630 and $660 million. The company expects its full-year 2025 production to range between 117,000 and 122,000 barrels of oil equivalent per day, with a significant focus on natural gas.
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