Vermilion Energy reports key corporate update

Published 07/03/2025, 17:06
Vermilion Energy reports key corporate update

CALGARY, Alberta – Vermilion Energy Inc. (NYSE:VET), a $1.18 billion market cap player in the crude petroleum and natural gas industry, has filed a report with the Securities and Exchange Commission (SEC) today, detailing a significant corporate development. According to InvestingPro data, the company’s stock has declined over 12% in the past week, making this filing particularly noteworthy. The Form 6-K, a report for foreign private issuers, contains a material change report dated February 26, 2025.

This document, filed as of today, is a requirement for the company under the Securities Exchange Act of 1934, as it is registered with the SEC. Vermilion Energy, which is incorporated in Alberta, Canada, has indicated in the filing that it submits annual reports on Form 40-F, which is the registration used by certain Canadian issuers. The company currently maintains a FAIR financial health score according to InvestingPro analysis, with annual revenues of $1.25 billion.

The company, with its principal executive offices located at 3500, 520 - 3rd Avenue S.W., Calgary, Alberta, has not disclosed the specifics of the material change in the publicly available portion of the filing. The details of the report are crucial for investors and stakeholders as they often contain information that could impact the company’s financial position or market performance. Currently, InvestingPro analysis suggests the stock is trading below its Fair Value, with a notable dividend yield of 4.47% and management actively buying back shares.

The SEC filing was signed by Lars Glemser, Vermilion Energy’s Vice President and Chief Financial Officer, ensuring the company’s compliance with the regulatory requirements.

Vermilion Energy has a history that dates back to its former name, Vermilion Energy Trust, with a name change occurring on June 7, 2004. The company operates within the energy sector, specifically focusing on the exploration and production of oil and natural gas.

Investors and market watchers are encouraged to review the full material change report for a comprehensive understanding of the developments at Vermilion Energy. The report based on the SEC filing highlights the company’s commitment to transparency and regulatory compliance.

This news is based on a press release statement and aims to provide shareholders and the public with essential information about Vermilion Energy Inc (TSX:VET).’s latest corporate developments.

In other recent news, Vermilion Energy Inc. has announced a significant acquisition of Westbrick Energy Ltd. for $1.075 billion, aiming to enhance its operational scale in the Deep Basin. The acquisition is expected to close in the first quarter of 2025 and will be funded through a combination of credit facilities and loans, potentially raising Vermilion’s net debt to $2.0 billion. In addition to this, Vermilion has priced a $400 million offering of senior unsecured notes, with proceeds possibly directed towards redeeming existing notes, funding the Westbrick acquisition, and covering associated costs. These notes carry a 7.250% annual coupon and are expected to mature in 2033.

Furthermore, Vermilion has released its 2025 budget, detailing capital expenditures of $600 to $625 million for drilling and infrastructure, with a production guidance increase to 84,000 to 88,000 barrels of oil equivalent per day. The company also plans to invest heavily in North American assets, including the BC Montney and Alberta Deep Basin. Vermilion forecasts a fund flow from operations of approximately $1.0 billion and free cash flow of $400 million for 2025, alongside an 8% increase in its quarterly cash dividend.

Additionally, Vermilion’s active commodity hedge program covers 30% of its 2025 production, aiming to mitigate price volatility. The company remains committed to returning capital to shareholders through dividends and share buybacks, having already retired 16.8 million shares since mid-2022. These developments reflect Vermilion’s strategic focus on growth and financial optimization.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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