Vermilion Energy (NYSE:VET) Announces Earnings Results

Vermilion Energy (NYSE:VET) (TSE:VET) announced its quarterly earnings results on Wednesday. The oil and gas company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.43), Zacks reports. Vermilion Energy had a negative net margin of 22.78% and a positive return on equity of 4.21%. The company had revenue of $417.06 million during the quarter, compared to analyst estimates of $332.96 million.

Here are the key takeaways from Vermilion Energy’s conference call:

• Vermilion generated CAD 237 million in Q3 fund flows and more than CAD 90 million in free cash flow. Year to date, it returned CAD 92 million to shareholders and reduced net debt by nearly CAD 180 million.
• The 2027 budget calls for CAD 675 million–CAD 725 million of capital spending and production of 122,000–126,000 BOE per day, representing about 2% absolute and 5% per-share growth from 2026. Management said roughly CAD 150 million of the spending is intended to add production from 2028 onward.
• Management increased its five-year excess free cash flow estimate by CAD 200 million to CAD 1.9 billion, and forecasts 2027 excess free cash flow to be more than 20% above 2026. It also plans to raise the 2027 annual dividend by 4% to CAD 0.56 per share.
• European gas production, temporarily reduced by planned maintenance and downtime, has been restored; Vermilion expects about 100 million cubic feet per day in Q4. The company is investing in German infrastructure and wells, with production growth from new discoveries expected by mid-2028.
• The Montney’s 28,000 BOE-per-day target has been pushed back to early 2029 from mid-2028 because of a delay in third-party gas-processing infrastructure. Vermilion plans to redirect capital to higher-return Deep Basin drilling in the interim.

Vermilion Energy Trading Down 0.7%

NYSE:VET traded down $0.07 on Friday, reaching $10.43. The company’s stock had a trading volume of 677,166 shares, compared to its average volume of 1,771,043. Vermilion Energy has a 12-month low of $7.76 and a 12-month high of $14.82. The company has a quick ratio of 0.90, a current ratio of 1.00 and a debt-to-equity ratio of 0.63. The firm has a market cap of $1.58 billion, a price-to-earnings ratio of -4.57 and a beta of 0.52. The stock has a 50 day moving average price of $12.55 and a 200 day moving average price of $11.63.

Vermilion Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be given a dividend of C$0.14 per share. This represents a $0.54 annualized dividend and a dividend yield of 5.2%. The ex-dividend date of this dividend is Tuesday, December 15th. Vermilion Energy’s payout ratio is presently -18.48%.

Analyst Upgrades and Downgrades

Several brokerages recently commented on VET. Wall Street Zen raised shares of Vermilion Energy from a “hold” rating to a “strong-buy” rating in a report on Saturday, August 1st. Desjardins raised shares of Vermilion Energy to a “hold” rating in a report on Thursday, July 16th. Canadian Imperial Bank of Commerce reiterated a “neutral” rating on shares of Vermilion Energy in a research report on Friday, October 9th. Weiss Ratings cut shares of Vermilion Energy from a “sell (d)” rating to a “sell (d-)” rating in a research note on Thursday, October 8th. Finally, TD Securities restated a “buy” rating on shares of Vermilion Energy in a research report on Friday, July 31st. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Vermilion Energy has an average rating of “Hold” and a consensus target price of $15.00.

About Vermilion Energy

Vermilion Energy Inc is a Canadian-based international oil and natural gas producer headquartered in Calgary, Alberta. Founded in 1994, the company explores for, develops, and produces crude oil, condensate, natural gas liquids, and natural gas.

Vermilion operates a geographically diversified portfolio of assets in North America and Europe, with activities in Canada, the United States, France, the Netherlands, Germany, and Croatia. Its production includes conventional and unconventional oil and gas, with operations focused on developing reserves and supplying energy to regional and international markets.

The company’s shares trade on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET.