Vermilion Energy (VET) Q1 & AGM 2025 earnings summary

Executive summary

• Q1 2025 production rose 23% year-over-year to over 103,000 boe/d, driven by the Westbrick acquisition, which added about 50,000 boe/d and over 700 net drilling locations in Alberta Deep Basin.

• Integration of Westbrick is ahead of plan, with $100 million (NPV10) in identified operational and development synergies and further upside expected.

• Q1 2025 fund flows from operations reached $256 million, with $74 million in free cash flow after $182 million in E&D capital spending.

• Net debt increased to just over $2 billion (1.7x trailing fund flows), reflecting the Westbrick acquisition, with a deleveraging plan underway including non-core asset sales.

• Shareholder returns in Q1 totaled $37 million ($20 million in dividends, $17 million in buybacks).

Financial highlights

• Q1 2025 fund flows from operations: $256 million; free cash flow: $74 million; capital spending: $182 million.

• North American production averaged 73,760 boe/d, up 41% sequentially; international production averaged 29,355 boe/d, down 6%.

• Net debt to trailing fund flows ratio increased to 1.7x from 0.8x sequentially.

• Quarterly dividend of $0.13/share, increased four times since 2022, remains well covered at less than 8% of forecasted fund flow.

• Over 50% of 2025 production and 30% of 2026 production hedged.

Outlook and guidance

• 2025 capital budget remains at $730–$760 million, with annual fund flows forecasted at $1.0–$1.1 billion and over $300 million in free cash flow.

• Q2 2025 production expected at 134,000–136,000 boe/d, including a full quarter of Westbrick.

• 60% of excess free cash flow to debt reduction, 40% to shareholder returns.

• Capital program remains focused on global gas assets, with flexibility to adjust for market conditions or asset divestments.

• Return of capital framework unchanged, with continued dividends and share buybacks.