- Vermilion Energy projects average production for 2025 to be between 84,000 and 88,000 barrels of oil equivalent per day (boe/d).
- The company has announced a capital expenditure budget ranging from C$600 million to C$625 million for 2025.
- Vermilion Energy will increase its quarterly dividend by 8%, raising it to C$0.13 per share from the previous C$0.12.
- For 2025, Vermilion expects fund flows from operations (FFO) to be around C$1.0 billion.
- Free cash flow (FCF) is projected to be approximately C$400 million in 2025.
- Enhanced free cash flow (EFCF) is anticipated to be about C$320 million after accounting for specific costs like asset retirement obligations and lease payments.
- The company aims to allocate 50% of the EFCF to shareholder returns, including the increased dividend, while focusing the rest on reducing debt.
- Projected growth in production for 2025 is around 2% at the midpoint, compared to the original guidance for 2024.
- Lease obligation payments are expected to decrease significantly from $110 million in 2024 to about $20 million in 2025.
- Analysts’ recommendations include 8 buy ratings and 5 hold ratings, with no sell ratings reported.
A look at Vermilion Energy Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts are optimistic about Vermilion Energy‘s long-term prospects, as indicated by the Smartkarma Smart Scores across various factors. With a strong value score of 4, the company is believed to be trading at an attractive price relative to its fundamentals. Additionally, Vermilion Energy‘s solid Momentum score of 4 suggests positive market sentiment and potential for future growth. Despite moderate scores in Dividend, Growth, and Resilience, the overall outlook for Vermilion Energy appears promising.
Vermilion Energy, Inc. is engaged in oil and natural gas exploration, development, and production across multiple countries including Canada, Australia, France, and the Netherlands. The company’s Smartkarma Smart Scores highlight its favorable valuation, market momentum, and international presence, positioning Vermilion Energy for potential long-term success in the energy sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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