Vermilion Energy Reports Q1 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy VET?
Source: seekingalpha
- Financial Performance: Vermilion Energy reported a Q1 GAAP EPS of -C$0.92, reflecting challenges amid market volatility; however, it generated C$232 million in fund flows from operations (C$1.52 per share), laying a solid foundation for future investments.
- Free Cash Flow: The company produced C$98 million in free cash flow during Q1, fully funding C$135 million in exploration and development capital expenditures, indicating effective capital allocation and financial robustness.
- Shareholder Returns: Vermilion strengthened its balance sheet and returned cash to shareholders through strong cash flow performance, demonstrating its commitment to enhancing shareholder value.
- Market Expansion: The company's strategic expansion in the German market and exit from Croatian assets highlight Vermilion's decision-making capabilities in optimizing its asset portfolio and focusing on high-potential markets.
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Analyst Views on VET
Wall Street analysts forecast VET stock price to fall
5 Analyst Rating
1 Buy
4 Hold
0 Sell
Hold
Current: 11.860
Low
9.01
Averages
9.87
High
10.81
Current: 11.860
Low
9.01
Averages
9.87
High
10.81
About VET
Vermilion Energy Inc. is a Canada-based global gas producer. The Company seeks to create value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia. Its geographical segments include Canada, USA, France, Netherlands, Germany, Ireland, Australia, and Central & Eastern Europe (CEE). Its operations are focused on the exploitation of light oil and liquids-rich natural gas conventional and unconventional resource plays in North America and the exploration and development of conventional natural gas and oil opportunities in Europe and Australia. Its Canadian production and assets are focused on West Pembina near Drayton Valley, Alberta, in the Peace River Arch in northeast British Columbia and northwest Alberta and in southeast Saskatchewan and southwest Manitoba. Its assets in France are located in Aquitaine and Paris Basins. In Netherlands, its producing assets are located in the northwest part of the country.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investor Sentiment Deteriorates: Signs of a slowing global economy have led to diminished interest in energy stocks among investors, resulting in decreased trading volumes that further exacerbate downward pressure on prices.
- Significant Industry Impact: The decline in energy stocks may affect the financing capabilities and future investment plans of related companies, particularly in the capital-intensive energy sector, potentially leading to project delays or reductions.
- Increased Market Volatility: As uncertainty around energy prices rises, investors may shift towards more stable assets, resulting in heightened volatility in energy stocks that could impact overall market stability.
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- Strong Cash Flow: The company generated C$232 million in fund flows from operations and C$98 million in free cash flow, indicating robust fundamentals that can support future investments and shareholder returns, even amidst reported losses.
- Significant Production Growth: Average production reached 125,618 barrels of oil equivalent per day, a 22% year-over-year increase that exceeded guidance, driven by strong results from its Canadian Deep Basin and Montney assets, showcasing its competitive position in the market.
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Vermilion Energy Reports Q1 Financial Results
- Financial Performance: Vermilion Energy reported a Q1 GAAP EPS of -C$0.92, reflecting challenges amid market volatility; however, it generated C$232 million in fund flows from operations (C$1.52 per share), laying a solid foundation for future investments.
- Free Cash Flow: The company produced C$98 million in free cash flow during Q1, fully funding C$135 million in exploration and development capital expenditures, indicating effective capital allocation and financial robustness.
- Shareholder Returns: Vermilion strengthened its balance sheet and returned cash to shareholders through strong cash flow performance, demonstrating its commitment to enhancing shareholder value.
- Market Expansion: The company's strategic expansion in the German market and exit from Croatian assets highlight Vermilion's decision-making capabilities in optimizing its asset portfolio and focusing on high-potential markets.
See More
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- Production Growth: The total production reached 125,618 boe/d in Q1, a 22% increase from Q1 2025, with natural gas comprising 72%, reflecting strong performance in the Deep Basin and Montney oil fields.
- Capital Expenditures and Cash Flow: Vermilion's capital expenditures were CAD 135 million in Q1, generating CAD 97.7 million in free cash flow, primarily allocated to debt repayment and shareholder returns, showcasing effective capital allocation.
- Debt Management: As of March 31, 2026, the company's net debt decreased to CAD 1.29 billion, with a net debt to trailing fund flows ratio of 1.4, demonstrating ongoing efforts in debt reduction and solid financial health.
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- Strong Output Performance: The company reported robust output in Q1, further solidifying its position in the energy market, particularly against the backdrop of rising European natural gas prices, highlighting its competitive edge.
- Market Expansion Strategy: Vermilion is expanding its footprint in Germany, reflecting its commitment to the European market and aiming to enhance overall competitiveness by increasing market share amid rising energy demand.
- Asset Disposal Dynamics: The exit from its Croatian assets indicates a strategic decision to optimize its portfolio, focusing resources on more promising markets to enhance overall operational efficiency.
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- Market Weakness: Energy stocks experienced a broad decline on Wednesday afternoon, with the NYSE Energy Sector Index falling 3.8%, indicating growing concerns about energy demand prospects that could undermine investor confidence.
- Investor Sentiment Deteriorates: Signs of a slowing global economy have led to diminished interest in energy stocks among investors, resulting in decreased trading volumes that further exacerbate downward pressure on prices.
- Significant Industry Impact: The decline in energy stocks may affect the financing capabilities and future investment plans of related companies, particularly in the capital-intensive energy sector, potentially leading to project delays or reductions.
- Increased Market Volatility: As uncertainty around energy prices rises, investors may shift towards more stable assets, resulting in heightened volatility in energy stocks that could impact overall market stability.
See More
Vermilion Energy Reports Q1 2026 Net Loss of 11%
- Financial Overview: Vermilion Energy reported a net loss of C$0.92 per share for Q1 2026, primarily due to a C$286 million unrealized loss on derivative contracts, highlighting the company's vulnerability in the volatile oil and gas market despite solid operational performance.
- Strong Cash Flow: The company generated C$232 million in fund flows from operations and C$98 million in free cash flow, indicating robust fundamentals that can support future investments and shareholder returns, even amidst reported losses.
- Significant Production Growth: Average production reached 125,618 barrels of oil equivalent per day, a 22% year-over-year increase that exceeded guidance, driven by strong results from its Canadian Deep Basin and Montney assets, showcasing its competitive position in the market.
- Debt Management and Shareholder Returns: Vermilion successfully reduced net debt by C$50 million to C$1.29 billion and returned C$27 million to shareholders through dividends and buybacks, demonstrating effective financial management despite ongoing commodity price volatility risks.
See More
Vermilion Energy Reports Q1 Financial Results
- Financial Performance: Vermilion Energy reported a Q1 GAAP EPS of -C$0.92, reflecting challenges amid market volatility; however, it generated C$232 million in fund flows from operations (C$1.52 per share), laying a solid foundation for future investments.
- Free Cash Flow: The company produced C$98 million in free cash flow during Q1, fully funding C$135 million in exploration and development capital expenditures, indicating effective capital allocation and financial robustness.
- Shareholder Returns: Vermilion strengthened its balance sheet and returned cash to shareholders through strong cash flow performance, demonstrating its commitment to enhancing shareholder value.
- Market Expansion: The company's strategic expansion in the German market and exit from Croatian assets highlight Vermilion's decision-making capabilities in optimizing its asset portfolio and focusing on high-potential markets.
See More
Vermilion Energy Reports Q1 2026 Financial Highlights
- Financial Performance: In Q1 2026, Vermilion Energy reported fund flows from operations of CAD 232 million, slightly down from CAD 241 million in Q4 2025, indicating resilience amid global energy market uncertainties.
- Production Growth: The total production reached 125,618 boe/d in Q1, a 22% increase from Q1 2025, with natural gas comprising 72%, reflecting strong performance in the Deep Basin and Montney oil fields.
- Capital Expenditures and Cash Flow: Vermilion's capital expenditures were CAD 135 million in Q1, generating CAD 97.7 million in free cash flow, primarily allocated to debt repayment and shareholder returns, showcasing effective capital allocation.
- Debt Management: As of March 31, 2026, the company's net debt decreased to CAD 1.29 billion, with a net debt to trailing fund flows ratio of 1.4, demonstrating ongoing efforts in debt reduction and solid financial health.
See More
Vermilion Energy to Announce Q1 Earnings on May 5
- Earnings Announcement Schedule: Vermilion Energy is set to release its Q1 earnings report on May 5 after market close, with consensus EPS estimated at $0.20 and revenue expected to reach $370.55 million, indicating stable performance in the market.
- Strong Output Performance: The company reported robust output in Q1, further solidifying its position in the energy market, particularly against the backdrop of rising European natural gas prices, highlighting its competitive edge.
- Market Expansion Strategy: Vermilion is expanding its footprint in Germany, reflecting its commitment to the European market and aiming to enhance overall competitiveness by increasing market share amid rising energy demand.
- Asset Disposal Dynamics: The exit from its Croatian assets indicates a strategic decision to optimize its portfolio, focusing resources on more promising markets to enhance overall operational efficiency.
See More
AVDV Stock Price Analysis and ETF Dynamics
- Price Fluctuation Analysis: AVDV's 52-week low is $69.43 and high is $110.469, with the latest trade at $108.45, indicating the stock is nearing its high point, which may attract investor interest.
- Technical Analysis Tool: Comparing the latest stock price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and potential buying opportunities.
- ETF Unit Trading Mechanism: Exchange-traded funds (ETFs) trade in 'units' rather than traditional shares, allowing investors to buy and sell these units, which enables ETFs to adapt flexibly to market demand changes.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF shares outstanding focuses on significant inflows (new units created) or outflows (old units destroyed), as these changes can impact the performance of individual stocks held within the ETFs.
See More
