Vermilion Energy Reports Strong Q1 Production of 125,000 boe/d
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 07 2026
0mins
Vermilion Energy announces strong Q1 production. Q1 production averaged approximately 125,000 boe/d, exceeding the top end of our quarterly guidance range of 122,000 to 124,000 boe/d. Production was comprised of approximately 59% Canadian gas, 13% European gas and 28% liquids. This strong production result is driven by outperformance in both the Deep Basin and Montney, robust production from the Osterheide well in Germany, and new Montney wells brought online sooner than anticipated, partially offset by lower volumes in Australia due to cyclone-related downtime. European gas production in Q1 2026 realized an average sales price of approximately $16/MMBtu, reflecting significantly higher day-ahead gas prices during March 2026 amid heightened geopolitical developments in the Middle East. We remain on track to bring on new production from the first Wisselshorst well in Germany by mid-year, spud the next Netherlands well in the second half of 2026, and spud follow-up Germany Wisselshorst wells on the Bommelsen license in early 2027. In Australia, production operations at Wandoo safely resumed in mid-March 2026 following downtime related to Cyclone Mitchell in February 2026. The facility was subsequently shut-in due to Cyclone Narelle in late March 2026. The company expects to restore production in early Q2. Average production in Australia during the quarter was approximately 1,000 bbl/d, and we exported approximately 300,000 barrels of oil in February 2026.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy VET?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on VET
Wall Street analysts forecast VET stock price to fall
5 Analyst Rating
1 Buy
4 Hold
0 Sell
Hold
Current: 12.300
Low
9.01
Averages
9.87
High
10.81
Current: 12.300
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.
Analysts Upgrade Ratings for AMD and PLTR Amid AI Growth
- AMD Upgrade: Analyst Konstantinos Kosmidis upgraded AMD from Sell to Neutral, citing a 57% year-over-year growth in Q1 Data Center revenue and Q2 guidance exceeding consensus with a midpoint revenue of $11.2B, implying a 46% YoY growth, highlighting the company's strong growth potential driven by AI demand.
- PLTR Rating Change: Analyst Julian Lin upgraded Palantir from Sell to Neutral, noting an 85% year-over-year revenue increase and a 46% GAAP operating margin, indicating unprecedented profitability levels, with the rise of agentic AI positioning PLTR as a central enabler of generative AI.
- PSIX Downgrade: Analyst downgraded Power Solutions International from Hold to Sell, revealing a 62% drop in net income in Q1 despite only a 5% decline in net sales, with gross margin contracting to 22.9%, indicating severe operating leverage issues and a bleak outlook for recovery.
- VET Caution: Analyst downgraded Vermilion Energy to Neutral, noting good production and cash flow in Q1, but the shift towards natural gas production limits near-term cash flow upside, and after a 96% stock rally over the past year, the risk/reward profile is now less attractive.
See More
Energy Stocks Decline, NYSE Energy Sector Index Falls 3.8%
- 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
Analysts Upgrade Ratings for AMD and PLTR Amid AI Growth
- AMD Upgrade: Analyst Konstantinos Kosmidis upgraded AMD from Sell to Neutral, citing a 57% year-over-year growth in Q1 Data Center revenue and Q2 guidance exceeding consensus with a midpoint revenue of $11.2B, implying a 46% YoY growth, highlighting the company's strong growth potential driven by AI demand.
- PLTR Rating Change: Analyst Julian Lin upgraded Palantir from Sell to Neutral, noting an 85% year-over-year revenue increase and a 46% GAAP operating margin, indicating unprecedented profitability levels, with the rise of agentic AI positioning PLTR as a central enabler of generative AI.
- PSIX Downgrade: Analyst downgraded Power Solutions International from Hold to Sell, revealing a 62% drop in net income in Q1 despite only a 5% decline in net sales, with gross margin contracting to 22.9%, indicating severe operating leverage issues and a bleak outlook for recovery.
- VET Caution: Analyst downgraded Vermilion Energy to Neutral, noting good production and cash flow in Q1, but the shift towards natural gas production limits near-term cash flow upside, and after a 96% stock rally over the past year, the risk/reward profile is now less attractive.
See More
Energy Stocks Decline, NYSE Energy Sector Index Falls 3.8%
- 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
