VET Earnings Prediction
The chart below shows how VET performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VET sees a +2.20% change in stock price 10 days leading up to the earnings, and a +1.11% change 10 days following the report. On the earnings day itself, the stock moves by -0.82%. This data can give you a slight idea of what to expect for the next quarter's release.
VET Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
461.81M
-6.62%
0.18%
Gross Margin
27.80%
-18.81%
-2.11%
Operating Margin
15.44%
-30.61%
5.18%
Net Margin
11.19%
-3.45%
-162.58%
EPS
0.33
-2.94%
-163.46%
No Data Available
VET Earnings Analysis
VERMILION ENERGY INC. Corporation (VET.N) Earnings Conference Call
Positive
Production Increase Report: 1. Increased Production: Vermilion Energy reported an average production of 84,173 BOEs per day in Q3 2024, reflecting a 7% increase on a per share basis year-over-year due to modest production growth and consistent share buybacks.
Fund Flow Increase: 2. Strong Fund Flows: The company generated $275 million in fund flows from operations during Q3 2024, equating to $1.76 per share, which is a 19% increase over the prior quarter driven by stronger European gas prices.
Gas Price Achievement: 3. High Realized Gas Prices: Vermilion achieved a corporate realized gas price of $6.57 per MCF in Q3 2024, nearly 10 times higher than the AECO benchmark price of $0.69 per MCF, showcasing the benefits of their diversified portfolio.
Free Cash Flow Highlights: 4. Significant Free Cash Flow: The company reported free cash flow of $154 million for Q3 2024, with $59 million returned to shareholders through dividends and share buybacks, contributing to a year-to-date total of $180 million returned, or $1.13 per share.
Share Buyback Impact: 5. Effective Share Buyback Program: Year-to-date, Vermilion has repurchased and canceled 8 million shares, reducing the outstanding share count to approximately 155 million, which has positively impacted per share metrics and shareholder returns.
Negative
AECO Pricing Challenges: 1. Weak AECO Pricing Impact: The company experienced a partial shut-in of Canadian gas due to very weak AECO pricing, which averaged $0.69 per MCF, significantly lower than European gas prices.
Production Efficiency Issues: 2. Production Challenges: Production from North American operations averaged 53,936 BOEs per day in Q3, indicating potential operational inefficiencies compared to the company's overall production goals.
Capital Investment Concerns: 3. High Capital Expenditure: The company invested $121 million in exploration and development capital in Q3, which may strain financial resources given the current market conditions.
Debt Management Challenges: 4. Debt Levels: Despite reducing net debt by $73 million to $833 million, the company still carries a significant debt load, which could limit financial flexibility in a volatile market.
Limited Production Growth Outlook: 5. Limited Near-Term Production Growth: The company narrowed its 2024 production guidance to 84,000 to 85,000 BOE per day, reflecting only modest growth and potential operational constraints.
VET FAQs
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VET Earning Call Sentiment
Vermilion Energy Inc. (VET) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
VET.N
-3.68%Positive
The earnings call reflects strong financial performance, with increased production, significant debt reduction, and robust shareholder returns through dividends and buybacks. The Q&A session highlights potential growth in Germany and a positive outlook for European gas prices. Despite some management vagueness, the overall sentiment remains positive, particularly with plans to continue buybacks and the potential for further dividend increases. The market cap suggests a moderate reaction, likely in the 2% to 8% range, driven by strong financials and optimistic guidance.
