Current VET Stock Info

International producer Vermilion Energy Inc. (ticker: VET) increased production by 8% from Q3 2017, reaching an average of 72,821 BOEPD in Q4 2017.

For Q4 2017, Vermilion Energy reported net earnings of $8.645 million, or $0.07 per share. This compares to a net loss of $4.032 million, or $(0.03) per share in Q4 2016.

Vermilion’s 2017 annual production volumes increased by 7% to 68,021 BOEPD.

For 2017, the company earned $62.258 million, or $0.52 per share. This compares to a net loss of $160.051 million, or $1.38 per share in 2016.

Capital expenditures in 2017 were $320 million, resulting in $282 million of free cash flow, Vermilion said.

This has allowed the company to fund its increased dividend and reduce debt. The board of directors has approved a 7% increase to the monthly dividend to $0.23 per share from $0.215 per share, effective with the April 2018 dividend to be paid on May 15, 2018.


  • In Germany, production in Q4 2017 averaged 4,180 BOEPD
  • In the United States, Q4 2017 production averaged 758 BOEPD
  • In Australia, Q4 2017 production averaged 4,993 Bbl/d

In France, Q4 2017 production averaged 11,215 BOEPD, an increase of 3% from the prior quarter. Activity during Q4 2017 was focused on well workovers and preparing for the 2018 drilling campaign. Vermilion accelerated part of its 2018 program, commencing the drilling on two (2.0 net) of the four (4.0 net) planned Neocomian wells. All remaining Neocomian wells are expected to be drilled in Q1 2018, the company said, along with the drilling of the planned three (3.0 net) Champotran wells.

In December 2017, the French parliament approved the proposed Climate Plan, which prohibits the issuance of new oil and gas exploration concessions and limiting the renewal of existing production concessions beyond 2040. Upon review of the final details included in the new legislation, Vermilion concluded that it does not expect these new laws to have a material impact on its future production profile.

Production in the Netherlands increased to 9,381 BOEPD in Q4 2017 following the amendment of permit restrictions on two key pools and an inline test on the Eesveen-02 well drilled in the prior quarter.  This represents a 59% increase over the prior quarter.

In Ireland, production from Corrib averaged 56 MMcf/d (9,372 BOEPD) in Q4 2017, a 15% increase from Q3 2017. In Q3 2017, Corrib had an unplanned 31-day downtime period following a plant turnaround that commenced in early September and extended through October 10th.  This downtime reduced Vermilion’s Q4 2017 production by approximately 1,200 BOEPD and annual production by approximately 900 BOEPD.

In Hungary, Vermilion was awarded a license in December 2017 for the Békéssámson concession for a four-year term. Located adjacent to the existing South Battonya concession in southeast Hungary, the Békéssámson concession covers 330,700 net acres (100% working interest) and more than doubles the size of total land position in the country. Subsequent to year-end, Vermilion drilled and tested its first exploratory well (100% working interest) in the South Battonya concession. The Mh-Ny-07 natural gas well tested at a rate of 5.8 MMcf/d, and is expected to be brought on production mid-2018. This marks the drilling of Vermilion’s first well in the Central and Eastern Europe business unit.

In Canada, the company drilled or participated in six (4.0 net) Mannville wells in Q4 2017, concluding the 2017 program. Canadian production averaged 32,923 BOEPD in Q4 2017, representing a 5% increase from the previous quarter and another quarterly record for the business unit. Subsequent to the end of the year, Vermilion announced and closed an acquisition of a private southeast Saskatchewan producer.  The acquisition added over 1,000 Bbl/d of high netback 40° API oil and 42,600 net acres of land straddling the Saskatchewan and Manitoba border, near Vermilion’s existing operations in southeast Saskatchewan.

CapEx and guidance increased

Vermilion has increased its 2018 capital guidance to $325 million, which is up from the previous $315 million guidance. The company also increased its full-year 2018 production guidance to a range of between 75,000-77,500 BOEPD, this is up from the previous 74,500-76,500 BOEPD guidance. Vermilion attributed these increases to the southeast Saskatchewan acquisition in Q1 2018.


Total proved (1P) reserves increased 0.5% to 176.6 MMBOE in 2017, while total proved plus probable (2P) reserves increased 3% to 298.5 MMBOE. Vermilion replaced 103% and 134% of production at the 1P and 2P levels, respectively, in 2017.

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