Vermilion Energy (NYSE:VET) Releases Earnings Results, Misses Expectations By $0.43 EPS

Key Points

• Vermilion reported a quarterly loss of $0.16 per share, missing analysts’ $0.27 EPS estimate by $0.43.
• Despite the earnings miss, the company generated CAD 237 million in Q3 fund flows and over CAD 90 million in free cash flow; year to date, it returned CAD 92 million to shareholders and cut net debt by nearly CAD 180 million.
• Management raised its five-year excess free cash flow estimate to CAD 1.9 billion and plans 2027 production growth of about 2%, while targeting a 4% increase in the annual dividend. Shares fell 13.2% on Wednesday.

Vermilion Energy (NYSE:VET - Get Free Report) TSE: VET issued its quarterly earnings results on Wednesday. The oil and gas company reported ($0.16) EPS for the quarter, missing analysts' consensus estimates of $0.27 by ($0.43), Zacks reports. Vermilion Energy had a positive return on equity of 5.26% and a negative net margin of 22.48%.

Here are the key takeaways from Vermilion Energy's conference call:

• Vermilion generated CAD 237 million in Q3 fund flows and more than CAD 90 million in free cash flow. Year to date, it returned CAD 92 million to shareholders and reduced net debt by nearly CAD 180 million.
• The 2027 budget calls for CAD 675 million–CAD 725 million of capital spending and production of 122,000–126,000 BOE per day, representing about 2% absolute and 5% per-share growth from 2026. Management said roughly CAD 150 million of the spending is intended to add production from 2028 onward.
• Management increased its five-year excess free cash flow estimate by CAD 200 million to CAD 1.9 billion, and forecasts 2027 excess free cash flow to be more than 20% above 2026. It also plans to raise the 2027 annual dividend by 4% to CAD 0.56 per share.
• European gas production, temporarily reduced by planned maintenance and downtime, has been restored; Vermilion expects about 100 million cubic feet per day in Q4. The company is investing in German infrastructure and wells, with production growth from new discoveries expected by mid-2028.
• The Montney’s 28,000 BOE-per-day target has been pushed back to early 2029 from mid-2028 because of a delay in third-party gas-processing infrastructure. Vermilion plans to redirect capital to higher-return Deep Basin drilling in the interim.

Vermilion Energy Trading Down 13.2%

Vermilion Energy stock traded down $1.64 during mid-day trading on Wednesday, hitting $10.74. The stock had a trading volume of 3,124,550 shares, compared to its average volume of 1,768,172. The company has a current ratio of 1.00, a quick ratio of 0.90 and a debt-to-equity ratio of 0.63. Vermilion Energy has a 12 month low of $7.30 and a 12 month high of $14.82. The stock has a market capitalization of $1.63 billion, a PE ratio of -5.09 and a beta of 0.52. The stock has a 50-day simple moving average of $12.62 and a two-hundred day simple moving average of $11.61.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Wall Street Zen raised Vermilion Energy from a "hold" rating to a "strong-buy" rating in a report on Saturday, August 1st. Canadian Imperial Bank of Commerce reaffirmed a "neutral" rating on shares of Vermilion Energy in a report on Friday, October 9th. TD Securities reissued a "buy" rating on shares of Vermilion Energy in a research note on Friday, July 31st. Weiss Ratings downgraded Vermilion Energy from a "sell (d)" rating to a "sell (d-)" rating in a report on Thursday, October 8th. Finally, Desjardins raised shares of Vermilion Energy to a "hold" rating in a research report on Thursday, July 16th. Two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $15.00.

Vermilion Energy Company Profile

Vermilion Energy Inc is a Canadian-based international oil and natural gas producer headquartered in Calgary, Alberta. Founded in 1994, the company explores for, develops, and produces crude oil, condensate, natural gas liquids, and natural gas.

Vermilion operates a geographically diversified portfolio of assets in North America and Europe, with activities in Canada, the United States, France, the Netherlands, Germany, and Croatia. Its production includes conventional and unconventional oil and gas, with operations focused on developing reserves and supplying energy to regional and international markets.

The company's shares trade on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET.

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