Vermilion Energy Inc. (NYSE:VET) to Issue Quarterly Dividend of C$0.14

Key Points

• Vermilion Energy declared a quarterly dividend of C$0.135 per share (≈C$0.14), payable June 30 to shareholders of record on June 15, implying a yield of about 4.6%.
• The company has a negative payout ratio (−139.3%), meaning it cannot currently cover the dividend with earnings and is relying on the balance sheet, although analysts expect higher EPS next year that could improve coverage.
• Shares fell 13.1% to $11.85 on heavy volume following the report; the consensus analyst rating is "Hold" with an average target of $15 (one Buy, six Hold, one Sell).

Vermilion Energy Inc. (NYSE:VET - Get Free Report) TSE: VET declared a quarterly dividend on Wednesday, May 6th. Investors of record on Monday, June 15th will be given a dividend of 0.135 per share by the oil and gas company on Tuesday, June 30th. This represents a c) annualized dividend and a yield of 4.6%. The ex-dividend date of this dividend is Monday, June 15th.

Vermilion Energy has decreased its dividend payment by an average of 0.0%annually over the last three years and has increased its dividend every year for the last 3 years. Vermilion Energy has a payout ratio of -139.3% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Vermilion Energy to earn $0.65 per share next year, which means the company should continue to be able to cover its $0.39 annual dividend with an expected future payout ratio of 60.0%.

Vermilion Energy Trading Down 13.1%

Shares of Vermilion Energy stock traded down $1.79 on Wednesday, hitting $11.85. 3,242,264 shares of the company's stock traded hands, compared to its average volume of 2,208,543. The firm's 50-day moving average price is $12.43 and its two-hundred day moving average price is $10.03. The stock has a market capitalization of $1.81 billion, a PE ratio of -3.87 and a beta of 0.36. Vermilion Energy has a one year low of $5.89 and a one year high of $14.82. The company has a debt-to-equity ratio of 0.58, a current ratio of 0.84 and a quick ratio of 0.76.

Vermilion Energy (NYSE:VET - Get Free Report) TSE: VET last issued its earnings results on Wednesday, May 6th. The oil and gas company reported $999.00 EPS for the quarter, beating the consensus estimate of $0.22 by $998.78. Vermilion Energy had a negative net margin of 34.30% and a positive return on equity of 3.80%. On average, research analysts expect that Vermilion Energy will post 0.54 EPS for the current fiscal year.

Analysts Set New Price Targets

Several analysts have commented on the stock. TD Securities reiterated a "hold" rating on shares of Vermilion Energy in a research report on Thursday, March 5th. Zacks Research cut shares of Vermilion Energy from a "strong-buy" rating to a "hold" rating in a research report on Thursday, April 9th. Scotiabank reiterated a "sector perform" rating on shares of Vermilion Energy in a research report on Tuesday, April 21st. Weiss Ratings upgraded shares of Vermilion Energy from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, April 22nd. Finally, ATB Cormark Capital Markets upgraded shares of Vermilion Energy from a "hold" rating to a "buy" rating in a research report on Friday, March 27th. One research analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Vermilion Energy currently has an average rating of "Hold" and a consensus target price of $15.00.

Vermilion Energy Company Profile

Vermilion Energy Inc is a Canadian-based international oil and gas producer headquartered in Calgary, Alberta. Established in 1994, the company focuses on the exploration, development and production of crude oil and natural gas reserves through its wholly owned and joint venture assets. Vermilion's upstream operations target a balance of oil and gas projects across various regions, with an emphasis on high-quality resource plays that can deliver stable cash flow and long-term reserves replacement.

Vermilion's product portfolio includes light and medium crude oil, heavy oil, natural gas and natural gas liquids (NGLs).

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