Vermilion Energy (NYSE:VET) Posts Earnings Results, Misses Estimates By $0.89 EPS

Vermilion Energy (NYSE:VET - Get Free Report) TSE: VET issued its quarterly earnings data on Wednesday. The oil and gas company reported ($0.67) earnings per share for the quarter, missing analysts' consensus estimates of $0.22 by ($0.89), Zacks reports. Vermilion Energy had a negative net margin of 43.49% and a negative return on equity of 2.29%. The company had revenue of $369.04 million during the quarter, compared to the consensus estimate of $368.66 million.

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

• Production averaged 125,600 BOE/d in Q1, above the upper end of guidance; Canada production rose 10% QoQ and Q2 guidance is 123,000–125,000 BOE/d with liquids weighting rising to ~31%.
• Generated CAD 232 million of funds from operations and CAD 98 million of free cash flow, while net debt fell by CAD 50 million to CAD 1.29 billion (CAD 770 million reduction year‑over‑year) with visibility to a CAD 1.0 billion net‑debt target.
• Q1 included hedge losses—realized hedge loss of CAD 15 million and larger unrealized, non‑cash mark‑to‑market losses that would be realized only if prices remain at March 31 levels, which weighs on near‑term reported results.
• Ongoing cost and capital efficiency gains—Montney per‑well cost lowered to CAD 8.2 million (down CAD 300k), OpEx/G&A/interest per BOE materially reduced vs 2025, and Deep Basin synergies now exceeding CAD 200 million.
• Europe strategy advancing—Wisselhorst well due mid‑2026, acquisition adding ~1,000 BOE/d and three new concessions doubling German acreage to >1 million net acres, while strong European gas pricing (>CAD 20/MMBtu in Q2) and liquids exposure drove ~80% of Q1 revenue.

Vermilion Energy Price Performance

Shares of NYSE:VET opened at $11.85 on Friday. The company has a market cap of $1.81 billion, a price-to-earnings ratio of -3.10 and a beta of 0.36. The business has a 50 day moving average price of $12.48 and a 200 day moving average price of $10.10. The company has a quick ratio of 0.76, a current ratio of 0.84 and a debt-to-equity ratio of 0.58. Vermilion Energy has a twelve month low of $5.89 and a twelve month high of $14.82.

Vermilion Energy Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be paid a dividend of $0.135 per share. The ex-dividend date is Monday, June 15th. This represents a $0.54 annualized dividend and a yield of 4.6%. Vermilion Energy's dividend payout ratio is presently -13.07%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Invesco Ltd. boosted its position in shares of Vermilion Energy by 6.1% in the fourth quarter. Invesco Ltd. now owns 93,694 shares of the oil and gas company's stock valued at $781,000 after acquiring an additional 5,359 shares during the period. Mercer Global Advisors Inc. ADV increased its position in Vermilion Energy by 12.2% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 11,846 shares of the oil and gas company's stock worth $99,000 after acquiring an additional 1,289 shares during the period. Mackenzie Financial Corp increased its position in Vermilion Energy by 130.2% during the fourth quarter. Mackenzie Financial Corp now owns 3,174,261 shares of the oil and gas company's stock worth $26,483,000 after acquiring an additional 1,795,636 shares during the period. XTX Topco Ltd acquired a new position in Vermilion Energy during the 4th quarter valued at $448,000. Finally, Voloridge Investment Management LLC raised its stake in Vermilion Energy by 20.9% during the 4th quarter. Voloridge Investment Management LLC now owns 695,460 shares of the oil and gas company's stock valued at $5,800,000 after purchasing an additional 120,319 shares during the last quarter. 31.91% of the stock is currently owned by institutional investors and hedge funds.

Vermilion Energy News Summary

Here are the key news stories impacting Vermilion Energy this week:

• Positive Sentiment: Board reinstated a quarterly cash dividend of C$0.135 per share (payable June 30; record June 15), implying a ~4.6% yield — supports income-oriented demand for the stock. Vermilion Energy Inc. Announces $0.135 CDN Cash Dividend for June 30, 2026 Payment Date
• Positive Sentiment: Company highlighted “strong” Q1 operating performance and continued debt reduction — fundamentals that can underpin longer‑term share support if realized. Vermilion Energy Inc. Reports Strong Q1 2026 Operational and Financial Results and Continued Debt Reduction
• Neutral Sentiment: Management released shareholder/analyst call materials (transcript and slideshow) providing detail on results and outlook — useful for investors but not an immediate catalyst. Vermilion Energy Inc. VET: CA Shareholder/Analyst Call Prepared Remarks Transcript Vermilion Energy Inc. VET: CA Shareholder/Analyst Call - Slideshow
• Neutral Sentiment: Annual meeting voting results reported ~51.8% turnout — routine corporate governance update with limited immediate market impact. Vermilion Energy Inc. Reports Voting Results of Annual General Meeting
• Negative Sentiment: Reported a GAAP Q1 net loss (driven by unrealized derivative losses) and an EPS miss versus some expectations — headlines prompted an immediate share selloff. This non‑cash derivative volatility is the main reason for today’s weakness. Vermilion Energy (VET) Reports Q1 Loss, Beats Revenue Estimates Vermilion Energy shares fall after quarterly net loss

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on VET. Zacks Research cut Vermilion Energy from a "strong-buy" rating to a "hold" rating in a research report on Thursday, April 9th. Scotiabank reissued 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 note on Wednesday, April 22nd. ATB Cormark Capital Markets raised shares of Vermilion Energy from a "hold" rating to a "buy" rating in a report on Friday, March 27th. Finally, TD Securities reiterated a "hold" rating on shares of Vermilion Energy in a research note on Thursday, March 5th. One research analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target 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).