Vermilion Energy Inc. (CVZ)
Summary
CVZ Chart
Vermilion Energy: Undervalued Even After A 100% Rally (Rating Downgrade)
Vermilion Energy is downgraded to Buy after a >100% rally, with valuation less asymmetric but still attractive. VET's portfolio shift toward long-life European gas assets and improved capital efficiency supports robust free cash flow and shareholder returns. Despite substantial hedging (~50% of 2026 production), VET trades at a >16% FCF yield and targets a $16/share fair value, implying 30% upside.
Vermilion Energy: The Re-Rating Story Is Far From Over
Vermilion Energy remains a Strong Buy, with significant upside supported by a fundamental transformation and attractive valuation. VET's 5-year plan targets C$1.7B cumulative excess FCF, 8–10% annual production per share growth, and substantial net debt reduction. Recent results show strong C$97.7M FCF, 25% YoY cost reduction/boe, and sustainable capital returns despite derivative-driven paper losses.
Vermilion Energy: Good Production In Q1 2026, But Lackluster Cash Flow Projections This Year (Rating Downgrade)
Vermilion Energy has shifted focus to natural gas, projecting 70% of 2026 production from gas, but this has muted near-term cash flow upside. VET's stock rallied 96% over the past year, outperforming peers, yet underperformed over a multi-year horizon. Q1 2026 saw solid cash flow, with C$98M free cash flow and the company reported a C$146M net loss mainly from C$301M in unrealized hedging losses.
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Vermilion Energy Inc. Profile
| Oil, Gas & Consumable Fuels Industry | Energy Sector | Anthony Hatcher CEO | XMUN Exchange | CA9237251058 ISIN |
| CA Country | 743 Employees | 15 Jun 2026 Last Dividend | - Last Split | - IPO Date |
Overview
Vermilion Energy Inc., established in 1994, stands as a significant entity in the energy sector, focusing on the acquisition, exploration, development, and production of petroleum and natural gas resources. With a global footprint, the company commands a diversified portfolio of properties across Canada, the United States, France, the Netherlands, Germany, Ireland, Croatia, Slovakia, and Australia. Headquartered in Calgary, Canada, Vermilion Energy dedicates itself to leveraging its extensive expertise and technological capabilities to harness energy resources efficiently and sustainably, catering to the growing global energy demand.
Products and Services
The core offerings of Vermilion Energy Inc. span across various dimensions of the energy sector, primarily focusing on:
- Petroleum and Natural Gas Exploration: Utilizing cutting-edge technology and geological expertise, Vermilion engages in the exploration of new and existing fields to discover valuable oil and gas reserves, aiming to expand its resource base and ensure long-term sustainability.
- Development and Production: Post-discovery, Vermilion undertakes the development of these fields through well-planning, construction, and operation. This includes the extraction of oil and natural gas, employing efficient recovery techniques to optimize production rates and resource recovery, while maintaining a commitment to environmental stewardship.
- Property Acquisition: A key strategy for growth involves the acquisition of promising oil and gas properties. Vermilion actively seeks opportunities to expand its portfolio through strategic acquisitions that complement its existing assets and enhance overall production capabilities.
- International Operations: With operations spanning North America, Europe, and Australia, Vermilion demonstrates a strong global presence. This international diversification helps mitigate geographic risks and capitalizes on unique opportunities in various global markets, showcasing its ability to adapt and thrive in different regulatory and geological environments.
