Vermilion Energy Inc. (VET)
Vermilion Energy: The 2028 Cash Flow Inflection Is Still Deeply Mispriced
Vermilion Energy remains a Strong Buy, trading at a deep discount amid its ongoing portfolio transformation. VET is nearing a major cash flow inflection, with Montney and European projects ramping, targeting C$1.7B EFCF from 2026–2030 on realistic commodity assumptions. Production per share is up 6% YTD, net debt is falling, and a new buyback program plus a ~3% dividend supports robust shareholder returns.
Vermilion Energy: Coming Off Strong After A Great Q2 Showing
Vermilion Energy Inc. delivered strong top and bottom-line results, surpassing consensus and significantly improving its financial profile through aggressive deleveraging. Vermilion Energy's global footprint enables exposure to Brent oil and European gas benchmarks, but recent hedging losses from surging EU gas prices have weighed on earnings. Despite a low P/FFO multiple of 2.44x and a >3% forward yield, Vermilion Energy trades at a steep discount to peers, reflecting market concerns over its hedgebook and global exposure.
Vermilion Energy: Better Execution, Still Not Clean Enough
Vermilion Energy offers diversified production with premium European gas exposure, differentiating it from typical Canadian E&Ps. Q2 results exceeded production guidance without increasing capex, driving strong free cash flow and improved operational efficiency. Despite attractive valuation (~0.66x NAV, ~50% implied upside), VET's high net debt and commodity/regulatory risks justify a Hold rating.
Vermilion Energy Q2 Earnings Call Highlights
Vermilion Energy NYSE: VET reported second-quarter production above the top end of its guidance range, increased its full-year output outlook without raising its capital budget, and expanded its shareholder-return target as debt reduction continued.
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.
Vermilion Energy (VET) Reports Q1 Loss, Beats Revenue Estimates
Vermilion Energy (VET) came out with a quarterly loss of $0.67 per share versus the Zacks Consensus Estimate of $0.22. This compares to earnings of $0.07 per share a year ago.
Vermilion Energy (VET) Reports Next Week: Wall Street Expects Earnings Growth
Vermilion (VET) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Vermilion Energy Q1 Earnings Show Strength in Core Assets
VET's Q1 update beat output guidance as Canadian assets outperformed and European gas prices surged, setting up the momentum for 2026.
Vermilion Energy Up 67% in 3 Months: What's Driving the Stock?
VET gains momentum as premium-priced European gas exposure, rising production, and planned cost cuts support earnings and cash flow through 2026.
Can Vermilion (VET) Run Higher on Rising Earnings Estimates?
Vermilion Energy (VET) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
