Vermilion (VET) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Vermilion Energy Inc. (NYSE:VET ) Q4 2024 Earnings Conference Call March 6, 2024 11:00 AM ET Company Participants Dion Hatcher - President and CEO Lars Glemser - VP and CFO Darcy Kerwin - VP, International & HSE Randy McQuaig - VP North America, Kyle Preston - VP, IR Conference Call Participants Justin Ho - RBC Capital Markets Amir Arif - ATB Capital Travis Wood - National Bank Financial Operator Good morning. My name is Constantine and I will be your conference operator today.
Vermilion Energy's international assets are expected to contribute about 50% of funds flow in 2025 due to superior margins. Despite strong funds flow, Vermilion's stock has underperformed, with a negative 43% return over the past two years. The market prefers higher shareholder returns over acquisitions, contributing to the poor sentiment around Vermilion.
Vermilion Energy (VET) came out with a quarterly loss of $0.09 per share versus the Zacks Consensus Estimate of $0.36. This compares to earnings of $0.95 per share a year ago.
Vermilion (VET) possesses 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 is a strong buy due to its significant European gas assets and the strategic Westbrick acquisition, boosting future income and FCF. VET's diversified operations in Europe and North America, combined with a solid hedging strategy, position it well against commodity price volatility. The Westbrick acquisition will enhance VET's asset base, increasing production capacity and providing substantial cash flow, supporting future dividend increases and shareholder returns.
VET's acquisition of Westbrick Energy adds approximately 770,000 net acres to Vermilion's asset base and 50,000 boe/d in stable production.
Canada's Vermilion Energy said on Monday it will acquire privately held oil and gas firm Westbrick Energy for C$1.075 billion ($746.53 million)
Vermilion reported a strong funds flow and free cash flow in Q3, above Q2 levels, despite a softer oil price in Q3. The European natural gas prices were very attractive in the most recent quarter, which offset the decline in oil prices. The company has continued to deleverage and has decreased the share count by 4.3% in 2024 on top of the annual dividend yield of 3.5%.
Vermilion Energy (VET) came out with quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.25 per share a year ago.
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 is undervalued, trading at low EV/EBITDA and Price/Cash Flow ratios compared to sector peers, presenting a compelling buying opportunity. The company has a balanced production mix and diversified assets, with significant reserves ensuring long-term sustainable production. Management's effective capital allocation, including substantial debt reduction and a robust share buyback program, enhances shareholder returns.