Vermilion Energy (NYSE:VET) Posts Earnings Results, Misses Estimates By $0.43 EPS

Vermilion Energy (NYSE:VET) (TSE:VET) posted its earnings results on Wednesday. The oil and gas company reported ($0.16) EPS for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.43), Zacks reports. Vermilion Energy had a positive return on equity of 5.26% and a negative net margin of 22.48%.

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

• Vermilion generated CAD 237 million in Q3 fund flows and more than CAD 90 million in free cash flow. Year to date, it returned CAD 92 million to shareholders and reduced net debt by nearly CAD 180 million.
• The 2027 budget calls for CAD 675 million–CAD 725 million of capital spending and production of 122,000–126,000 BOE per day, representing about 2% absolute and 5% per-share growth from 2026. Management said roughly CAD 150 million of the spending is intended to add production from 2028 onward.
• Management increased its five-year excess free cash flow estimate by CAD 200 million to CAD 1.9 billion, and forecasts 2027 excess free cash flow to be more than 20% above 2026. It also plans to raise the 2027 annual dividend by 4% to CAD 0.56 per share.
• European gas production, temporarily reduced by planned maintenance and downtime, has been restored; Vermilion expects about 100 million cubic feet per day in Q4. The company is investing in German infrastructure and wells, with production growth from new discoveries expected by mid-2028.
• The Montney’s 28,000 BOE-per-day target has been pushed back to early 2029 from mid-2028 because of a delay in third-party gas-processing infrastructure. Vermilion plans to redirect capital to higher-return Deep Basin drilling in the interim.

Vermilion Energy Trading Down 13.7%

NYSE:VET traded down $1.69 during mid-day trading on Wednesday, hitting $10.69. 3,269,148 shares of the company’s stock were exchanged, compared to its average volume of 1,768,874. The company has a 50 day simple moving average of $12.62 and a 200-day simple moving average of $11.61. The company has a current ratio of 1.00, a quick ratio of 0.90 and a debt-to-equity ratio of 0.63. Vermilion Energy has a fifty-two week low of $7.30 and a fifty-two week high of $14.82. The firm has a market capitalization of $1.62 billion, a P/E ratio of -5.07 and a beta of 0.52.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. TD Securities reiterated a “buy” rating on shares of Vermilion Energy in a research report on Friday, July 31st. Desjardins upgraded shares of Vermilion Energy to a “hold” rating in a research report on Thursday, July 16th. Weiss Ratings cut shares of Vermilion Energy from a “sell (d)” rating to a “sell (d-)” rating in a research note on Thursday, October 8th. Scotiabank reiterated a “sector perform” rating on shares of Vermilion Energy in a report on Monday, October 19th. Finally, Canadian Imperial Bank of Commerce reiterated a “neutral” rating on shares of Vermilion Energy in a research note on Friday, October 9th. Two investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus 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 natural gas producer headquartered in Calgary, Alberta. Founded in 1994, the company explores for, develops, and produces crude oil, condensate, natural gas liquids, and natural gas.

Vermilion operates a geographically diversified portfolio of assets in North America and Europe, with activities in Canada, the United States, France, the Netherlands, Germany, and Croatia. Its production includes conventional and unconventional oil and gas, with operations focused on developing reserves and supplying energy to regional and international markets.

The company’s shares trade on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET.