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• Average Production: 84,543 BOEs per day for 2024, with a 4% annual production per share growth.

• International Production Increase: 12% year over year.

• North American Production Decrease: 5% year over year.

• Fund Flow: $1.2 billion or $7.63 per share, a 9% increase over 2023.

• Free Cash Flow: $583 million or $3.69 per share, a 9% increase over 2023.

• E&D Capital Program: $623 million executed within budget.

• Shareholder Returns: $216 million returned, including $75 million in dividends and $141 million in share buybacks.

• Net Debt: Decreased by 10% to $967 million, with a net debt to trailing funds flow ratio of 0.8 times.

• Proved Plus Probable Reserves: Increased by 1% to 435 million BOEs.

• Fourth Quarter Production: 83,536 BOEs per day.

• Fourth Quarter Fund Flows: $263 million or $1.70 per share.

• Fourth Quarter Free Cash Flow: $62 million, with $36 million returned to shareholders.

• Net Present Value of Reserves: $2.8 billion for PDP reserves and $5.2 billion for 2P reserves, discounted at 10%.

• 2025 Production Guidance: Expected between 125,000 to 130,000 BOEs per day.

• 2025 Capital Expenditures: $730 million to $760 million.

• 2025 Free Cash Flow Forecast: $400 million.

• Unhedged FFO Per Share Forecast: Increase from $5.61 in 2024 to approximately $7.50 in 2025.

• Warning! GuruFocus has detected 4 Warning Sign with VET.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Vermilion Energy Inc (NYSE:VET) delivered strong operational and financial results in 2024, with production averaging 84,543 BOEs per day, exceeding the midpoint of their original guidance.

• The company achieved a 9% increase in fund flow and free cash flow on a per-share basis compared to 2023.

• Vermilion Energy Inc (NYSE:VET) successfully executed a $623 million E&D capital program within budget, investing in growth projects in Germany, Croatia, and the BC Montney.

• The company announced an 8% increase in their quarterly dividend, marking the fourth consecutive increase since reinstating the dividend.

• Vermilion Energy Inc (NYSE:VET) reduced net debt by 10% in 2024, achieving the lowest net debt to trailing funds flow ratio in over a decade.

Negative Points

• North American production decreased by 5% year over year, primarily due to the divestment in Southeast Saskatchewan.

• Net debt increased slightly in Q4 due to the stronger US dollar and the full repayment of the Montney battery lease.

• The company faces downstream capacity constraints and seasonality constraints in their German gas exploration program, which may limit initial production rates.

• Vermilion Energy Inc (NYSE:VET) is in the process of divesting non-core assets in Southeast Saskatchewan and Wyoming, which could impact future production levels.

• The company is exposed to potential impacts from US tariffs on Canadian energy exports, although they do not expect a material impact at this time.