Vermilion Energy Inc. - VET

Company Website 

Company Highlights: 

  • Vermilion has become a darling of investors as it is the only independent Canadian company producing natural gas in Europe and is benefiting from the extremely high prices in this natural gas short market.
  • VET had production of 84,86 boe/d in Q2/22 (32% from Europe) with funds flow of $453M (47% from Europe) compared to $173M in Q2/21. On a per share basis this was $2.75 per share versus $1.07 per share in Q2/21.
  • The company will close more ownership of the offshore Ireland Corrib field before year end and add 7,700 boe/d of natural gas. Production into year end should be over 95,000 boe/d. Free funds flow will be used to quickly pay down debt (net debt $1.6B at the end of Q2) and then they can increase shareholder returns.
  • Vermilion has 165M shares outstanding and a market capitalization of over $4.5B. Insiders are material shareholders.
  • We see VET generating $10.90 in cash flow in 2022. Our Bull Market Peak Target for VET is $50.00 per share.
Dion Hatcher
Dion Hatcher
Mr. Hatcher has over 25 years of industry experience and has spent the last 15 years in a variety of leadership roles at Vermilion. Prior to being appointed President on January 1, 2022, he held increasingly senior roles during his tenure at Vermilion and most recently held the position of Vice President, North America from 2020 to 2021 and as Vice President of the Canadian Business Unit for five years prior to that. In his most recent role, he was responsible for the profitability and operations of North America representing 67% of Vermilion's total production. His experience spans corporate strategy, oil and gas operations, mergers, acquisitions and divestures, health, safety and the environment and sustainability. Mr. Hatcher has a Bachelor of Mechanical Engineering from Memorial University of Newfoundland.