HOUSTON, TEXAS (Editors at Energy Analytics Institute, 5.Mar.2025) — Vermilion Energy Inc. announced 2025 production and capital budget guidance which incorporates the closing of the Westbrick acquisition for an end of Feb. 2025 close date versus the previously forecasted mid-Feb. 2025 close.
Production is expected in the range of 125,000-130,000 barrels of oil equivalent per day or boe/d (62% natural gas including 14% European gas) with E&D Capex of $730mn-$760mn (68% North America, 32% international, with over 70% of total Capex to be invested in its global gas franchise).
The revised capital program includes an additional 13 (12.3 net) wells to be drilled on the Westbrick assets, bringing the total Deep Basin well count to 28 (24.9 net) wells for 2025, Vermilion announced 5 Mar. 2025 in its year-end 2024 press release.
Subsequent to year-end 2024, Vermilion announced the closing of the Westbrick acquisition, adding 50,000 boe/d of Deep Basin liquids-rich gas. The integration of the Westbrick assets and employees is underway and progressing as planned with numerous synergies already identified. Vermilion plans to continue with the 2-rig first-quarter 2025 (1Q:25) drilling program initiated by Westbrick and expects to maintain this program on the acquired assets post break-up, the company said.
During the 1Q:25, Vermilion launched a formal sales process for its Southeast Saskatchewan and Wyoming assets. The Saskatchewan assets include 10,000 boe/d (85% liquids) of production with moderate declines and multi-lateral development upside. The Wyoming assets include 5,000 boe/d (80% liquids) of production with multi-zone development potential, including the Niobrara and the Parkman.
Based on forward commodity prices, Vermilion forecasts 2025 free cash flow (FCF) of $400mn. Approximately 60% of excess FCF will be allocated to debt reduction, while 40% of excess FCF allocated to shareholder returns, inclusive of the $0.13 per share quarterly base dividend. The variable component of shareholder returns will continue to be allocated towards share buybacks. Since initiating the share buyback program in Jul 2022, Vermilion has repurchased and retired 17.8 million shares.
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By Editors at Energy Analytics Institute. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
