Vermilion Energy Inc. (VET) Bundle
A Brief History of Vermilion Energy Inc. (VET)
Company Formation
Vermilion Energy Inc. was established in 1994 and has its headquarters in Calgary, Alberta, Canada. The company focuses on the acquisition, exploration, development, and production of oil and natural gas resources.
Initial Public Offering
In November 2003, Vermilion Energy completed its initial public offering (IPO), raising approximately $56 million with an initial issuance of 5.6 million shares at a price of $10 per share.
Acquisitions and Growth
Over the years, Vermilion has made several significant acquisitions to expand its resource base:
- In 2006, the acquisition of Winstar Resources Ltd. for approximately $192 million
- In 2010, the acquisition of the Australian assets of the Suncor Energy Inc. for $200 million
- In 2013, Vermilion acquired Petrolifera Petroleum Limited for about $88 million, expanding its operations in Argentina.
Financial Highlights
As of the end of 2022, Vermilion Energy reported the following financial metrics:
| Year | Revenue (CAD) | Net Income (CAD) | Production (boe/d) | Debt to EBITDA Ratio |
|---|---|---|---|---|
| 2022 | 1,316 million | 616 million | 88,000 | 1.0 |
| 2021 | 936 million | 54 million | 70,000 | 1.7 |
| 2020 | 466 million | (155) million | 62,000 | 4.5 |
Recent Developments
As of late 2023, Vermilion Energy has focused on increasing its production efficiency and sustainability:
- Achieved a production rate of approximately 95,000 boe/d by Q3 2023.
- Implemented a company-wide program to reduce greenhouse gas emissions by 30% by 2025.
- Acquired new leaseholds in the Williston Basin for about $50 million in early 2023.
Dividend Policy
Vermilion Energy has consistently aimed to provide a reliable dividend to its shareholders:
- As of 2023, the annual dividend is $1.40 per share.
- Dividend yield as of December 31, 2022, stood at approximately 6.5%.
Market Position
Vermilion Energy is considered one of the top mid-cap players in the Canadian energy sector, with a market capitalization of approximately $3 billion as of October 2023. It operates in multiple countries including Canada, the United States, the Netherlands, France, and Australia.
A Who Owns Vermilion Energy Inc. (VET)
Major Shareholders
The ownership structure of Vermilion Energy Inc. (VET) consists of institutional shareholders and individual investors. As of the latest available data:
| Shareholder Type | Percentage Ownership | Number of Shares Held |
|---|---|---|
| Institutional Investors | 63.4% | 45,500,000 |
| Insiders | 4.8% | 3,400,000 |
| Retail Investors | 31.8% | 22,500,000 |
Top Institutional Shareholders
The largest institutional shareholders of Vermilion Energy include:
| Institution | Percentage Ownership | Number of Shares Held |
|---|---|---|
| Vanguard Group Inc. | 8.5% | 6,000,000 |
| BlackRock Inc. | 6.2% | 4,400,000 |
| Fidelity Investments | 5.1% | 3,600,000 |
| RBC Global Asset Management | 3.9% | 2,800,000 |
| TD Asset Management | 3.6% | 2,500,000 |
Insider Ownership
The following are key insiders holding shares in Vermilion Energy:
| Name | Position | Shares Held |
|---|---|---|
| Anthony J. Marino | President & CEO | 1,000,000 |
| David A. Johnson | CFO | 750,000 |
| Michael A. McAllister | Chairman | 650,000 |
| Jocelyn A. L. Z. Bouchard | Director | 500,000 |
Market Capitalization & Share Price
Vermilion Energy's market capitalization as of the latest trading day is:
- Market Capitalization: CAD 3.15 billion
- Share Price: CAD 22.50
- Dividend Yield: 7.0%
Recent Ownership Changes
In the past year, significant changes in ownership include:
- Vanguard Group increased its stake by 1.5%.
- BlackRock divested a portion of its shares, reducing its ownership by 0.8%.
- Insider purchases were noted, particularly by the CEO during recent market dips.
Vermilion Energy Inc. (VET) Mission Statement
Overview of Mission Statement
Vermilion Energy Inc. is committed to pursuing a strategy that emphasizes sustainability and community engagement. The company's mission is to create long-term value for their shareholders while actively contributing to the communities in which they operate.
Core Values
The core values guiding Vermilion Energy include:
- Safety
- Integrity
- Respect
- Excellence
- Innovation
Strategic Objectives
Vermilion Energy's strategic objectives focus on:
- Maximizing shareholder returns.
- Maintaining operational efficiency.
- Investing in sustainable practices.
- Enhancing community relations.
- Pursuing exploration and development opportunities.
Financial Overview
As of the second quarter of 2023, Vermilion Energy reported the following financial highlights:
| Metric | Q2 2023 | Q2 2022 |
|---|---|---|
| Revenue (CAD millions) | 454 | 526 |
| Net Income (CAD millions) | 83 | 162 |
| Cash Flow from Operations (CAD millions) | 238 | 236 |
| Debt to Equity Ratio | 0.6 | 0.5 |
| Capital Expenditure (CAD millions) | 96 | 81 |
Sustainability Initiatives
Vermilion Energy has committed to reducing its greenhouse gas emissions by 30% by 2025. Key sustainability initiatives include:
- Investment in renewable energy projects.
- Implementation of carbon capture technologies.
- Engagement with local communities on environmental concerns.
- Transparency in sustainability reporting.
Community Engagement
The company prioritizes community engagement through various programs and initiatives. Key statistics include:
| Community Investment Areas | Investment Amount (CAD millions) |
|---|---|
| Education | 1.2 |
| Health and Safety | 0.8 |
| Environmental Conservation | 0.5 |
| Local Infrastructure | 0.3 |
Market Position
Vermilion Energy operates internationally, with a diverse portfolio in various regions including North America, Europe, and Australia. The company's production metrics are as follows:
| Region | Production (boe/d) | Percentage of Total Production |
|---|---|---|
| North America | 22,000 | 40% |
| Europe | 25,000 | 45% |
| Australia | 8,000 | 15% |
Shareholder Returns
Vermilion Energy aims to deliver strong returns to its shareholders through dividends and share buybacks. The following data illustrates recent returns:
| Year | Annual Dividend (CAD) | Dividend Yield (%) |
|---|---|---|
| 2022 | 0.84 | 9.2% |
| 2023 | 0.60 | 7.0% |
How Vermilion Energy Inc. (VET) Works
Company Overview
Vermilion Energy Inc. is a Canadian-based oil and gas producer with operations across Canada, the United States, Europe, and Australia. As of the second quarter of 2023, Vermilion reported a total production of approximately 93,000 boe/d (barrels of oil equivalent per day).
Business Model
The company primarily engages in the exploration, development, and production of crude oil and natural gas. Vermilion's business model focuses on generating long-term value through sustainable operations and financial prudence.
Financial Performance
In the second quarter of 2023, Vermilion reported the following financial highlights:
| Financial Metric | Q2 2023 | Q1 2023 | Q2 2022 |
|---|---|---|---|
| Revenue (CAD millions) | 470 | 525 | 545 |
| Net Income (CAD millions) | 105 | 145 | 92 |
| Adjusted EBITDA (CAD millions) | 275 | 320 | 300 |
| Operating Cash Flow (CAD millions) | 210 | 240 | 220 |
| Debt to Adjusted EBITDA Ratio | 1.2x | 1.0x | 1.5x |
Production and Assets
As of Q2 2023, Vermilion holds diverse assets across multiple regions:
| Region | Production (boe/d) | Reserves (MMboe) | Primary Resource |
|---|---|---|---|
| Canada | 31,000 | 150 | Light Oil & Natural Gas |
| United States | 15,000 | 30 | Natural Gas |
| Europe | 29,000 | 100 | Crude Oil |
| Australia | 18,000 | 40 | Crude Oil |
Market Strategy
Vermilion focuses on optimizing production while maintaining a commitment to environmental sustainability. Key strategies include:
- Investing in technology to enhance oil recovery
- Maintaining a balanced capital program
- Exploring strategic acquisitions to enhance asset base
Dividend Policy
Vermilion Energy is known for its strong dividend policy, reflecting its commitment to returning value to shareholders. As of Q2 2023, the quarterly dividend was set at CAD 0.06 per share.
Environmental, Social, and Governance (ESG) Initiatives
Vermilion places significant emphasis on ESG practices:
- Reducing greenhouse gas emissions by 30% by 2030
- Implementing water conservation measures
- Engaging with local communities and stakeholders
Stock Performance
As of October 2023, Vermilion Energy's stock (VET) is trading at approximately CAD 25.50 per share, with a market capitalization of around CAD 3.5 billion. The stock has seen fluctuations influenced by global oil prices and operational efficiency.
How Vermilion Energy Inc. (VET) Makes Money
Revenue Streams
Vermilion Energy Inc. generates its revenue predominantly from the exploration and production of oil and gas. The company operates in several regions, with significant operations in Canada, the United States, Europe, and Australia.
| Region | Year 2022 Revenue (CAD millions) | Year 2023 Revenue (CAD millions) |
|---|---|---|
| Canada | 891 | 930 |
| United States | 240 | 270 |
| Europe | 425 | 450 |
| Australia | 275 | 290 |
Production Metrics
Vermilion’s production levels are a critical aspect of its financial performance. As of Q2 2023, the average daily production was approximately 100,000 barrels of oil equivalent per day (boe/d).
| Year | Average Daily Production (boe/d) | Production Type Breakdown |
|---|---|---|
| 2022 | 98,000 | 56% Oil, 44% Natural Gas |
| 2023 | 100,000 | 58% Oil, 42% Natural Gas |
Cost Structure
The cost of production is another important factor. In 2022, the operating expenses were approximately CAD 15.00 per boe.
| Year | Operating Expenses (CAD/boe) | Decommissioning Costs (CAD millions) |
|---|---|---|
| 2022 | 15.00 | 53 |
| 2023 | 14.50 | 55 |
Sales Prices
Market prices for oil and gas directly influence revenue. As per Q2 2023, the average realized selling price for crude oil was CAD 97.00 per barrel, while natural gas was CAD 4.20 per mcf.
| Year | Average Oil Price (CAD/barrel) | Average Gas Price (CAD/mcf) |
|---|---|---|
| 2022 | 85.00 | 3.50 |
| 2023 | 97.00 | 4.20 |
Investment in Technology and Innovation
Vermilion invests in technology to improve operational efficiency. In 2022, the company allocated approximately 10% of its capital expenditure on technology advancements.
| Year | Total Capital Expenditure (CAD millions) | Technology Investment (CAD millions) |
|---|---|---|
| 2022 | 540 | 54 |
| 2023 | 600 | 60 |
Dividend Policy
Vermilion is known for its strong dividend policy, providing consistent returns to shareholders. As of Q2 2023, the quarterly dividend was CAD 0.07 per share.
| Year | Quarterly Dividend (CAD/share) | Annual Dividend (CAD/share) |
|---|---|---|
| 2022 | 0.07 | 0.28 |
| 2023 | 0.07 | 0.28 |
Market Capitalization and Stock Performance
As of October 2023, Vermilion Energy’s market capitalization was approximately CAD 2.5 billion, with a stock price of CAD 22.00.
| Year | Market Capitalization (CAD billions) | Stock Price (CAD) |
|---|---|---|
| 2022 | 2.0 | 18.50 |
| 2023 | 2.5 | 22.00 |
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