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Vermilion Energy Inc. Advances Strategic Portfolio Repositioning with Agreement to Sell its Saskatchewan Assets and Accelerate Debt Repayment
Vermilion Energy Inc. Advances Strategic Portfolio Repositioning with Agreement to Sell its Saska...
About this update from Vermilion Energy Inc.
[{"type":"text","content":"\n\n\n\n Vermilion Energy Inc. Advances Strategic Portfolio Repositioning with Agreement to Sell its Saskatchewan Assets and Accelerate Debt Repayment\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prngen2{\nPADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: TOP; TEXT-ALIGN: LEFT; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt\n}\n.prnml4{\nMARGIN-TOP:0em; MARGIN-BOTTOM:0em; MARGIN-LEFT:0.33em !IMPORTANT\n}\n.prnbcc{\nBORDER-COLLAPSE: COLLAPSE\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n\n CALGARY, AB\n \n\n ,\n \n\n May 23, 2025\n \n\n /CNW/ - Vermilion Energy Inc. (\"Vermilion\" or the \"Company\") (TSX: VET) (NYSE: VET) is pleased to announce that it has entered into a definitive agreement for the sale of its\n \n Saskatchewan\n \n and\n \n Manitoba\n \n assets (the \"Assets\") for cash proceeds of $415 million (the \"Transaction\").\n \n\n\n\n\n\n\n\n\n Net proceeds from the Transaction will be directed towards debt repayment to accelerate deleveraging efforts and strengthen Vermilion's balance sheet. Based on current strip commodity pricing\n \n (1)\n \n and operational plans, we would expect to exit 2025 with net debt\n \n (2)\n \n of\n \n $1\n \n .5 billion, with a trailing net debt to FFO ratio\n \n (3)\n \n of 1.4 times.\n \n\n The Assets are currently producing approximately 10,500 boe/d (86% oil and liquids) and are forecast to generate approximately $110 million of annual net operating income at current strip commodity prices\n \n (1)\n \n . The Assets had Proved Developed Producing reserves of 30 mmboe as evaluated by McDaniel & Associates Consultants Ltd. at December 31, 2024, and approximately $250 million of undiscounted future abandonment liabilities. The Transaction has an effective date of\n \n May 1, 2025\n \n and is anticipated to close in Q3 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions.\n \n\n Assuming a mid-Q3 2025 close, Vermilion expects full year 2025 production to average between 120,000 to...