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Vermilion Energy Inc. Announces Reductions to Capital Program and Monthly Dividend
Vermilion Energy Inc. Announces Reductions to Capital Program and Monthly Dividend ...
About this update from Vermilion Energy Inc.
[{"type":"text","content":"\n\n\n\nVermilion Energy Inc. Announces Reductions to Capital Program and Monthly Dividend\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\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, March 16, 2020\n\n\n\nCALGARY, March 16, 2020 /CNW/ - Vermilion Energy Inc. (\"Vermilion\", \"We\", \"Our\", \"Us\" or the \"Company\") (TSX, NYSE: VET) announces that its Board of Directors has approved a reduction to our 2020 capital budget of $80 to $100 million and a reduction in our monthly dividend from $0.115 CDN per share to $0.02 CDN per share in response to the pronounced decline in global commodity prices.  The new dividend amount will be implemented in the April dividend payable in May 2020. \n\n \n \n\n\n\n\n\n\n\n \nFollowing the release of our Q4 2019 results on March 6, 2020, we have witnessed a further decrease in oil prices as a result of the growing COVID-19 outbreak and the ensuing oil price war between OPEC+ members.  While we continue to believe the long-term fundamentals for the oil and gas industry are sound and will lead to higher prices in the future, we cannot predict how long the impact from COVID-19 and the OPEC+ price war will continue.  As we stated in our Q4 2019 release, in the event that we experienced an even more pronounced and protracted commodity downturn due to COVID-19 or any other cause, we would be attentive to all forms of cash outlays to protect Vermilion's financial position.  As we assessed the status of the global emergency, we determined that it was now appropriate to take these additional actions regarding capital investment and dividends.\nThe new capital investment and dividend reductions reduce our annualized cash outlays by an additional $260 to $280 million, providing greater flexibility to manage our business through this period of depressed and uncertain commodity prices.  In combination with the dividend reduction we announced on March 6, our annualized cash outlays will have been reduced by $465 to $485 million.  These reductions will substantially contribute to Vermilion's financial strength, and we will remain vigilant...