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Vermilion Energy Inc. Announces Suspension of Monthly Dividend
Vermilion Energy Inc. Announces Suspension of Monthly Dividend Canada NewsWire C...
About this update from Vermilion Energy Inc.
[{"type":"text","content":"\n\n\n\nVermilion Energy Inc. Announces Suspension of 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, April 15, 2020\n\n\n\nCALGARY, April 15, 2020 /CNW/ - Vermilion Energy Inc. (\"Vermilion\", \"We\", \"Our\", \"Us\" or the \"Company\") (TSX, NYSE: VET) announces that its Board of Directors has suspended our monthly dividend until further notice.\n\n \n \n\n\n\n\n\n\n\n \nFollowing the release of our revised 2020 capital budget and announced dividend reduction, we have witnessed further deterioration in near-term commodity prices as a result of the COVID-19 pandemic and resulting oil demand destruction.  In particular, growing oil inventory has decreased prompt prices for global benchmark indices and expanded regional discounts in North America.  As we have previously stated, we are attuned to evolving business conditions and are prepared to make further adjustments to all forms of cash outlays to protect Vermilion's financial position.  In view of our determination to reduce debt within the current commodity environment, we are suspending our monthly dividend until further notice following the payment of the March dividend of $0.115 previously declared for payment today.   \nSince the beginning of March 2020, our annualized cash outlays for capex and dividends have now been reduced by approximately $520 million.  Furthermore, we have identified approximately $30 million of additional opportunities to reduce cash expenses and will seek to identify and secure other savings.\nVermilion has a long history of paying dividends and we remain strong proponents of returning capital to shareholders.  For Vermilion, returning cash to our owners has enforced capital discipline and led us to put in place a conventional and semi-conventional asset base with low base declines and differential capability to produce free cash.  Nonetheless, financial strength remains our overriding goal, and suspension of our dividend enhances that objective.  Acting today better positions us for the economic and ...