Vermilion Energy's Q4 performance mixed, revenue exceeded expectations

2026-03-05 15:50:42

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Calgary - On Wednesday, Vermilion Energy Inc. (NYSE:VET) (TSX:VET) announced its Q4 earnings, which showed profits fell short of expectations but revenue exceeded forecasts.

Following the announcement, the company’s stock remained flat in after-hours trading.

The company reported a Q4 loss of Cdn$2.86 per share, significantly below the analyst consensus estimate of Cdn$0.30. However, revenue was Cdn$457.72 million, up 19% from the expected Cdn$385.62 million and increased from Cdn$410.02 million in the same period last year.

The weaker profit was mainly due to a Cdn$572 million non-cash impairment charge on traditional mature assets in Australia, France, and Ireland, which did not impact quarterly operating cash flow or free cash flow.

Average production in Q4 was 121,308 barrels of oil equivalent per day, exceeding the upper end of guidance, representing a 46% increase per share compared to the same period last year.

The company generated Cdn$241 million in operating cash flow and Cdn$49 million in free cash flow, with capital expenditures of Cdn$192 million.

Vermilion reduced net debt by Cdn$42 million in this quarter and returned Cdn$26 million to shareholders through dividends and share buybacks.

After hedging, the company’s average natural gas price was Cdn$5.50 per thousand cubic feet, more than double the AECO benchmark price.

President and CEO Dion Hatcher stated, “This has been a significant year for Vermilion as the company repositioned itself as a global natural gas producer with long-term assets, improving profitability and increasing free cash flow per share.”

For Q1 2026, Vermilion expects production to be between 122,000 and 124,000 barrels of oil equivalent per day. The full-year 2026 production guidance remains unchanged at 118,000 to 122,000 barrels of oil equivalent per day, with capital expenditures of Cdn$600 million to Cdn$630 million.

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