Canada's Vermilion Energy Q2 profit rises, raises annual production outlook

Vermilion Energy

29/07/2026 22:13

Overview
Canada oil and gas producer's Q2 net income rose to C$134 mln on strong European gas pricing
Q2 production averaged 125,789 boe/d, exceeding guidance and prompting higher annual outlook
Company raised return of capital framework to target 40-60% of excess free cash flow to shareholders

Outlook
Vermilion Energy raises 2026 full-year production guidance to 121,000-123,000 boe/d
Company expects Q3 2026 production to average 116,000-118,000 boe/d due to planned maintenance
Vermilion targets 40%-60% of excess free cash flow to shareholders, up from 40%

Result Drivers
PRODUCTION OUTPERFORMANCE - Q2 production exceeded guidance, driven by strong results in the Deep Basin and record output at Mica Montney
STRONG EUROPEAN GAS PRICING - Realized natural gas prices more than tripled the AECO benchmark due to exposure to premium international markets
DERIVATIVE GAINS - Net income benefited from unrealized mark-to-market gains on the hedge portfolio

Company press release: ID:nPn6l5KQ4a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
 
C$134 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the integrated oil & gas peer group is "buy"
Wall Street's median 12-month price target for Vermilion Energy Inc is C$21.00, about 43.6% above its July 28 closing price of C$14.62
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 82 three months ago

Reuters Recommended Reads
July 29 - Canada's Surge Energy Q2 revenue rises 48%, net income more than doubles on the back of oil, NGL price surge
July 29 - Canada's Freehold Royalties Q2 revenue rises on stronger commodity prices, especially for crude oil
July 28 - Canada's Cardinal Energy Q2 adjusted funds flow jumps 150% on higher output

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)