Canada's Vermilion Energy Q1 output up 22%

Vermilion Energy

06/05/2026 11:12

Overview

Canada oil and gas producer's Q1 production rose 22% yr/yr and 4% sequentially

Company posted C$146 mln net loss, mainly due to C$286 mln unrealized derivative loss

Net debt cut by C$50 mln; C$27 mln returned to shareholders via dividends and buybacks

Outlook

Vermilion expects Q2 2026 production to average 123,000-125,000 boe/d (69% natural gas)

Company says full-year production is trending to the top end of 118,000-122,000 boe/d guidance

Vermilion forecasts 2026 E&D capital expenditures of $600-$630 mln

Result Drivers

PRODUCTION GAINS - Q1 production rose 22% yr/yr and 4% sequentially, driven by strong performance in Canadian Deep Basin and Montney assets and robust output from Germany's Osterheide well

COST STRUCTURE IMPROVEMENT - Controllable expenses fell 25% from Q1 2025, reflecting asset repositioning and focus on operational excellence

DERIVATIVE LOSSES - C$286 mln unrealized loss on derivatives due to higher spot and forward oil and European gas prices, offsetting operational gains

Company press release: ID:nPn3PgxwQa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
-C$146 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "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$22.00, about 18.5% above its May 5 closing price of C$18.56

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 29 three months ago

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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.)