Vermilion Gets TSX Approval to Repurchase Shares – Buyback Wednesdays

Key Insights:

• Vermilion Energy (VET) is an oil & natural gas producer trading at a steep discount.
• The company has a diversified portfolio of assets, with international exposure that accounts for 44% of its total funds from operations (FFO).
• With natural gas prices down sharply from their highs last summer, Vermilion is well-positioned to benefit if the current bounce in natural gas prices continues.

Founded in 1994, Vermilion Energy (VET) is a Canadian oil and gas exploration and production company. It focuses on the development and production of light oil, liquids-rich natural gas, and conventional natural gas and oil in North America, Europe, and Australia. The company gets its unique name from the Vermilion Lakes of Alberta, which are known for their reddish waters. The strong color of Vermilion, which is made up of red, orange, and yellow, symbolizes the company’s objective to be a vibrant energy company.

Source: Vermilion – Investor Presentation

On July 10, 2023, Vermilion announced that it had received Toronto Stock Exchange (TSX) approval to commence a Normal Course Issuer Bid (NCIB) to purchase up to 16.31 million common shares, equivalent to around 10% of its outstanding shares as of June 28, 2023, over the course of twelve months. Vermilion shares are down 11.4% YTD. This decline can be attributed to the decline in energy prices, European natural gas prices specifically, which have played a significant role in the company’s recent financial performance.

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