Vermilion Energy has entered into a definitive agreement for the sale of its Saskatchewan and Manitoba assets for cash proceeds of $302 million USD ($415 million CAD).
Net proceeds from the transaction will be directed towards debt repayment to accelerate deleveraging efforts and strengthen Vermilion’s balance sheet, the Calgary-based company announced.
The assets are currently producing approximately 10,500 boed (86% oil and liquids) and are forecast to generate approximately $110 million of annual net operating income at current strip commodity prices.
Assuming a mid-Q3 2025 close, Vermilion expects full year 2025 production to average between 120,000 to 125,000 boed with capital expenditures in the range of $680 to $710 million, reflecting an approximately $50 million reduction associated with the divested assets post-closing. Vermilion will continue to evaluate capital investment levels during this period of increased volatility and will adjust capital if necessary to prioritize free cash flow over production growth during 2025 and 2026.
The company said the deal marks another significant step in its strategic plan to high-grade the asset portfolio that began three years ago, shifting focus toward long-duration, scalable assets with deep inventory of high return on capital opportunities.
