Vermilion Energy Inc. said it has entered into a definitive agreement to sell its U.S. assets for cash proceeds of $87.61 million (CAD 120 million).
The assets produce approximately 5,500 barrels of oil equivalent (boepd), consisting of 81 percent oil and liquids, and an estimated approximately 10 million barrels of oil equivalent (MMboe) of proved developed producing reserves as of Dec. 31, 2024, Vermilion said in a news release.
The company said it expects the transaction, which has an effective date of January 1, to close in the third quarter, subject to the satisfaction of other customary closing conditions. The transaction agreement includes CAD 10 million of contingent payments based on WTI prices over the two-year period starting July 1.
Vermilion said the transaction, combined with the sale of its East Finn assets in 2023, completes the company’s exit from the USA. The company said it plans to focus on its core gas-weighted assets in Canada and Europe.
Net proceeds from the transaction will be directed towards debt repayment to “further accelerate deleveraging efforts and strengthen Vermilion’s balance sheet,” the company said.
Meanwhile, Vermilion said it is adjusting its 2025 capital budget to a range of CAD 630 to 660 million, reflecting a reduction of approximately CAD 100 million from the mid-point of our previous capital budget range of CAD 730 million to 760 million. The reduction reflects the removal of all remaining exploration and development capital associated with the Saskatchewan and U.S. divested assets post-closing, the company said.
Vermilion said it expects full-year and second-half 2025 production to range between 117,000 and 122,000 boepd, 68 percent natural gas-weighted in the second half of 2025. The company said it estimates that over 90 percent of production will come from its global gas portfolio and over 80 percent of capital is expected to be allocated to these assets.
Last month, Vermilion Energy Inc. entered into a definitive agreement for the sale of its Saskatchewan and Manitoba assets for cash proceeds of $302 million (CAD 415 million).
The transaction has an effective date of May 1 and is anticipated to close in the third quarter, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions, according to the release.
Vermilion said the assets are currently producing approximately 10,500 boepd, consisting of 86 percent oil and liquids. The company noted that the assets are projected to generate approximately CAD 110 million of annual net operating income at current strip commodity prices.
For the first quarter, Vermilion said its production averaged 103,115 boepd, composed of 73,760 boepd from its North American assets and 29,355 boepd from its international assets. The quarter includes approximately one month of production associated with the Westbrick acquisition, the company said in its most recent earnings release.
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