CALGARY, AB, Dec. 19, 2024 /PRNewswire/ - Vermilion Energy Inc. ("Vermilion", or the "Company") (TSX: VET) (NYSE: VET) is pleased to announce its 2025 budget, an 8% dividend increase and strong Germany well test results.

Highlights

2025 capital expenditure budget of $600 – $625 million includes drilling and infrastructure capital allocated across all major business units, including ongoing drilling and debottlenecking on the BC Montney asset and drilling capital allocated to European gas exploration and development in Germany, the Netherlands, and Central and Eastern Europe.2025 production guidance of 84,000 – 88,000 boe/d represents 2% growth at the mid-point compared to original 2024 production guidance.2025 fund flows from operations ("FFO")(2) and free cash flow ("FCF")(3) forecasted to be approximately $1.0 billion and $400 million, respectively, based on forward commodity prices(4).Quarterly cash dividend increased by 8% to $0.13 CDN per share, effective with the Q1 2025 dividend payable on April 15, 2025.Variable component of shareholder returns will continue to be allocated to share buybacks. To date, Vermilion has repurchased and retired 16.8 million shares since initiating the share buyback program in July 2022, including 9.1 million shares year-to-date in 2024, which has reduced the share count by 4.8% to 154.5 million.Vermilion continues to provide investors with market and commodity diversification, with over 100 mmcf/d of European natural gas production driving its peer leading netbacks. Based on forward strip pricing(4), Vermilion's corporate operating netback for 2025 is forecasted at $40 per boe, or over 10% higher than the forecasted operating netback for 2024.Vermilion continues to employ an active commodity hedge program with 30% of 2025 production (net of royalties) currently hedged. This is comprised of 52% of European gas hedged at an average floor of $17/mmbtu, 42% of North American gas at an average floor of $3/mcf and 8% of crude oil hedged at an average floor of US$73/bbl.Vermilion successfully tested its second deep gas exploration well (0.64 net) in Germany, which flow tested at a restricted rate of 21 mmcf/d(1) of natural gas with a wellhead pressure of 6,150 psi.