Vermilion Energy Inc. (VET) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Vermilion Energy Inc. (VET) Energy Operations & Outlook

Vermilion Energy Inc. explores and produces oil and natural gas across North America, Europe, and Australia, with a focus on strategic acquisitions and efficient operations. The company maintains a diversified asset base and targets sustainable production growth, distinguishing itself through its international presence and commitment to shareholder returns.

What Is the Investment Thesis for VET?

The company's operations in North America, Europe, and Australia provide a buffer against regional economic downturns and regulatory changes. With a dividend yield of 3.25%, Vermilion offers an income stream for investors. Key value drivers include efficient production, strategic acquisitions, and commodity price upside. The company's focus on cost management and operational efficiencies should support profitability even in a volatile commodity price environment. Potential catalysts include increased production from key assets and successful exploration and development activities. However, investors should be aware of risks associated with commodity price volatility and geopolitical factors.

Based on FMP financials and quantitative analysis

VET Key Highlights

Vermilion Energy Inc. has operations in North America, Europe, and Australia, providing geographic diversification.

• The company has a dividend yield of 3.25%, offering an income stream for investors.
• Vermilion Energy Inc. owns 81% working interest in 636,714 net acres of developed land in Canada.
• Vermilion Energy Inc. owns 96% working interest in 248,873 net acres of developed land in France.
• As of December 31, 2021, Vermilion Energy Inc. had 2,132 net producing light and medium crude oil wells in Canada.

Who Are VET's Competitors?

VET is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are VET's Key Strengths?

Diversified geographic operations.

• Experienced management team.
• Strong asset base.
• Commitment to shareholder returns.

What Are VET's Weaknesses?

Exposure to commodity price volatility.

• Negative profit margin.
• Dependence on oil and gas reserves.
• Geopolitical risks in some operating regions.

What Could Drive VET Stock Higher?

Potential increase in oil and gas prices due to geopolitical factors.

• Development of undeveloped land in Canada and other regions.
• Expansion in European natural gas markets.
• Implementation of enhanced oil recovery techniques.

What Are the Key Risks for VET?

Financial-distress signal — its Altman Z-Score of 0.04 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-19.5%) — the business is not currently generating profit on shareholder capital.
• Inconsistent delivery — missed Wall Street EPS estimates in 7 of the last 8 reported quarters.
• Commodity price volatility could negatively impact revenue and profitability.
• Increasing environmental regulations could increase operating costs.
• Geopolitical instability in some operating regions could disrupt production.
• Competition from other oil and gas producers could limit market share.

What Are the Growth Opportunities for VET?

• Expansion in European Natural Gas Markets: Vermilion has a significant presence in European natural gas markets, particularly in the Netherlands and Germany. Ongoing: With increasing demand for natural gas as a transition fuel, Vermilion can capitalize on its existing infrastructure and expertise to expand production and distribution in these markets. The European natural gas market is projected to grow, driven by factors such as energy security concerns and the phase-out of coal-fired power plants. Vermilion's strategic positioning in these markets provides a competitive advantage for capturing market share and increasing revenue.
• Strategic Acquisitions in North America: Vermilion can pursue strategic acquisitions of undervalued oil and gas assets in North America, particularly in regions with favorable regulatory environments and established infrastructure. Ongoing: The company's experience in acquiring and integrating assets can drive synergies and increase production. The North American oil and gas market offers opportunities for consolidation, with smaller producers seeking to divest assets. Vermilion's financial strength and operational expertise make it a potential acquirer of choice.
• Development of Undeveloped Land: Vermilion has a substantial portfolio of undeveloped land in Canada and other regions. Ongoing: Developing these resources can significantly increase the company's production and reserves. The company owns 85% working interest in 301,026 net acres of undeveloped land in Canada. The development of these resources will require capital investment and careful planning, but it offers the potential for long-term growth and value creation.
• Enhanced Oil Recovery (EOR) Techniques: Vermilion can implement enhanced oil recovery techniques in its existing oil fields to increase production and extend the lifespan of these assets. Ongoing: EOR techniques, such as waterflooding and CO2 injection, can improve oil recovery rates and boost production. Vermilion's technical expertise and operational experience make it well-suited to implement these techniques. The application of EOR techniques can provide a cost-effective way to increase production and reserves.
• Offshore Development in Australia: Vermilion has 100% working interest in the Wandoo offshore oil field and related production facilities located on Western Australia's northwest shelf. Ongoing: Further development of this field and exploration of nearby prospects can increase the company's production and reserves. The offshore oil and gas market in Australia offers opportunities for growth, with potential for new discoveries and infrastructure development. Vermilion's experience in offshore operations provides a competitive advantage in this market.

What Are VET's Competitive Advantages?

• Diversified geographic presence reduces exposure to regional risks.
• Experienced management team with a track record of successful acquisitions and operations.
• Established infrastructure and operational expertise in key regions.
• Strong relationships with local communities and governments.

What Does VET Do?

Founded in 1994 and headquartered in Calgary, Canada, Vermilion Energy Inc. has evolved into a diversified international oil and gas producer. The company's operations span North America, Europe, and Australia, with a strategic focus on acquiring, exploring, developing, and producing petroleum and natural gas. Vermilion's asset portfolio includes a mix of conventional and unconventional resources, providing a balanced approach to production and growth. In Canada, Vermilion holds significant working interests in developed and undeveloped land, with a focus on light and medium crude oil and conventional natural gas. In the United States, the company has a presence in the Powder River Basin. Vermilion has a substantial European footprint, with operations in France, the Netherlands, Germany, Croatia, Hungary, and Slovakia. These assets include both onshore and offshore production, with a focus on natural gas in the Netherlands and oil production in France. In Australia, Vermilion operates the Wandoo offshore oil field. As of December 31, 2021, Vermilion had a diverse portfolio of producing wells across its operational regions, including a significant number of oil and natural gas wells in Canada, the United States, France and the Netherlands.

What Products and Services Does VET Offer?

• Acquires and explores oil and natural gas properties.
• Develops and produces petroleum and natural gas.
• Operates in North America, Europe, and Australia.
• Focuses on conventional and unconventional resources.
• Manages a diverse portfolio of producing wells.
• Engages in strategic acquisitions to expand its asset base.

How Does VET Make Money?

• Generates revenue from the sale of crude oil and natural gas.
• Acquires and develops oil and gas properties to increase production.
• Manages operating costs to maximize profitability.
• Distributes a portion of its earnings to shareholders through dividends.

What Industry Does VET Operate In?

Vermilion Energy Inc. operates within the oil and gas exploration and production industry, a sector characterized by cyclical commodity prices and geopolitical influences. The industry is currently navigating a transition towards cleaner energy sources, with increased scrutiny on environmental impact and sustainability. Vermilion's diversified geographic presence helps mitigate some of the risks associated with regional market fluctuations and regulatory changes. The competitive landscape includes major integrated oil companies, independent producers, and national oil companies. Vermilion differentiates itself through its international portfolio and focus on operational efficiency.

Who Are VET's Key Customers?

• Refineries that process crude oil into various products.
• Natural gas distributors that supply gas to residential and commercial customers.
• Industrial consumers of natural gas and oil.
• Wholesale energy markets.

Vermilion Energy Inc. has missed Wall Street's EPS estimate in 7 of its last 8 reported quarters — a recurring pattern of falling short of estimates. Reported results have landed about 386.8% below estimates on average.

Quarterly Financial Performance: Vermilion Energy Inc.

Revenue for Vermilion Energy Inc. came in at $374.3M during Q2 FY2026, a 6.1% improvement versus the preceding quarter. The company recorded net income of $96.8M, with diluted EPS of $0.62. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Energy company. Across the four most recent quarters, VET averaged $-0.53 in diluted EPS.

VET Valuation & Market Position

With a $2.05B market cap, Vermilion Energy Inc. sits in the mid-cap segment of the market. Relative to its peer group, VET's quantitative score of 20/100 is below the peer average of 78/100.

Return on equity for Vermilion Energy Inc. stands at -19.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -8.1%, showing how much profit it generates from its asset base. Its free cash flow yield is 11.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -15.6%, the inverse of the P/E and a quick read on earnings relative to price.

Vermilion Energy Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.04 places it in the distress zone, a signal of elevated financial risk.

Company Profile

Vermilion Energy Inc. operates in the Oil & Gas Exploration & Production industry within the Energy sector. It is headquartered in Calgary, CA. The company is led by CEO Dion Hatcher. VET has traded publicly since 2010.

VET Financials

VET Latest News

VET Analyst Consensus

VET MoonshotScore

What Investors Ask About Vermilion Energy Inc. (VET) — Energy

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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