Vermilion Energy Inc. ("Vermilion") is a Calgary, Alberta based international oil and gas producer celebrating 20 years of outstanding performance. Vermilion adheres to a value creation strategy through the execution of full cycle exploration and production programs focused on the acquisition, exploration, development and optimization of producing properties in North America, Europe and Australia. Our business model targets annual organic production growth, along with providing reliable and increasing dividends to investors.
Vermilion is targeting production of approximately 62,500 - 63,500 boe/d in 2016 (15% growth over 2015) through the exploitation of both conventional and unconventional resource plays in North America, including Cardium and Midale light oil and Mannville liquids rich natural gas, the exploration and development of high impact natural gas opportunities in the Netherlands and Germany, and through oil drilling and workover programs in France and Australia. In addition, Vermilion's 18.5% non-operated interest in the Corrib gas field is expected to contribute to that growth. At its peak, the Corrib project is expected to contribute approximately 9,700 boe/d (net) of high netback natural gas production. First gas production was achieved on December 30, 2015. Vermilion's ongoing reserve and production growth is anticipated to come from a combination of development drilling, reservoir optimization and well-timed strategic acquisitions. The long term goal is to deliver balanced growth and income to investors.
Vermilion increased its monthly dividend 7.5% in January 2014 to Canadian $0.215 per share and remains focused on providing shareholders with steady growth and a reliable and growing dividend. Combined these attributes are expected to provide shareholders with an attractive high yield investment over the long term.
Management and directors of Vermilion hold approximately 6% of the outstanding shares and are dedicated to consistently delivering superior rewards for all stakeholders, featuring an 20-year history of market outperformance.Vermilion is listed on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET.
About the Name
The name originated from Alberta’s Vermilion Lakes, a reflection of their reddish ochre waters. The strong colour of Vermilion, which is made up of red, orange and yellow, reflects a vibrant energy company brightening shareholders portfolios through distinctive assets and strategic depth.
Key Attributes of Vermilion
- Leading positions in high netback businesses in North America, Europe and Australia
- Long-term dividend growth model supported by high margins, low decline rates and strong capital efficiencies
- Defensive issue with multiple risk-reducing attributes
- Global commodity exposure, project diversification and low financial leverage reduce risk
- Consistent production growth from well-defined conventional projects and additional growth potential in unconventional resource plays
- Substantial management ownership and consistent record of market out-performance
- Rich and diverse inventory of near and long term investment prospects within each of our operating jurisdictions
- High cash netback properties
- Reserves life index at December 31, 2014 is 13.6 years (based on total proven and probable reserves)
The members of the management team average more than 25 years of operating experience and are led by Lorenzo Donadeo (CEO), one of three co-founders of the predecessor company, Vermilion Resources Ltd.
From 2009 through 2014, Vermilion has generated a 5-year compound average rate of return of 16.2% (not including reinvestment of distributions) as compared to a peer group average of -4.8%.
- Vermilion’s board of directors has been consistently recognized for superior corporate governance.