Vermilion Energy


CA$3536.3m market cap

CA$22.83 last close

Vermilion Energy is an international E&P with assets in Europe, North America and Australia. Management expects FY19 production to average 101–106kboed.

Investment summary

Vermilion Energy’s defensive qualities include asset and commodity diversification, low financial leverage, high margins and low finding and development (F&D) costs. Management’s commitment to providing shareholders a sustainable dividend is supported by a deep and diverse portfolio of assets resilient to a volatile commodity price environment. Vermilion ranks highly for ESG performance and was named to the CDP climate leadership level A- in 2018. Our base case valuation stands at C$47.5/share and the share price is well supported by a c 11.4% yield.

Y/E Dec
Revenue (C$m)
PBT (C$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 1024.0 673.0 124.0 86.0 26.5 4.7
2018A 1526.0 1037.0 355.0 226.3 10.1 3.9
2019E 1730.0 1045.0 211.0 123.9 18.4 3.7
2020E 1803.0 1114.0 284.0 166.0 13.8 3.5
Last updated on 19/09/2019
Industry outlook

Vermilion’s operations are in OECD countries and predominantly onshore; political, operational and subsurface risk is well spread. Vermilion benefits from realisations based on a number of regional commodity prices including Brent, WTI crude and Henry Hub, TTF, NBP and AECO gas.

Last updated on 19/09/2019
Oil & gas
Share price graph
Balance sheet
Forecast net debt (C$m) 1802
Forecast gearing ratio (%) 68
Price performance
Actual 12.0 (17.9) (46.1)
Relative* 8.3 (19.6) (48.4)
52-week high/low C$43.5/C$18.5
*% relative to local index
Key management
Kyle Preston IR Director
Tony Marino President and CEO

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