Vermilion Energy Announces Sale of its Assets in Saskatchewan and Manitoba

Vermilion Energy Inc. (NYSE:VET) announced on May 23, 2025, that it is set to offload its assets in Saskatchewan and Manitoba. Let’s shed some light on the development.

Vermilion Energy Announces Sale of its Assets in Saskatchewan and Manitoba

An oil rig in the middle of the ocean, its towering structure standing stout in the horizon.

Vermilion Energy Inc. (NYSE:VET) is an oil and gas producer focused on the acquisition, exploration, development, and optimization of producing properties in North America, Europe, and Australia. The Canadian company announced on Friday that it has reached an agreement to sell its assets in Saskatchewan and Manitoba for $415 in cash.

Vermilion Energy Inc. (NYSE:VET) intends to use these sale proceeds to reduce its debt, with expectations to exit 2025 with net debt of $1.5 billion and a trailing net debt to funds from operations (FFO) ratio of 1.4 times. Moreover, the strategic move is a part of the company’s efforts to high-grade its asset portfolio by shifting its focus toward long-duration, scalable assets with deep inventory of high return on capital opportunities.

The divested assets have a current output rate of approximately 10,500 boe/d (86% oil and liquids) and are projected to generate approximately $110 million of annual net operating income at current strip commodity prices. Assuming a mid-Q3 close, Vermilion Energy Inc. (NYSE:VET) expects its average production for FY 2025 to range between 120,000 and 125,000 boe/d. The company’s CapEx is projected at $680 – $710 million for the year, including a $50 million reduction related to the divested assets.

The transaction is effective as of May 1, 2025, and is expected to close in the third quarter of 2025, subject to customary conditions, including regulatory approvals.

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