Vermilion Energy Inc. (NYSE:VET) Q3 2023 Earnings Call Transcript

Lars Glemser: Great. Thanks for the question, Dennis. Yeah. So as we referenced that mix, that target will be $1 billion line of sight in that in the first quarter of 2024 and looking forward to providing what that next step is going to look like with the budget release here in the coming weeks. I think the best way to think about it is, we do have a clear plan in place in terms of getting to that target. I think the big thing that we’re trying to emphasize as well is if you look at the free cash flow for 2024, not only is there going to be an increase in the percentage of free cash flow that is allocated to return of capital for shareholders but the absolute amount of free cash flow as well is increasing quite significantly in 2024 to 2023 kind of that 60% or $300 million year-over-year.

In terms of debt targets beyond that, we’re quite comfortable with that $500 million to $1 billion range. The lower end of that target, we represent the amount of debt that we have termed out to 2030. And so we think that that’s a good way to think about longer-term debt levels for Vermilion.

Lars Glemser: Thanks, Dennis.

Dennis Fong: Appreciate that. I’ll turn it back.

Dion Hatcher: Thanks, Dennis.

Operator: Thank you. And at this time, gentlemen, it appears we have no other questions registered. Please proceed with any additional comments.

Dion Hatcher: Well, with that, I’d like to thank you again for participating in our Q3 conference call

Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for calling. And at this time, we ask that you please disconnect your lines.