Vermilion Energy Inc. Announces Results for the Three Months Ended March 31, 2018

CALGARY, April 26, 2018

The unaudited financial statements and management discussion and analysis for the three months ended March 31, 2018, will be available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com, on EDGAR at www.sec.gov/edgar.shtml, and on Vermilion's website at www.vermilionenergy.com.

Highlights

• Subsequent to the end of the quarter, on April 16, 2018, we announced that we had entered into an arrangement agreement ("Arrangement") to acquire Spartan Energy Corp. ("Spartan"), a publicly traded southeast Saskatchewan oil and gas producer, for total consideration of approximately $1.40 billion (comprised of $1.23 billion in Vermilion common shares based on Vermilion's closing share price of $44.04 on April 13, 2018, plus the assumption of approximately $175.0 million in debt). The Arrangement is subject to customary closing conditions, including receipt of applicable court, Spartan shareholder, and other regulatory approvals and is expected to close on or about June 15, 2018.
  
  
• Q1 2018 production decreased by 4% from the prior quarter to 70,167 boe/d. The decrease was primarily due to the planned shut-in of the Eesveen-02 well in the Netherlands following a 2-month in-line production test during Q4 2017, cold weather downtime and third party maintenance in Canada and the US, and the temporary shut-in of gas at a German site for instrumentation installation.
  
  
• Without inclusion of the Spartan assets, we expect production to increase each quarter throughout 2018 and to achieve our previous full year production guidance of 75,000 to 77,500 boe/d. Including production for the Spartan acquisition after closing, our revised production guidance is 86,000 to 90,000 boe/d.
  
  
• Fund flows from operations ("FFO") for Q1 2018 was $157 million ($1.29/basic share⁽¹⁾), a decrease of 13% from the prior quarter as the benefit of higher commodity pricing was more than offset by lower production volumes, higher realized losses on derivatives, a stronger Euro currency and the absence of a favourable tax adjustment in the Netherlands. Year-over-year, FFO increased 10% as compared to Q1 2017 on the strength of higher production and commodity prices.
  
  
• During the quarter, our Board of Directors approved a 7% increase to the monthly dividend to $0.23 per share from $0.215 per share, effective with the April 2018 dividend to be paid on May 15, 2018.
  
  
• In Ireland, production from Corrib averaged 61 mmcf/d (10,144 boe/d) in Q1 2018, an increase of 8% from Q4 2017. As reported in the Q3 2017 release, Corrib had an unplanned downtime period following a plant turnaround that commenced in early September and extended through October 10th. This downtime reduced Vermilion's Q4 2017 production by approximately 1,200 boe/d. The absence of this downtime in Q1 2018 was partially offset by the initiation of decline from the Corrib gas field, as expected from our reservoir modeling.
  
  
• In France, we drilled three (3.0 net) wells in the Champotran field, including a side-track from an existing well. Two of the new Champotran wells were brought on production late in the quarter at a combined rate of 780 boe/d over the final two weeks of March. The side-track well is scheduled to be brought on production mid-Q2 2018.
  
  
• As reported as a subsequent event with our Q4 2017 release, we drilled and tested our first exploratory well (100% working interest) in Hungary on our South Battonya concession. The Mh-Ny-07 natural gas well tested at a rate of 5.8 mmcf/d⁽²⁾ and is expected to be brought on production mid-2018. This marks the drilling of our first well in the Central and Eastern Europe Business Unit.
  
  
• In Canada, production averaged 32,078 boe/d in Q1 2018, representing a 3% decrease from the previous quarter primarily due to cold weather downtime and planned maintenance on third party infrastructure. These events more than offset new well production as most wells drilled in the quarter were not completed and brought on production until late in the quarter or in early Q2 2018. During the quarter, we announced and closed an acquisition of a private company with light oil producing assets straddling the Saskatchewan and Manitoba border, near Vermilion's existing operations in southeast Saskatchewan.
  
  
• Vermilion was recently ranked 11th by Corporate Knights on the Future 40 Responsible Corporate Leaders in Canada list. This marks the fifth year in a row that Vermilion has been recognized by Corporate Knights as one of Canada's top sustainability performers. Vermilion continues to be the highest rated oil and gas company on the list.

(1)	Non-GAAP Financial Measure.  Please see the "Non-GAAP Financial Measures" section of Management's Discussion and Analysis.
(2)	Mh-Ny-07 well tested gas at a rate of 5.8 mmcf/d over the final two hours of a 22 hour |test period at a stabilized wellhead pressure of 1,065 psi on a 0.55 inch diameter choke and a shut-in wellhead pressure of 1,305 psi.  No water production was observed during testing.  The well logged 21 feet of net gas pay with an average porosity of 31% from an Upper Miocene Pannonian sandstone occurring within a gross measured depth interval of 3,438 -3,465 feet. ARIVA.DE Börsen-Geflüster Kurse Vermilion Energy Inc. 12,03 $ 0,00%

($M except as indicated)		Q1 2018		Q4 2017		Q1 2017
Financial
Petroleum and natural gas sales		318,269		317,341		261,601
Fund flows from operations		157,480		181,253		143,434
	Fund flows from operations ($/basic share) (1)	1.29		1.49		1.21
	Fund flows from operations ($/diluted share) (1)	1.27		1.47		1.19
Net earnings		25,139		8,645		44,540
	Net earnings ($/basic share)	0.21		0.07		0.38
Capital expenditures		128,618		74,303		95,889
Acquisitions		93,078		3,048		2,620
Asset retirement obligations settled		3,591		3,216		2,249
Cash dividends ($/share)		0.645		0.645		0.645
Dividends declared		79,005		78,653		76,593
	% of fund flows from operations	50%		43%		53%
Net dividends (1)		59,364		56,836		41,087
	% of fund flows from operations	38%		31%		29%
Payout (1)		191,573		134,355		139,225
	% of fund flows from operations	122%		74%		97%
Net debt		1,514,645		1,371,790		1,377,636
Ratio of net debt to annualized fund flows from operations		2.4		1.9		2.4
Operational
Production
	Crude oil and condensate (bbls/d)	27,008		27,830		26,832
	NGLs (bbls/d)	5,126		5,279		2,694
	Natural gas (mmcf/d)	228.2		238.27 Werbung Mehr Nachrichten zur Vermilion Energy Inc. Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 25.04.24 - PR Newswire BlackRock Energy and Resources Income Trust Plc - Portfolio Update 25.04.24 - PR Newswire Moonpig Group Plc - Holding(s) in Company 25.04.24 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Wincanton Plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59