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CALGARY, AB, Jan. 18, 2021 /PRNewswire/ – Vermilion Energy Inc. (“Vermilion”, “We”, “Our”, “Us” or the “Company”) (TSX, NYSE: VET ) is pleased to announce its 2021 exploration and development (“E&D”) capital budget and associated production guidance. Highlights E&D capital budget of $300 million is a balanced and disciplined budget focused on maximizing returns and free cash flow (“FCF”) (1) to facilitate debt reduction. Annual average production guidance of 83,000 to 85,000 boe/d reflects a transition to a more efficient, level-loaded capital program. At the midpoint of production guidance and using the January 13, 2021 commodity strip, Vermilion expects to generate in excess of $200 million of free cash flow with a payout ratio less than 65%, including the impact from existing hedges. E&D capital budget is fully funded at a WTI oil price of approximately $37/bbl on an unhedged basis, assuming all other commodity prices held at the January 13, 2021 commodity strip. Additional capital projects will be considered for drilling later in the year if market conditions are supportive. 2021 Budget and Production Guidance Vermilion’s Board of Directors has approved an E&D capital budget of $300 million for 2021, representing a 17% reduction from 2020. The Company’s […]
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