By Adriano Marchese
Vermilion Energy expects to generate more cash than the market forecasts from its operations in 2025 thanks to higher expected output, and plans to increase its dividend.
The Calgary, Alberta energy company is targeting about 1 billion Canadian dollars ($692.1 million) in fund flows from operations and free cash flow of about C$400 million.
Analysts expected C$975 billion and C$315.1 million, respectively.
The board also declared an 8% increase in its quarterly dividend, reaching C$0.13 a share, starting in the first quarter of next year.
On the production front, the company expects to produce between 84,000 barrels and 88,000 barrels of oil equivalent a day next year, a 2% increase at the midpoint compared with its 2024 guidance.
Analysts polled on FactSet expect the company's output to be at around 86,100 barrels a day in 2025, up from a forecasted 84,800 barrels a day.
Vermilion set a capital expenditure budget of C$600 million to C$625 million for the year. This will include spending on drilling and infrastructure spread out across its major business units, it said.
The company will also continue to target shareholder returns at a rate of 50% of excess free cash flow, which includes the increased base dividend, while the balance will go towards debt reduction.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
December 19, 2024 07:42 ET (12:42 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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