Vermilion Energy Inc. reported its third‑quarter 2025 results on November 5, 2025, posting a GAAP net loss of $0.02 per share—$0.02 per share below analysts’ consensus of $0.04 per share—while adjusted earnings rose to $1.64 per share, a $1.45‑per‑share beat of the $0.19 consensus estimate. The company’s fund flows from operations (FFO) reached $253.8 million, and free cash flow stood at $108.2 million, underscoring its ability to generate cash despite a one‑time charge that pushed the GAAP loss.
The GAAP loss was largely driven by a non‑recurring impairment related to a divestiture, which did not affect operating performance. Adjusted earnings, which exclude that charge, reflected disciplined cost management and a favorable mix of gas production, which helped the company maintain profitability even as oil prices remained volatile. Production averaged 119,062 boe/d, comfortably at the upper end of the company’s guidance range, and the cash dividend of $0.13 per share was declared for payment on December 31, 2025.
Net debt fell to $1.384 billion as of September 30, 2025, a reduction of more than $650 million since the first quarter. The resulting net‑debt‑to‑trailing‑FFO ratio of 1.4× signals a solid balance‑sheet position and supports the company’s plan to bring net debt down to $1.3 billion by year‑end. The strong FFO and free cash flow also provide flexibility for future capital investments and shareholder returns.
Management trimmed the upper end of its 2025 capital guidance by $20 million, setting the range at $630–$640 million, and cut full‑year operating‑cost guidance by $10 million. The company reiterated that 85 % of its production and capital spend is now focused on core gas assets, a shift that has already improved capital efficiency. It also confirmed plans to bring shut‑in production and new wells online in Q4 2025 as natural‑gas pricing improves, signaling confidence in the near‑term market outlook.
"Vermilion delivered a strong third quarter, both operationally and financially, with production at the upper end of our guidance range and robust fund flows from operations," said the company’s management. "Our continued focus on asset repositioning has led to repeatable improvements in capital and operating efficiencies," added the CFO. "Reduced net debt by over $650 million since Q1 2025, bringing net debt to $1.38 billion as at September 30, 2025," the statement added. "Looking ahead, we plan to maintain a steady three‑rig program to efficiently advance development across the Deep Basin," the CEO concluded.
The company’s earnings performance, while marred by a GAAP loss, demonstrates that its core gas strategy and cost discipline are delivering cash‑flow strength and debt‑reduction momentum. The adjusted earnings beat and robust FFO reinforce confidence in the company’s ability to sustain dividend payments and pursue disciplined capital allocation in a challenging industry environment.
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