Vermilion Energy exits US with nearly $88 million asset sale

Vermilion Energy will sell its United States assets for C$120 million ($87.88 million), the Canadian gas producer said on Thursday, using the proceeds to repay debt and completing its exit from the U.S. market.

The transaction, expected to close in the third quarter, will allow Vermilion Energy to focus on core gas-weighted assets in Canada and Europe. In 2023, it had sold the East Finn assets in the U.S.

The Calgary, Alberta-based firm raised its production forecast for the current year to between 117,000 and 122,000 barrels of oil equivalent per day (boepd) from 84,000 to 88,000 boepd earlier.

The company also cut its 2025 capital budget plan by about C$100 million to between C$630 million and C$660 million, reflecting the removal of expenses related to the assets divested in Saskatchewan and the U.S.

It expects to end 2025 with a net debt of C$1.3 billion.

Earlier this year, Vermilion Energy acquired privately held oil and gas firm Westbrick Energy for C$1.075 billion, strengthening its position in the Deep Basin of Alberta.

Average natural gas prices have risen over the past few quarters and hit a two-year high on March 10, supported by strong demand from LNG export facilities and supply concerns.

($1 = 1.3655 Canadian dollars)