Vermilion Energy Inc. reported its operating and financial results for the second quarter ended June 30, 2025, with production significantly increasing to 136,002 boe/d, a 32% increase from Q1 2025. Fund flows from operations (FFO) for the quarter were $259.7 million, contributing to a year-to-date FFO of $515.7 million.
The company reported a net loss of $233.5 million, primarily due to a non-cash asset revaluation from discontinued operations, however, net earnings from continuing operations were $74.4 million. Free cash flow (FCF) for Q2 2025 was $144.2 million, bringing the year-to-date FCF to $218.1 million.
Vermilion achieved significant debt reduction, with net debt decreasing to $1,413.3 million at June 30, 2025, down from $2,062.8 million at March 31, 2025, reflecting the impact of recent asset divestments. The net debt to trailing FFO ratio improved to 1.4 times. The company's corporate realized gas price was $4.88 per Mcf in Q2 2025, with European gas volumes selling at prices 10 times higher than the AECO benchmark.
Operationally, the Osterheide deep gas well in Germany produced above expectations during its first quarter on production, and the Wisselshorst deep gas well remains on schedule to come online in the first half of 2026. Vermilion has identified over $200 million (NPV10) of synergies post-Westbrick acquisition, further enhancing profitability. The company expects to exit 2025 with net debt of $1.3 billion, with over 90% of its go-forward production base of approximately 120,000 boe/d coming from global gas assets.
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