Vermilion Energy Inc. announced it has entered into a definitive agreement for the sale of its Saskatchewan and Manitoba assets for cash proceeds of $415 million. The net proceeds from this transaction will be directed towards debt repayment, aiming to accelerate deleveraging efforts and strengthen Vermilion's balance sheet.
The divested assets currently produce approximately 10,500 boe/d, with 86% consisting of oil and liquids, and held Proved Developed Producing reserves of 30 mmboe as of December 31, 2024. The transaction, which has an effective date of May 1, 2025, is anticipated to close in Q3 2025, subject to regulatory approvals.
This divestment marks another significant step in Vermilion's strategic plan to high-grade its asset portfolio, shifting focus towards long-duration, scalable assets with high return on capital opportunities. The company expects to exit 2025 with net debt of $1.5 billion, with a trailing net debt to FFO ratio of 1.4 times, and has updated its 2025 capital expenditures to a range of $680 to $710 million.
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