Vermilion Energy Inc.

Vermilion Energy remains a Strong Buy, trading at a deep discount amid its ongoing portfolio transformation. VET is nearing a major cash flow inflection, with Montney and European projects ramping, targeting C$1.7B EFCF from 2026–2030 on realistic commodity assumptions. Production per share is up 6% YTD, net debt is falling, and a new buyback program plus a ~3% dividend supports robust shareholder returns.

Engineers Gate Manager LP raised its stake in Vermilion Energy Inc. (NYSE: VET) (TSE: VET) by 212.3% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 172,429 shares of the oil and gas company's stock after buying an additional 117,219

Vermilion Energy is rated a buy with roughly 25 to 30 percent probability-weighted upside. The market prices the stock as if its hedges never expire, but they roll off contractually. Hedged production falls from 47 percent for the remainder of 2026 to roughly 30 percent through 2028. VET earned $20.55 per BOE last quarter and $25.65 before hedging losses. Continuing operations production rose 4.3 percent to 125,787 BOE per day. European gas is only 13 percent of volumes but drives a realized gas price more than triple AECO.

Vermilion Energy Inc. delivered strong top and bottom-line results, surpassing consensus and significantly improving its financial profile through aggressive deleveraging. Vermilion Energy's global footprint enables exposure to Brent oil and European gas benchmarks, but recent hedging losses from surging EU gas prices have weighed on earnings. Despite a low P/FFO multiple of 2.44x and a >3% forward yield, Vermilion Energy trades at a steep discount to peers, reflecting market concerns over its hedgebook and global exposure.