CA - Vermilion Energy: Very Strong Free Cash Flow In Q1 And An Attractive Valuation

2024-05-02 06:41:49 ET

Summary

• Vermilion Energy is a Canadian oil and natural gas producer, with a significant portion of production outside of North America.
• The company's production outside of North America contributes more to funds flow and free cash flow due to better margins.
• Production, funds flow, and free cash flow were strong in Q1 2024.
• The company is now trading with a free cash flow yield of around 20% using strip prices, which few peers can match.

Overview

Vermilion Energy ( VET ) is a Canadian oil & natural gas producer with a decent percentage of production coming from outside of North America. Just under half of production is from liquids, while the remaining portion is from North American and European natural gas. However, production outside of North America has a disproportionate contribution to funds flow and free cash flow due to better margins....

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