VET:CC - Vermilion Q1 results - very strong cash flow funding smart M&A

Vermilion (VET) reported Q1 results after the close Wednesday, posting very strong free cash flow, progressing with acquisition plans, and guiding to lower Q2 production on maintenance:  Earnings - the company generated C$1.67 of net earnings per share during the quarter, against Street expectations for C$1.88. Cash flow - free cash flow came in at C$305m or 7.8% of the company's current market cap; adjusting for the impact of the yet-to-close Corrib acquisition, free cash flow was C$489. Corrib - free cash flow generated by Corrib between January 1st and close will be netted out of the purchase price; the incremental 36.5% stake in Corrib generated C$184m in free cash flow during Q1 alone, compared to its $600m purchase price, the asset looks like a steal. Capital allocation - the company maintained its 6c quarterly dividend (~1% yield) and reduced net debt by C$280m; recently announced acquisitions remain a major

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Vermilion Q1 results - very strong cash flow funding smart M&A