Q2 2026 Vermilion Energy Inc Earnings Call Transcript
Key Points
- Production averaged 125,800 boe/d in Q2 2026, exceeding the top end of guidance.
- Full-year production guidance increased to 121,000-123,000 boe/d without raising capital spending.
- Record production from the Montney and strong Deep Basin performance drove operational results.
- First production achieved from the Visselhöhe well in Germany, a major exploration milestone.
- Net debt reduced by approximately $840 million over five quarters, strengthening the balance sheet.
- Return of capital target increased to 40-60% of excess free cash flow, up from 40%.
- European gas prices are elevated (over $25/MMBtu), benefiting production from Germany.
- Debottlenecking infrastructure in Germany, including a new sales pipeline, to boost production.
- Q3 2026 production expected to dip to 116,000-118,000 boe/d due to planned maintenance.
- Back-to-back cyclones in Australia earlier in 2026 disrupted production and exports.
- Operating expenses and capital expenditures are weighted toward the second half of 2026.
- European gas storage levels are well below average, posing supply risks for winter.
- Realized hedge losses of $57 million in Q2 partially offset by unrealized gains.
- Planned maintenance in Ireland, Germany, and Canada will temporarily reduce output.
Good morning ladies and gentlemen, and welcome to the Vermilion Q2 2026 conference call at this time, all lines are in listen-only mode.
Following the presentation, we will conduct a question-and-answer session.
If at any time during this call, you require immediate assistance, please press 0 for the operator.
This call is being recorded on July 30th, 2026.
I would now like to turn the conference over to Dion Hatcher, President and CEO.
Please go ahead.
Thank you.
Good morning, ladies and gentlemen, I'm Dion Hatcher, President and CEO of Vermilion Energy.
With me today are Lars Lester, Vice President and CFO Darcy Kerwin, Vice President, International and HSE.
Randy McQuaid, Vice President of North America.
Lara Conrad, Vice President of Business Development, and Travis Thorgerson, Director of Investor Relations and corporate planning.
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