On May 23, 2025, Vermilion Energy Inc. announced a definitive agreement to sell its Saskatchewan and Manitoba assets for cash proceeds of $415 million. The divested assets currently produce about 10,500 boe/d (86% oil and liquids) and are expected to generate $110 million in annual net operating income at current commodity prices. The assets also include 30 million boe of Proved Developed Producing reserves and an estimated $250 million in future abandonment liabilities. The transaction has an effective date of May 1, 2025, and is expected to close in Q3 2025, pending regulatory approval and customary conditions.

Proceeds from the sale will be used to accelerate debt repayment, with Vermilion forecasting year-end 2025 net debt of $1.5 billion and a trailing net debt to fund flows from operations (FFO) ratio of 1.4x. Following the divestment, the company anticipates average 2025 production of 120,000 to 125,000 boe/d and capital expenditures of $680 to $710 million, reflecting a $50 million reduction post-closing. This move is part of Vermilion’s ongoing strategic shift toward long-duration, high-return gas assets in Western Canada and Europe, supported by recent exploration success in Germany.

National Bank Financial Inc. is serving as exclusive financial advisor, Scotiabank as strategic advisor, and Torys LLP as legal advisor to Vermilion for the transaction.