Q2 2024 Vermilion Energy Inc Earnings Call Transcript
Key Points
- Production during the second quarter averaged 84,974 boes per day, which was at the top end of the guidance range.
- Vermilion Energy Inc (VET) reduced net debt by $38 million to $907 million and increased share buybacks significantly.
- The company achieved key operational milestones with the start-up of the Mica Montney battery in British Columbia and the SA-10 gas plant in Croatia.
- European natural gas production grew by over 15% over the past two years, with strong pricing in Croatia.
- The company increased its annual production guidance to 83,000 to 86,000 boe per day while maintaining its capital budget guidance.
- Free cash flow of $126 million was lower than Q1, mainly due to lower realized commodity hedge gains.
- Production from international operations was affected by scheduled maintenance, impacting output.
- The second exploration well in Germany is a higher-risk prospect, which could pose financial risks if unsuccessful.
- Approximately 800 boe a day of dry gas production in Alberta was curtailed due to low gas prices.
- The company faces downtime during periods of high temperatures, which could affect production levels.
Good morning. My name is Sylvie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vermilion Energy Q2 conference call.
(Operator Instructions) Thank you. Mr. Dion Hatcher, you may now begin your conference.
Thank you, Sylvie. Well, good morning, ladies and gentlemen. Thank you for joining us. I'm Dion Hatcher, President and CEO of Vermilion Energy. With me today are Lars Glemser, Vice President and CFO; Darcy Kerwin, Vice President, International and HSE; Randy McQuaig, Vice President, North America; and Kyle Preston, Vice President, Investor Relations.
We'll be referencing a PowerPoint presentation to discuss our Q2 2024 results. The presentation can be found on our website under Invest with Us in Events & Presentations.
Please refer to our advisory on forward-looking statements at the end of this presentation. It describes forward-looking information, non-GAAP measures, and oil and gas terms used
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