Vermilion Energy reports Q1 production above guidance, Germany acquisition

Vermilion Energy Inc. (NYSE: VET) reported first quarter 2026 production averaged approximately 125,000 barrels of oil equivalent per day, exceeding the company's guidance range of 122,000 to 124,000 boe/d, according to a press release.

The Calgary-based energy company's production consisted of approximately 59% Canadian gas, 13% European gas and 28% liquids. The company attributed the performance to outperformance in the Deep Basin and Montney regions, production from the Osterheide well in Germany, and new Montney wells brought online ahead of schedule. These gains were partially offset by lower volumes in Australia due to cyclone-related downtime.

European gas production in Q1 2026 achieved an average sales price of approximately $16 per million British thermal units, reflecting higher day-ahead gas prices during March 2026 amid geopolitical developments in the Middle East.

In March 2026, Vermilion signed agreements to acquire producing assets in Germany from BEB Erdgas und Erdöl GmbH & Co. KG and Mobil Erdgas-Erdöl GmbH. The assets currently produce approximately 1,000 boe/d of production that is 85% natural gas, with an effective date of January 1, 2025. The acquisition is expected to close in the second half of 2026.

The company also added three concessions in the North German Basin during Q1 2026, doubling Vermilion's acreage in Germany to over 1 million net acres. The new concessions are adjacent to existing Vermilion acreage and are intended for the company's deep gas exploration program.

Vermilion signed an agreement in March 2026 to divest its remaining 60% interest in the SA-07 block in Croatia for net proceeds of approximately €15 million ($24 million). The asset has no production and the transaction is expected to close in the second half of 2026.

The company will release its complete first quarter 2026 financial results on May 6, 2026, before North American markets open.

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