CALGARY, Aug. 7, 2019 /CNW/ - Vermilion Energy Inc.
("Vermilion") (TSX, NYSE: VET) is pleased to announce that the
Toronto Stock Exchange ("TSX") has approved the notice of
Vermilion's intention to commence a normal course issuer bid
("NCIB").
The NCIB allows Vermilion to purchase up to 7,750,000 common
shares (representing approximately 5% of its 155,161,464
outstanding common shares as of July 31,
2019) over a twelve month period commencing on August 9, 2019. The NCIB will expire no
later than August 8, 2020. Under the
NCIB, common shares may be repurchased in open market transactions
on the TSX and other alternative trading platforms in Canada and in accordance with the rules of the
TSX governing NCIB's. The total number of common shares
Vermilion is permitted to purchase is subject to a daily purchase
limit of 267,558 common shares, representing 25% of the average
daily trading volume of 1,070,233 common shares on the TSX
calculated for the six-month period ended July 31, 2019; however, Vermilion may make one
block purchase per calendar week which exceeds the daily repurchase
restrictions. Any common shares that are purchased under the
NCIB will be cancelled upon their purchase by Vermilion.
Since 2003, Vermilion has had a track record of returning
capital to shareholders through our monthly dividend (previously a
cash distribution during the trust era). We also recognize
that other forms of returning capital to shareholders, such as
share buybacks, may be appropriate to complement our dividend in
certain market conditions. We intend to utilize the NCIB
under conditions in which we have excess free cash flow available
after dividends, with that excess cash allocated both to debt
reduction and buybacks.
About Vermilion
Vermilion is an international energy producer that seeks to
create value through the acquisition, exploration, development and
optimization of producing properties in North America, Europe and Australia. Our business model
emphasizes organic production growth augmented with value-adding
acquisitions, along with providing reliable and increasing
dividends to investors. Vermilion is targeting growth in
production primarily through the exploitation of light oil and
liquids-rich natural gas conventional resource plays in
Canada and the United States, the exploration and
development of high impact natural gas opportunities in
the Netherlands and Germany, and through oil drilling and workover
programs in France and
Australia. Vermilion holds a 20% working interest in the
Corrib gas field in Ireland. Vermilion pays a monthly
dividend of Canadian $0.23 per share,
which provides a current yield of approximately 13.5%.
Vermilion's priorities are health and safety, the environment,
and profitability, in that order. Nothing is more important
to us than the safety of the public and those who work with us, and
the protection of our natural surroundings. We have been
recognized as a top decile performer amongst Canadian publicly
listed companies in governance practices, as a Climate Leadership
level (A-) performer by the CDP, and a Best Workplace in the Great
Place to Work® Institute's annual rankings in Canada, the
Netherlands and Germany.
In addition, Vermilion emphasizes strategic community
investment in each of our operating areas.
Employees and directors hold approximately 5% of our fully
diluted shares, are committed to consistently delivering superior
rewards for all stakeholders, and have delivered over 20 years of
market outperformance. Vermilion trades on the Toronto Stock
Exchange and the New York Stock Exchange under the symbol VET.
Disclaimer
Certain statements included or incorporated by reference in this
document may constitute forward looking statements or financial
outlooks under applicable securities legislation. Such
forward looking statements or information typically contain
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "propose", or similar words
suggesting future outcomes or statements regarding an
outlook. Forward looking statements or information in this
document may include, but are not limited to: number of shares to
be purchased under the NCIB; intended use of the NCIB; and future
plans regarding the uses of excess free cash flow.
Such forward looking statements or information are based on a
number of assumptions, all or any of which may prove to be
incorrect. In addition to any other assumptions identified in
this document, assumptions have been made regarding, among other
things: the ability of Vermilion to obtain equipment, services and
supplies in a timely manner to carry out its activities in
Canada and internationally; the
ability of Vermilion to market crude oil, natural gas liquids, and
natural gas successfully to current and new customers; the timing
and costs of pipeline and storage facility construction and
expansion and the ability to secure adequate product
transportation; the timely receipt of required regulatory
approvals; the ability of Vermilion to obtain financing on
acceptable terms; foreign currency exchange rates and interest
rates; future crude oil, natural gas liquids, and natural gas
prices; and management's expectations relating to the timing and
results of exploration and development activities.
Although Vermilion believes that the expectations reflected in
such forward looking statements or information are reasonable,
undue reliance should not be placed on forward looking statements
because Vermilion can give no assurance that such expectations will
prove to be correct. Financial outlooks are provided for the
purpose of understanding Vermilion's financial position and
business objectives, and the information may not be appropriate for
other purposes. Forward looking statements or information are
based on current expectations, estimates, and projections that
involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by
Vermilion and described in the forward looking statements or
information. These risks and uncertainties include, but are
not limited to: the ability of management to execute its business
plan; the risks of the oil and gas industry, both domestically and
internationally, such as operational risks in exploring for,
developing and producing crude oil, natural gas liquids, and
natural gas; risks and uncertainties involving geology of crude
oil, natural gas liquids, and natural gas deposits; risks inherent
in Vermilion's marketing operations, including credit risk; the
uncertainty of reserves estimates and reserves life and estimates
of resources and associated expenditures; the uncertainty of
estimates and projections relating to production and associated
expenditures; potential delays or changes in plans with respect to
exploration or development projects; Vermilion's ability to enter
into or renew leases on acceptable terms; fluctuations in crude
oil, natural gas liquids, and natural gas prices, foreign currency
exchange rates and interest rates; health, safety, and
environmental risks; uncertainties as to the availability and cost
of financing; the ability of Vermilion to add production and
reserves through exploration and development activities; the
possibility that government policies or laws may change or
governmental approvals may be delayed or withheld; uncertainty in
amounts and timing of royalty payments; risks associated with
existing and potential future law suits and regulatory actions
against Vermilion; and other risks and uncertainties described
elsewhere in this document or in Vermilion's other filings with
Canadian securities regulatory authorities.
The forward looking statements or information contained in this
document are made as of the date hereof and Vermilion undertakes no
obligation to update publicly or revise any forward looking
statements or information, whether as a result of new information,
future events, or otherwise, unless required by applicable
securities laws.
This document contains metrics commonly used in the oil and gas
industry. These oil and gas metrics do not have any
standardized meaning or standard methods of calculation and
therefore may not be comparable to similar measures presented by
other companies where similar terminology is used and should
therefore not be used to make comparisons. Natural gas
volumes have been converted on the basis of six thousand cubic feet
of natural gas to one barrel of oil equivalent. Barrels of
oil equivalent (boe) may be misleading, particularly if used in
isolation. A boe conversion ratio of six thousand cubic feet
to one barrel of oil is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
Financial data contained within this document are reported in
Canadian dollars, unless otherwise stated.
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SOURCE Vermilion Energy Inc.