Calgary-based Vermilion Energy Inc. has announced the sale of its U.S. assets for $88 million (C$120 million), marking its full exit from the United States. The company said the move will help reduce debt and allow a sharper focus on its natural gas operations in Canada and Europe.
The assets being sold produce around 5,500 barrels of oil equivalent per day (boe/d), with 81% of that being oil and liquids. They also include 10 million barrels of proved developed producing reserves. Vermilion expects the sale to close in the third quarter of this year.
This deal follows the company’s sale of its East Finn assets in 2023 and completes its U.S. divestment strategy. Vermilion is shifting its attention to gas-rich regions where it sees greater long-term value.
Earlier this year, Vermilion acquired Westbrick Energy Ltd., expanding its natural gas footprint in Alberta’s Deep Basin. That deal added 50,000 boe/d of production—75% natural gas and 25% liquids—and roughly 1.1 million acres of land, including four gas plants with a combined processing capacity of 102 million cubic feet per day.
The acquisition has significantly boosted Vermilion’s growth outlook. On Thursday, the company raised its 2025 production guidance to between 117,000 and 122,000 boe/d, up from a previous estimate of 84,000 to 88,000 boe/d. Natural gas is expected to make up 65% of total output this year, compared to 56% before the Westbrick deal.
Looking ahead, Vermilion says over 90% of its production will come from its global gas portfolio. More than 80% of capital spending will be directed toward those assets.
The company noted that it will continue to monitor market conditions and may adjust capital spending in 2025 and 2026 to prioritize free cash flow over production growth.
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