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TSE:VET

Vermilion Energy Inc (VET.TO)

17.36
-0.27 (1.53%)
as of Aug 28, 2026, 8:00:00 pm Market Open.
585 watching
0
Investor Insights
star iconAug 28, 2026, 12:00 am

This summary was created by AI, based on 15 opinions in the last 12 months.

Vermilion Energy Inc. (VET-T) has garnered mixed reviews from experts, highlighting its diverse geographical exposure which includes assets in Europe, Australia, and Canada. While some analysts express concerns over the lack of focus and the company's extensive international footprint, others point out that recent management efforts to streamline operations and concentrate on Canadian assets are promising. The company is noted for having significant natural gas production, particularly in Europe, which is expected to benefit from rising demand amidst energy supply challenges. Despite being perceived as undervalued and having improved performance metrics, some experts caution about inherent volatility and urge vigilance regarding geopolitical impacts on gas prices. Overall, while there's optimism about future growth, particularly in natural gas, doubts about the company’s strategic execution and catalysts persist.

consensus icon
Consensus
Mixed
valuation icon
Valuation
Undervalued
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Similar
TOU
BUY
14% dividend safe? Yes, it's safe. The whole energy sector has been annihlated in the past year--so it's a fantastic opportunity to buy now. Investors have given up, so he's been buying energy stocks. Prices are low and so are valuations. Eventually, oil stocks will turn around.
DON'T BUY

If it cuts the dividend, the stock will likely fall. Sadly, there's no interest in Canadian oil stocks. VET has a lot of debt--keep that in mind. Can they maintain their cash flow and the dividend? Is it prudent to pay so much dividend when the price of oil is struggling? If you want oil, look at Cenovus.

DON'T BUY
They can't maintain a 14% yield though he's buying oil stocks now. He likes its volume now, but it's very risky. It could touch $24 again.
HOLD
Yield 14%!!!?? He owns it for some of his income holdings and he thinks the dividend is still safe. The majority of the assets are outside Canada and he likes that. He can't guarantee the dividend is safe, but he will continue to hold it. Yield 14%
DON'T BUY

It's been tough on investors. VET claims that can support their dividend to $40 WTI, but we're getting close to that. They have 5% production growth, but prices are weak, so he doesn't see cash flow growth. When Canadian oil turns around, so will this, but now its chart is ugly.

WATCH
Yield comes out to 13.8% today. Energy is going to be a top pick later. He thinks the risk/reward is pretty good. It has been in a down trend. It is going back to 2005 and 2009 levels. You need to look at it on a monthly basis to get confirmation. Don't touch it if you are a momentum player. It might go a little lower
DON'T BUY

He hasn't followed VET in a while, and he owns no oil stocks. He prefers playing energy through pipelines like ENB-T. VET's troubles began when they The investors weren't sure what their strategy was. It's so volatile now.

WATCH
Desperately needs oil and/or gas prices to rise. Dividend is 13%. Now what? Balance sheet is slipping lower and lower. Selling about 16% below FMV. Earnings are slipping, and so has the stock. If he bought higher, he'd cross his fingers. If it doesn't hold at $22, look for $18.
COMMENT
Will the 13% dividend get cut and drive down the share price? It's an interesting stock that he has researched. The dividend is safe, yes, based on his stress test. VET isn't exposed to depressed Alberta oil prices (WCS) so that's good. The market hates Canadian oil, whether or not assets are in Canada or not (VET's case).
DON'T BUY
Be careful in the energy space right now. The market is telling you with the recent share price drops, that the underlying commodity price levels are not here to stay. Take the cue. This is not specific to VET-T, just the energy space as a whole.
BUY

Oil prices are down and who knows for how long? He's underweight oil, though he's always held, and he's minimal in Canadian oil. He'd buy VET in dips to average down. Has a $40 target. Buy a safer investment in this space is the ETF, HPF-T, so you're paid an 8% dividend to wait. It holds the world's 15 biggest oil companies. VET's dividend is a little rich at 13%, though he's okay with a cut and wait for this sector to come back. Expect a dividend cut in the oil sector.

BUY
Why are oil stocks so low when the oil price is high, especially during summer seasonality? Instead, we see big declines and volatility. The stocks just hit multi-year lows. However, in the past few days we've seen a massive reversal, including today. He's still bullish the price of oil. So, we should see a lift in oil stocks with the trend starting now. A parabolic trend up or down never lasts; at some point it changes direction.
DON'T BUY
For the long term? They're over-paying their dividend and it may not be sustainable. VET trades 1.5x book and their EBITDA is more than other oil companies. You're catching a falling knife. Wait for the price to turn up.
BUY
International and Canadian assets. 68% debt. Never cut the dividend, and it's quite secure. Dividend is important to management. Likes it, and he's buying more. Target of $36. More free cash flow comes from international assets. Yield is 10.7%
HOLD
He likes the company and its yield and its international diversification. There has been speculation on whether their capex requirements are really as low as they say they are. This could jeopardize their dividend. The balance sheet is strong, if you trust what they are saying. The company has never cut the dividend and would be loathe to cut.
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