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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
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Valuation
Undervalued
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Similar
TOU
DON'T BUY
Doesn't own any Canadian energy producers. Commodity price outlook in western Canada is not that visible in terms of takeaway capacity. Chinese demand has fallen off. Dividend yield is very high, and the share price is coming off. Depressed prices will impact cash flow.
DON'T BUY
The stock trades at a premium multiple. Their balance sheet is not as strong as others. He is not keen on the stock compensation for senior management. He thinks there are better opportunities out there. He is not sure that management's decision to keep paying the dividend is not a wise strategy at the detriment of maintaining production. Yield 15%
DON'T BUY

Sell BCE to buy VET for the dividend income? Chances of VET cutting its dividend are high, but no chance BCE will. Don't do this trade.

PARTIAL BUY
Average down? He is not close to following this one. Management has said the dividend is safe. Hopefully it is not cut. He does not own it. You could pick away at this, even just looking for a bounce. Yield 14%
WATCH
People who are selling these stocks are not doing it for investment reasons. It's to sell fossil fuel stocks in general. The yield is close to 14.5% and they are saying they will not cut the dividend. He would wait for a bottom before entering.
DON'T BUY
He had owned this back in 2018. Their largest exposure was in Europe and was backed by Brent oil prices. When differentials were negative in Canada they benefited. Energy in Canada is so cheap relative to European assets, so he thinks the opportunity lies back home in Alberta. So he does not own this. There is also a risk of the high dividend being cut. Yield 13%
COMMENT
The market likes it around $20, but it's around $18, so you got to have the stomach for this one.
COMMENT
Dividend safe? He owns this and thinks the dividend is secure. If WTI rises to $70 later this year, then they can reduce debt to improve the balance sheet and perhaps raise the dividend if WTI moves about $80. They are generating surplus cash flow outside of North America. They are 53% liquids and they expect to increase production in the future. Yield 13%
HOLD
He thinks management is good here. It is a question of the dividend. The street does not think it is sustainable. Management knows what they are doing but debt is a little high. Management plans on continuing to pay the dividend.
TOP PICK
His entry point is right here. Sells to Europe. Dividend is sustainable, and has never been cut. Sales are hedged, and they get the higher Brent price. Target is $35. Yield is 13.08%. (Analysts’ price target is $25.07)
COMMENT
Yields 13%. The yield rises because the price goes down, and that is not positive. Look at their fundamentals, especially cash flow and payout ratio. Managers stand by this yield which he feels is awfully high.
COMMENT

VET says its capex and dividend are fully funded down to $55 WTI. VET is cheap, and the balance sheet is okay. Pay ratio is around 101%. Problem is there will be -4% negative cash flow per share growth. The only hope is that oil prices will least stabilize or rise--and he doesn't know. VET is not bad, otherwise look at WCP or Peyto as a dividend oil stock.

BUY
What stands out the most is it yields just under 13%. Stock is priced as though it's going to cut the dividend, but he doesn't think it will. Moderate risk of a cut. Good risk/reward. Likes geographic balance of production. Half is from Canada, rest is elsewhere. Leverage ratio is 1.9x, which is moderate. Payout ratio is 49%, which is manageable. Chart's bottomed. Good entry point for pretty high quality producer with leverage to oil.
PAST TOP PICK
(A Top Pick Jan 15/19, Down 25%) He thinks it is extremely well managed. He believes the dividend will be maintained unless commodity prices fall dramatically. Of all the energy companies in Canada it is likely the most internationally diversified. He thinks the price is already taking into account a dividend cut. He will continue to hold it.
BUY
14% dividend. He owns it nervously. Cutting the dividend in half would still make it a good dividend. The reinvestment plan is being eliminated. It is a well run company. It could be a good performer.
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