Vermilion Energy Inc. (referred to herein as "Vermilion") is a Calgary, Alberta based international oil and gas producer celebrating 18 years of outstanding performance. Daily production in the fourth quarter of 2011 was 36,654 boe/d comprised of 22,096 barrels per day of mostly light sweet crude oil and 79.5 million cubic feet of natural gas from properties in Western Canada, Australia, France and the Netherlands. Vermilion operates over 90% of its properties supported by an outstanding team of dedicated professionals.
Vermilion is targeting production growth to approximately 50,000 boe/d in 2015 (approximately 35%) and expects to maintain the current dividend of $0.19 CDN per month until that time. Vermilion is focussed on providing shareholders with a stable and reliable dividend that we would expect to grow over time to provide shareholders with an attractive high yield investment. Together with strong growth and steady dividends, investors are also exposed to a growing portfolio of potential resource play exposure.
Vermilion's long history of value creation dates back to 1994 when it was launched as a junior exploration and production company. The company converted to the energy trust structure in 2003 and began distributing a portion of its cash flow to investors. Effective September 1, 2010, Vermilion converted back to a dividend paying corporation, maintaining the same monthly payment in the form of a dividend.
The initial distribution rate of $0.17 per unit per month was increased to $0.19 per unit per month in December of 2007, and has never been reduced. Interestingly, since 1994 Vermilion has issued approximately $936 million in total equity, and since January 2003 has distributed almost $1.4 billion back to shareholders through distributions and dividends.
As of December 31, 2011, Vermilion's debt, net of working capital was $429 million against a combined borrowing capacity of $1,025 million.
Vermilion's reserve and production growth comes from a combination of development drilling, reservoir optimization and well-timed strategic acquisitions. The long term goal is to deliver a balanced growth and income to investors.
As of September 2013, the company reported volumes of 41,511 Boepd ranking 20th out of the Canoil Top 100.