Vermilion Energy's Q1 production and net earnings rise with oil and gas prices

Source: Vermilion Energy

Vermilion Energy Inc. says it beat its own guidance for production in the first quarter as net income jumped to $500 million from a net loss of $1.3 billion in the same period of 2020.

The Calgary-based company says it had production of 86,300 barrels of oil equivalent per day in the three months ended March 31 thanks to a revitalized drilling program, ahead of its annual guidance range of 83,000 to 85,000 boe/d but well short of its first quarter 2020 output of 97,200 boe/d.

The producer of oil and gas in North America, Europe and Australia says its financial results were buoyed by higher global oil prices and strong natural gas prices in Europe. A year ago, it recorded a $1.2-billion writedown on its oil and gas assets due to low commodity prices.

Vermilion says its North American operations averaged 56,780 boe/d in the first quarter, down three per cent from the fourth quarter mainly due to natural well declines and cold weather downtime during February.

Production in its international assets averaged 29,500 boe/d, up one per cent from the prior quarter thanks to higher production in Australia and Germany.

It says it realized average prices for oil and condensate of C$71.09 per barrel, up from $58.66 a year ago, while its natural gas price averaged C$5.51 per thousand cubic feet, up from $2.94.

© 2021 The Canadian Press

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