Vermilion Energy Inc. Reports Strong Q1 2026 Production and Advances Portfolio Repositioning with Germany Strategic Acquisition, Award of New Land Concessions and Croatia SA-07 Divestment

• Q1 2026 average production hit ~125,000 boe/d, topping guidance (122–124 k).
• Added ~1,000 boe/d of low‑decline gas assets in Germany (85% gas) and doubled German acreage to >1 M net acres.
• Secured three new land concessions in the North German Basin for future deep‑gas drilling.
• Sold remaining 60% of non‑producing Croatia SA‑07 block for €15 MM ($24 MM); proceeds earmarked for debt reduction.
• European gas price realized at ~$16/MMBtu, well above North American benchmarks.
• Australian production temporarily down due to cyclones; expected restart Q2 2026.
• Full Q1 operating results slated for May 6 2026.

The announcement combines several material elements that were not fully priced in prior to release:

Element	Expectation vs. Outcome	Impact
Production beat	Guidance 122‑124 k boe/d; actual ~125 k	Positive – validates operational execution and supports higher cash flow forecasts.
German acquisition & land	Previously disclosed intent to grow European gas, but size (≈1 M net acres) and low‑decline asset were unknown.	Material positive – adds stable, TTF‑linked revenue stream and infrastructure control.
Croatia divestment	No prior timeline disclosed; proceeds earmarked for debt reduction.	Positive – reduces leverage, improves balance sheet flexibility.
European gas pricing	Market expected $14‑15 MMBtu; realized ~$16 MMBtu.	Positive – boosts near‑term cash flow and free cash generation.

Overall, the news exceeds prior expectations on both production volume and strategic positioning, delivering a material upside to valuation assumptions.

Vermilion Energy Inc. is an international upstream producer focused on natural gas and liquids‑rich oil in Canada (Deep Basin, Montney), Europe (Germany, Netherlands), and Australia. The flagship European asset is the German portfolio centered on the Osterheide well and the upcoming Wisselshorst discovery, providing low‑decline, TTF‑linked gas production.