Vermilion Energy reported fourth-quarter funds from operations of $241 million and invested $192 million in exploration and development capital, generating $49 million of free cash flow. The company intentionally deferred startup on selected high-productivity wells to capture stronger gas prices, reflecting disciplined capital deployment.

Production averaged 121,308 BOE/d, weighted 69% to natural gas, driven by outperformance across 16 Deep Basin wells and record volumes in the Montney. Management noted Canadian unit operating costs fell to the lowest level in over a decade, underpinning improved margins and long-duration asset value.

International output averaged 30,137 BOE/d, supported by the Osterheide deep gas well's 10 MMcf/d production and an anticipated mid-2026 startup of the Wisselshorst discovery. The Netherlands program brought two wells online and plans two additional wells in 2026, targeting prospects 2.5x larger than prior drilling.

Total 2P reserves climbed 36% year over year to 592 million BOE with FD&A costs of $7.71 per BOE, bolstered by organic development and the Deep Basin acquisition. The company accelerated debt reduction with a $42 million paydown from Coelacanth stake sales while retaining a 10% interest.