CALGARY, Aug. 7, 2019 /CNW/ – Vermilion Energy Inc. (“Vermilion”) (TSX, NYSE: VET) is pleased to announce that the Toronto Stock Exchange (“TSX”) has approved the notice of Vermilion’s intention to commence a normal course issuer bid (“NCIB”).
The NCIB allows Vermilion to purchase up to 7,750,000 common shares (representing approximately 5% of its 155,161,464 outstanding common shares as of July 31, 2019) over a twelve month period commencing on August 9, 2019. The NCIB will expire no later than August 8, 2020. Under the NCIB, common shares may be repurchased in open market transactions on the TSX and other alternative trading platforms in Canada and in accordance with the rules of the TSX governing NCIB’s. The total number of common shares Vermilion is permitted to purchase is subject to a daily purchase limit of 267,558 common shares, representing 25% of the average daily trading volume of 1,070,233 common shares on the TSX calculated for the six-month period ended July 31, 2019; however, Vermilion may make one block purchase per calendar week which exceeds the daily repurchase restrictions. Any common shares that are purchased under the NCIB will be cancelled upon their purchase by Vermilion.
Since 2003, Vermilion has had a track record of returning capital to shareholders through our monthly dividend (previously a cash distribution during the trust era). We also recognize that other forms of returning capital to shareholders, such as share buybacks, may be appropriate to complement our dividend in certain market conditions. We intend to utilize the NCIB under conditions in which we have excess free cash flow available after dividends, with that excess cash allocated both to debt reduction and buybacks.
Vermilion is an international energy producer that seeks to create value through the acquisition, exploration, development and optimization of producing properties in North America, Europe and Australia. Our business model emphasizes organic production growth augmented with value-adding acquisitions, along with providing reliable and increasing dividends to investors. Vermilion is targeting growth in production primarily through the exploitation of light oil and liquids-rich natural gas conventional resource plays in Canada and the United States, the exploration and development of high impact natural gas opportunities in the Netherlands and Germany, and through oil drilling and workover programs in France and Australia. Vermilion holds a 20% working interest in the Corrib gas field in Ireland. Vermilion pays a monthly dividend of Canadian $0.23 per share, which provides a current yield of approximately 13.5%.
Vermilion’s priorities are health and safety, the environment, and profitability, in that order. Nothing is more important to us than the safety of the public and those who work with us, and the protection of our natural surroundings. We have been recognized as a top decile performer amongst Canadian publicly listed companies in governance practices, as a Climate Leadership level (A-) performer by the CDP, and a Best Workplace in the Great Place to Work® Institute’s annual rankings in Canada, the Netherlands and Germany. In addition, Vermilion emphasizes strategic community investment in each of our operating areas.
Employees and directors hold approximately 5% of our fully diluted shares, are committed to consistently delivering superior rewards for all stakeholders, and have delivered over 20 years of market outperformance. Vermilion trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol VET.