Latest news with #oilProduction
CBC
20 hours ago
- Business
- CBC
Vermilion Energy selling U.S. assets for $120 million in cash
Social Sharing Vermilion Energy Inc. has signed an agreement to sell its assets in the U.S. for $120 million in cash. The company says the deal includes about 5,500 barrels of oil equivalent per day of production and about 10 million barrels of oil equivalent of proved developed producing reserves. Vermilion says net proceeds from the sale will be used to repay debt. The deal has an effective date of Jan. 1 and is expected to close in the third quarter. The company also updated its 2025 capital budget to a range of $630 million to $660 million, a reduction of about $100 million from the midpoint of its previous guidance for $730 million to $760 million. Vermilion expects full year and second half 2025 production to range between 117,000 to 122,000 barrels of oil equivalent per day.
CTV News
a day ago
- Business
- CTV News
Vermilion Energy selling U.S. assets for $120 million in cash
The corporate logo of Vermilion Energy Inc. (TSX:VET) is shown. THE CANADIAN PRESS/HO CALGARY — Vermilion Energy Inc. has signed an agreement to sell its assets in the U.S. for $120 million in cash. The company says the deal includes about 5,500 barrels of oil equivalent per day of production and about 10 million barrels of oil equivalent of proved developed producing reserves. Vermilion says net proceeds from the sale will be used to repay debt. The deal has an effective date of Jan. 1 and is expected to close in the third quarter. The company also updated its 2025 capital budget to a range of $630 million to $660 million, a reduction of about $100 million from the midpoint of its previous guidance for $730 million to $760 million. Vermilion expects full year and second half 2025 production to range between 117,000 to 122,000 barrels of oil equivalent per day. This report by The Canadian Press was first published June 5, 2025. Companies in this story: (TSX:VET) The Canadian Press
Argaam
25-05-2025
- Business
- Argaam
Saudi economic growth to accelerate in 2025, 2026: Riyad Capital
Riyad Capital expects the Saudi economic growth to accelerate in 2025 and 2026, with non-oil activities maintaining a robust growth trajectory, while oil activities are anticipated to rebound. 'We project continued solid growth for non-oil activities, fostered by a growth-oriented fiscal policy, supported by PIF, with a focus on increased investment spending which will support the non-oil economy in the coming years. After a strong growth rate of 4.8% in 2024, we forecast nonoil activities to expand by 4.1% in 2025 and 4.3% in 2026,' the brokerage wrote in its recent report titled 'Saudi Economic Chartbook – Q2 2025'. Riyad Capital forecasts Saudi crude oil production to expand in the next 15-18 months in order to entirely unwind its voluntary output cuts from 2023. 'We feel particularly vindicated in our view by OPEC's recent decision to accelerate this unwinding process in the months of May and June of this year. As a consequence, we project oil activities to grow by 3.5% in 2025, followed by a growth rate of 5.4% in 2026,' it added. Accordingly, the Kingdom's overall economic growth is set to pick up to 3.5% in 2025, before further climbing to 4.2% by 2026 after growing at a 1.8% clip last year. The brokerage also predicts a moderate inflation hike to 2.5% in 2025, following a 1.7% rise in 2024. For next year, inflation is projected to gradually ease to 2.3%. 'Finally, we expect the US Federal Reserve to stay on a measured rate cut trajectory and forecast rate reductions of 50 basis points in 2025 and in 2026. Accordingly, SAMA is projected to cut its official repo rate and reverse repo rate by the same amount,' it further stated.
Yahoo
24-05-2025
- Business
- Yahoo
Vermilion Energy to sell Saskatchewan, Manitoba assets for $415M
Vermilion Energy (VET) announced that it has entered into a definitive agreement for the sale of its Saskatchewan and Manitoba assets for cash proceeds of $415M. Net proceeds from the transaction will be directed towards debt repayment to accelerate deleveraging efforts and strengthen Vermilion's balance sheet. Based on current strip commodity pricing and operational plans, the company expects to exit 2025 with net debt of $1.5B, with a trailing net debt to FFO ratio of 1.4 times. The assets are currently producing approximately 10,500 boe/d and are forecast to generate approximately $110M of annual net operating income at current strip commodity prices. The assets had proved developed producing reserves of 30 mmboe at December 31, 2024, and approximately $250M of undiscounted future abandonment liabilities. The transaction has an effective date of May 1 and is anticipated to close in Q3, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions. Assuming a mid-Q3 2025 close, Vermilion expects full year 2025 production to average between 120,000 to 125,000 boe/d with capital expenditures in the range of $680M to $710M, reflecting an approximately $50M reduction associated with the divested assets post-closing. Vermilion will continue to evaluate capital investment levels during this period of increased volatility and will adjust capital if necessary to prioritize free cash flow over production growth during 2025 and 2026. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on VET: Disclaimer & DisclosureReport an Issue Vermilion Energy's Earnings Call: Growth Amid Challenges Vermilion Energy Announces AGM Voting Results and Board Changes Vermilion Energy price target lowered to C$14 from C$16 at RBC Capital Vermilion Energy price target lowered to C$10 from C$14 at BMO Capital Vermilion Energy Reports Strong Q1 2025 Performance Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
11-05-2025
- Business
- Forbes
Peak Oil In America: 'Drill, Baby, Drill' May Be Hitting A Wall
The term "peak oil" has sparked debate for decades, fueling speculation, and more than a few forecasts of doomsday scenarios. But for all the noise, it remains a largely misunderstood concept. That's unfortunate, because peak oil—both in theory and in practice—still carries serious implications for the global economy and energy markets. The phrase was very popular 20 years ago but then faded when the shale revolution gathered steam. But all booms eventually end, and a growing number of voices are suggesting that peak production in the U.S. may soon be upon us. But let's begin with the basics. "Peak oil" doesn't mean we are running out of oil. It means that we have hit a maximum level of oil production, and after that point, production begins to decline. The concept was popularized in the 1950s by geophysicist Shell M. King Hubbert, who predicted that U.S. oil production would peak around 1970. That prediction was initially correct, but it didn't account for the eventual surge in unconventional oil—especially from shale—which temporarily reversed that decline decades later. Still, Hubbert's basic framework held up well: oil fields follow a bell-shaped curve. Production rises, peaks, and then drops. It's not hard to understand why. As the easiest, most accessible oil gets pumped out, the remaining oil is harder to reach, more expensive to produce, and often requires new technologies or techniques. This is simply a resource depletion issue. In recent years, the conversation around peak oil has shifted. In the 2000s, concerns about supply limitations drove oil prices to record highs. But by the 2010s, the U.S. shale boom dramatically changed the narrative. Suddenly, talk of "peak demand" replaced talk of "peak supply." Some analysts argued that growing interest in electric vehicles, renewables, and climate policy would cause oil use to top out long before production capacity did. But here we are in 2025, and the old concerns are creeping back in. One of the more notable warnings came recently from Travis Stice, CEO of Diamondback Energy. In a letter to shareholders, he said flatly: 'It is likely that U.S. onshore oil production has peaked and will begin to decline this quarter.' This isn't idle speculation. Diamondback, like many other producers, has scaled back drilling and completion work. Crews are being cut. The pace of new well development is slowing. The company estimates fracking teams in the Permian are down 20% from earlier this year. Rig counts are following a similar path. This isn't happening because of a lack of support from Washington. In fact, the current administration has rolled back environmental regulations, opened up new drilling zones, and pitched U.S. energy dominance as a core policy goal. But even favorable policy can't force drilling if the economics don't work. Costs are up—steel prices, service contracts, and everything in between. Supply chains remain strained, and tariffs continue to complicate procurement. More importantly, capital markets have changed. Shareholders now expect returns, not just production growth. Gone are the days of 'drill, baby, drill' at any price. Stice isn't the only one sounding the alarm. At this year's CERAWeek in Houston, Occidental CEO Vicki Hollub said she expects U.S. oil production to peak between 2027 and 2030. ConocoPhillips chief Ryan Lance gave a similar timeline. Harold Hamm, the founder of Continental Resources—never one to shy away from a bullish forecast—also acknowledged the slowdown. The U.S. Energy Information Administration still forecasts record output this year, but the pace of growth has clearly slowed. The major shale plays are maturing. Easy drilling locations are becoming harder to find. And companies are increasingly deploying capital elsewhere, including into lower-carbon assets. If we're near the peak of U.S. oil output, that matters for several reasons: Today's relatively low oil prices—thanks to global stockpiles and worrisome economic signals—are masking some of this risk. But that could change quickly. If demand surprises to the upside or supply falls short, prices may jump, especially with U.S. firms showing reluctance to ramp back up. None of this means the U.S. oil industry is in decline. But it does suggest the frantic growth of the last decade may be behind us. From here on, output could level off or even gradually decline. That's not necessarily an immediate problem. A more stable, profit-focused sector could be healthier in the long run. But for investors, the narrative is shifting. Future success may be less about how fast a company can grow—and more about how wisely it can manage its assets in a changing landscape. As the energy world continues to evolve, understanding where we stand in the production cycle isn't just academic. It's central to how we plan for the future.
