Vermilion Energy Inc. T.VET

Alternate Symbol(s): VET

Energy Oil & Gas E&P

Vermilion Energy Inc. is a Canada-based international energy producer. The Company seeks to create value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia. Its business model emphasizes free cash flow generation and returning capital to investors when economically warranted, augmented by value-adding acquisitions. The Company’s operations are focused on the exploitation of light oil and liquids-rich natural gas conventional and unconventional resource plays in North America and the exploration and development of conventional natural gas and oil opportunities in Europe and Australia. The Company operates through seven geographical segments: Canada, the United States, France, Netherlands, Germany, Ireland, and Australia. In Canada, the Company is a key player in the highly productive Mannville condensate-rich gas play. It holds a 100% working interest in the Wandoo field, offshore Australia.

TSX:VET - Post by User

Vermilion Energy Inc. > Total Debt at 1.75bil

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Comment by Oldnaggeron Aug 16, 2021 8:04pm

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Post# 33714850

RE:RE:RE:RE:RE:RE:RE:Total Debt at 1.75bil

Thanks for the info, I was really trying to surmise whether it was necessary to record the provisions I am not sure whether your post answers that question definetively ?

halitosis8 wrote: I think Google is wrong for oil & gas in Canada, Oldnagger.

https://corporatefinanceinstitute.com/resources/knowledge/finance/oil-and-gas-company-balance-sheets/

Derivative Fair Value

The derivative fair value item is not specifically unique to only oil and gas companies. It is, however, a very commonly seen item on oil and gas company balance sheets. Within the industry, the prices of commodities, such as oil, are set by the market. To deal with constantly fluctuating prices, oil and gas companies can hedge their position using derivatives. The derivatives include forwards, futures, and options.

For example, a company may engage in a forward contract to sell a set amount of oil at $50 a barrel. The line item, as its name suggests is recognized at its fair value. The derivative fair value line can be either an asset or a liability. If a company has hedged its position and has entered into a derivative contract to sell at a set price, the derivative fair value item will show up as an asset. If a company has hedged its position and entered into a contract to buy at a set price, the derivative fair value item will show up as a liability.