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.

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Comment by Quintessential1on Feb 07, 2023 12:17pm

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Post# 35272030

RE:RE:RE:RE:RE:RE:RE:Brutal

You are correct sir!

The European Union's nitrogen fertilizer output is being slashed by an estimated 400,000 to 500,000 tonnes per month, according to an Argus Media analysis.

https://www.producer.com/news/europe-slashes-fertilizer-production/

Natural Gas is neccessary for ntrogen fertilizer production and even though the EU is pivoting to import it from the USA it just shifts natural gas demand to the North American market where of course VET also operates. I can't help wondering where the break even point of manufacturing fertilizer to importing happens on a reduced natural gas cost basis if it ever does. It could be that madated reductions in fertilizer production in order to reduce NG use were not cost efficient even at exorbitant NG prices on the price of fertilizer.

GLTY and all

Moemoney42 wrote: I'd like to add to this conversation that European fertilizer production was halted due to the price of NG and the need of preserving the commodity for the winter heating needs.. so any surplus NG could get used quickly if those plants get back to full production.. at least thats how I remember the story going.. correct me if I'm wrong..!

Quintessential1 wrote: On the graph the storage projections exceed capacity. I am not sure if they plan to add storage or if they consider moored LNG cargo ships part of their storage. LNG imports will keep TTF pricing higher than historical levels and keep VET in the black. Managing profits without slipping into windfalls shouldn't be too hard.

Try not to forget that Europe is accomplishing a ll of this with reduced comfort levels and reduced manufacturing. They won't want to be uncomfortable, (here comes the heat again) and they cannot afford to reduce manufacturing levels forever.

GLTA

Oldnagger wrote: Here are projected inventories of nat gas in Europe. They do indeed look brutal. Yet there is a rather simple solution and that is a diminution of imports. That however seems to run counter to what the Europeans desire as they seem to want to keep storage at capacity prior to next season

https://docs.google.com/spreadsheets/d/e/2PACX-1vRqXjIrFk3bCPS-0v1lwZq-lMJ0aBOQ2OUK7d9A_tFtIfDfIHu7Dqz4D5bP3yiKY2oQxoty98CuWRhL/pubchart?oid=1972508387&format=image