Vermilion Energy: Brick By Brick, Deal By Deal

Summary

• Vermilion Energy is a strong buy due to its significant European gas assets and the strategic Westbrick acquisition, boosting future income and FCF.
• VET's diversified operations in Europe and North America, combined with a solid hedging strategy, position it well against commodity price volatility.
• The Westbrick acquisition will enhance VET's asset base, increasing production capacity and providing substantial cash flow, supporting future dividend increases and shareholder returns.
• Despite a recent market slump, VET trades at a 22% discount to book value, with a 12-month target price of $12.6, offering a compelling investment opportunity.