Vermilion Energy Raises Quarterly Dividend 33%

Vermilion Energy (VET) is raising its quarterly dividend 33% to $0.08 per share, and plans to buyback more of its own stock as the company continues to benefit from elevated energy prices.

The Calgary-based oil and gas producer said it will raise its dividend payout as of October 17 as part of its “Return of Capital” strategy.

Vermilion said it plans to return 25% of its free cash flow to shareholders in the second half of this year and up to 75% in 2023 through a combination of share buybacks and regular and special dividends.

The company said it plans to buyback one and a half million of its own shares each day during the second half of this year, which equals 25% of its free cash flow.

Vermilion’s free cash has been growing this year largely due to its European presence as the continent’s energy crisis has pushed natural gas prices to multi-year highs.

Vermilion Energy’s stock is up 103% this year and currently trading at $32.52 per share