08:08 AM EDT, 06/05/2025 (MT Newswires) -- Vermilion Energy ( VET ) on Thursday said it signed a definitive agreement to sell its United States assets for $120 million with net proceeds slated for debt repayment.

The assets include approximately 5,500 barrels of oil equivalent per day (boe/d) (81% oil and liquids) of production and approximately 10 million barrels of oil equivalent(mmboe) of Proved Developed Producing reserves estimated as evaluated by McDaniel & Associates Consultants at December 31, 2024.

The transaction, which has an effective date of January 1, is expected to close in the third quarter of 2025 and the agreement includes $10 million of contingent payments based on WTI prices over the two-year period starting July 1.

The company stated that this transaction, combined with the sale of its East Finn assets in 2023, completes its exit from the U.S.

The company also updated its 2025 guidance and adjusted its 2025 capital budget to a range of $630 million to $660 million, a decrease of approximately $100 million from the mid-point of its previous capital budget range of $730 million to $760 million. The company attributed the reduction to the removal of all remaining E&D capital associated with the Saskatchewan and United States divested assets post-closing.

The company also said it expects full year and second half 2025 production to range between 117,000 boe/d to 122,000 boe/d, 68% natural gas-weighted in the second half of 2025. The previous production guidance range for 2025 was 125,000 boe/d to 130,000 boe/d.

In U.S. pre-market trading, Vermilion Energy ( VET ) was last seen up 3.2% to $6.89.