07:47 AM EST, 12/19/2024 (MT Newswires) -- Vermilion Energy ( VET ) 's share price inched up 0.7% at last look Thursday on the NYSE pre-market trading as it announced an 8% increase in dividend to $0.13 per share, effective in the first quarter of 2025.

The dividend is payable April 15. The base dividend will amount to approximately $80 million on an annual basis, representing approximately 8% of 2025 funds from operations.

The dividend hike comes as Vermilion outlined a 2025 capital expenditure budget of $600 million to $625 million and production guidance of 84,000 to 88,000 barrels of oil equivalent per day.

Vermilion estimated its 2025 fund flows from operations and free cash flow at $1.0 billion and $400 million, respectively, based on forward commodity prices.

In Germany, the company said it successfully tested its second deep gas exploration well, which was drilled during the third quarter of 2024.

The well flow tested at a restricted rate of 21 mmcf/d(1) of natural gas with a wellhead pressure of 6,150 psi, which supports the company's expectation that deliverability would have been higher without testing equipment limitations.

Vermilion said it plans to conduct further testing operations over the coming weeks and will proceed with tie-in operations in order to bring the well online in the first half of 2026.