Anthony Marino, President and COO of Vermilion Energy and an ARCO alumnus will be named the company's CEO in March when current CEO Lorenzo Donadeo steps down.
Marino was interviewed on Bloomberg News Wednesday January 6, 2016 where he talked about commodity markets, acquisitions, and Vermilion’s continued commitment to its shareholders.
Where is the world oil price likely to bottom out? We assume the strip will prevail and we will manage the company on that basisAnthony Marino, President and COO of Vermilion Energy
Called the “darling of the industry” by the interviewer, Vermilion is feeling comfortable with what they believe is a well planned and well executed business mix. Said Marino, “We still have a great deal of growth, but all told the company is down. We have not changed our production profile very much. Per share growth has continued.” This year will see continued cutting of exploration and development, with Canada having the biggest cuts. This year will see Canada getting a quarter of the overall E&D investment compared to 50% a couple of years ago. The company has reduced its global budget, and over the long term, depending upon the commodity market, Vermilion might have value adding acquisitions if “we can find those in the market”, said Marino.
“We plan to maintain the current dividend. We designed our budget so that we could fund our E&D investments and our cash dividends for 2016. We would further reduce capex before reducing the dividend. We have a strong balance sheet particularly relative to the rest of the industry in today’s environment,” said Marino. Vermilion has paid out more than 2.3 billion in dividends over the thirteen years they have paid dividends.
Asked where is the world oil price likely to bottom out, Marino replied: “We don’t know so we are managing for the commodity strip. Vermilion is taking the conservative approach; we assume the strip will prevail and we will manage the company on that basis."