Vermilion Energy Inc T.VET

CapEx

[whoLuLu]

Won't it need to be increased in order to keep production from falling further ?

[Oldnagger]

Paying down low interest rate debt at a time when the returns on drilling are spectacular is just down right silly . There will be time to pay down the debt closer to 2024 and 2025 with the increased cash flows that will result from frack drilling !!

[sportstermathew]

It depends upon your decline rates how much CAPEX you need to replace boe/d, but in this market it would be great to at least increase production to some degree unless covenants are as such your required to get it down. With interest rates so low and returns from new wells so high I have to agree with oldnagger.  DRILL BABY DRILL Lock in your costs and move to the next one.

[whoLuLu]

Thanks Guys, Great perspective.  LuLu

[Dragon1]

Right especially with Goldman Sachs betting their rep on 80$ plus oil and better plus NG prices that keep spiraling upwards VET can do both and bring in dividends in 2022.

[halitosis8]

I think they'll increase the CAPEX to 2020 levels.  They had budgeted $300 million, but in March, they also stated:  "Additional projects will be considered for drilling in the second half of the year if market conditions remain supportive" The market conditions are supportive.  That boost of $17 million for every dollar over $60 WTI is all they need.  Increased