Vermilion Energy Inc. T.VET

Corrib Gas volumes equal $7.2 Mil a day $2.62B year unhedged

[galaxyr]

According to Equinor, their gas volumes for the Corrib are:

The equity gas volumes to Equinor for 2021 are estimated at ~58 MMScf/d for their 36.5% share.  Conversely Vermilions volumes should be roughly 31.8 MMScf/d.  Combined they have approx 89.8 MMSscf/d of production.

Amount:

89.78076  MMSCFD

Equals:

93 372  MMBtu/day

93,372 multiplied by $60.69USD you get $5,666,746USD per day or approx $7,279,331CAD per day

 

DUTCH TTF NATURAL GAS (USD/MMBTU) (ICIS HEREN) FRONT MONTH FUTURES (CONTINUOUS: CURRENT CONTRACT IN FRONT)TTE1!

TTE1!NYMEX

See more on advanced chart

60.694

D

USD

+3.399(+5.93%



 

Vermilion is making major money now on the spot price and could be making approx $7Million a day on the Corrib once the hedges roll off based upon current European gas prices.

https://www.tradingview.com/symbols/NYMEX-TTE1%21/

https://www.equinor.com/news/archive/20211129-sells-corrib-position-ireland


https://www.traditionaloven.com/conversions_of_measures/gas_flows_converter_tool.html

[Oldnagger]

Very good work !! It is difficult to tell what will happen with the nat gas situation in Europe. Very difficult decisions will need to be made concerning coal, nuclear power and existing nat gas , particularly the Groningen field in the Netherlands.  All the same, counting on Vermillion's free cash flow to rise and remain above $20 per share is increasingly looking like a very good bet

[Oldnagger]

As another thought, as soon as the Corrib acquisition is completed. that will release a torrent of free cash flow to flow into VET. Enough for higher dividends and other goodies as yet to be named . Could it be that VET is waiting for this cash to get the NCIB going in earnest ? What about a substantial interest bid ? Or further acquisitions (i.e. Coelacanth ) Exciting days ahead !!

[stockmarket1]

Just over 1 week away from earnings day. Can't wait to see much the balance sheet has improved and what they'll say in regards of plans to be be had by 12 months time, per say. 

[RevT79]

You guys don't think the ncib is started yet? That would be amazing!! 

[stockmarket1]

A poster on the other forum mentioned that the NCIB hasn't began yet. Not sure how they would know this though. Investor relations....I wonder if they would tell us?

[clamlinguine]

Corrib gas field Operator Vermilion Energy Partners Vermilion Energy (56.5%) Canada Pension Plan Investment Board (43.5%) Field history Discovery 1996

[clamlinguine]

Man if this is true (probably is) Vet has the two wokest freak gov'ts to take advantage of a Corrib. No wonder they're making out like bandits. Why hasn't the CPP given up tey're portion yet? Must be a bunch of racists at CPP!

[Moemoney42]

I'll be patiently waiting to hear about doubling the divi for Q3.. ;-)

[Oldnagger]

For those who may be familiar with International petroleum corp (IPC) ..They recently undertook a Substantial issuer bid (SIB) for USD 100 million of common shares. The SIB is an alternative form of NCIB in that shareholders have the right to tender any portion they wish of their holdings in return for a deemed dividend equal to the share price they have tendered. The tendering is a form of Dutch

[RevT79]

Better be 10x the divy!!! Doubling is like 12 cent quarterly.....Wich is kinda laughable!

[stockmarket1]

It is laughable. BUT...if nothing happens with the dividend, then either #1) they are desperate to pay down debt and focus more on the NCIB #2) ...this management is very very conservative.

[RevT79]

In the last interview with management 1 month ago they are hinting at bringing back big return to investors !  the higher the sp is the more all shares buying power to et got for acquisition. No brainer!

[Moemoney42]

Oh trust me I feel the divi should be at least tripled like I've said many times.. it should be at least ~3% yield.. but it seems these companies are being extra cautious lately.. I like the fact that they're paying down debt though.. so I'll be happy with the slow upward trend for now.. but once the debt is gone, or near gone, we better see a special divi or a damn handsome monthly