RE:RE:Shorts why are they shorting.In case oil price moves lower, they will not cut the dividend. They may reduce CapX. In fact they have said that their dividend is staying the same for 2020 which means shorts have to dish out another $2.99 till Dec 2020.
Shale rise will slow down.
India and China need more oil next year.
The OPEC cuts will istil a sense of insecurity in Asian nations.
Shorts are also betting on warming winter. But VET is well hedged.
Management seems determined to defend the dividend.
They have done so in past and have never cut the dividend even when oil went below $30 and their pay outout went over 170% in 2015.
VET balance sheet is in OK state and decline rates, net backs, capital efficiencies are in their favor. Lot of other heads will roll before VET cuts its' dividend.
In case of a worst case scenario of dividend cut, market may even like it as it will make it safer.
ALA is an example. It went below $12 but has recovered since then.