Vermilion Energy Inc. T.VET

Alternate Symbol(s): VET

Energy Oil & Gas E&P

Vermilion Energy Inc. is a Canada-based international energy producer. The Company seeks to create value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia. Its business model emphasizes free cash flow generation and returning capital to investors when economically warranted, augmented by value-adding acquisitions. The Company’s operations are focused on the exploitation of light oil and liquids-rich natural gas conventional and unconventional resource plays in North America and the exploration and development of conventional natural gas and oil opportunities in Europe and Australia. The Company operates through seven geographical segments: Canada, the United States, France, Netherlands, Germany, Ireland, and Australia. In Canada, the Company is a key player in the highly productive Mannville condensate-rich gas play. It holds a 100% working interest in the Wandoo field, offshore Australia.

TSX:VET - Post by User

Vermilion Energy Inc.

Bullboard Posts

Comment by WheresMeGoldon Feb 23, 2020 8:44pm

50 Views

Post# 30723829

RE:RE:RE:Early oil trading confirms my thoughts

VET can choose to use any metric it wants. That doesn’t allow you to escape the business environment you face. And lower oil prices will make an unsustainable dividend that much more unsustainable.

And often a stock’s share price drop will dwarf its dividend payout if the dividend is unsustainable. That has happened to VET. Just look at the chart. I wouldn’t expect that trend to change without VET conserving cash as the business environment demands in order to stay healthy. And an unsustainable dividend payout with a larger declining stock price has horrible tax implications for shareholders. JMHO. GLTA.

Pandora wrote:

oilisswell wrote:
"Oil is down big in early trading from coronavirus fears." Fear it is. Why not fear the flu which has killed many more? Because it hasn't affected the economy? No, it is because it is not new(s)!

Like SARS, this will pass and/or become old news. Jawboning won't change a thing. Oil consumption continues to rise. We are now over 100 million barrels a day! That is +1 million barrels/day per year and rising.
(https://www.statista.com/statistics/271823/daily-global-crude-oil-demand-since-2006/)

Now unerstand that we cannot continue to supply such quantities without exploration, production, and ultimately profit. So as the price languishes, capex gets reduced, oil finds diminish, and the price of oil will have to reflect reduced supplies coming, or we'll start to walk.

Now as far as VET is concerend, it is similar to IPL, in that they report dividend as a percentage of FFO, not FCF. You might have to look that up LOL That is the reason the CEO has stated the dividend is safe and was when oiul was much lower. You are obviously not a shareholder, just an antagonist. Are you short?

Funds from operations

Funds from operations (FFO) refers to the figure used by real estate investment trusts (REITs) to define the cash flow from their operations. FFO is calculated by adding depreciation and amortization to earnings and then subtracting any gains on sales. It is sometimes quoted on a per-share basis.Apr 8, 2019