Vermilion Energy Inc. T.VET

Debt reduction

[Nystrom]

They wrote 75m reduction but the financial numbers showed only a 25m reduction of debt? 

I am reading that wrong or what's with that?

[TickerTwit]

The Cash Flow statement doesn't seem to show any payments on debt principal. Did anyone else spot them? Anywhere in the financial statements? .

[TickerTwit]

Could VET have called the $75M interest expense a "debt reduction"? I don't see ANY debt reduction cash flow represented in the annual financial statements, but VET is claiming $75M + $175M. .

[Oldnagger]

The 75 million based on FFO less Capex reduced Long Term Debt. but the Net Debt as of year end was reduced by only 30 million due to an increase in working capital ( probably related to the higher inventory costs due to increased product prices , but there could be many other factors as well ). That is as deep as i have gone into the financial statements but others may wish to go deeper 

[Nystrom]

I see 25M debt reduction from Q3 to Q4 in financials but thats it. I don't see 75M? VET allocated more FFO towards capex than Q3 which was a great move in hindsight as WTI prices have skyrocketed since. 

[Oldnagger]

You are right about the debt reduction, however the credit lines seem to be adjusted for changes in working capital , therefor the credit margin room stated by VET seems correct. That room is what investors have to be concerned about between now and 2025 when the notes become due. In reality , there is no debt problem as their is adequate PDP value to pay off the entire debt except for in the most