Vermilion Energy Inc. T.VET

Q2 ER div announcement

[PipelessPauper]

the more I’m thinking about it, the more I’m betting we gets small ‘token div’ beginning again with Q2 ER

the majors will all be raising theirs ....

VET has a deleveraging target of 1.5x debt/FFO.
Given WTI/BRENT/HH/TTF/AECO prices and their phenomenal hedge position (vs other companies), my guess is a 4-5 cent monthly div gets announced at the ER.

Their target is 1.5x debt / FFO, and they are already there NOW with commodity price strength. 

12 more moths FFO at these prices is ~ $2.2 billion. 
Debt is $1.95 billion

They are WAAAY above their target. 
Hence a small div reinstatement PR

[ronster65]

Are there any comparables out there who have already reported to get a sense where company profitablity may be? 

[PipelessPauper]

I havnt looked.... But we know from Q1 their cash cost is ~ $48 / boe anx currently avg selling price btween all commodities they sell is ~ $75 / boe 85,000 boe/d x 365 is 31,025,000 boe/year at their cash margin, that’s $837,675,000. take ~ $350,000,000 off for capex... and you get $487,675,000 FCF A 5 cent monthly div, on the current 159,500,000 shares is $95.7 mm annually.  They can

[stockmarket1]

I called for mid 2022 for a reinstated divy but if your numbers are bang on, yes, you might be onto something. We could see a tiny give back. Real interesting if they did because it would show a good direction and confidence. A path of reconstruction success in terms of the balance sheet.

[PipelessPauper]

“but if your numbers are bang on” I’m a CPA. If im confident about ANYTHING in this world, it’s my numbers. but I encourage you and anyone - check for yourself!!