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Veren Inc T.VRN

Alternate Symbol(s):  VRN

Veren Inc. is a Canada-based oil producer with assets in central Alberta and southeast and southwest Saskatchewan. The principal activities of the Company are acquiring, developing and holding interests in petroleum and natural gas properties and assets related thereto through a general partnership and wholly owned subsidiaries. Its core operational areas include Kaybob Duvernay and Alberta Montney, Shaunavon and Viewfield Bakken. Its Kaybob Duvernay is situated in the heart of the condensate rich fairway, Central Alberta, which provides low risk drilling inventory. Its Alberta Montney assets sit adjacent to its Kaybob Duvernay lands, possessing similar resource characteristics including pay thickness and permeability in the volatile oil fairway of the reservoir. Its Shaunavon resource play is located in southwest Saskatchewan. The Viewfield Bakken light oil pool is located in Saskatchewan.


TSX:VRN - Post by User

Bullboard Posts
Post by FootballFan1on May 27, 2015 2:11pm
434 Views
Post# 23770404

Two Concerns With CPG

Two Concerns With CPG1) Their tendency to dilute their shares with acquisitions of other companies combined with the need to spend CapX to drill all these new assets while paying a generous dividend on each and every new share issued is a pretty risky strategy in my opinion. 2) The maintenance of their dividend is questionable. According to their Q1 2015 earnings results press release dated May 7, "As at April 30, 2015, the Company had hedged 58 percent of its oil production, net of royalty interest, for the remainder of 2015 at a weighted average price of greater than CDN$88.00/bbl and 34 percent for 2016 at a weighted average price of greater than CDN$83.00/bbl." If the price of oil hovers around $60 - $70 per barrel over the next couple of years as these hedges are exhausted, CPG will either have to hedge at a much lower price per barrel or pray that the price of oil goes significantly higher to support their dividend and CapX program.
Bullboard Posts

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