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Veren Inc T.VRN

Alternate Symbol(s):  VRN

Veren Inc., formerly Crescent Point Energy Corp., is a Canada-based oil and gas exploration company. The Company is engaged in the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its crude oil and natural gas properties and related assets are located in the provinces of Saskatchewan, Alberta and the United States. Its operating areas include Viewfield area of southeastern Saskatchewan; Shaunavon resource play, which is located in southwest Saskatchewan; Flat Lake play, which is a multi-zone resource play located in southeast Saskatchewan; Kaybob Duvernay play, which is situated in the heart of the condensate rich fairway, Central Alberta, and Montney assets in Alberta. Its wholly owned subsidiaries include Crescent Point Resources Partnership, Crescent Point Holdings Ltd. and Crescent Point U.S. Holdings Corp.


TSX:VRN - Post by User

Bullboard Posts
Post by ZincDink1on Feb 08, 2019 12:45pm
91 Views
Post# 29338556

Stupidly low valuation

Stupidly low valuationLooking at this a different way. Assuming production is fixed at 170 mbpd or 62,050,000 bbls /yr. The fixed cost of royalties, operations, transport is ~ $ 26/bbl. To keep this production level, they need to spend the capex. Last year, they spent 1.7 B$ (Can I believe) and this year, they plan to spend 1.3 B$ for the same result. Now they get a slight discount to WTI, so lets make the conversion of bbl oil price in Can$ 1.2 x WTI. (though when I convert back, I use 1.3 - fuzzy logic). So the simple formula Simple Profit = (1.2 x WTI x 62,050,000) - Cap ExSo, if we spend 1.5 B$ can (includes 200 M$ debt service) , the simple break even is oil at $ 50 Canadian (~ $ 39 WTI). Last year, they would need oil $ 59 Canadian ($ 45 WTI).Now there are other costs like hedging etc Bottom line to me is they survive at $ 40 WTI, do well at $ 50 and really well over and above.Mr. Market is way to cranky on this company.
Bullboard Posts