OTCPK:VGIPF - Post by User
Post by
paljoeyon Dec 04, 2012 7:56pm
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Post# 20683931
Much Higher netbacks
Much Higher netbacks If WTI remains at current levels for 2013 ( which is close to consensus estimates ), with todays hedging, the net back will rise to slightly above $61 per barrel in 2013, from the projected average of $51.97 used in dividend estimates.
This would have the effect of dropping the pay-out ratio from 34 % to less than 27 % and more cash flow can be invested in development and drilling.
For fundamental investors, this is a substantial performance gain.
Once these indices become generally known subsequent to next week, this one should see its share price move to levels more in line with consensus estimates of $3 +.