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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 venturecap1on Jan 21, 2015 4:42pm
395 Views
Post# 23345690

$1.29 billion of CPG debt is in USD.

$1.29 billion of CPG debt is in USD.
I don't see how they are going to be able to cover there debt payments, pay for their Capex and pay their dividend. With expected FFO based on a higher oil price, they might sqeak by in the 4th quarter but the 1st quarter of 2015 will be ugly.This is their debt situation from the 3rd quarter MD&A. They also did a $800 million financing in the 3rd quarter.  

Net debt is calculated as long-term debt plus accounts payable and accrued liabilities and dividends payable, less cash, accounts
receivable, prepaids and deposits and long-term investments, excluding the equity settled component of dividends payable and
unrealized foreign exchange on translation of US dollar senior guaranteed notes.
The Company has a syndicated unsecured credit facility with sixteen banks and an operating credit facility with one Canadian
chartered bank totaling $2.6 billion. The syndicated unsecured credit facility includes an accordion feature that allows the Company to
increase the facility by up to $500.0 million. As at September 30, 2014, the Company had approximately $955.7 million drawn on
bank credit facilities, including $0.2 million outstanding pursuant to letters of credit, leaving unutilized borrowing capacity of
approximately $1.64 billion.
The Company has closed private offerings of senior guaranteed notes raising gross proceeds of US$1.29 billion and Cdn$182.0
million. These notes rank pari passu with the Company's bank credit facilities and are unsecured with original terms of maturity from 5
to 10 years. Concurrent with the issuance of US$1.26 billion senior guaranteed notes, the Company entered into CCIRS with a
syndicate of financial institutions. Under the terms of the CCIRS, the amount of the US notes was fixed for purposes of interest and
principal repayments at a notional amount of $1.29 billion. Concurrent with the issuance of US$30.0 million senior guaranteed notes,
the Company entered a cross currency principal swap which fixed the principal repayment at a notional amount of $32.2 million.
 
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