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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
Comment by venturecap1on Jan 22, 2015 9:07am
206 Views
Post# 23350387

RE:RE:$1.29 billion of CPG debt is in USD.

RE:RE:$1.29 billion of CPG debt is in USD. I am basing the numbers on $1.45 billion capex, $1.219 billion dividend plus debt repayments. CPG revised their FFO down to $2,480,000 from $2,580,000 when WTI fell from $100 to $96. That is a 4% drop in revenue which makes sense. Even if CPG is 50 % hedged at $90 WTI and the current price is $48, this brings their realized WTI down to $69/barrel reducing their FFO by 31% in the 1st quarter of 2015. That drops their FFO for the full year to $1,780,000 in 2015. With their capital commitments of at least $2,600,000 this leaves quite a short fall. At least in the 1st quarter. I am guessing that is why a number of insiders have been selling this month. Just look on Canadian insider web site. Below are CPG's projections from their previous MD&A. 


https://canadianinsider.com/node/7?menu_tickersearch=cpg


Production Prior                                    Revised
Oil and NGL (bbls/d)                128,125                    128,125
Natural gas (mcf/d)                  71,250                      71,250
Total (boe/d)                            140,000                    140,000
Exit (boe/d)                             155,000                     155,000
FFO ($000)                              2,580,000                  2,480,000
FFO per share  ($)                    6.13                          5.90
Cash dividends per share ($)     2.76                          2.76
Capital expenditures (1)
Drilling and completions ($000) 1,575,000                  1,575,000
Facilities, land and seismic ($000) 425,000                425,000
Total ($000)                             2,000,000                 2,000,000
Pricing
Crude oil – WTI (US$/bbl)        100.00                       96.00
Crude oil – WTI (Cdn$/bbl)       111.11                      105.49
Corporate oil differential (%)     13                                13
Natural gas – AECO (Cdn$/mcf)  4.65                       4.65
Exchange rate (US$/Cdn$)     0.90                            0.91
 
 
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