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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 Jul 22, 2015 1:58pm
282 Views
Post# 23949541

CPG's Hedges

CPG's HedgesIf you go to CPG's website and take a look at page 8 of their "July 2015 Corporate Presentation", you'll find a "Hedging Strategy" chart that shows CPG has approximately 54% of their estimated production hedged at an average price of $87.50 for the remainder of 2015, about 32% of 2016 production hedged at an average price of $83.00, approximately 10% of their 2017 production hedged at an average price of $81.00, and about 6% of the first nine months of 2018 production (hedged price not indicated).....in other words, yes, they have "3 1/2 years' worth of hedges", but the % of production hedged falls dramatically each year, starting in 2016 (as one would expect)........if the WTI price stays in the $50-$70 range for the next 12 months, is it possible for them to continue paying $0.23 per share per month in dividends going forward while generating enough production growth, cash flow, and earnings to support the dividend without significantly growing debt or issuing more shares (each of which would also receive $0.23 per month in dividends).....?......I doubt it.......something will have to give if the above scenario becomes a reality.......
Bullboard Posts