RE:RE:How long is the dividend sustainable? LOL ok how long has Vermillion paid the dividend, how long has Vermillion been a company , how many times have they increased their dividends, how many time have they missed a dividend. Answer those question please
Here is alink from the MDA perhaps you should read it.
https://www.vermilionenergy.com/files/pdf/investor-relations/VET_Q3_2018_MDA.pdf
Oct 2017 production 76 000 boe/d Production oct 2018 101 000 boe/d . We stole spartan energy and in a year from now that theft will do Vermillion wonders with the CF.
production will be 25% more this year than last year. Blah blah blah debt to ratio is fine with majority of debt not coming online till 2021 and beyond. i do not think you have a clue how good of a deal VET received buying Spartan energy. You make no mention of this.
If VET managed to keep the divy alive during 2008 meltdown and the oil crash of 2014 im 100% confident the company and divy will be safe this time around. You have no clue how fast Shale gas wells depreciate and how low of CAPEX was spent on global oil exploration.
Here is a link explaining how the low capex is unprecedented in oil exploration and how this is going to cause a supply shortage in the next decade.
https://www.naturalgasintel.com/articles/105929-global-natgas-oil-capex-reductions-at-unprecedented-level-says-raymond-james
The market in a few years is going to realize that the world consumes 1.2 million barrels more per day every year and has done this increase for the last decade. Oil in five years is going to SURGE like never before seen in the history of the world.
Mark these words in five years oil will be well above 80 per barrel and the world will be scrambing to find new supplies. The USA in the next five years will have to drill 300 plus rigs a year just to keep up with declining production from shale wells.
VET will not only survive, VET will flourish in the next decade when oil exploration from the last five years does not meet up with demand. Never in the history of oil exploration has CAPEX for the last five years been so LOW, in a time when oil consumption is increasing 1.2 mIllion barrels a day per year. Here is a link to look at
https://www.statista.com/statistics/271823/daily-global-crude-oil-demand-since-2006/
Either way in five years people who buy VET at these rock bottom prices will enjoy a 75% increase in share price as well as get paid a 9 % divy compounded monthly.
I could care less about the last 12 months of earnings, the next three years VET will knock the socks of last years earnings. VET is well positioned to thrive in the next decade and investors who get in now will be rewarded immensely
Dominotia wrote: i find it hard to believe that a long term investor in Vet or any oil/gas company would make a comment about the capability of a company to pay a dividend with reference to earnings.
With the NUMEROUS deductions afforded to such companies from earnings, they do NOT represent its capacity for dividends,cap exp,etc.
CASH FLOW. CASH FLOW CASH FLOW
OK
now its your turn..I am not going to give you everything on a silver platter. If you are an investor go to Vet web site and calculate over the last 12 months the CASH FLOW number and calculate the DIVIDEND PAID number.
If that does not satisfy your concern as a long term holder-nothing will
I will give you one number
Dividends paid = 287 milion