RE:RE:RE:How can a yield of 10% be maintained?"No company can afford to pay a 10% yield, let alone 12% when the stock price drops more this" summer.
I dont understand your rational for the above statement . Its like your saying VET has to pay out more because the share price has dropped which creates a higher % annual dividend for buyers at these levels .
A dropping share price doesnt affect VET revenue streams. Its merely a reflection of investors sentiment towards where they think oil prices and revenue will be going forward. Speculation. .
Over 60% of VET revenue is from European operations that receive premium prices to WTI and AECO . There is no debt issue that would force them to divert free cash flow to maintain debt payments which others were forced to do ie: CPG , Cardinal , Bonterra and others .
VET payout ratio is 88% for capex , divi and new land . The remainder pays down debt . They are covered down to $40b .
If oil prices were to drop futher and remain depressed then yes that would ultimately affect VET revenue down the road but not presently .