RE:RE:Free cash flowAt $37 VET is breakeven including 300M for capex.
About 30% of production is hedged so it does take away some upside when prices are up but also downside when prices drop.
Just an example, in 2020 Q3 ending Sept 30 2020, VET had FCF 83M, paid down 55M of debt at an average of $41 WTI.
Projecting forward we'll just use WTI pricing but obviously Brent and Ng prices contribute just as much if not more so (all are up since Jan 13 anyway)
They expect ~85k BPD in 2020 which is typical low balling, setting a low bar for themselves to beat each quarter and look better.
$1 WTI@85k BPD = $85,000
Current WTI=$58.
58-37(breakeven 300M capex included)=21
21*90,000= 1,890,000
Therefor at $58 WTI VET's FCF is 1.89M per day or about 700M per year minus the cost of hedging.