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Vermilion Energy Inc T.VET

Alternate Symbol(s):  VET

Vermilion Energy Inc. is a Canada-based international energy producer. The Company seeks to create value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia. Its business model emphasizes free cash flow generation and returning capital to investors when economically warranted, augmented by value-adding acquisitions. The Company’s operations are focused on the exploitation of light oil and liquids-rich natural gas conventional and unconventional resource plays in North America and the exploration and development of conventional natural gas and oil opportunities in Europe and Australia. The Company operates through seven geographical segments: Canada, the United States, France, Netherlands, Germany, Ireland, and Australia. In Canada, the Company is a key player in the highly productive Mannville condensate-rich gas play. It holds a 100% working interest in the Wandoo field, offshore Australia.


TSX:VET - Post by User

Post by EnergyWatcher55on Feb 16, 2021 9:44pm
210 Views
Post# 32581363

Ay $60 WTI Oil, VET produces $400M Free Cash Flow (FCF)

Ay $60 WTI Oil, VET produces $400M Free Cash Flow (FCF)

On slide 10 of 45 of the VET presentation (located on its website), at $60 WTI oil, VET is forecasted to produce $700 of Free Cash Flow of which $300M is allocated to Cap Ex for 2021. 

That leaves $400M Free Cash Flow to be allocated to VET's Debt of $2.1 B.

Bringing down debt by $400M or more will make a huge dent in VET's debt and gives VET the flexibility to reinstate dividends which VET mgmt has repeatedly stated it would do. 

That's assuming $60 WTI oil holds for the rest of the year of if VET hedges at these levels. Also, nat gas pricing is also favorable to VET. 

All in all, VET looks to be in a healthy good position in that it can organically fund its Cap Ex and also bring its debt down to reasonable levels.  

Who knows, VET could be acquriing assets or companies in the mean time. 

 

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