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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

Post by CdnOilObserveron Apr 05, 2021 2:35pm
272 Views
Post# 32938165

CPG stock needs a yield - or it will get stuck at $5.00

CPG stock needs a yield - or it will get stuck at $5.00 CPG is competing for capital.  As the markets rotate out of growth, into value, long term investors are going to look for yield.  The NCIB is needed as is debt pay down, but the company will not attract long term buyers without raising the current dividend, to at least the 2.5% to 3% level.  The current dividend is nothing, only a reminder of what you can receive else where.

Canadian Energy Companies - really - should not be a growth story.  They are deep value at best, and if oil price can maintain the current levels.  With Cresent Point there should be room to raise the dividend slightly so that the company and its stock attracts long term investors - NOT short term swing traders or short traders.

Oil at WTI$50 should be a given.  At WTI$60 its a gift.  I am somewhat skepital that most governments can get their acts together such that the Covid-19 virus abates, so I would be suprised if oil every gets to WTI$70.  I respect what Eric Nuttall has to say, I think he does great research, but he is extremely overly optimistic on the price.  There is too much spare capacity to meet the current demand over the new two to three years.

So if we have to wait two to three years, then as business owners of CPG - we should get paid in the form of a higher dividend.  $0.12 per share annually works out to 2.4% on a $5.00 share price, or 3% on a $4.00 share price.
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