Veren Inc T.VRN

Alternate Symbol(s): VRN

Energy Oil & Gas E&P

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.

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Veren Inc > I think I figured out the market psychology to this stock

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Comment by LiquidOctopusV2on Jun 16, 2021 8:53am

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Post# 33394362

RE:RE:RE:RE:I think I figured out the market psychology to this stock

At $75 per barrel, the FCF is a predicted $980 million. That's almost a billion dollars in free cash. What do you really think the management would do? They're going to follow their stated plan. That's not how this management team works. And their approach is working. It takes dicipline to pay down debt. And they started paying it down before the market meta was calling for it.

For all the complaining you and some of the others do, the big picture of CPG's share price is that investors got nervous about past aquisitions. We are living with the reality of that repayment. It means the aquisitions were ulitimately sustainable. But, if you were a fresh investor coming into this stock, you'd look at the market cap, you'd look at the revenues, the cashflow, the debt and the debt would really make your stomache flutter. All the baggage some of you guys have about the past CEO is not something that most people are carrying around. I know because I actually had that baggage.

You want the price to go up, you want the debt to go down. We're what, one quarter into a sick cash position? Every day you come here to compain that they took away your dividend. But, the management is doing exactly what they should be doing right now. And, with the FCF being what it is, the dividend is likley to come back to something worth having in Q4. And, if they brought it in sooner because of all the free cash, I'd be happier than you.

Bpultra wrote:

LiquidOctopusV2 wrote: It's new (ish) management. And, I see this management team as having excellent transparent communication. The only surprise was the Duvernay aquisition and that was a good surprise after I digested it.

Consipracy theories aside, all we need to see is some action on the share buyback and most concerns will be assuaged. If they keep their word on the 1:1 debt to FCF ratio to active a meaningful dividend increase, all will be golden. If I didn't think this management team would keep its word, I would divest. I trust them.
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