Veren Inc T.VRN

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

[Moemoney42]

Maybe the "statement objectives" have changed a year later.. I would say they have.. as NO ONE predicted a WTI price of $72 back then..  not to mention the MANY buyouts and mergers since then.. so it was wise for management to acquire an addtional cash flow positive asset at 1/3 the cost of the wells already producing, with infractructure and multi years of drilling locations at their fingertips.. just a matter of applying their long lateral knowledge and having a sharp pencil on drilling costs the Kaybob asset could be paid off in less than 2 years at the amount of FCF now being spun off.. 
I don't understand why anyone that comes here with facts and a positive attitude needs to get beat down for having an opinion or investing strategy?
Sure there's long time sufferers but that's not anyones trading fault but their own.. I for one am quite happy the way things are playing out.. 
OK bashers... have at er.. :-/

cahclick wrote:

Well, I recommend you go back just one year of quarterly reports and read the stated objectives of management. The purchase of Shell assets was a Hail Mary move in my opinion. Although it's looking rosy at the moment given oil's meteoric rise, the purchase was way offside with stated objectives prior to the purchase.

Many other names have seen multi-baggers since January of this year and CPG share price has barely managed a 50% gain in the same period so market doesn't appear to agree with you.

If you're going to spend your money here you better keep your eyes wide open.
I played in this sandbox for four years and survived by trading but the shorts continue to have full control here. I was wore out and got out.
This group you're dis'ing didn't just wake up grumpy.

jmo

glta

 

LiquidOctopusV2 wrote: 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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Oh boy... I have a mountain retreat in Florida for sale...