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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 halitosis8on Jul 13, 2021 8:15pm
311 Views
Post# 33540355

pay attention to the cash flow

pay attention to the cash flowIt's hard to project VET cash flow, but here's what we know.  Their last presentation forecast a 2021 debt reduction of $350 million based on $60 WTI and gas prices TTF $7.54/mmbtu; AECO $2.87/mmbtu;

We have $70+ WTI and AECO is $3.13 and TTF is $12.077 (or higher depending on the settling date).

We've all focussed on the oil side of the leger because the data is easier to find, but they are raking in boatloads of cash with nat gas.

increase of $1 in Dutch gas = $28 million FCF. 
So, we could be looking at $170 million (wti metrics) + $112 million (dutch gas) + the base $350 million, for an annual debt reduction in the neighbourhood of $632 milllion, ie 33% of the debt.

I would welcome a review by one of the old-timers here who knows these numbers better than me.
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