August 16, 2021 - 09:43 PM
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Post# 33715067
VET
Dec 31 2020 VET long term debt $ 1. 933 848 Billion
June 30 2021 VET long term debt $ 1.769 866 Billion
Current Liabilities, Derivative Instruments $ 168. 187 Million
Liabilities, Derivative Instruments $ 62.384 Million
The long term debt plus Derivatives seems to be how they come up with total debt of around $2 billion. They are not really losing anything on their hedges just potential profits because oil and gas prices ended up being higher than what they hedged at. More accounting than anything it appears. They should be more clear about that in their financial statements.
It appears that they have payed off aprox. $164 million of long term debt in the first half of this year. Long term debt now stands at $1.769 billion With their projected cashflow for the rest of the year they will have Long term debt down to around $1.54 billion by the end of this year.
Not bad considering that at the middle of last year Long term debt was aprox. $2.125 Billion.
In one and a half years even with the low oil prices of last year with Covid VET will still manage to have payed off aprox. $590 million in debt.
By the end of the year when they have debt down to around $1.5 billion it will set VET up for a very good 2022 with debt cut down one third and under control and aprox. $450 million per year in free cashflow for dividends, debt reduction, share buybacks and asset purchases
Thats $450 million in Free cashflow for a company with a current market cap. of aprox. $1.35 billion. Put another way Free cashflow per each VET share currently valued at $8.3 will be aprox. $2.80 per share or aprox. 33% per year.
I will be adding quite a few shares soon.