I own 4 out of top 5...with VET being the largest. Just look at the netbacks this company [VET*] is kicking out...
Look at the conservative #'s they use (slide 10 from Sept. investor pres.)
Then EU gas going bonkers means they're even better....
the netback is ~ $38 in slide 10. BUT... I noticed that operating netbacks are pre non operational costs, debt interest and G&A per boe. In VET's case, that's perhaps $1.50/boe G&A and maybe another $2-3/boe debt interest. It is also pre-hedging, which given current lofty AECO and TTF pricing will probably mean a not insubstantial loss/boe in cash flow. I could find or define VET's corporate CF more precisely but it isn't necessary to be specific to make the point (my estimate on actual corporate cash flow per boe is around $32).
to put this in perspective: 32 x 85,000 boe/d = $992,800,000 (year) FFO
then
capex of ~ $300 mm
FCF of $692,800,000
With TTF.. this is close to $950 mm Now
on 162mm shares you're looking at $5.86 a share FCF
Thats approx a 44% FCF yield on today's close.
There is the reason why i have such an outsized position here. (225,000 shares [tsx])
When the dividend is reinstated it will be MASSIVE. For me, that works out to $1.3194 mm a year or ~ $110,000 a month dividend if they pay all FCF as dividend.
The undervaluation here is ENORMOUS
King Leper of Leprosy stocks (O&G)