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 that cccpg should limit any hedging going forward

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Comment by LiquidOctopusV2on Oct 06, 2021 9:15am

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Post# 33972769

RE:RE:RE:I think that cccpg should limit any hedging going forward

Nobody was/is concerned about the purchase of the Shell assets - those are great assets. The worry about aquisitions predates that back to when oil was in downturn. They were buying when the market was in the doldrums. That's where the anxiety came from, I don't think people can even remember.

cahclick wrote:

Those fears you refer to were not unfounded. If oil turned against them after they purchased the Shell assets they were dead in the water. It was a wreckless "Hail Mary" with the level of debt they were already carrying.
People on this board wonder "why" Cpg is a laggard compared to other oil names. Well, Cpg management has earned a reputation. That's why.

Sorry for the rant and thank my lucky stars oil went north and not south.

jmo
glta

LiquidOctopusV2 wrote: The hedges are already set to decrease every quarter going foward into 2022. And, the hedges are a debt strategy and not a cost strategy. I don't believe the company is bloated. They were totally sustainable at $50/wti - both in terms of costs, debts and potential capex to roughly maintain their current production. Having said that, CPG is going to take a significant impairement from hedging - there is no way around it. Their cash posiition is still excellent.

There are some companies that have been thrown a liferaft by $80-100 oil because they were in a bad spot. CPG's only real downfall was taking on aquisitions when the market wasn't sure they could repay the associated debt. We're in the era of repayment now. The debt is handled. Those fears were ultimately unfounded.

Moernoney42 wrote: this might be the reason why stock is not moving as much as it should be. saddled with high costs and their hedging percentage is high considering we are in an energy bull market now?

what do you people think?

this entire heavy reliance on hedging is due to the fact that they are bloated in costs and need have certainty in their future revenue numbers.

had they done what everyone else did. get rid of any and all unnecessary people. they wouldn't have been where they are now. instead, management decided to not only give them lifetime employement guarantees. they started an employee stock plan to reward them some more LOL

you can't make this spit up