RE:RE:Suncor divy could be the starting act for VET!Quintessential1 wrote
VET and SU are in the O&G sector. That is where the similarities end.
VET is still swimming in debt and needs to pay it down.
If it does that I believe we will see the market reward VET with far more share price accreation than a dividend introduction would at this time.
We'll see what the numbers say on the 9th.
GLTA!
EnergyWatcher55 wrote: VET is swimming in cash. In excess of $500M with a low share float, this is a no brainer.
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"VET is still swimming in debt and needs to pay it down."
At the end of the second quarter VET had long term debt or aprox. $1.785 billion Cdn. In the second half of this year VET is likely to have free casfhlow of aprox. $250 million plus. That means by the end of 2021 two months from now VET should have long term debt down to around the $1.5 billion range.
At these oil prices VET is likely going to have free cashflow next year approaching if not at $1 billion Cdn. That means VETs debt to cashflow at the beginning of next year will be around .1.5 which is their target range. By the end of next year they could have debt down to $5 or $6 hundred million which would leave debt to cashflow at .5
If oil and gas prices hold at this level or higher VET could pay off all its debt in around 2 years from now.
At $30 oil from last year VET was "swimming" in debt as were most other oil companies. At $80 oil and high natural gas prices VET has debt at their target level and is Swimming in FREE Cashflow. Lets hope oil prices hold for the next couple years as is looking likely and VET shareholders will be very happy.
Good luck to all,