~ 41.75% FCF Yield @ $82 WTI"
I decided to draft up a quick calc of [VET]
This just shows the FCF [it] can produce at current price
The COP includes CAPEX
EDIT: 'Production' is for the year
For VET, the actual #'s are a bit different when u take WCSB gas and TTF into account, but for simplicity, i just used Oil price on all their BOE's
(they are 50/40/10 oil/NG/Distillate) .. this may seem aggressive, but I also ignored their Brent pricing, Brent + $10 on their AUS production... so i figured it more or less balanced out
Again, the goal here was simple presentation
I also left out any potential share prices they might get to with this FCF (trying to learn 'being conservative' From Naamkat)
I'll let you guys fill in what 'price is appropriate' for this kind of FCF
Also a re-post
"there have to be a lot of investors out there who don't ever want to own VET again"
....the price performance says you're exactly right.
But, it's their loss if so.
When the dividend comes back next year, I have a hard time seeing this company staying at $13.
Briefly-
[this has the corrected Capex per bbl amt]
from their slides all in cash cost ~ $42 / boe
~ 86,000 boe/d for last ER - (31,390,000 / Year)
On 162 mm shares o/s, and $82 oil ...
that's ~ $1,255,600,000 FFO / year
less $375 mm CAPEX
SO APPPROX $880,600,000 FCF
Mkt cap is $2.109 billion
That's a 41.75% FCF Yield at $82 oil.
on 162mm shares, you're looking at $5.43 in annual divs (at $82 oil), if they paid all FCF as a Div.
That kind of Dividend is just stupid for a stock this cheap...
The ppl "who will never own this stock again" will be made to look like FOOLS" "