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Vermilion Energy Inc T.VET

Alternate Symbol(s):  VET

Vermilion Energy Inc. is a Canada-based international energy producer. The Company seeks to create value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia. Its business model emphasizes free cash flow generation and returning capital to investors when economically warranted, augmented by value-adding acquisitions. The Company’s operations are focused on the exploitation of light oil and liquids-rich natural gas conventional and unconventional resource plays in North America and the exploration and development of conventional natural gas and oil opportunities in Europe and Australia. The Company operates through seven geographical segments: Canada, the United States, France, Netherlands, Germany, Ireland, and Australia. In Canada, the Company is a key player in the highly productive Mannville condensate-rich gas play. It holds a 100% working interest in the Wandoo field, offshore Australia.


TSX:VET - Post by User

Comment by clamlinguineon Mar 07, 2022 2:52pm
274 Views
Post# 34491878

RE:RE:RE:RE:RE:Free cash flow over 50% in 2022

RE:RE:RE:RE:RE:Free cash flow over 50% in 2022
clamlinguine wrote:
The1Wolf1 wrote: The sensitivity to NBP/TTF gas is $1 mmbtu increase in gas price results in $16MM increase in CF. If they were unhedged that $1 increase results in $40MM increase in CF
Correct. Here is my calculation for fcf at todays prices for 2022 using page 36.

Vet says they make fcf of $1.5 Billion at $82 wti 85 brent and $34 ttf.(the main drivers)

Add 
$72 CAD ttf- $34 CAD ttf= $38 CAD over baseline  $38 X $16 = $608 million fcf addition
$100 US wti - $82 US wti=$18 US over baseline     $18 x $16=   $288 million fcf addition
(assume brent also $16 higher than baseline)

$608 mil + $208 mil + 1.5 mil= $2.316 billion /  165 mil shares = $14 per share fcf 2022

I feel other variables are not significant at this point. Anybody able to follow and see mistakes, let me know. lol.


Here's what I get for this moment with the new sensitivities. TTF is at 216 ($90 cad) , wti oil is 107 average futures price for the rest of 2022.

$90 CAD euro gas- $58 base = $32 x $13.7 FFO per dollar= $438 million over baseline estimate.
$107 US wti- $93 US baseline= $14 x $10.6 FFO per dollar=$148 million over baseline estimate

$438mill. gas+ 148mill. oil + 1900 mill baseline FCF= $2.486 billion 
$2.486 billion / 165 million shares= $15 per share 

My suspect calculations. 
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