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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 Oldnaggeron Apr 02, 2022 11:03am
193 Views
Post# 34569937

RE:Who would prefer that VET pay the DIV monthly?

RE:Who would prefer that VET pay the DIV monthly?

VET was originally set up as a company that grew by acquisitions and development. They were very successful at that . Then the government of the time created Energy trusts that were similar in nature to REIT 's . That structure has long been broken due to a sudden reversion in taxation policy. 

VET tried to hold on to the model nonetheless, until it broke due to Covid. Management was very wise to cut the dividend, otherwise there would be nothing to talk about now. I believe that with a change in management, and more importantly a change in environment that acquisitions and/or buybacks are the best strategy. Cash dividends are really a mugs game, on the second the stock goes ex-dividend the share price will go down by the same amount. A constant dividend stream may signify stability to some. But not in this industry. If you want  a constant dividend stream then check out utilities or some banks.
Even the energy royalty trusts cannot guarantee dividend stability

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