RE:RE:RE:RE:RE:RE:National Bank on VET - $53Oldnagger wrote
My guess is that the market will want a 15 % fcf yield and a 6% dividend yield once debt is paid down.
With 15 $ fcf very likely as a result of this higher pricing environment , we are looking at a $100 share price in less than a year from now. Even without, higher petroleum prices, VET is extremely well positioned to get the $15 per share FCF target via share buybacks given the current extreme under evaluation in share prices.
What I said previously about PEG values is still very pertinent. But the market is still in a SHOW ME attiude.
Well Vet , Let 's SHOW THEM !!
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According to their presentation if VET were unhedged this year which they mostly are for next year they would have Free cashflow of aprox. $2.3 billion this year at $98 WTI
Oil prices are much higher than that right now. If prices were to hold in this range until next year VET would have Free cashflow per share of over $16 per year next year. At 8 times Free cashflow a shareprice of aprox. $128 is possible.