Something Very Interesting
Q3 Results -VET
Currently VET market cap is about 2.1 billion dollars, petroleum sales were 490 million dollars and FFO was $275 million $1.76 share with share price around $13.70, 600 million capex
Q3 Results-ARX
Currently ARX market cap is about 14.7 billion dollars, petroleum sales were 1,054 million dollars and FFO was 592 million 99 cents share with a share price around $24.86, 1.7 billion capex
If this does not describe VET as a compelling investment opportunity, on a share price adjusted basis,
VET has 12.8 cents of FFO for every dollars of share price in Q3 (3x times FFO)
ARX has 4 cents of FFO for every dollar of share price in Q3
So VET has met their debt target just as ARX has.
Comparision ARX - VET
So VET seems very cheap, it has 14% of the market cap of ARX, generates roughly 50% of the petroleum sales of ARX, has 46% of the FFO of ARX, only spends 35% of the capex of Arx.
In Q3 arc produced 330,000 boe/day and Vet produced 84,173 boe/day about 25% of the production of ARX
Looks Compelling
IMHO