Share buybacks good, stock is cheap....VET has the ability to repurchase 15,689,839 hares (NCIB, June 2024) with the current shares trading at 13.55 that means it would cost roughly 200 million dollars to buy back 10% of the companies float. Really a compelling business case.
This quarter the FFO number was 275 million if you anualize this going forward it is roughly 1.1 billion dollars.
So to me it looks like VET can do it all well.
1.1billion -(capex - shares buyback - Dividend - Debt)
It kind of looks like they can do it all, which is pretty good. This gives them a lot of flexibilty and here is what it MAYBE could look like)
1.1 billion = ( 625 million (capex) + share buybacks (200 million) + Dividend (75 million) + Debt (100-200 million) )
10% of shares if you can buy back that amount of shares that is pretty good.
I think the FFO may be even higher, it kind of depends of commodity prices, but there is a lot of upside with europe gas. VET has a lower decline rate then other companies, and this bodes well for 2025....
IMHO
MHP