RE:Napkin Math on German natural gas on 1 well.My caculation is like this, every 6 MMcf of gas produced increases VET cash from petroleum sales by 1.5%. (Roughly speaking over 30 million dollars)
So essentially if they produced that well at 18 MMcf almost a 5% increase in Petroleum Sales for 2025.
That is amazing cash generation.
When you look at VET market cap eveny convential Canadian production would suggest it trade higher.
However VET is trading at less than 2 times FFO, i don't think there is a cheaper company and they are still buying back shares.
I am 100% sure that VET is working round the clock to add gas production in Europe, the economics are the most compelling in the entire potfolio.
The way they should look at it is like this, they are on the right side of LNG exports, and the gas price in Europe is established by LNG imports and is low in cost and could be higher in heat content.
IMHO