Eric Nuttal said 10% - Vet is beating (616 mil FCF) 28%Eric Nuttal was on BNN talking about how some oil and gas companies can generate 10% or more in FCF.
Today VET market cap it up to 2.2 billion and if you anualize Q3 FCF,that is
FCF = 616 million anualized
That is 28% FCF per share, that is crazy!!.
However another measure that is just as compelling it their FFO, FFO = 275 million in Q3, anualized that is
FFO = 1.1 billion dollars anualized.
So the company is trading at 50% FFO
If you think 15% FCF is where it should trade, which is still a sector leading, that is almost a double in price, if VET was trading at $28 dollars with a 4 billion market cap it would still be generating 15% FCF.
The stock is mispriced here.
IMHO
MHP