RE:RE:RE:RE:RE:RE:Eric Nuttal said 10% - Vet is beating (616 mil FCF) 28%Its not the commodity as much as it is the price.
I know PEY has done a great job hedging and in risk management, but unless the North Americian Gas market turns around, those hedge will run out, and they will be getting the same kind of pricing ARX gets.
VET is currently selling gas for 17 dollars a mcf in europe, and the FCF is essentially $1 dollar per share a quarter or roughly $4 dollars a year.
On a $14 dollar stock that is almost 29% of the share price?
48 cents is dividend, and $3.52 goes to the balance sheet (debt, buybacks) So the stock reall should appreciate which is 25% balance sheet appreciation with zero produciton growth.
VET is mispriced and a screaming buy, ARX no so much in my opinion, they didn't have cash to pay Q2 dividend without debt, and barely covered Q3 dividend.
IMHO
MHP