Eric Nuttal like MEG 10% FCF Yield << VET FCF Yield HigherFrom Q3 Report We invested $121 million in exploration and development (“E&D”) capital expenditures(3), resulting in free cash flow (“FCF”)(4) of $154 million
($0.98/basic share)(5), of which $59 million was returned to shareholders, including $19 million in dividends and $40 million of share buybacks, representing 45% of excess FCF ("EFCF")(4) .
So Eric thinks Meg at $70 U.S. oil will generate a 10% FCF and made it one of his Top Picks
Lets look at VET with a 10% FCF, it would be $4 / 10% FCF = $40 dollar share price crazy.
The difference is VET has Europe Gas hedging into 2027, they have shale Mica with a 100% future growth, and Germany gas wells are being tied in as we speak.
VET is the most undervalue energy stock i have found using numbers they report.
Even after today move currently $15.07 share.
$4 dollars / $15.07 (share price) = 26.5% FCF yield
with them using 25% of their total FCF for buybacks that is roughly 6.7 % of FCF on buybacks
That should make Eric Nuttall happy, they really can't really buy back more but the balance sheet gets stronger every quarter.
IMHO
MHP