RE:RE:Last Quarter FFO 275 millionThat sounds a little sour to me, when i look at the numbers, the share count, and the balance sheet Vermillion could not be a much better place.
Their debt is at Target, and now they want to pay off the existing note that is due in 2025 with cash?
I am not sure that is necassary, maybe the thoughts is that want to have a little dry powder, as some of those onshore netherlands packages will hit the market mid year 2025.
I agree with you, the debt reduction efforts may be over done. You shouldn't run a TSE company that people invest in like its your home finances. They hit their debt target and they have tons of flexibility on the balance sheet.
This company needs to get rerated in terms of share price. It's great they all went to the new company, but i see loads of opportunity left in VET, with limited risk.
This stock is worth significantly more and is currently on Fire Sale, to rebuild what VET has from scratch will take a lot of time, and a lot of capital. Something new ventures don't have the capital and it can come at very expensive, costly interest rates.
It is a good point that you brought up is the Companies treatment of the shareholders, i will remind them of this in my future communications. They need to do something to unlock the value in this current value trap, because as it stands right now they cannot use their shares as currency.
I have already told them that their payoff of the debt on the balance sheet, did nothing form shareholders, and nothing for the share price. The debt target is over done.
IMHO
MHP