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Vermilion Energy Inc T.VET

Alternate Symbol(s):  VET

Vermilion Energy Inc. is a Canada-based international energy producer. The Company seeks to create value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia. Its business model emphasizes free cash flow generation and returning capital to investors when economically warranted, augmented by value-adding acquisitions. The Company’s operations are focused on the exploitation of light oil and liquids-rich natural gas conventional and unconventional resource plays in North America and the exploration and development of conventional natural gas and oil opportunities in Europe and Australia. The Company operates through seven geographical segments: Canada, the United States, France, Netherlands, Germany, Ireland, and Australia. In Canada, the Company is a key player in the highly productive Mannville condensate-rich gas play. It holds a 100% working interest in the Wandoo field, offshore Australia.


TSX:VET - Post by User

Comment by Quintessential1on Dec 19, 2024 6:49pm
110 Views
Post# 36371276

RE:RE:RE:RE:Budget

RE:RE:RE:RE:Budget"So my guess it that buy mid year, they will hit their debt target that will give them a super healthly balance sheet." 

"VET has met its debt target, and while they are only pay an anualized dividend of 48 cents they are swimming in FCF."

I want to have rational discussions with you but this is what I am up against.  You posted both of these statements.  Do you actually know what their debt target is?  Have they even said what their debt target is?  If so please post it with a link.

Now, do I think the debt reduction is reflected in their share price?  Probably not but it is just one part of the whole picture.  Generate revenue, devolop reserves, pay down debt and reward shareholders.  They have to demonstrate their ability to do these things consistantly or the big money doesn't want to even look at them and they have to show it on balance sheets not budget projections.  Budgets are nice but those are their own specualtions.  YE 2024 will be an excellent demonstration of what they have achieved over the last 4 quarters (or TTM if you prefer).  If they can add to it that they paid off the senior notes in their guidance that would be even better.

If they want to acquire an asset moving forward because an incredible opportunity presents itself they will still have the $1.6 Billion in undrawn revolving credit to do it. 

Croatia looks nice and Germany too.  They haven't added squat to the balance sheet yet if fact they have only soaked up cap ex.  How about they actually see some revenue before throw more money at them?

They are trying to prove out and delineate all of these reserves but they have to show they make money too.

So far the only ones that do are Ireland, Australia, France, The Netherlands and the USA (you're right its a good time to add to the USA).  Next: Canada, Croatia, and Germany.  After that it looks like Slovakia.  I hope they have as much success as Croatia but they only have a 50% working interest there. Hungary looks unstable and if they divested themselves of it instead of proving it out it wouldn't hurt my feelings unfortunately its the only places in Eastern Europe they have a 100% working interest. 

Things look good but its going to take time to demonstrate how good.

Increase produciton, prove out reserves, pay down debt, increase shareholder returns.  These things can't go unnoticed by the market forever.  Until they do get noticed, buybacks.

GLTA
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