Vermilion Energy Inc T.VET

Brent is trading over $ 51

[divime1]

Their cash is piling up at this price. The market will soon wake up .



https://www.livecharts.co.uk/MarketCharts/brent.php

[Valneigette]

This post has been removed in accordance with Community Policy

[Etstedesco]

We have had 4 days of red. Some green would be nice starting tomorrow. And if we could tag it up with some good news out of Vermilion’s head office; investors would be pleased. GLTA

[shakka]

VET was trading at $20 when WTI was around $50. So this has a ways to move. We will need a catalyst to get this moving. If they re-instate a divvy, even a small one that would send a strong signal to the market. Priority is debt repayment to get the leverage down to 1.5. With Oil prices increasing we should generate enough FCF to but a dent on the debt and re-instate a small divvy. JMHO Shakka

[geemonet]

Would you rather see a small div now and the stock price move up, or no div, company buy back shares at this low price and then crank out a big div next year?

[Etstedesco]

I can see advantages from both perspectives. Not a huge fan of the stock buybacks, however a incentive by way of a dividend reinstatement provides share holders with “ a paid to wait” reward. There’s been some consolidation recently in sector which throws thoughts toward possibilities. Stockwatch news releases for VET has dried up. It can make investors antsy. GLTA

[shakka]

I would introduce a small divvy as this has been the staple of this company for 15+yrs. Something that wont be cut if oil prices drop again.  Once debt/FCF is under a decent percentage (can get that ratio down quickly with Brent in the 60-65 range, WTI- 50-55) up the divvy or get the debt down further than do the big divvy hike.

[MuttPatrollives]

This post has been removed in accordance with Community Policy

[geemonet]

  you really don't think that if they generate enough fcf to pay .23 a month div the price won't go up to the same levels as last time they were paying .23 a month div?