Vermilion Energy Inc T.VET

VET

[sclarda]

At todays oil prices and from looking at their presentation i calculate that VET is generating aprox. $800 million in  cashflow per year.

Capex for the last year [which may be increased this year] is aprox.  $360 million.  That would leave free cashflow of aprox.  $440 million The current market cap. is a little over $1 billion. 

At 8 times free cashflow the shareprice should be aprox.   $22.

If oil prices hold or keep rising from these levels and as the cashflow starts coming in and investors see that  the VET shareprice should eventually rise quite a bit from the current shareprice.  

The hardest part is trying to figure out where oil prices are going.  I gave up trying along time ago.

[baranja]

Goldman just called $65 Brent by June. It will probably overshoot to 70+ for sure

[QekaaQ]

This post has been removed in accordance with Community Policy

[ThatAlbertaGuy]

I agree ! The only question is with their debt how long till they totally recover . I like it though and have a strong position on this one .  

[shakka]

They want to be at 1.5x cashflow. Based on my numbers we need to pay down about $500-600mil of debt to bring it down to 1.5. Based on future strip and cash flow estimates, we can probably achieve that $500 mil reduction in 2021.  If oil prices continue to move higher, then 2022 we should be printing money. If they pay the debt down further (less than 1billion) that would bode really well for