Vermilion Energy Inc T.VET

Dividend reinstatement?

[SilverSpewn]

Anyone have any insight into when the dividend might get reinstated? I miss my monthly cash.

[PipelessPauper]

My guess is either Q3 or Q4

[Moemoney42]

Can't see that happening until Q1-22.. JMHO

[geemonet]

After they pay off about a billion in debt or 2.5 years .

[PipelessPauper]

First of all .... it won’t take 2.5 years to pay off a $ billion in debt. Go see the July Presentation  2nd - you need to go read PRs. “... pay down debt, target a debt-to-cash flow ratio of less than 1.5x” they do 32,025,000 boe/ year  at $70 oil, they can reinstate the div NOW if they want to and hit their 1.5x goal easily.  But my guess is they play it safe and see how oil

[PipelessPauper]

Btw, Q4 is Mar 2022

[geemonet]

I wish you were right. But you're not. 

[PipelessPauper]

“pay down debt, target a debt-to-cash flow ratio of less than 1.5x”

[geemonet]

We will find out pretty soon how close my estimate is to them paying off 100 mil a quarter here pretty soon. I hope it's more. But... I doubt it.

[stockmarket1]

$100 million towards debt -- I assume you mean? If so, that isn't very much when you think about a 1.9 billion debt level? From what I'm reading on here, some are thinking VET will apply a boat load more towards debt than what you think. Seeing what WTI and Brent are fetching as of late. 

[PipelessPauper]

“ If so, that isn't very much when you think about a 1.9 billion debt level?” You’re right it’s not. Am I the only one who does any DD around here??? Company has a slide slow in their latest presentation (July) which shows from $400 mm to $550 mm debt paid down between $70 to $80 WTI.  They also said under 1.5x debt to cash flow is the target.  They do 31,025,000 boe per

[geemonet]

Yes. And when they release their financial information next week we will see if their theoretical numbers came true. you do understand that those presentations are pretty much just advertisements right? It's what they want to have happen, not what will happen. 

[stockmarket1]

Financial statements next week? Huh? Clearly you don't go onto Vermillions website much! Vermillion earnings date is NOT next week. It's August 16th!

[Oldnagger]

VET is showing free cash flow at 450 million per year based on prices that are probably close to Q2 pricing . So they will be paying down about 100 to 125 million per quarter. Not bad really. their credit line is termed out to 2024 and the notes are termed out til 2025. So there is very little debt risk at present. Now 450 million per year yields a nice return of 31% per annum at todays SP closing

[lashing]

Your math is wrong

[PipelessPauper]

Ok, we will see ... but the ER isn’t till AUG 16th