Vermilion Energy Inc T.VET

VET's low share float is KEY for the divy to come back

[EnergyWatcher55]

If VET shares collapse during this oil and nat gas boom, VET mgmt would need to buy back shares to defend its stock. This is not only good for shareholders but also reduces VET's already low share float for the divy to come back.

A low share float is key for a meaningful monthly divy.

Good luck to all.

[stockmarket1]

Makes sense E.W but look at Suncor today. They are buying back their shares and the stock is down. Wtf?

[EnergyWatcher55]

Suncor has over a BILLION and a Half shares outstanding and pays a small quarterly divy. VET has 161 million. The less shares ourstanding, the better for a meaningful monthly divy.

[geemonet]

Agreed. it would be very nice to see a NCIB notice come across the news headlines for this company. Buy back 16 million shares while the price is low. Complete the bid and bring back the .23 a month div. 

[sclarda]

geemonet wrote Agreed. it would be very nice to see a NCIB notice come across the news headlines for this company. Buy back 16 million shares while the price is low. Complete the bid and bring back the .23 a month div.  ----------------------------------------------------------------------------- To pay a 23 cent per month dividend VET would have to pay out nearly all their free cashflow.

[geemonet]

10% fewer shares means 10% less money to pay the dividend ;-)

[lashing]

wow thats deep, brand new ideas abound

[EnergyWatcher55]

This is not a new idea. Its a FACT. The lower the share float, the better it is to payout divys and this is VET's sweet spot. 

[EnergyWatcher55]

10% less shares means Higher divys with LESS payouts to shareholders.

[ronster65]

Just remember that (for those of you not here prior to the COVID crash) Analysts were already discussing how paying the .23 cent divvy was unsustainable and should be pulled back to .05 per quarter or eliminated due to the high debt.  Once again we will see on August 16 if this company is going to look at this second chance to put the ship on the right tack and be responsible or just run the

[PipelessPauper]

Youre leaving out 1 TINY detail there..  WTI was also $50 - $60 then TOO

[sclarda]

ronster65 wrote J Just remember that (for those of you not here prior to the COVID crash) Analysts were already discussing how paying the .23 cent divvy was unsustainable and should be pulled back to .05 per quarter or eliminated due to the high debt.  Once again we will see on August 16 if this company is going to look at this second chance to put the ship on the right tack and be

[PipelessPauper]

“As long as oil prices cooperate things will soon be looking very good for VET and its shareholders future.” couldnt agree more Sclarda

[EnergyWatcher55]

VET is WAAAY Ahead on its debt reduction thankfully due to high oil and nat prices! VET's low share float will help it get back to its divy model. 

[stockmarket1]

As nice as it would be a 23 cent dividend.... Highly unlikely imho. It would be a gradual introduction imho. But hey, what about a special dividend like some other companies in other sectors have done?

[sclarda]

EnergyWatcher55  wrote Suncor has over a BILLION and a Half shares outstanding and pays a small quarterly divy. VET has 161 million. The less shares ourstanding, the better for a meaningful monthly divy. ----------------------------------------------------------------------------------------------  Suncor also has over $9 billion per year in FFO compared to VETs aprox.  $900

[stockmarket1]

Good point. Buffett unloaded shares didn't help either I would imagine.