Post by
prested on Feb 14, 2022 8:17pm
Why is it hedging you ask.....
...because it is a sound business strategy to cover all eventualities including a sharp frop in price, which some posters here are suggesting if Iran and shale start pumping.
I'm in the school that belieives VET is being cautious by paying just enough in divs to stave off a revolt by some large investors so they can get the debt level down, since that was always one of the big criticism of them in the past. Just like the homeowner who is, or should be, taking advantage of low rates to pay down the mortgage because they know when the rates go up they could get screwed.
Investing requires patience and I'm afraid there is little of that in some of the posts I read here.
Comment by
EnergyWatcher55 on Feb 14, 2022 10:09pm
VET is missing out on a big upside with its ridicuous hedges. Its not paying a divy to use the excuse of hedging. Look at what happened in 2021 with its nat gas 70% hedging at $7 when Euro nat gas went up to $69!!! The big guys CNQ dont need to hedge because they have efficient operations. Yet VET is hedging again in 2022. Good luck!