Vermilion Energy Inc T.VET

Excellent Q2

[GOWEST]

And there's this:

Closing of the Corrib acquisition continues to progress as we move closer to obtaining all remaining partner and government approvals. We expect the transaction to close in the fourth quarter with an estimated closing cash payment in the range of $100 to $150 million after adjusting for the FCF accrued throughout the year. Pro forma Q2 2022 FFO and FCF incorporating the incremental 36.5% ownership in Corrib was $536 million and $422 million , respectively.

[Overertune]

I don't understand.  Will vet pay to close the deal or will vet be paid 100-150m? is 422m total for year 2022, calculate based on the rate of q2 2022?

[Nuttw1ster]

It means in addition to requiring all of the 2022 Corrib sourced FCF an additional 100/150 million will be required to complete the 600 million purchase. Short term pain for long term gain, hopefully. 

[GOWEST]

In other words they are paying est. 100-150M for 422M FCF... Good Deal Also they bought the Motney asset @ $3 AECO which has basically doubled. Another good Deal

[Nuttw1ster]

The 422 is total FCF in Q2, not Corrib only, Corrib is 83 million in Q2, still a good deal.  FY Corrib FCF should be 450/500 if they need 100/150 to close it off in Q4. 

[clamlinguine]

Not sure about Corrib stuff but NBP gas was at an average of about 165 in Q2, its running around 300 in Q3 so far, imo.

[Nuttw1ster]

The 422 figure is the 340,000,000 FCF plus Corrib, meaning FCF generated by Corrib in Q2 was only 82 million, a far cry from the 184 million (305/489 including Corrib) from Q1.