Vermilion Energy Inc T.VET

Cash Flow

[Madmanmadox]

Anyone know how much the cash flow is hedged in the EU and at what prices? 

This could be crazy cash flow in Q3 already just given where the prices have been for first 9 weeks of the 12 in the quarter? I am napkin mathing like something under less than 2x cash flow right now and probably conservative if prices move up even more on the forward? Spot is insane....

I think this is the ultimate hedge on my Portfolio if EU actually gets worse?

[Oldnagger]

The answer is here, I just posted it BTW https://www.vermilionenergy.com/files/1._July_2022_Hedge_Disclosure.pdf

[Ebankbank]

I appreciate reading your posts, I don't understand this chart ? Is vermillion still hedged until the end of this year or also into 2023 and if 23 when ? Thanks in advance. 

[Oldnagger]

For TTF , VET is hedged up till Q1 2024. The hedge volumes fall off quite significantly, that is why VET will become more profitable if current pricing holds up.Same thing for NBP pricing if you need help understanding the calls and puts , then here is a good reference source https://www.investopedia.com/options-basics-tutorial-4583012 Unfortunately , all of this is fairly complex , yet for

[Ebankbank]

Thanks for that, I got into vermillion and Alta gas for some great dividends. Well both had to cut or reduce their dividends, but are starting to return? Hopefully as strong as they where. 

[Oldnagger]

I should add something, the latest hedging info that we get to see is for July  2022. Yet forward prices for TTF and NBP have been much higher in August. It would not surprise me at all that VET has locked in some of these higher prices , since the presentation shows average prices of $80 per mmbtu for 2023 vs $60 for 2022 .

[Pandora]

Are these your references: TTF = The Title Transfer Facility, more commonly known as TTF, is a virtual trading point for natural gas in the Netherlands. This trading point provides facility for a number of traders in Netherlands to trade futures, physical and exchange trades. NBP = The National Balancing Point, commonly referred to as the NBP, is a virtual trading location for the sale and

[Oldnagger]

Yes , for convenience , each can be found quoted in US dollars per mmbtu https://www.cmegroup.com/markets/energy/natural-gas/dutch-ttf-natural-gas-usd-mmbtu-icis-heren-front-month.html https://www.cmegroup.com/markets/energy/natural-gas/uk-nbp-natural-gas-usd-mmbtu-icis-heren-front-month.html

[stockmarket1]

VET still has a way to go before they begin to pay-out dividends as good as some of us would like. Until they ( vet ) gets it debt down below $1B ( imo ). We won't see a steady solid monthly dividend. And that's even if they decide to do a monthly dividend. They may just stick with a quarterly.