Vermilion Energy Inc T.VET

From VET President on BNN

[Quintessential1]

From Stockwatch Energy courtesy of loonietunes:

"Mr. Tonken was not the only one making use of BNN's promotional reach. President Dion Hatcher of Vermilion Energy Inc. (VET), up 12 cents to $21.03 on 1.73 million shares, gave his own interview to the network this morning. Rather than discussing a windfall for investors in the form of a 900-per-cent dividend increase, however, Mr. Hatcher was there to soothe investors' ruffled feathers over a 33-per-cent windfall profit tax in Europe, where Vermilion is a sizable gas producer. Its stock has lost about one-third of its value since the tax was announced last fall.

Mr. Hatcher also made his case in numbers. He noted that the tax does not apply to gas prices below the Canadian-dollar equivalent of $15. Prices are currently around $30, so the tax applies to the extra $15 and works out to around $5. Ultimately, Vermilion is still realizing prices of around $25, which is more than eight times what it would be getting in North America, pointed out Mr. Hatcher. His conclusion was that the business remains "robust." He acknowledged, however, that the abrupt implementation of the tax shook investors' confidence in Europe as a stable place to do business. "The market obviously doesn't like uncertainty," he sighed. Based on today's lukewarm trading, the market's mood has not thawed."

I don't expect the markets mood to thaw until VET can demonstrate its FCF in cold hard numbers with hopefully some debt reduction.  A Corrib closing would be nice too!

GLTA Longs

[sunshine7]

Vermilion is still realizing prices of around $25, which is more than eight times what it would be getting in North America, Sounds like the market over reacted to the news? Their recent press release should have emphasized that.

[joe0301]

This post has been removed in accordance with Community Policy

[cashtango00]

the problem is the 25 is a lot lower than it was 6 months ago and much lower than VET management was projecting.......leading to a 50% drop in projected FCF from management's own guidance.  That's a pretty good reason for the collapse of the stock.  

[Oldnagger]

So much the better for us that the stock price has fallen drastically. What has not changed is that Vermillion has extensive land holdings and reserves globally. Those holdings will certainly come to the forefront as time passes. Europe has certainly made many mistakes , they will need to repair those mistakes or face painful consequences. As the world finally comes out of lock downs , Eurpeans

[buddy2021]

Good summary Quintessential1. "Mr. Hatcher also made his case in numbers. He noted that the tax does not apply to gas prices below the Canadian-dollar equivalent of $15. Prices are currently around $30, so the tax applies to the extra $15 and works out to around $5. Ultimately, Vermilion is still realizing prices of around $25, which is more than eight times what it would be getting