Vermilion Energy Inc T.VET

WFT

[Sandman2000]

Hi there,

I am longtime owner of VET, bought in the 40s and bought under 5 bucks during COVID.  My average is above 13 bucks.  I pondered selling all my shares but did not want the tax consequence because I have so many shares.

I emailed IR on Thursday night after concerns about the WFT and Eric Nuttal's concerns of lack of inventory depth.  IR promptly emailed me the following day and said the WFT will likely continue in 2024 and that their assets are low decline and VET is always opportunitstic for more properties.
I pondered switching to Altagas, but I'm staying put now based on this info.

[Abedim15]

No surprise with the WFT, surely everyone accepted that any and every tax once introduced, even temporarily, is here to stay. They just have to incorporate it into the cost of doing business or leave

[Overertune]

WFT is 70% in Ireland but only 30% in other parts of Europe.  Besides NA has no WFT. Europe and NA gas prices are too low in 2023, but will improve in 2024. In general I see 2024 being a better year than 2023 even though WFT might continue.

[Moemoney42]

I believe they're not too concerned about the WFT as I think its now established that they can write off capex against it to minimize the tax.. I know this was a topic of conversation a while back, and I think that was the final conclusion..?? If my memory serves me correctly..??

[Sandman2000]

If you look at slide 9 of the Q3 2023 conference call presentation, it says the WFT accounts for about 8-10% of their FFO pretax. I looked at the 2023 quarterly FFO (ie revenue after capex) and it averages around $310 million per quarter). If you extrapolate for the year I would say FFO is about 1.25 billion and say we take 9% for WFT, that is about 112 million for the year. That is a lot money

[GregC24]

Or look at page 20 of the MD&A and the line item "Windfall Taxes" to see the exact amount paid YTD is  $78.177M and drop all the calculation and assumptions. :)

[Moemoney42]

Thanks for the post Greg.. just checked it out and you're correct.. that being said, its a far cry from the $300 million they were forcasting at the beginning of this circus of WFT for 2023.  Also noted that no WFT was paid for 2022, so if we can hope for 2024 to be free of tax (?) VET will do fine after all.  Too bad there isn't/wasn't more emphasis on this adjustment from