Vermilion Energy Inc T.VET

Something Very Interesting

[MyHoneyPot]

Q3 Results -VET
Currently VET market cap is about 2.1 billion dollars, petroleum sales were 490 million dollars and FFO was $275 million $1.76 share with share price around $13.70, 600 million capex

Q3 Results-ARX
Currently ARX market cap is about 14.7 billion dollars, petroleum sales were 1,054 million dollars and FFO was 592 million 99 cents share with a share price around $24.86, 1.7 billion capex

If this does not describe VET as a compelling investment opportunity, on a share price adjusted basis,

VET has 12.8 cents of FFO for every dollars of share price in Q3 (3x times FFO)
ARX has     4 cents of FFO for every dollar of share price in Q3

So VET has met their debt target just as ARX has. 


Comparision ARX - VET
So VET seems very cheap, it has 14% of the market cap of ARX, generates roughly 50% of the petroleum sales of ARX, has 46% of the FFO of ARX, only spends 35% of the capex of Arx.

In Q3 arc produced 330,000 boe/day and Vet produced 84,173 boe/day about 25% of the production of ARX

Looks Compelling

IMHO

[loopsbutterfly]

I have a sizable position...the debt is decreasing at full speed. gracias    grinnnnnn...

[MyHoneyPot]

One of the most compelling stocks i have looked at, when you think 12.8 % FFO per share in Q3, which is 51.2 % FFO/share on an yearly basis, that is crazy.  I like the paying down of debt because it keeps the capital on the balance sheet. It gives them flexibility to expand operations and reduces the need to go to the market for financing if they see an opportunity. I recently talked with