Post by
MyHoneyPot on Nov 14, 2024 12:19pm
ACQUISITIONS REALLY DON'T LOOK LIKELY
As long as the ability exist to buy back 10% of your stock for roughly 200 million dollars, and increase you FCF, CF, and reduce your dividends costs by 10%, i really don't expect to see much here besides organic growth.
For 200 million they can increase their production per share 10%, and not add a stitch of SG&A to the company.
In fact a steady paced buyback of 2% of your outstanding float compounds, until the market wakes up to it.
Vet has more FCF then ARX last quarter, and significantly better gas prices.
Vet is trading at about 2X FFO and is half the FFO of ARX resouces which is about 7 times the market cap.
VET has really hit a sweet spot, Wandoo next quarter will be full production, Mica is working fabulous, and Germany + Croatia are Ramping on the right side of the LNG trade.
VET is at a sweet spot and selling gas is europe by it self could be considered an hedge however they have hedged 50% of the future gas production which is more a form of insurance.
VET is a really cheap company.
IMHO
MHP