Post by
MyHoneyPot on Nov 17, 2024 10:11pm
Compelling Buybacks
VET has roughly 155 million share and a current MKT Cap of 2.2 billion dollars.
3.1 million shares = 43.4 million dollars = 2% of outstanding stock.
85,000 boe/day * 2% = 1700 boe/day (Production equated to share buybacks)
So every quarter VET buyback 2% of the stock they are adding 1700 boe/day effectively of production with no associated SG&A overhead.
43.4 million / 1700 boe/day = $25,500 a boe (Really cheap - 67% Liquids)
This improves the FFO per share metric, and the FCF per share metric.
Vet production is highly valued they generated $61.97 a boe in petroleum sales (AMAZING)
With an operating netback of $41.89 and FFO of $34.78 a boe.
These are very high netback BOE, and buying they back at $25,500 a flow boe is dirt cheap.
ARC average realized price per boe was $35.07 their netback per boe was $20.83
Their production in no way generates the same cash to the business as VET
VET value a boe $61.97 - ARC value a BOE = $35.07 (I think i see a problem here) ARX value would of been lower had they not shut in sunrise.
The risk that could exist is that someone could want to buy VET, because of they compelling production netbacks and low market cap and great economics.
IMHO
MHP