Bullboard - Stock Discussion Forum Vermilion Energy Inc T.VET

Alternate Symbol(s): VET

Energy Oil & Gas E&P

Vermilion Energy Inc. is a Canada-based international energy producer. The Company seeks to create value through the acquisition, exploration, development, and optimization of producing assets in North America, Europe, and Australia. Its business model emphasizes free cash flow generation and returning capital to investors when economically warranted, augmented by value-adding acquisitions. The... see more

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TSX:VET - Post Discussion

Vermilion Energy Inc > Eric Nuttal thinks 13% FCF yeild is good, maybe he needs VET

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Post by MyHoneyPot on Nov 21, 2024 12:47pm

Eric Nuttal thinks 13% FCF yeild is good, maybe he needs VET

On market call Eric says he is going to hang onto VRN because it has a 13% FCF yield.

So if VET anualized Q3 FCF of a dollar a share.

13% FCF on 4 dollars per share FCF

$4 dollars / 13% = $30.70

So if VET trades at 13% FCF the share price would be $30.70

Debt

VRN $2.96 billion or 1.3 times net debt to adjusted funds flow from operations

VET Net debt(6) decreased by $73 million in Q3 2024 to $833 million, representing a net debt to trailing FFO ratio(7) of 0.6 times, the lowest in 15 years.

So it looks like VET is a very compelling investment to VRN with an upside based on 13% FCF of $30.70

Table Pounding Buy

MHP
In My Humble Opinion

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