Vermilion Energy Inc T.VET

Budget

[clamlinguine]

Looks good to me. About 20% fcf at strip.

[MyHoneyPot]

I think it looks realy good, they are making available more FCF all the time, lowering operating costs at MICA with the purchase of the battery lease, the reduction in debt, and the buyback of shares. The additional compression on the Mica battery will add a little produciton there. Owning the battery will reduce Op costs and make improve the netbacks for the Play. I was wondering how they

[Quintessential1]

Someday you're going to have to explain your thought process to me. "Vermillion Debt Reduction is of No Value" "I think it looks realy good, they are making available more FCF all the time, lowering operating costs at MICA with the purchase of the battery lease, the reduction in debt, and the buyback of shares." This is verbatim what I said they should do incuding the

[MyHoneyPot]

Mica is a great asset, the payoff of the lease will likely get better returns than the payoff of debt. They have a 20 year production profile there, so this move is associated with solid economic returns and will improve the companies FCF.  The Canadian assets do not get the same kind of returns that they see in Europe, so VET has improved the netbacks and the econmics of the Mica Play. The

[Quintessential1]

"So my guess it that buy mid year, they will hit their debt target that will give them a super healthly balance sheet."  "VET has met its debt target, and while they are only pay an anualized dividend of 48 cents they are swimming in FCF." I want to have rational discussions with you but this is what I am up against.  You posted both of these statements.  Do

[Overertune]

I think vet has another debt target : 0.5 B. once the debt is lower than this they will increase percentage of share holder returns. I am expecting aeco gas to increase a lot, which is 30% of their productions. Vet can easily generate 20% more on FCF which is 200m. their debt is 0.8 B now. And assuming buying out the assets in AB with 400m, that is 700m total to spend. The rest of FCF has

[MyHoneyPot]

In the earning call they said they met their target .6 times trailing FFO. However they have two bonds and they would like to have zero debt besides the 2030 bond., The bond that matures in march 2025 is around 300 million, and they would like to pay that one off.  Then they will have a 1.6 billion bank line undrawn, and they have a 500 million bond that is due in 2030. Once they hit that

[Quintessential1]

"Essentially paying off the 110 million lease on the battery in Mica is additional debt payment, but will likely fall under capex in Q4." Don't be surprised if it falls under shareholder returns. "EFCF includes a deduction for asset retirement obligations settled and payments on lease obligations, which are ongoing costs associated with running the business, and more

[mnztr]

Their debt is getting too low, that is a BAD thing. if they keep heading there, someone will buy them and slice them up and sell the pieces at a profit and us long suffering shareholder will get the shaft, 

[Overertune]

I don't understand why they can't increase Europe gas production. There is no oversupply issue over there.

[mnztr]

Over supply of regulation 

[clamlinguine]

That's exactly what I want.