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Bullboard - Stock Discussion Forum Veren Inc T.VRN

Alternate Symbol(s):  VRN

Veren Inc. is a Canada-based oil producer with assets in central Alberta and southeast and southwest Saskatchewan. The principal activities of the Company are acquiring, developing and holding interests in petroleum and natural gas properties and assets related thereto through a general partnership and wholly owned subsidiaries. Its core operational areas include Kaybob Duvernay and Alberta... see more

TSX:VRN - Post Discussion

Veren Inc > Rising Interest Rates And DEBT-FREE Energy Companies
View:
Post by stockfy on Mar 05, 2021 6:02am

Rising Interest Rates And DEBT-FREE Energy Companies

It seems that some prudent investors who were burned by indebted companies start to worry about the rising interest rates and the indebted firms, so they look for debt-free companies.

Meanwhile, VET acquired Spartan Energy a few years ago and the same management team created debt-free Spartan Delta (SDE) in 2020.
 
So SDE is new, unknown and debt-free with surplus.
 
SDE is natural-gas weighted with about 30,000 boepd.
 
SDE announced another deal two weeks ago and new guidance for 2021 bringing its production to about 36,000 boepd for 2021. 
 
SDE currently is debt-free with surplus of C$35 million, facts below:
 
https://www.globenewswire.com/news-release/2021/02/16/2176560/0/en/Spartan-Delta-Corp-Announces-Three-Strategic-Acquisitions-and-80-0-Million-Financing.html
 
 
Proforma recent deals, SDE will remain debt-free by the end of 2021 with a surplus of CAD$54 million, facts below:
 
https://www.globenewswire.com/news-release/2021/02/16/2176560/0/en/Spartan-Delta-Corp-Announces-Three-Strategic-Acquisitions-and-80-0-Million-Financing.html
 
 
So debt-free SDE must have the strongest balance sheet while being the most undervalued Canadian nat gas weighted producer trading less than C$9,000 per boepd and just 2 times its annual cash flow.
 
Insiders own about 25%.
 
SDE's management team has an impeccable pedigree with very high returns from their previous 3 companies, Spartan Exploration, Spartan Oil, Spartan Energy sold to VET.
 
AECO will also remain very strong in the next weeks and months.
 
My two cents.

 
Comment by iownbmw545 on Mar 05, 2021 6:45am
This post has been removed in accordance with Community Policy
Comment by arizonabound on Mar 05, 2021 9:04am
This post has been removed in accordance with Community Policy
Comment by stockfy on Mar 05, 2021 11:06am
Well said arizonabound. Some investors realize that owning heavily indebted energy firms is very risky amid rising yields.
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