Veren Inc T.VRN

Cpg hedge loss $1.84 million per day

[soundandfury]

This is almost the same as their entire operateing expense...........this cannot be described as good management to lose that much money 170 million in 1rst quarter..........this is money that could have increased dividends or reduced debt

[LiquidOctopusV2]

CPG is doing very well.  And, well it's trading at 1.3 EV to CF.  It's cheap.  Still cheap.  Insanely cheap.    https://www.bnnbloomberg.ca/video/greg-newman-discusses-crescent-point-energy~2451756

[TheBridge]

Soundand fury, you've proved it to me that you need to get out of CPG. Definitely sounds like a bad investment using your criteria and you need to move onto better candidates with better management. When the current hedges expire and the debt,which is being greatly reduced or elimanated,  the banks won't be in a position to force CPG into huge hedges as they were able to do in the

[BigJoe778]

How do you know the banks force CPG into hedging? MEG and CVE both have plenty of debt and both are completely unhedged now. I don't believe the banks are forcing them to do anything. My opinion is that the hedges fall solely on the management team. 

[TheBridge]

BigJoe778, CPG was approx. $4 billion in debt and crude prices weren't anywhere near $90/b at the time. What kind of terms would you expect the banks to offer when loan dates are approaching and you need to renew? Of course the banks and management have to be touch in order for both to be able to protect their positions and reduce risk. I don't know MEG's or CVE's debt positions so

[BigJoe778]

MEG had around 2 billion in debt at the end of 2022 so very similar to CPG. CVE was closer to 10 billion. MEG was even able to extend thier loans with lower interest rates in 2021. Again both are completely unhedged so my take is the banks have very little to no say in what or how they hedge. I believe this falls solely on the management team. In the current environment a donkey could look good as

[BigJoe778]

Correction. That should read at the end of 2021 for MEG's 2 billion in debt. I'd also be very surprised if MEG isn't debt free before CPG without the hedges and as we can see the share price speaks for itself.