Opinions
Mason Granger
Vermilion Energy Inc
VET-T
HOLD
Mar 17, 2016
Stock price when the opinion was issued
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Lately they've had success in exploration in Germany, but near-term capex to exploit that is questionable. Are hard hit, now trading at half their book value. Are paying a near-6% dividend. He's held on. He may use VET as a source of funds, but otherwise won't sell it.
Canadian gas is where it's at. Interesting angle with this name is that they have gas in Europe -- Ireland, Germany -- and the market's not fully reflecting these assets in the price. Well managed, good tradition of being shareholder friendly via dividends, buybacks, and managing debt well. Underappreciated.
In this market, he doesn't want to chase highs. He's looking for stocks that haven't moved yet because the market is overlooking them. Yield is 4.78%.
Pretty much the gold standard for income paying energy equities. The only company that he can say has never cut their dividend. Have managed to sustain a sustainable model through some pretty big ups and downs in commodities. Likes their diversified exposure of Western Canada, France, Netherlands, Australia, etc. In December they started up a core of gas fields in offshore Ireland, which will be taking in cash flow for 2016. This is a stock that you hold for the long-term. Dividend yield of 6.1%.