
TSE:VET
About 66% of production lies outside Canada. It's trading cheaper than historically. He sees cash flow per share growth. Safe dividend. Good balance sheet. Market didn't like their last quarter because of weakness/concerns in the Caribbean and European operations. They made some acquisitions that'll benefit them. Buy if you feel oil will top $60-70.
Has long owned this, one of the few oils he has. Money isn't flowing into this sector, but leaving. Oil needs to find buyers. It's not a good sign when Canadian companies seek opportunities in the U.S. It says a lot about Alberta. Vermillion has 60% of its earnings outside Canada and fetches international prices. It's unfortunate, the state of Canadian oil.
Another tough day today. They purchased some assets from Sparton and the market has penalized them for that. The sector as a whole is getting beaten up. It is a good company. If you are looking for income, you probably don’t want to look at the energy sector. If you have a time horizon of a couple of years, should be good but there could still be some price decrease.
Tourmaline vs. Vermillion TOU is well-managed. Natural gas has enjoyed nice pop lately. He likes VET for their acquisitions, because they can access an international price on oil (not the much-lower WCS), and have seen strong growth in recent years as the valuation has decreased. Balance sheet is solid.