Vermilion Energy Inc

VET-T

TSE:VET

21.24
0.00 (0.00%)
Vermilion Energy is an international oil and gas producer with operations in North America, Europe and Australia. Vermilion pays a monthly dividend of Canadian $0.215 per share, which provides a current yield of approximately 5%.
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Analysis and Opinions about VET-T

Signal
Opinion
Expert
COMMENT
COMMENT
January 21, 2020
Yields 13%. The yield rises because the price goes down, and that is not positive. Look at their fundamentals, especially cash flow and payout ratio. Managers stand by this yield which he feels is awfully high.
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Yields 13%. The yield rises because the price goes down, and that is not positive. Look at their fundamentals, especially cash flow and payout ratio. Managers stand by this yield which he feels is awfully high.
COMMENT
COMMENT
January 10, 2020

VET says its capex and dividend are fully funded down to $55 WTI. VET is cheap, and the balance sheet is okay. Pay ratio is around 101%. Problem is there will be -4% negative cash flow per share growth. The only hope is that oil prices will least stabilize or rise--and he doesn't know. VET is not bad, otherwise look at WCP or Peyto as a dividend oil stock.

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VET says its capex and dividend are fully funded down to $55 WTI. VET is cheap, and the balance sheet is okay. Pay ratio is around 101%. Problem is there will be -4% negative cash flow per share growth. The only hope is that oil prices will least stabilize or rise--and he doesn't know. VET is not bad, otherwise look at WCP or Peyto as a dividend oil stock.

BUY
BUY
January 9, 2020
What stands out the most is it yields just under 13%. Stock is priced as though it's going to cut the dividend, but he doesn't think it will. Moderate risk of a cut. Good risk/reward. Likes geographic balance of production. Half is from Canada, rest is elsewhere. Leverage ratio is 1.9x, which is moderate. Payout ratio is 49%, which is manageable. Chart's bottomed. Good entry point for pretty high quality producer with leverage to oil.
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What stands out the most is it yields just under 13%. Stock is priced as though it's going to cut the dividend, but he doesn't think it will. Moderate risk of a cut. Good risk/reward. Likes geographic balance of production. Half is from Canada, rest is elsewhere. Leverage ratio is 1.9x, which is moderate. Payout ratio is 49%, which is manageable. Chart's bottomed. Good entry point for pretty high quality producer with leverage to oil.
PAST TOP PICK
PAST TOP PICK
January 8, 2020
(A Top Pick Jan 15/19, Down 25%) He thinks it is extremely well managed. He believes the dividend will be maintained unless commodity prices fall dramatically. Of all the energy companies in Canada it is likely the most internationally diversified. He thinks the price is already taking into account a dividend cut. He will continue to hold it.
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(A Top Pick Jan 15/19, Down 25%) He thinks it is extremely well managed. He believes the dividend will be maintained unless commodity prices fall dramatically. Of all the energy companies in Canada it is likely the most internationally diversified. He thinks the price is already taking into account a dividend cut. He will continue to hold it.
BUY
BUY
January 6, 2020
14% dividend. He owns it nervously. Cutting the dividend in half would still make it a good dividend. The reinvestment plan is being eliminated. It is a well run company. It could be a good performer.
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14% dividend. He owns it nervously. Cutting the dividend in half would still make it a good dividend. The reinvestment plan is being eliminated. It is a well run company. It could be a good performer.
BUY WEAKNESS
BUY WEAKNESS
January 3, 2020
Dividend safe? When the yield gets this high, the market is telling the company the dividend should be cut. In this case, he thinks it should to shore up the balance sheet. Their exposure to Europe makes it advantaged. He would be a buyer when they cut the dividend. Yield 13%
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Dividend safe? When the yield gets this high, the market is telling the company the dividend should be cut. In this case, he thinks it should to shore up the balance sheet. Their exposure to Europe makes it advantaged. He would be a buyer when they cut the dividend. Yield 13%
WEAK BUY
WEAK BUY
January 3, 2020
He would have to look closer at the high dividend and where it's coming from. If it falls below $19, he would get out since that is the bottom. It has good volume and gets picked up when it falls, like in November. You could buy it right now. If it were to go up, it could go to $25 in the short term. It was trading at $50 a year ago. He would consider this for its strong base.
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He would have to look closer at the high dividend and where it's coming from. If it falls below $19, he would get out since that is the bottom. It has good volume and gets picked up when it falls, like in November. You could buy it right now. If it were to go up, it could go to $25 in the short term. It was trading at $50 a year ago. He would consider this for its strong base.
PAST TOP PICK
PAST TOP PICK
December 31, 2019
(A Top Pick Nov 28/18, Down 27%) Sold it in June and bought Arc. Liked it because they were exposed to European natural gas prices, and are they're good at growing their dividend. But their multiple got too high. VET remains a good company. The dividend is near 14%, but he thinks the stock will rise if they reduce the dividend.
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(A Top Pick Nov 28/18, Down 27%) Sold it in June and bought Arc. Liked it because they were exposed to European natural gas prices, and are they're good at growing their dividend. But their multiple got too high. VET remains a good company. The dividend is near 14%, but he thinks the stock will rise if they reduce the dividend.
COMMENT
COMMENT
December 30, 2019
Their last earnings missed by 10 cents and revenues were down 15% due to lower production and commodity prices. Also, headwinds with weather delays (we ground conditions) and production was down in Holland, Germany and France. Very risk. Instead, look at the bond, which aren't investment grade, but pay a 7% yield, trading around $92 with a coupon of 5.75, maturing in under five years.
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Their last earnings missed by 10 cents and revenues were down 15% due to lower production and commodity prices. Also, headwinds with weather delays (we ground conditions) and production was down in Holland, Germany and France. Very risk. Instead, look at the bond, which aren't investment grade, but pay a 7% yield, trading around $92 with a coupon of 5.75, maturing in under five years.
BUY
BUY
December 20, 2019
14% dividend right now. Even if they cut their dividend, it would be 7%. Their main interest is in Europe. The company has said they won’t cut the dividends. He doesn’t see further weakness in oil price, and we could see a firm period.
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14% dividend right now. Even if they cut their dividend, it would be 7%. Their main interest is in Europe. The company has said they won’t cut the dividends. He doesn’t see further weakness in oil price, and we could see a firm period.
DON'T BUY
DON'T BUY
December 19, 2019
The shorts are willing to pay the costs of borrowing and the dividend is 13%. Dividend sustainability is not an issue but he thinks you are beating a dead horse.
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The shorts are willing to pay the costs of borrowing and the dividend is 13%. Dividend sustainability is not an issue but he thinks you are beating a dead horse.
DON'T BUY
DON'T BUY
December 18, 2019
He doesn't like energy, and careful with this high 13.5% dividend if there is a downturn. He'd rather buy a Canadian bank. He's not sure if the dividend is sustainable. The sector needs higher oil prices.
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He doesn't like energy, and careful with this high 13.5% dividend if there is a downturn. He'd rather buy a Canadian bank. He's not sure if the dividend is sustainable. The sector needs higher oil prices.
DON'T BUY
DON'T BUY
December 13, 2019
They have some international price exposure. She does not own any energy producers, due to take away issues. The yield is quite high, but the company has committed to maintain it she hears -- but never say never. She would not recommend this as an income stock. Yield 13%
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They have some international price exposure. She does not own any energy producers, due to take away issues. The yield is quite high, but the company has committed to maintain it she hears -- but never say never. She would not recommend this as an income stock. Yield 13%
HOLD
HOLD
December 11, 2019
The company is saying capex and the dividend are fully funded down to $55 WTI prices. The 14% dividend is sustainable they say. He is not modelling earnings growth. You could buy it for the dividend if you think oil prices are going to stay here or for capital appreciation if you think oil prices are going higher.
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The company is saying capex and the dividend are fully funded down to $55 WTI prices. The 14% dividend is sustainable they say. He is not modelling earnings growth. You could buy it for the dividend if you think oil prices are going to stay here or for capital appreciation if you think oil prices are going higher.
COMMENT
COMMENT
December 10, 2019
Why is this down so much? It comes down to an exodus of capital from the oil sector. VET does fetch the world oil price, better than Canadian oil. The dividend is the biggest issue, yielding above 12%. It's a sector story, not the stock itself. All oil stocks are cheap, from Encana to Crescent Point, which are well-managed and cheaply valued. Pick and stick to an oil stock you feel most comfortable with. VET is not as cheap as its peers, but offers better assets and balance sheet.
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Why is this down so much? It comes down to an exodus of capital from the oil sector. VET does fetch the world oil price, better than Canadian oil. The dividend is the biggest issue, yielding above 12%. It's a sector story, not the stock itself. All oil stocks are cheap, from Encana to Crescent Point, which are well-managed and cheaply valued. Pick and stick to an oil stock you feel most comfortable with. VET is not as cheap as its peers, but offers better assets and balance sheet.
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