VET - Vermilion Energy: Potential For Market Beating Returns But No Longer A Dividend King
- Current price would suggest a 70% discount from fair value.
- VET is currently priced for bankruptcy at $3.5/share on the TSX despite the fact that Vermilion’s global crude oil portfolio realizes an approximate US$1.75 discount to WTI.
- The company will likely get dangerously close to blowing leverage covenants in the near term however with lack of oil price hedges in 2021.
- Rewards will go to patient investors as the company will unlikely reinstate the dividend until at least 2022 at current prices.
For further details see:
Vermilion Energy: Potential For Market Beating Returns But No Longer A Dividend King