NRGU - Vermilion Energy: Undervalued With An 80% Upside Potential

June, 16 2022 04:52 PM MICROSECTORS U.S. BIG OIL INDEX 3X LEVERAGED ETNs

Due to the ongoing war in Ukraine and Gazprom's plan to cut its natural gas flow to Europe, I expect VET’s average realized prices to increase in the following quarters.
In terms of production, VET will not increase its production significantly. However, its FFO will increase significantly.
The company is able to pay down more debt and bring more returns for shareholders.
VET’s EV/EBIT ratio is about half of the peers’ average of 12.84x. Moreover, VET's P/E ratio is 42% below the peers’ average of 8.9x.
I estimate that the stock is undervalued and is worth $40 per share.

For further details see:

Company Name:	MICROSECTORS U.S. BIG OIL INDEX 3X LEVERAGED ETNs
Stock Symbol:	NRGU
Market:	NASDAQ