2024-07-14 07:49:05 ET
Summary
- Vermilion Energy is launching new projects in Mica Montney, Croatia, and Germany for production and FCF growth.
- In my view, the company is positioned to benefit from a potential increase in gas price in Europe due to war with Russia.
- The stock repurchase program is expected to reduce share count by 10% and accelerate demand for stock.
- My price target of $16.9-$20 is based on a DCF review.
Investment Thesis
Vermilion Energy ( VET ) is launching new projects in Mica Montney, Croatia, and Germany, which could accelerate both production and unlevered FCF in the coming years. Besides, the company appears well positioned to benefit from an increase in the gas price in Europe, where the war with Russia could affect markets. In addition, with expertise in many jurisdictions and some cash in hand, the promises about potential M&A transactions could bring FCF growth. Considering the recent stock repurchase program, which is expected to reduce the total share count by 10%, in my view, the demand for the stock could accelerate....
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Vermilion Energy: European Gas, M&A, And Share Repurchase Could Push The Price Up