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