Q: Hi there, thoughts on VET results, share buybacks, debt reduction, forward hedging and North American / European drilling success please?
Thanks!
Thanks!
5i Research Answer:
EPS was -52c, vs estimates of 43c. Revenue of $478M missed estimates of $499M. EBITDA of $115M missed estimates of $326M. Per share cash flow was $1.47 vs $1.48 last year. Production guidance was increased from 82,000+ b/d to 83,000+ b/d. Debt continues to decline, with net debt now at less than $750M, which is less than one year's cash flow ($1.082B). Decent growth is expected next year, based on consensus. 42% of VET's European gas exposure is hedged. 43% of oil is hedged. Some very high impact drilling is planned over the balance of the year. VET has renewed its buyback, for up to 15.7M shares. It has spent $82M so far this year buying its shares.