Vero Energy
Vero Energy
I know there are lots of ridiculously cheap buys currently, but Vero at $2.64 seems a bit oversold at 11.8 RSI. Increasing production, cash flow and earnings will hopefully correct this!
Re: Vero Energy
You are correct.
Vero's cash flow per share based on today's strip prices for oil & gas:
2009 Actual = $0.69
2010 Actual = $1.28
2011 Forecast = $1.31
2012 Forecast = $1.97
2013 Forecast = $2.55
BTW most of their 4th quarter oil production is hedge with average floors around $85/bbl. Current production is ~11,000 boepd.
My Fair Value estimate is $7.70/share as of today.
EPG members can find my forecast model for Vero Energy under our Watch List tab. You can download the Excel version and change the commodity prices yourself to see what it does to earnings and cash flow. Be sure to take a hard look at their current hedges.
Vero's cash flow per share based on today's strip prices for oil & gas:
2009 Actual = $0.69
2010 Actual = $1.28
2011 Forecast = $1.31
2012 Forecast = $1.97
2013 Forecast = $2.55
BTW most of their 4th quarter oil production is hedge with average floors around $85/bbl. Current production is ~11,000 boepd.
My Fair Value estimate is $7.70/share as of today.
EPG members can find my forecast model for Vero Energy under our Watch List tab. You can download the Excel version and change the commodity prices yourself to see what it does to earnings and cash flow. Be sure to take a hard look at their current hedges.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group