Vermilion Energy Inc (VET) Q4 2019 Earnings Call Transcript

Vermilion Energy Inc (VET) Q4 2019 Earnings Call Transcript

I'm Tony Marino, President and CEO of Vermilion Energy.. It has been an extremely challenging environment ever since the oil price crash in the second half of 2014.. We have determined that a reduction to our dividend is the most prudent course at this time.. At the commodity forward strip as of March 4, we estimate a 2020 payout ratio of 99%, including previously declared dividends for January and February.. On a pro forma basis, annualizing the revised dividend, our 2020 total payout ratio would be approximately 94%.. The dash lines represent our combined capex, dividend and ARO outflows under our previous dividend and under our revised dividend.. As we started 2020, oil prices moved higher, partially offset by lower gas prices and our funding status continued to improve to an overfunded position as represented by the FFO bar as of January 6.. In the environment, we were confident in our ability to fund our capital program and pay our monthly dividend of CAD0.23, while still generating excess cash to reduce debt.. Oil prices have declined by more than CAD20 per barrel from the peak we saw earlier in the year, and natural gas prices have also further weakened since