#Canada #Oil and Gas #financial results #Calgary #Veren Inc.

Veren Announces Q4 & Full Year 2024 Results

Veren Inc., trading on the TSX and NYSE under the symbol VRN, has reported its operating and financial results for the fourth quarter and the complete fiscal year ending December 31, 2024. The company's performance reflects a focused approach towards developing high-quality assets and maximizing shareholder returns.

Key Financial Highlights

Fourth Quarter 2024

In the fourth quarter, Veren generated adjusted funds flow totaling $619.6 million, equating to $1.01 per share diluted, bolstered by a robust operating netback of $36.56 per boe. Noteworthy capital expenditures reaching $363 million covered drilling, development, facilities, and seismic activities. The excess cash flow during this quarter stood at $203.8 million or $0.33 per share diluted.

Following a strategic sale of specific infrastructure assets within the Alberta Montney region, Veren directed net cash proceeds of $400 million to enhance its balance sheet, resulting in a net debt of $2.48 billion, marking a 35% reduction.

Full Year 2024 Performance

For the full year, Veren recorded a staggering $2.35 billion in adjusted funds flow, or $3.79 per share diluted, with a reported net income of $848.8 million or $1.37 per share diluted. The company maintained capital expenditures aligned with projections, amounting to $1.51 billion. The return of capital to shareholders amounted to $385.7 million, which constitutes 60% of the excess cash flow generated for the year.

Operational Highlights

The average daily production for Q4 2024 was 188,721 boe/d, of which 64% came from oil and liquids. Notably, production from the Alberta Montney and Kaybob Duvernay assets contributed 77% of total quarterly production. Recent developments included bringing two multi-well pads online, achieving a 30-day initial production (IP30) rate surpassing regional averages by 30%.

Veren’s proactive investment into expanding the Gold Creek West facility aims to accommodate anticipated production increases. Furthermore, the company proudly achieved responsibly sourced gas certification through Equitable Origin’s EO100™ Standard for Responsible Development, underlining its commitment towards ethical and sustainable operations.

Reserve Growth

As of December 31, 2024, Veren’s Proved plus Probable reserves totaled 1,133.3 million boe, reflecting substantial reserve replacements of 173% of the annual production. The Alberta Montney and Kaybob Duvernay assets largely contributed to this growth, underscoring the potential for expansion in future years as more than 65% of total high-value drilling locations remain unbooked.

Looking Ahead to 2025

Looking forward, Veren expects to generate between $625 million and $825 million in excess cash flow for 2025, underpinned by anticipated pricing of US$70/bbl to US$75/bbl for WTI. The commitment to return 60% of excess cash flow to shareholders persists, alongside strategic plans to bolster its balance sheet.

The company’s 2025 production guidance estimates range between 188,000 boe/d and 196,000 boe/d, setting a constructive path forward as they embark on an expansive capital program aimed at cumulative resource development and production enhancement.

Conclusion

In summary, 2024 proved to be a pivotal year for Veren Inc., marked by impressive financial growth, strategic asset management, and a commitment toward sustainable practices. As they proceed into 2025, all eyes will be on their ability to uphold this momentum while optimizing returns to their shareholders in an evolving market landscape.