#Canada #Calgary #Veren Inc. #Alberta Montney #Kaybob Duvernay

Veren Inc.'s 2024 Reserves Report and Board Expansion

Veren Inc. has made headlines with its recent announcement of the 2024 independent reserves report, coupled with significant updates about its operations and new appointments to its board of directors. The results paint a bright picture for the company, highlighting growth in reserves and strategic leadership enhancements aimed at ensuring ongoing success.

Key Highlights from the Report

• - Strong Reserve Additions: Veren has achieved remarkable reserve additions, managing to replace 173% of its annual production on a Proved plus Probable (2P) basis. This reaffirms the company’s robust asset quality and its proactive exploration strategies.

• - Alberta Montney Contribution: The Alberta Montney asset has been a major contributor, accounting for 65% of the total reserve additions. This showcases the strategic importance of the region in Veren's overall portfolio.

• - Production Consistency: The company has successfully aligned its production output with guidance metrics, achieving a full year production average of 191,163 barrels of oil equivalent per day (boe/d) in 2024.

Detailed Reserves Insights

As of the end of 2024, Veren's reserves saw significant growth across all categories due to organic additions. The breakdown is as follows:

• - Total 2P Reserves: 1,133.3 million barrels of oil equivalent (MMboe)
• - Proved (1P) Reserves: 739.1 MMboe
• - Proved Developed Producing (PDP) Reserves: 333.1 MMboe

In terms of net present value (NPV) before tax, the 2P designs an impressive valuation of $14.0 billion, based on independent engineering pricing models. The company’s strategic assets, including both Alberta Montney and Kaybob Duvernay plays, remain integral to these positive evaluations.

Operating Outlook

Ending 2024 with a notable production figure of 190,296 boe/d in December, Veren's fourth-quarter average production aligns closely with overall annual projections. With a clear focus set for 2025, the company anticipates hitting an annual average production target ranging between 188,000 and 196,000 boe/d. The capital expenditures for development in 2025 are expected to be substantial, falling between $1.48 billion and $1.58 billion.

The overarching expectation is an excess cash flow generation of $575 million to $775 million, marking a vital financial milestone that should yield increased shareholder returns as the company proceeds through 2025.

New Board Members Join

Recognizing the importance of robust governance, Veren has introduced two independent members to its Board of Directors: Corey Bieber and Jodi J. Jenson Labrie. Their extensive experience and insights bring an invaluable resource to Veren as it navigates the complexities of the energy marketplace.

• - Corey Bieber: With a rich background of over 35 years in the energy sector, including high-level roles in finance and management, Bieber's contributions are anticipated to elevate strategic planning within the company.
• - Jodi J. Jenson Labrie: Appearing with over 25 years of executive experience in finance and energy, Labrie is set to bolster Veren's financial oversight as it advances its operational initiatives.

As these new leaders join the team, there is a palpable excitement within the organization, aligning with Veren's commitment to growth and profitability.

Conclusion

Overall, Veren Inc.'s latest report underlines not only the financial health and operational strengths of the company but also its ongoing efforts to expand its strategic resources with governance changes. As we look towards 2025 and beyond, both industry experts and investors will be keenly observing how these developments translate into performance and market impact.

For more detailed insights, the full Annual Information Form (AIF) will be released on February 27, 2025. Interested parties are encouraged to keep an eye on this unfolding narrative as Veren continues to assert itself as a key player in the oil and gas sector.