Core Insights - Veren Inc. reported strong operational and financial results for the fourth quarter and full year ended December 31, 2024, highlighting a commitment to shareholder returns and a robust balance sheet [2][5][19]. Financial Highlights - In 2024, Veren generated excess cash flow of CAD 642 million, returning CAD 386 million (60% of excess cash flow) to shareholders through dividends and share repurchases [5][6]. - Adjusted funds flow totaled CAD 2.35 billion, or CAD 3.79 per share diluted, driven by a strong operating netback of CAD 36.83 per boe [5][33]. - Net debt was reduced by 35% to CAD 2.48 billion, reflecting a significant decrease of CAD 1.26 billion throughout 2024 [5][33]. Operational Highlights - Average daily production for 2024 was 191,163 boe/d, with 65% from oil and liquids, aligning with production guidance [19][33]. - The Alberta Montney and Kaybob Duvernay assets contributed 77% of total production, with a 10% increase in production compared to Q1 2024 [6][19]. - Two multi-well pads in the Alberta Montney achieved an average initial production rate exceeding the average type wells in the area by 30% [6]. Reserve Highlights - As of December 31, 2024, 2P reserves totaled 1,133.3 million boe, with a reserve life index of approximately 16 years based on 2025 production guidance [19][22]. - The company replaced 173% of its 2024 production on a 2P reserves basis, primarily from the Alberta Montney [19][22]. Outlook - For 2025, Veren expects to generate excess cash flow of CAD 625 million to CAD 825 million, with production guidance set at 188,000 to 196,000 boe/d [11][15]. - Approximately 85% of the 2025 capital budget is allocated to short-cycle assets in Alberta, which are expected to provide top quartile returns [9][11]. Return of Capital Strategy - Veren plans to continue returning 60% of its annual excess cash flow to shareholders through dividends and share repurchases, with a commitment to increase this percentage as the balance sheet strengthens [6][11][20].
Veren Announces Q4 & Full Year 2024 Results