Core Insights - Diversified Energy Company achieved strong year-end results for 2024, positioning itself for future growth through strategic acquisitions and operational efficiencies [1][2][3] Financial Performance - Total revenue for 2024 was $946 million, net of $151 million in commodity cash hedge receipts, resulting in a net loss of $87 million [6][34] - Adjusted EBITDA for 2024 was $472 million, with an adjusted EBITDA margin of 51% [6][34] - Operating cash flow was reported at $346 million, while adjusted free cash flow reached $211 million [6][35] Operational Highlights - The company executed approximately $2 billion in acquisitions during 2024, contributing to a total of over $4 billion since its public listing in 2017 [1][3] - Average net daily production was 791 MMcfepd, with a December exit rate of 864 MMcfepd [6] - Year-end reserves were reported at 4.5 Tcfe, valued at $3.3 billion [6] Strategic Initiatives - The acquisition of Maverick Natural Resources is expected to yield over $50 million in annual synergies by the end of 2025 [12][14] - Diversified is focused on enhancing free cash flow through strategic capital allocation, including opportunistic share repurchases and accretive acquisitions [6][14] Market Position - Diversified is recognized as a key player in the energy sector, particularly in acquiring and managing a diverse portfolio of assets [3][4] - The company operates across multiple geographies, including the Western Anadarko Basin, Permian, and Appalachia, with a focus on natural gas and liquids production [6][10]

Financial Data and Key Metrics Changes - The consolidated revenue for Q4 2024 was $137.8 million, a decrease of 4% from the previous year's Q4. Adjusted EBITDA was $21.1 million, down 17% [4] - U.S. operations saw a revenue decline of 3% and an EBITDA decrease of 8% [4] - The net debt to EBITDA ratio at the end of Q4 was 5.5 times, and 6.9 times on a lease-adjusted basis [20] Business Line Data and Key Metrics Changes - The new land-based facility in Caruthersville, Missouri, opened on November 1, 2024, with revenue and EBITDA up 2732% in the four months since opening, exceeding initial expectations [5][6] - The Central Casino Hotel Cape Girardeau reported an 11% increase in revenue and a 7% increase in EBITDA, driven by the new hotel and solid food and beverage sales [9] - The East segment, including Mountaineer Casino and Rocky Gap Casino Resort, experienced a revenue decline of 7% and EBITDA down 29% [15] Market Data and Key Metrics Changes - In Colorado, carded revenue grew by 12%, while uncarded revenue decreased by 30%, leading to an overall revenue decline of 7% [13] - The Nugget Casino Resort in Nevada saw a 10% decline in gaming revenue, impacted by low slot hold, although local credit play increased by 5% [17] Company Strategy and Development Direction - The company is focusing on operational discipline and efficiency improvements, with a clear path to higher EBITDA for 2025 and beyond [23] - There are plans to finalize partnership agreements for sports betting in Missouri, expected to deliver incremental high-margin EBITDA [12] - The company is considering divesting non-U.S. properties, particularly in Poland and Canada, as part of its strategic focus on North American assets [19][74] Management Comments on Operating Environment and Future Outlook - Management noted that the low-end consumer segment remains weak due to macroeconomic factors, impacting overall performance [5][27] - The company anticipates significant EBITDA and cash flow improvements in 2025, driven by recent growth capital initiatives [24] - Management expressed caution regarding capital allocation due to ongoing macroeconomic uncertainty, emphasizing the need to refinance or pay down high-rate debt [50] Other Important Information - The company has no significant capital expenditures planned for 2025, expecting to spend only $4 million on growth projects and $14 million on maintenance CapEx [22] - The company has a strong cash position with no debt maturities until 2029, allowing for flexibility in growth initiatives [21] Q&A Session Summary Question: What is the main driver of the lower estimates for 2025? - Management indicated that the primary driver is the weakness in the low-end consumer segment, which significantly impacts certain properties [27] Question: How is the conference pipeline building for the Nugget? - Management noted that while large conferences are difficult to secure in the short term, they are successfully attracting smaller events and local customers [32] Question: What impact will the Alberta Gaming Commission's suspension of gaming machine purchases have? - Management does not expect a meaningful negative impact, estimating it to be around 0.5% to 1% [35] Question: Can you elaborate on the performance of the Caruthersville property? - Management confirmed that the property has exceeded expectations, particularly in reaching customers from further distances [46] Question: What is the strategy for online gaming and sports betting? - The company plans to partner with third parties for online gaming and sports betting, providing licenses and receiving revenue percentages [63] Question: Is there a consideration for insider buying or stock buybacks? - Management expressed interest in buybacks but noted restrictions due to insider laws and blackout periods [83]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $86.4 million, down from $97.7 million in the same quarter last year, primarily due to declines in the U.S. Concrete Pumping segment [13][14] - Gross margin increased by 200 basis points to 36.1% compared to 34.1% in the prior year quarter, driven by cost control initiatives [16] - Net loss available to common shareholders was $3.1 million or $0.06 per diluted share, an improvement from a net loss of $4.3 million or $0.08 per diluted share in the prior year [17] - Adjusted EBITDA for Q1 was $17 million, down from $19.3 million in the same year-ago quarter, but the adjusted EBITDA margin remained unchanged at 19.7% [17][18] Business Line Data and Key Metrics Changes - U.S. Concrete Pumping segment revenue decreased to $56.9 million from $66.7 million year-over-year, impacted by severe winter weather [14] - UK operations revenue was $12.8 million, down from $15.4 million, due to lower volumes from a slowdown in commercial construction [15] - U.S. Concrete Waste Management Services segment revenue increased by 7% to $16.7 million compared to $15.6 million in the prior year quarter, driven by increased volumes and improved pricing [15] Market Data and Key Metrics Changes - The commercial end market experienced construction softness, particularly in light commercial and warehouse sectors, while the residential end market remained resilient [9][10] - Infrastructure market revenue share grew slightly year-over-year, with expectations for continued growth in fiscal 2025 due to favorable funding environments [11] Company Strategy and Development Direction - The company is focused on disciplined fleet management and cost control strategies to enhance gross margins and sustain adjusted EBITDA margins [8] - A flexible capital investment strategy is in place to position the company well for market recovery in fiscal 2025 and beyond [8][27] - The company is exploring M&A opportunities as the market is expected to improve later this year and into next year [48] Management's Comments on Operating Environment and Future Outlook - Management noted that higher interest rates and extreme weather conditions negatively impacted revenue, estimating a $5 million revenue loss due to weather in Q1 [6][7] - The company expects fiscal year 2025 revenue to range between $400 million and $420 million, with adjusted EBITDA between $105 million and $115 million [25] - Management remains optimistic about a recovery in commercial market demand and is focused on long-term strategic growth [27][30] Other Important Information - The company successfully closed a private offering of $425 million in senior secured second lien notes, which were used to pay off existing debt and fund a special dividend of $1 per share [20][21] - The company repurchased approximately 296,000 shares for $1.9 million during the first quarter, demonstrating commitment to shareholder value [23] Q&A Session Summary Question: How much of the revenue guide reduction is due to the first quarter shortfall? - Management indicated that the guide was adjusted based on a comprehensive view of the entire year, with some impact from Q1 shortfall due to weather and market demand [36] Question: What is the expected revenue split between the first and second halves of the year? - Management expects a slight softness in Q2 but maintains a 45-55 split for the year [38] Question: Was there a weather impact on the Eco-Pan segment? - Yes, Eco-Pan faced similar weather challenges, but it benefits from a wider market due to concrete production [52] Question: What markets are experiencing excess equipment capacity? - There is still a surplus of equipment in the market, particularly affecting residential and light commercial sectors [55] Question: Will capital expenditures ramp up in the future? - Management does not expect significant changes in capital expenditures, as they have sufficient fleet capacity to meet current demand [58]

Financial Data and Key Metrics Changes - The company reported a net loss of approximately $7.4 million for Q4 2024, compared to a net income of $22.7 million in the prior quarter, primarily due to a noncash unrealized loss on commodity derivatives [37] - Adjusted net income for Q4 was $5.1 million, while full-year adjusted net income was $35.8 million, up 48% compared to 2023 [38] - Fourth quarter adjusted EBITDA was $21.8 million, slightly below expectations, with full-year adjusted EBITDA at $103 million, up 17% from 2023 [39] Business Line Data and Key Metrics Changes - Average daily production for Q4 was approximately 18.5 MBoe per day, a decrease of 0.5 MBoe per day from the prior quarter, primarily impacted by gas volumes in East Texas [17] - Oil volumes increased incrementally from the previous quarter despite platform shutdowns at Beta, with current production rates at Beta showing a 9% increase from Q4 2024 volumes [20] Market Data and Key Metrics Changes - The company anticipates production guidance for 2025 to be between 19,000 to 21,000 barrels of oil equivalent per day, representing a 7% increase from 2024 oil production [21] - Lease operating expenses for Q4 were approximately $35.1 million, a $1.8 million increase from the prior quarter, driven by unplanned workovers at Beta [22] Company Strategy and Development Direction - The company announced a definitive merger agreement with Juniper Capital to combine with certain portfolio companies, which is expected to enhance scale, operating margins, and provide new core areas for potential M&A activity [8][9] - The company plans to focus on maximizing the value of its existing asset base through accretive capital projects and cost reduction efforts [15] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting strong results from recent wells and the anticipated benefits from the Juniper transaction [50] - The company remains committed to exploiting the long-term value potential of the Beta field, expecting strong growth in oil production from the area in 2025 [49] Other Important Information - The company has generated positive free cash flow for 10 consecutive quarters, illustrating strong sustainable cash-generating potential [43] - As of March 5, the company has hedged approximately 70% to 75% of forecasted PDP crude oil production for 2025 [46] Q&A Session Summary Question: Insights on C-Sand versus D-Sand dynamics at Beta - Management indicated that historical development primarily comes from vertical wells drilled in the '80s, with expectations for good results from the C-Sand despite limited analog data [55][56] Question: Planned new drills and risk appetite - Management confirmed that the upcoming wells will be drilled in the same fault blocks as previous successful wells, indicating low risk for the new drills [60][61] Question: Oil price impact on CapEx plans - Management stated that they are comfortable with their current CapEx plans but will reassess if oil prices continue to decline significantly [66][68] Question: Potential for Magnify with Juniper assets - Management acknowledged the potential for Magnify services to expand into the Wyoming area, given the aggregation of assets from the Juniper transaction [74][75]

Financial Data and Key Metrics Changes - The company reported a net loss of approximately $7.4 million for Q4 2024, compared to a net income of $22.7 million in the prior quarter, primarily due to a noncash unrealized loss on commodity derivatives [37] - Adjusted net income for Q4 was $5.1 million, while full-year adjusted net income was $35.8 million, up 48% compared to 2023 [38] - Fourth quarter adjusted EBITDA was $21.8 million, slightly below expectations, with full-year adjusted EBITDA at $103 million, up 17% from 2023 [39] Business Line Data and Key Metrics Changes - Average daily production for Q4 2024 was approximately 18.5 MBoe per day, a decrease of 0.5 MBoe per day from the prior quarter, primarily impacted by gas volumes in East Texas [17] - Oil volumes increased incrementally despite platform shutdowns at Beta, with current production rates at Beta showing a 9% increase from Q4 2024 volumes [20] - Lease operating expenses for Q4 were approximately $35.1 million, a $1.8 million increase from the prior quarter, driven by unplanned workovers at Beta [21] Market Data and Key Metrics Changes - The company anticipates production guidance for 2025 to be between 19,000 to 21,000 barrels of oil equivalent per day, representing a 7% increase from 2024 oil production [21] - The production commodity mix for Q4 was 45% oil, 17% NGLs, and 38% natural gas [20] Company Strategy and Development Direction - The company announced a definitive merger agreement with Juniper Capital to combine with certain portfolio companies, which is expected to enhance scale, operating margins, and provide new core areas for potential M&A activity [8][9] - The Juniper transaction is anticipated to close in Q2 2025 and is expected to be significantly accretive to free cash flow [10][12] - The company plans to focus on maximizing the value of its existing asset base through accretive capital projects and cost reduction efforts [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong results from recent wells and the anticipated benefits from the Juniper transaction [49][50] - The company remains committed to exploiting the long-term value potential of the Beta field and expects strong growth in oil production from the area in 2025 [49] Other Important Information - The company has generated positive free cash flow for 10 consecutive quarters, illustrating strong sustainable cash-generating potential [43] - As of December 31, the company had $127 million of debt outstanding under its revolving credit facility, with a net debt to last 12 months adjusted EBITDA ratio of 1.2 times [44] Q&A Session Summary Question: Insights on C-Sand versus D-Sand performance - Management indicated that historical development primarily comes from the C-Sand, with expectations for good results from the C-Sand wells, although reservoir characteristics are not as strong as the D-Sand [55][56][58] Question: Planned new drills and risk assessment - The company plans to drill in the same fault blocks as previous successful wells, indicating a low-risk approach for upcoming drilling [60][61] Question: Oil price impact on CapEx plans - Management stated that they are comfortable with their CapEx plans at current oil prices but will reassess if prices continue to decline [66][68] Question: Potential for Magnify with Juniper assets - Management noted that while Magnify services are currently limited to East Texas and Oklahoma, they will evaluate opportunities in the Wyoming area post-merger [74][75]

2 2 • Production exceeded the mid-point of initial guidance • Generated $1.2 Billion of FFO ($7.63/share) and $583MM of FCF ($3.69/share) o Second strongest year on record • Invested $623MM of E&D capex, within budget o Included significant investment in future FCF generating projects in Germany, Croatia, and BC Montney • Returned ~10% of market capitalization to shareholders via dividends and share buybacks o Reduced share count by 5% in 2024 o Announced fourth consecutive dividend increase 2024 RESERVES - ...

Core Insights - Kroger Co. reported fourth-quarter fiscal 2024 results with top-line sales missing estimates while bottom-line earnings exceeded expectations, although both metrics declined year over year [1][3][4] Financial Performance - Adjusted earnings per share were $1.14, beating the Zacks Consensus Estimate of $1.12, but down from $1.34 in the previous year [3] - Total sales were $34,308 million, a decrease from $37,064 million in the year-ago period, impacted by a $2.7 billion effect from the 53rd week in 2023 and a $737 million decline from Kroger Specialty Pharmacy sales [4] - Excluding fuel, Kroger Specialty Pharmacy, and the extra week in 2023, sales grew by 2.6% year over year, with identical sales without fuel rising by 2.4% [5] Margin and Profitability - Gross margin was 22.7% of sales, influenced by the sale of Kroger Specialty Pharmacy and lower shrink, partially offset by lower pharmacy margins [6] - Adjusted FIFO operating profit was $1,174 million, down from $1,307 million reported in the year-ago period [7] Balance Sheet and Cash Flow - Kroger ended the quarter with cash of $216 million, total debt of $17,905 million, and shareholders' equity of $8,281 million, with net total debt increasing by $3,584 million over the last four quarters [8] - The company guided capital expenditures between $3.6 billion and $3.8 billion and expects to generate adjusted free cash flow of $2.8 billion to $3 billion in fiscal 2025 [8] Future Outlook - For fiscal 2025, Kroger anticipates identical sales without fuel to increase between 2% and 3%, with adjusted earnings projected to be between $4.60 and $4.80 per share compared to $4.47 in fiscal 2024 [9] - Management expects an adjusted FIFO operating profit of $4.7 billion to $4.9 billion for fiscal 2025, consistent with the $4.7 billion reported in fiscal 2024 [9] Stock Performance - Kroger's shares have risen by 12.5% over the past three months, outperforming the industry growth of 2.6% [10]

Core Insights - Kroger reported strong fourth quarter results for fiscal year 2024, exceeding expectations and demonstrating the strength of its business model and execution by its teams [3][4][10] - The company is positioned for long-term sustainable growth, focusing on enhancing customer experience through quality and low prices [3][24] Fourth Quarter Financial Results - Total sales for Q4 2024 were $34.3 billion, down from $37.1 billion in Q4 2023, with a 2.4% increase in identical sales excluding fuel [4][10] - Earnings per share (EPS) for Q4 2024 was $0.90, compared to $1.01 in Q4 2023, while adjusted EPS was $1.14, unchanged from the previous year [10][59] - Operating profit for Q4 2024 was $912 million, down from $1.194 billion in Q4 2023, with adjusted FIFO operating profit at $1.174 billion [10][62] - Gross margin improved to 22.7% in Q4 2024 from 22.3% in Q4 2023, primarily due to the sale of Kroger Specialty Pharmacy and lower shrink [5][14] Fiscal Year 2024 Financial Results - Total company sales for fiscal year 2024 were $147.1 billion, down from $150.0 billion in 2023, with a 1.5% increase in identical sales excluding fuel [13][14] - EPS for fiscal year 2024 was $3.67, up from $2.96 in 2023, while adjusted EPS was $4.47, down from $4.76 [9][59] - Operating profit for the year was $3.8 billion, compared to $3.1 billion in 2023, with adjusted FIFO operating profit at $4.7 billion [9][62] Digital Sales and Growth Initiatives - Digital sales grew by 11% in Q4 2024, with more than $13 billion in total digital sales for the year [10][24] - Kroger introduced over 900 new Our Brands items in 2024, including 370 fresh items, and launched new meal bundles to promote healthy eating [27][24] Capital Allocation and Share Repurchase - Kroger commenced a $5 billion accelerated share repurchase program, with 65.6 million shares repurchased during the quarter [19][24] - The company expects to continue generating strong free cash flow and plans to invest in business growth while maintaining its dividend [17][24] Guidance for Fiscal Year 2025 - Kroger anticipates identical sales growth of 2.0% to 3.0% for fiscal year 2025, with adjusted FIFO operating profit projected between $4.7 billion and $4.9 billion [26] - The company expects adjusted net earnings per diluted share to be in the range of $4.60 to $4.80, with adjusted free cash flow of $2.8 billion to $3.0 billion [26]

Core Viewpoint - Vermilion Energy Inc. reported strong operational and financial results for the year ended December 31, 2024, with significant increases in fund flows from operations and free cash flow, alongside successful exploration activities in Europe and strategic acquisitions in North America [21][25][39]. Financial Performance - Petroleum and natural gas sales for Q4 2024 were $504.4 million, compared to $490.1 million in Q3 2024 and $523.0 million in Q4 2023, totaling $1.98 billion for the year [6][7]. - Fund flows from operations (FFO) reached $1.206 billion, or $7.63 per basic share, representing a 6% increase over the prior year [7][21]. - Free cash flow (FCF) was $583 million, marking a 9% increase on a per basic share basis relative to 2023 [7][21]. - The net loss for the year was $47 million, a significant improvement from a net loss of $238 million in the prior year [7][8]. - Net debt decreased by over $110 million to $967 million, with a net debt to trailing FFO ratio of 0.8 times [7][21]. Production and Reserves - Average production for 2024 was 84,543 boe/d, with a production mix of 54% natural gas and 46% crude oil and liquids [7][21]. - Year-end proved developed producing (PDP) reserves were 168 mmboe, while total proved plus probable (2P) reserves were 435 mmboe, reflecting a reserve life index of 5.4 years and 14.1 years, respectively [7][35]. - The after-tax net present value of PDP reserves is estimated at $2.8 billion, and for 2P reserves, it is $5.2 billion, or $27.62 per basic share after deducting year-end net debt [7][35]. Exploration and Development - Vermilion executed its largest exploration drilling campaign in Europe in 2024, achieving 100% success on six exploration wells, notably in Germany [22][23]. - The Wisselshorst well tested at a restricted rate of 21 mmcf/d, with an estimated recoverable natural gas of 68 Bcf, marking Vermilion's largest discovery in Europe in the past decade [22][23][31]. - In Canada, the company expanded its Montney asset, nearly doubling production capacity to approximately 14,000 boe/d, with plans for further expansion [24][25]. Strategic Initiatives - The acquisition of Westbrick Energy Ltd. added approximately 50,000 boe/d of liquids-rich natural gas production, enhancing Vermilion's operational scale and inventory quality [25][39]. - The company launched a formal sales process for its southeast Saskatchewan and Wyoming assets, aiming to maximize shareholder value and accelerate deleveraging efforts [26][39]. - Vermilion's 2025 capital budget and production guidance have been revised to incorporate the Westbrick acquisition, with expected production ranging between 125,000 to 130,000 boe/d [7][39].

Core Viewpoint - Chevron Corporation is focusing on operational updates, growth prospects, cost reduction initiatives, and aims to generate approximately $10 billion in additional free cash flow by 2026 [1] Group 1: Operational Updates - In Kazakhstan, Chevron plans to ramp up Tengiz to full production of approximately 1 million barrels of oil equivalent per day (MBOE/d) within three months, with key milestones including first oil at the Future Growth Project (FGP) which will add 260,000 barrels per day (bpd) to capacity [2] - The Tengiz project is expected to generate around $5 billion to $6 billion in free cash flow in 2025/2026 at a Brent price of $70 per barrel, including dividends and loan repayments [2] Group 2: Growth Prospects - Chevron highlighted strong performance in the Permian Basin and reaffirmed its target of approximately 1 MBOE/d production in 2025, with an expected compound annual growth rate (CAGR) of about 6% through 2026 [3] - The company anticipates approximately $2 billion in free cash flow growth from the Permian by 2026, with long-term production expected to remain around 1 MBOE/d [3] Group 3: Cost Reduction Initiatives - Chevron is focused on cost discipline, aiming for structural savings of $2 billion to $3 billion by the end of 2026, with approximately $1.5 billion to $2 billion targeted by the end of 2025 [4] Group 4: Low-Carbon Initiatives - Investor discussions included Chevron's collaboration with Engine No. 1 and GE Vernova to develop low-carbon power solutions, targeting up to four gigawatts for U.S. data centers, with seven GE turbines scheduled for delivery in late 2026 to 2027 [5] Group 5: Financial Outlook - The analyst reaffirms a Buy rating on Chevron, projecting a volume and free cash flow inflection in 2025/2026 driven by strategic projects including TCO, Permian, and the Gulf of America [6] - The company is expected to have an estimated capital returns yield of around 12% in 2026, focusing on shareholder returns [6]