VRN Earnings Prediction
The chart below shows how VRN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VRN sees a -2.48% change in stock price 10 days leading up to the earnings, and a -4.15% change 10 days following the report. On the earnings day itself, the stock moves by +0.06%. This data can give you a slight idea of what to expect for the next quarter's release.
VRN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
919.90M
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Gross Margin
34.50%
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Operating Margin
23.43%
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Net Margin
30.13%
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EPS
0.45
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No Data Available
VRN Earnings Analysis
Veren Inc. Corporation (VRN.N) Earnings Conference Call
Positive
Cash Flow Performance: 1. Strong Cash Flow Generation: Veren Inc. generated excess cash flow of CAD114 million in Q3 2024, demonstrating robust financial performance.
Shareholder Value Commitment: 2. Significant Return to Shareholders: The company returned CAD85 million to shareholders through dividends and share repurchases during the quarter, reflecting a commitment to shareholder value.
Strategic Infrastructure Transaction: 3. Strategic Infrastructure Transaction: Veren announced a strategic infrastructure transaction that is expected to yield CAD400 million in proceeds, enhancing its financial flexibility.
Production Growth Forecast: 4. Production Growth Outlook: The company anticipates an annual average production of 191,000 BOE per day in 2024, with a production growth of 10,000 BOE per day expected in 2025 compared to the fourth quarter of 2024.
Future Cash Flow Projections: 5. Long-Term Cash Flow Projections: Veren's five-year plan projects CAD4 billion of cumulative after-tax excess cash flow at a WTI price of CAD70 per barrel, indicating strong future profitability.
Negative
Production Guidance Revision: 1. Production Downgrade: Veren Inc. revised its 2025 production guidance down by 10,000 BOE per day, primarily due to underperformance in recent well results, with 6,000 of that reduction attributed to gas production.
Well Performance Issues: 2. Underwhelming Well Performance: The company reported that production results from wells completed with the plug and perf design did not meet expectations, leading to a return to the single-point entry design for future completions.
Capital Expenditure Increase: 3. Increased Capital Expenditures: The capital budget for 2025 has been set at CAD1.48 billion to CAD1.58 billion, reflecting a significant increase in spending to address facility constraints and improve production capacity.
Production Capacity Issues: 4. Operational Challenges: Third-party facility downtime and infrastructure constraints negatively impacted production levels, necessitating additional capital investment to enhance facilities capacity.
Debt Repayment Challenges: 5. Debt Repayment Pressure: Despite generating excess cash flow, the company is expected to repay CAD1.3 billion in debt over 2024, which may limit available capital for other operational needs.
VRN FAQs
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VRN Earning Call Sentiment
Veren Inc. (VRN) Q3 2024 Earnings Call Transcript
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00:00
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VRN.N
-3.9%Positive
The earnings call reveals several challenges: underperformance in Montney wells, unmet expectations from completions design, and potential regulatory hurdles. Although the company plans to return excess cash flow to shareholders and reduce debt, the guidance cut and unclear management responses in the Q&A raise concerns. The stock price is likely to react negatively due to these uncertainties, despite some positive financial metrics and shareholder returns. The lack of clear guidance and reliance on high commodity prices further contribute to a negative outlook.
