Tudor, Pickering, Holt on Thursday reiterated its buy rating on the shares of Veren (VRN.TO, VRN) with a C$14.00 price target following third-quarter results from the Western Canadian oil and gas producer.
"While Q3 results were in-line with consensus on cash flow, total production (on total, with liquids slightly below expectations), and capex, shares may face pressure on the revised FY'24 guide and the FY'25 guide coming in lower than expectations on production. Q3 reported production of 185mboepd total / 120mbpd liquids compares to our modeled 186mboepd / 117mbpd of liquids and the Street's (survey) 185mboepd / 123mbpd of liquids, with cash flow similarly ~in-line with consensus at C$0.89/shr vs. TPH C$0.84/shr /Street at C$0.88/shr, with the delta to operational cashflow vs. our model mainly driven by the greater liquids weighting and stronger realizations. Capital for the quarter totaled C$396MM (Street/TPH C$409MM/C$400MM), driving slightly better-than-expected free cash flow of ~C$145MM vs. TPH C$116MM/Street C$133MM, with 2024 capital guidance tightening to the upper half of the range, C$1.45-1.5B (prior C$1.4-1.5B). Annual 2024 production guidance was revised lower to 191mboepd at the midpoint (prior TPHe/Street 193/193), due to four multi-well plug and perf completions pilot pads in the Montney GC underperforming single-point entry designs on avg IP30," analyst Jeoffrey Lambujon wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 7.02, Change: -1.37, Percent Change: -16.29
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