Veren (NYSE:VRN) -15.4% in Thursday's trading to its lowest since December 2021 nearly three years despite reporting better than expected Q3 adjusted earnings, saying production this year will come in at the bottom of guidance and next year will miss expectations.

Q3 net income swung to a profit of C$277.2M, or C$0.45/share, from a loss of C$809.9M, or C$1.52/share, in the year-earlier quarter, as production rose 2.3% Y/Y to 184.8K boe/day.

But Veren (VRN) said it now expects to generate FY 2024 output of 191K boe/day (65% oil and liquids), compared to previous guidance of 192.5K-197.5K boe/day, and forecast FY 2025 production of 188K-196K boe/day adjusted for non-core asset dispositions.

Citing commodity price weakness, Veren (VRN) said it expects to generate C$575M-C$775M in free cash flow from production in 2025, below the C$821.9M analyst consensus estimate from FactSet.

The company also said it now expects development capital spending of C$1.45B-C$1.5B for 2024, compared with earlier guidance of C$1.4B-C$1.5B.

Looking ahead, Veren (VRN) said it sees annual production rising to 250K boe/day in 2029 under an updated five-year plan, driven by its Alberta Montney and Kaybob Duvernay assets.