Tudor, Pickering, Holt on Tuesday maintained its buy rating on the shares of Veren (VRN.TO) with a C$11.00 price target following fourth-quarter production results from the Western Canadian oil and gas producer.

"VRN's update this morning highlighting Q4'24 ops and reserves should bode well for shares today. Q4 production averaged 188.7mboepd (better vs. TPHe/Street 186.9/187.8) and ended with a strong 2024 exit production rate of 190.3mboepd in December, aided by two multi-well Montney pads in the Karr area that were brought online using the single point entry design. Positive to see given questions from the market following well results from earlier in the year, which have also made the reserves update encouraging regarding the 121.4mmboe of organic additions (2P), particularly around the 5.6mmboe of positive technical revisions. Beyond the quarter, no changes to the FY'25 outlook of (i) 188-196mboepd (weighted to H2 on timing of development and planned facilities downtime early'25) vs. TPHe/Street 194/192 and (ii) C$1.48-1.58B capex (TPHe/Street C$1.56B/C$1.57B). 40% of expected oil and liquids production is hedged in H1'25, with ~30% in H2 thus far, with gas marketing mix remaining solid (tariff back-and-forth aside) with ~35% of gas hedged for the full year, only <20% of gas exposed to AECO, and the balance a combo of fixed prices and pricing related to US markets," 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)

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