Veren Announces Q4 & Full Year 2024 Results

Canada NewsWire

CALGARY, AB, Feb. 27, 2025

CALGARY, AB, Feb. 27, 2025 /CNW/ - Veren Inc. ("Veren" or the "Company") (TSX: VRN) (NYSE: VRN) is pleased to announce its operating and financial results for the fourth quarter and full year ended December 31, 2024.

KEY HIGHLIGHTS

   -- Generated significant excess cash flow of $642 million in 2024, through 
      focused development of a high-quality asset base. 
 
   -- Returned $386 million, or 60 percent of excess cash flow, to shareholders 
      through dividends and share repurchases. 
 
   -- Reduced net debt by 35 percent through a combination of excess cash flow 
      generation and proceeds from dispositions. 
 
   -- Replaced 173 percent of 2024 production on a 2P reserves basis, primarily 
      driven by additions in the Alberta Montney. 
 
   -- Expect to generate excess cash flow of $625 million to $825 million in 
      2025 based on US$70/bbl to US$75/bbl WTI. 

"Last year marked a continued advancement in the execution of our long-term strategy as we significantly strengthened our balance sheet, consistently returned meaningful capital to our shareholders and achieved strong reserve additions," said Craig Bryksa, President and CEO of Veren. "We are off to a great start in 2025 and remain focused on maximizing the long-term potential of our assets, supporting our commitment to shareholder returns and maintaining a strong financial position."

FINANCIAL HIGHLIGHTS

Fourth Quarter 2024

   -- Adjusted funds flow totaled $619.6 million, or $1.01 per share diluted, 
      driven by a strong operating netback of $36.56 per boe. 
 
   -- Development capital expenditures, which included drilling and development, 
      facilities and seismic costs, totaled $363.0 million. This included 
      capital spending on facilities projects and improvements to further 
      optimize the Company's completions design in the Alberta Montney. 
 
   -- The Company generated excess cash flow of $203.8 million, or $0.33 per 
      share diluted. 
 
   -- Veren closed its previously announced strategic sale of certain 
      infrastructure assets in the Alberta Montney and directed net cash 
      proceeds of $400 million to further strengthen the balance sheet. As at 
      December 31, 2024, Veren's net debt was $2.48 billion, or 1.0 times 
      annualized adjusted funds flow, reflecting a reduction of $481.5 million 
      in the quarter. 
 
   -- The Company reported adjusted net earnings from operations of $247.0 
      million, or $0.40 per share diluted. 

Full Year 2024

   -- Adjusted funds flow totaled $2.35 billion, or $3.79 per share diluted, 
      driven by a strong operating netback of $36.83 per boe. 
 
   -- Development capital expenditures, which included drilling and development, 
      facilities and seismic costs, totaled $1.51 billion, in-line with the 
      Company's annual guidance range. 
 
   -- The Company generated excess cash flow of $641.6 million, or $1.04 per 
      share diluted. 
 
   -- Veren reduced its net debt by $1.26 billion, or approximately 35 percent 
      in 2024, through a combination of excess cash flow and proceeds received 
      from the strategic disposition of non-core assets. 
 
   -- The Company reported adjusted net earnings from operations of $848.8 
      million, or $1.37 per share diluted. 

RETURN OF CAPITAL HIGHLIGHTS

Fourth Quarter 2024

   -- Veren returned $105.7 million to shareholders during the quarter. The 
      Company paid a base dividend of $0.115 per share, or $70.7 million, and 
      repurchased 4.6 million shares for $35.0 million through its normal 
      course issuer bid during the quarter. 
 
   -- Subsequent to the quarter, Veren's Board of Directors declared a 
      quarterly cash base dividend of $0.115 per share payable on April 1, 
      2025, to shareholders of record on March 15, 2025. 
 
Adjusted funds flow, adjusted funds flow per share 
 - diluted, excess cash flow, excess cash flow per 
 share - diluted, operating netback, development capital 
 expenditures, total return of capital, net debt, net 
 debt to adjusted funds flow, net debt to annualized 
 adjusted funds flow, net earnings from operations, 
 adjusted net earnings from operations per share - 
 diluted, base dividends, and base dividends per share 
 - diluted are specified financial measures - refer 
 to the Specified Financial Measures section in this 
 press release for further information. All financial 
 figures are approximate and in Canadian dollars unless 
 otherwise noted. This press release contains forward-looking 
 information and references to specified financial 
 measures. Significant related assumptions and risk 
 factors, and reconciliations are described under the 
 Specified Financial Measures, Forward-Looking Statements 
 and Reserves and Drilling Data sections of this press 
 release, respectively. Further information breaking 
 down the production information contained in this 
 press release by product type can be found in the 
 "Product Type Production Information" section of this 
 press release. 
 

Full Year 2024

   -- Veren returned $385.7 million to shareholders, or 60 percent of excess 
      cash flow, in 2024. This included the Company repurchasing a total of 
      10.4 million shares for $101.1 million during the year. 
 
   -- Veren remains committed to returning 60 percent of its annual excess cash 
      flow to shareholders through a combination of dividends and share 
      repurchases. 

OPERATIONAL HIGHLIGHTS

Fourth Quarter 2024

   -- Veren achieved fourth quarter average production of 188,721 boe/d, 
      comprised of 64 percent oil and liquids, including strong December 
      production of 190,296 boe/d. The Company's Alberta Montney and Kaybob 
      Duvernay assets contributed 77 percent of total production in the fourth 
      quarter, with production from these key assets growing by 10 percent as 
      compared to the first quarter of 2024. 
 
   -- Veren brought two multi-well pads on stream in late fourth quarter in the 
      Karr South area of its Alberta Montney asset which were completed using 
      the single-point entry ("SPE") design. These pads generated an average 
      30-day initial production ("IP30") rate which exceeded the average type 
      wells in the area by 30 percent, while producing at a strong light oil 
      rate of 80 percent. 
 
   -- During the fourth quarter, Veren initiated the capacity expansion of its 
      Gold Creek West facility in the Alberta Montney to accommodate an 
      expected increase in production from future pads. The Company also 
      invested in significant gas egress infrastructure in the area and has 
      successfully connected to multiple third-party gas plants to minimize 
      future downtime. Building on Veren's strong results from wells brought on 
      stream in Gold Creek West in early 2024, the Company expects to bring a 
      multi-well pad on stream in the area in late first quarter 2025. 
 
   -- In the Kaybob Duvernay, the Company brought two multi-well pads on stream 
      in the fourth quarter. These pads generated an average IP30 rate which 
      exceeded the average type wells in the area by 25 percent, while 
      producing at a strong condensate rate of 70 percent. 
 
   -- Veren achieved responsibly sourced gas $(RSG)$ certification under 
      Equitable Origin's EO100$(TM)$ Standard for Responsible Development for its 
      Alberta Montney asset's natural gas production. The Company obtained this 
      rigorous certification following an independent assessment of Veren's 
      performance targets within five areas: corporate governance, transparency 
      and ethics; human rights, social impacts and community development; 
      Indigenous Peoples' rights; fair labour and working conditions; and 
      climate change, biodiversity and environmental. 

Full Year 2024

   -- The Company achieved annual average production of 191,163 boe/d in 2024, 
      comprised of 65 percent oil and liquids, in-line with production guidance 
      of 191,000 boe/d. 
 
   -- Veren continued to focus on optimizing infrastructure in its Alberta 
      Montney asset, which is expected to drive future operating cost savings, 
      reduce downtime and enhance production capacity. The Company entered into 
      a strategic partnership with Pembina Gas Infrastructure in 2024 which 
      resulted in Veren operating all oil battery sites within its land 
      position, while also acquiring priority access for all products and firm 
      processing for 100 percent of capacity at the Patterson Creek Gas Plant. 
      In addition, Veren invested in infield optimization projects throughout 
      the play to increase operational flexibility and accommodate future 
      growth in 2025 and throughout the five-year plan. 
 
   -- During the year, the Company brought 57 wells on stream across 11 
      multi-well pads in the Alberta Montney. Veren plans to continue 
      optimizing its completions by testing the SPE design in Karr and utilize 
      SPE design in the Gold Creek area moving forward, as previously 
      announced. 
 
   -- Veren continued to deliver consistent results within its Kaybob Duvernay 
      asset throughout 2024, demonstrating the strength of its operational 
      execution. The Company brought 37 wells on stream across eight multi-well 
      pads in the Volatile Oil window. Veren's 2024 development program 
      included several successful delineation wells on the eastern and western 
      portion of the Company's land position, derisking drilling inventory in 
      these areas. Veren's 2025 development program includes additional 
      delineation drilling in the Liquids-Rich and Lean Gas windows of the 
      play. 
 
   -- The Company also continued to advance its decline mitigation initiatives 
      in 2024, including successfully converting 35 producing wells to water 
      injection wells. These initiatives support Veren's low base decline rate 

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