Q: Hi, can you comment on Veren's quarterly results? Do you think the big drop was warranted?
Thank-you!
Thank-you!
5i Research Answer:
VRN lowered its production forecast, to191,000 Boe/day from 192,500 to 197,500. Capital spending plans also rose. For 2025, production forecast goes to 188,000+ bod/day, from 202,733 estimates. Q3 production of 184,829 missed estimates of 185,591. EPS also missed, at 29c vs 32c expected. Over five-years, VRN still says it can grow cash flow at 10% per year. It did miss, and some drop is warranted. The decline seems a bit harsh to us. However, it is more leveraged than some peers, and with a 22% decline on the year could be set up for some tax-loss selling, so some investors might be trying to step ahead of this.