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Veren Inc T.VRN

Alternate Symbol(s):  VRN

Veren Inc. is a Canada-based oil producer with assets in central Alberta and southeast and southwest Saskatchewan. The principal activities of the Company are acquiring, developing and holding interests in petroleum and natural gas properties and assets related thereto through a general partnership and wholly owned subsidiaries. Its core operational areas include Kaybob Duvernay and Alberta Montney, Shaunavon and Viewfield Bakken. Its Kaybob Duvernay is situated in the heart of the condensate rich fairway, Central Alberta, which provides low risk drilling inventory. Its Alberta Montney assets sit adjacent to its Kaybob Duvernay lands, possessing similar resource characteristics including pay thickness and permeability in the volatile oil fairway of the reservoir. Its Shaunavon resource play is located in southwest Saskatchewan. The Viewfield Bakken light oil pool is located in Saskatchewan.


TSX:VRN - Post by User

Post by Marty57on Oct 23, 2023 11:43am
226 Views
Post# 35696360

Speculating on Upcoming Earnings

Speculating on Upcoming Earnings
Q3 financial report will come out on Thursday next week, but I can't resist speculating now on what the report will show.  For revenue, the big thing is oil production and price.  It looks like WTI was around $US 81/Bbl over Q3. Applying a Cdn/US exchange rate of .74 to the WTI price and a discount factor of .93 to the WTI price I think a realized price will be 81/.74*.93= 102 $Cdn/Bbl.  Estimate oil production to be 110 kBbl/d... and so revenue from oil might be about 1030M $Cdn.  Throw in 120M $Cdn from NGL and Gas sales and you get Q3 revenue of 1150M $Cdn.  Based of previous financial reports, estimate the total of OpCosts, Royalties, Transp Charges, Interest, etc. to be 450M $Cdn, and Capex to be 325M $Cdn. Subtract Opcosts/Royalties/etc and Capex from Revenue and you get free cash flow of 375M $Cdn for Q3.  With 55M $Cdn for Div, the free cash flow available for debt repayment, NCIB and special div will be 320M $Cdn, of which 160 will go to debt with the other 160 returned to shareholders via NCIB and special Div.  From Insiders data, it looks like NCIB amounted to close to 125M $Cdn for Q3, leaving 35M $Cdn for special div.  With 530M shares outstanding, the special would be about 6.5 cents per share.  Dare to dream...dare to dream.
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