Scotiabank.. 2024/2025 Guidance Disappoints Selloff Overdone
Scotia bank take: Negative. VRN’s Q3 results were largely in line with consensus. 2024 production guidance was decreased 2% due to Gold Creek well underperformance and unplanned downtime. 2024 capex guidance was increased 2% because of increased infrastructure spending. Based on weaker than expected H2/24 and 2025 production, cash flow and FCF, we are lowering our TP from $12 to $11 (down 8%). Given the significant share price move (down 14%, overdone in our view) after Q3 results were announced, we are maintaining our rating of Outperform.
Took a half position at $6.95. If nothing else, a decent dividend to be had.