TSX:VRN - Post Discussion
Post by
retiredcf on Sep 17, 2024 8:31am
Ink Research
Morning Report: TerraVest Industries and Veren join the INK Top 30 Energy
September 17, 2024
Our September Top Energy report, published today, had a relatively low turnover with only six names moving in and out of
the list while the top ten constituents were unchanged from last month. That suggests that some INK Edge oil patch favourites are emerging during this period of Energy sector weakness. Services company TerraVest Industries (TVK), which operates via subsidiaries across a range of industries including energy production and distribution, was one of the additions to the list, grabbing the 17th spot. TerraVest was the only addition to the report that made a 52-week high this month, trading as high as $99.86 on Monday. It has been on a roll since we last featured it here on March 26th, up 66.0%. Shares jumped 15.1% on August 14th after the release of fiscal Q3 (ended June 30th) results when TerraVest reported net income of $0.61 per diluted share versus $0.44 a year earlier. In terms of outlook, management said it, "expects continued growth for the current fiscal year across its base portfolio of businesses, as well as a meaningful contribution from its recent acquisitions."
Veren (VRN), formerly Crescent Point Energy, joined the September Top Energy in the 26th spot. Veren is contrarian play, having set a 6-month low of $8.21 on September 10th. It is down 16.2% since we featured it here on March 12th, despite setting a 52-week high of $12.67 on April 29th. It is difficult to point to a single factor that explains its slide from that high, but the stock's malaise may partly be explained by the overhang from the company's $2.55 billion acquisition of Hammerhead Energy last December which included issuing 53.2 million common shares to Hammerhead shareholders and a public offering of 48.55 million shares at $10.30. When it released Q2 results on July 25th, it reaffirmed 2024 average production guidance of a midpoint of 195,000 boe/d. Q2 production averaged 192,648 boe/d (65% oil & liquids).
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