Exhibit No. | Description | ||||
99.1 | Interim Consolidated Financial Statements (unaudited) for the period ended June 30, 2024. | ||||
99.2 | Management's Discussion and Analysis for the period ended June 30, 2024. |
Veren Inc. | |||||||||||
(Registrant) | |||||||||||
By: | /s/ Ken Lamont | ||||||||||
Name: | Ken Lamont | ||||||||||
Title: | Chief Financial Officer |
Interim Consolidated Financial Statements (unaudited) for the period ended June 30, 2024. | |||||
Management's Discussion and Analysis for the period ended June 30, 2024. |
As at | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
(UNAUDITED) (Cdn$ millions) | Notes | 2024 | 2023 | ||||||||||||||
ASSETS | |||||||||||||||||
Cash | 5.8 | 17.3 | |||||||||||||||
Accounts receivable | 379.5 | 377.9 | |||||||||||||||
Prepaids and deposits | 105.0 | 87.8 | |||||||||||||||
Derivative asset | 21 |
90.1 | 240.7 | ||||||||||||||
Other current assets | 4 |
50.1 | 79.2 | ||||||||||||||
Assets held for sale | — | 247.1 | |||||||||||||||
Total current assets | 630.5 | 1,050.0 | |||||||||||||||
Derivative asset | 21 |
11.5 | 14.3 | ||||||||||||||
Other long-term assets | 20.4 | 7.4 | |||||||||||||||
Exploration and evaluation | 5 |
565.4 | 607.0 | ||||||||||||||
Property, plant and equipment | 6, 8 |
9,778.4 | 10,718.3 | ||||||||||||||
Right-of-use asset | 12 |
86.4 | 102.8 | ||||||||||||||
Goodwill | 9 |
243.8 | 275.9 | ||||||||||||||
Total assets | 11,336.4 | 12,775.7 | |||||||||||||||
LIABILITIES | |||||||||||||||||
Accounts payable and accrued liabilities | 571.4 | 634.9 | |||||||||||||||
Dividends payable | 71.2 | 56.8 | |||||||||||||||
Current portion of long-term debt | 11 |
492.0 | 380.0 | ||||||||||||||
Derivative liability | 21 |
49.4 | 51.4 | ||||||||||||||
Other current liabilities | 10 |
102.8 | 118.0 | ||||||||||||||
Liabilities associated with assets held for sale | — | 132.4 | |||||||||||||||
Total current liabilities | 1,286.8 | 1,373.5 | |||||||||||||||
Long-term debt | 11 |
2,352.9 | 3,186.3 | ||||||||||||||
Derivative liability | 21 |
5.3 | 3.8 | ||||||||||||||
Other long-term liabilities | 32.3 | 31.0 | |||||||||||||||
Lease liability | 12 |
89.8 | 104.2 | ||||||||||||||
Decommissioning liability | 6, 13 |
444.8 | 566.4 | ||||||||||||||
Deferred income tax | 599.6 | 643.0 | |||||||||||||||
Total liabilities | 4,811.5 | 5,908.2 | |||||||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||||||||
Shareholders’ capital | 14 |
17,008.7 | 17,052.7 | ||||||||||||||
Contributed surplus | 12.1 | 17.4 | |||||||||||||||
Deficit | 15 |
(10,495.6) | (10,202.5) | ||||||||||||||
Accumulated other comprehensive income | (0.3) | (0.1) | |||||||||||||||
Total shareholders' equity | 6,524.9 | 6,867.5 | |||||||||||||||
Total liabilities and shareholders' equity | 11,336.4 | 12,775.7 |
VEREN INC. | 1 |
(UNAUDITED) (Cdn$ millions, except per share and shares outstanding amounts) | Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||
Notes | 2024 | 2023 Revised (1) |
2024 | 2023 Revised (1) |
|||||||||||||||||||||||||
REVENUE AND OTHER INCOME | |||||||||||||||||||||||||||||
Oil and gas sales |
23 |
1,136.4 | 791.6 | 2,244.3 | 1,553.6 | ||||||||||||||||||||||||
Purchased product sales |
27.7 | 16.2 | 56.0 | 36.0 | |||||||||||||||||||||||||
Royalties |
(115.9) | (83.8) | (229.8) | (169.8) | |||||||||||||||||||||||||
Oil and gas revenue | 1,048.2 | 724.0 | 2,070.5 | 1,419.8 | |||||||||||||||||||||||||
Commodity derivative gains (losses) | 17, 21 |
62.3 | 36.7 | (151.0) | 49.9 | ||||||||||||||||||||||||
Other income | 2.4 | 2.9 | 3.9 | 11.4 | |||||||||||||||||||||||||
1,112.9 | 763.6 | 1,923.4 | 1,481.1 | ||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||
Operating | 239.5 | 182.8 | 490.5 | 351.8 | |||||||||||||||||||||||||
Purchased product | 27.3 | 17.6 | 57.1 | 38.1 | |||||||||||||||||||||||||
Transportation | 79.7 | 39.7 | 161.5 | 72.5 | |||||||||||||||||||||||||
General and administrative | 37.9 | 36.7 | 66.5 | 60.7 | |||||||||||||||||||||||||
Interest | 18 |
56.9 | 31.5 | 117.7 | 47.5 | ||||||||||||||||||||||||
Foreign exchange (gain) loss | 19 |
0.8 | (4.2) | (1.0) | (7.2) | ||||||||||||||||||||||||
Share-based compensation | 8.4 | 6.5 | 20.6 | 24.0 | |||||||||||||||||||||||||
Depletion, depreciation and amortization | 5, 8, 12 |
322.1 | 211.5 | 666.2 | 397.9 | ||||||||||||||||||||||||
Impairment | 8, 9 |
— | — | 512.3 | — | ||||||||||||||||||||||||
Accretion and financing | 12, 13 |
5.9 | 6.4 | 12.7 | 13.4 | ||||||||||||||||||||||||
778.5 | 528.5 | 2,104.1 | 998.7 | ||||||||||||||||||||||||||
Net income (loss) before tax from continuing operations | 334.4 | 235.1 | (180.7) | 482.4 | |||||||||||||||||||||||||
Tax expense (recovery) | |||||||||||||||||||||||||||||
Current |
— | — | — | — | |||||||||||||||||||||||||
Deferred |
73.5 | 56.7 | (42.7) | 119.2 | |||||||||||||||||||||||||
Net income (loss) from continuing operations | 260.9 | 178.4 | (138.0) | 363.2 | |||||||||||||||||||||||||
Net income (loss) from discontinued operations | 7 |
0.1 | 33.9 | (12.7) | 65.8 | ||||||||||||||||||||||||
Net income (loss) | 261.0 | 212.3 | (150.7) | 429.0 | |||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||
Items that may be subsequently reclassified to profit or loss | |||||||||||||||||||||||||||||
Foreign currency translation of foreign operations |
(0.1) | (34.5) | (0.2) | (34.7) | |||||||||||||||||||||||||
Comprehensive income (loss) | 260.9 | 177.8 | (150.9) | 394.3 | |||||||||||||||||||||||||
Net income (loss) per share | |||||||||||||||||||||||||||||
Continuing operations - basic |
0.42 | 0.33 | (0.22) | 0.67 | |||||||||||||||||||||||||
Discontinued operations - basic |
— | 0.06 | (0.02) | 0.12 | |||||||||||||||||||||||||
Net income (loss) per share - basic | 0.42 | 0.39 | (0.24) | 0.79 | |||||||||||||||||||||||||
Continuing operations - diluted | 0.42 | 0.33 | (0.22) | 0.66 | |||||||||||||||||||||||||
Discontinued operations - diluted | — | 0.06 | (0.02) | 0.12 | |||||||||||||||||||||||||
Net income (loss) per share - diluted | 0.42 | 0.39 | (0.24) | 0.78 | |||||||||||||||||||||||||
Weighted average shares outstanding | |||||||||||||||||||||||||||||
Basic | 618,656,186 | 542,951,203 | 619,295,694 | 545,898,811 | |||||||||||||||||||||||||
Diluted | 620,295,770 | 545,347,087 | 619,295,694 | 548,974,004 | |||||||||||||||||||||||||
VEREN INC. | 2 |
(UNAUDITED) (Cdn$ millions, except per share amounts) |
Notes | Shareholders’ capital | Contributed surplus | Deficit | Accumulated other comprehensive income | Total shareholders’ equity | |||||||||||||||||||||||||||||
December 31, 2022 | 16,419.3 | 17.1 | (10,563.3) | 620.3 | 6,493.4 | ||||||||||||||||||||||||||||||
Redemption of restricted shares | 4.7 | (4.7) | 2.3 | 2.3 | |||||||||||||||||||||||||||||||
Common shares repurchased for cancellation | (141.6) | (141.6) | |||||||||||||||||||||||||||||||||
Share-based compensation | 3.1 | 3.1 | |||||||||||||||||||||||||||||||||
Stock options exercised | 0.5 | (0.4) | 0.1 | ||||||||||||||||||||||||||||||||
Net income | 429.0 | 429.0 | |||||||||||||||||||||||||||||||||
Dividends declared ($0.132 per share) |
(71.9) | (71.9) | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (34.7) | (34.7) | |||||||||||||||||||||||||||||||||
June 30, 2023 | 16,282.9 | 15.1 | (10,203.9) | 585.6 | 6,679.7 | ||||||||||||||||||||||||||||||
December 31, 2023 | 17,052.7 | 17.4 | (10,202.5) | (0.1) | 6,867.5 | ||||||||||||||||||||||||||||||
Redemption of restricted shares | 14 |
5.5 | (5.4) | 0.6 | 0.7 | ||||||||||||||||||||||||||||||
Common shares repurchased for cancellation | 14 |
(52.4) | (52.4) | ||||||||||||||||||||||||||||||||
Share issue costs, net of tax | 14 |
(0.2) | (0.2) | ||||||||||||||||||||||||||||||||
Share-based compensation | 3.0 | 3.0 | |||||||||||||||||||||||||||||||||
Stock options exercised | 14 |
3.1 | (2.9) | 0.2 | |||||||||||||||||||||||||||||||
Net income (loss) | (150.7) | (150.7) | |||||||||||||||||||||||||||||||||
Dividends declared ($0.230 per share) |
(143.0) | (143.0) | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment |
(0.2) | (0.2) | |||||||||||||||||||||||||||||||||
June 30, 2024 | 17,008.7 | 12.1 | (10,495.6) | (0.3) | 6,524.9 |
VEREN INC. | 3 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||||||||
(UNAUDITED) (Cdn$ millions) | Notes | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
CASH PROVIDED BY (USED IN): | |||||||||||||||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||||||||||||
Net income (loss) |
261.0 | 212.3 | (150.7) | 429.0 | |||||||||||||||||||||||||
Items not affecting cash |
|||||||||||||||||||||||||||||
Other (income) loss |
(1.4) | (2.0) | 10.6 | (9.4) | |||||||||||||||||||||||||
Deferred tax expense (recovery) |
73.5 | 68.8 | (42.7) | 140.3 | |||||||||||||||||||||||||
Share-based compensation |
1.5 | 1.5 | 3.0 | 3.0 | |||||||||||||||||||||||||
Depletion, depreciation and amortization |
5, 8, 12 |
322.1 | 264.5 | 666.2 | 496.2 | ||||||||||||||||||||||||
Impairment | 8, 9 |
— | — | 512.3 | — | ||||||||||||||||||||||||
Accretion |
13 |
4.1 | 5.2 | 9.0 | 11.0 | ||||||||||||||||||||||||
Unrealized losses on derivatives |
21 |
4.8 | 116.2 | 157.7 | 120.1 | ||||||||||||||||||||||||
Translation of US dollar long-term debt |
19 |
24.5 | (39.1) | 90.3 | (40.0) | ||||||||||||||||||||||||
Translation of US dollar derivatives | 21 |
(0.2) | — | (1.3) | — | ||||||||||||||||||||||||
Realized gain on cross currency swap maturity |
19 |
(91.1) | (89.4) | (88.7) | (89.1) | ||||||||||||||||||||||||
Decommissioning expenditures |
13 |
(7.3) | (5.9) | (14.6) | (15.8) | ||||||||||||||||||||||||
Change in non-cash working capital |
22 |
34.3 | (70.0) | (114.1) | (109.8) | ||||||||||||||||||||||||
625.8 | 462.1 | 1,037.0 | 935.5 | ||||||||||||||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||||||||||||
Development capital and other expenditures |
5, 8 |
(387.7) | (249.1) | (805.6) | (576.5) | ||||||||||||||||||||||||
Capital acquisitions, net of cash acquired |
— | (1,702.7) | — | (2,074.7) | |||||||||||||||||||||||||
Capital dispositions |
6 |
541.1 | 8.4 | 646.9 | 11.0 | ||||||||||||||||||||||||
Other long-term assets | 2.2 | — | (13.0) | — | |||||||||||||||||||||||||
Change in non-cash working capital |
22 |
7.3 | 76.2 | 57.8 | 35.6 | ||||||||||||||||||||||||
162.9 | (1,867.2) | (113.9) | (2,604.6) | ||||||||||||||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||||||||||
Issue of shares, net of issue costs |
(0.2) | — | (0.2) | 0.1 | |||||||||||||||||||||||||
Common shares repurchased for cancellation |
14 |
(42.4) | (93.1) | (52.4) | (141.6) | ||||||||||||||||||||||||
Increase (decrease) in bank debt, net |
22 |
(1,377.7) | 2,007.4 | (1,418.6) | 2,114.2 | ||||||||||||||||||||||||
Issuance of senior notes |
11, 22 |
1,000.0 | — | 1,000.0 | — | ||||||||||||||||||||||||
Repayment of senior notes |
22 |
(392.9) | (534.1) | (392.9) | (534.1) | ||||||||||||||||||||||||
Realized gain on cross currency swap maturity |
19, 22 |
91.1 | 89.4 | 88.7 | 89.1 | ||||||||||||||||||||||||
Payments on principal portion of lease liability |
12, 22 |
(8.8) | (5.3) | (17.4) | (10.6) | ||||||||||||||||||||||||
Dividends declared |
22 |
(71.7) | (54.8) | (143.0) | (71.9) | ||||||||||||||||||||||||
Change in non-cash working capital |
22 |
(2.1) | (5.3) | 0.9 | (52.5) | ||||||||||||||||||||||||
(804.7) | 1,404.2 | (934.9) | 1,392.7 | ||||||||||||||||||||||||||
Impact of foreign currency on cash balances |
— | (0.1) | 0.3 | 0.5 | |||||||||||||||||||||||||
DECREASE IN CASH | (16.0) | (1.0) | (11.5) | (275.9) | |||||||||||||||||||||||||
CASH AT BEGINNING OF PERIOD | 21.8 | 15.0 | 17.3 | 289.9 | |||||||||||||||||||||||||
CASH AT END OF PERIOD | 5.8 | 14.0 | 5.8 | 14.0 |
Cash taxes refunded (paid) |
(0.1) | — | 0.1 | — | ||||||||||||||||||||||
Cash interest paid |
(61.9) | (35.9) | (121.3) | (37.7) |
VEREN INC. | 4 |
VEREN INC. | 5 |
($ millions) |
June 30, 2024 | December 31, 2023 (1) |
||||||||||||
Exploration and evaluation assets at cost |
1,242.5 | 1,578.6 | ||||||||||||
Accumulated amortization |
(677.1) | (971.6) | ||||||||||||
Net carrying amount |
565.4 | 607.0 | ||||||||||||
Reconciliation of movements during the period |
||||||||||||||
Cost, beginning of period |
1,578.6 | 1,453.4 | ||||||||||||
Accumulated amortization, beginning of period |
(971.6) | (1,349.2) | ||||||||||||
Net carrying amount, beginning of period |
607.0 | 104.2 | ||||||||||||
Net carrying amount, beginning of period |
607.0 | 104.2 | ||||||||||||
Acquisitions through business combinations |
— | 515.2 | ||||||||||||
Additions |
76.5 | 224.8 | ||||||||||||
Dispositions |
— | (0.1) | ||||||||||||
Reclassified as assets held for sale | — | (1.8) | ||||||||||||
Transfers to property, plant and equipment |
(58.7) | (204.3) | ||||||||||||
Amortization |
(59.4) | (30.9) | ||||||||||||
Foreign exchange |
— | (0.1) | ||||||||||||
Net carrying amount, end of period |
565.4 | 607.0 |
VEREN INC. | 6 |
($ millions) | North Dakota Disposition | Southern Alberta Disposition (1) |
Swan Hills
Disposition (1)
|
Non-core Saskatchewan Disposition (2) |
|||||||||||||||||||||||||
Cash | (12.7) | 13.4 | 80.5 | 540.7 | |||||||||||||||||||||||||
Deferred consideration receivable (3) |
— | 25.0 | — | — | |||||||||||||||||||||||||
Consideration (paid) received | (12.7) | 38.4 | 80.5 | 540.7 | |||||||||||||||||||||||||
Property, plant and equipment | — | (129.5) | (117.5) | (637.8) | |||||||||||||||||||||||||
Goodwill | — | (3.7) | (2.9) | — | |||||||||||||||||||||||||
Decommissioning liability | — | 92.4 | 39.9 | 98.0 | |||||||||||||||||||||||||
Derivative liability | — | — | 3.5 | — | |||||||||||||||||||||||||
Carrying value of net assets disposed |
— | (40.8) | (77.0) | (539.8) | |||||||||||||||||||||||||
Gain (loss) on capital dispositions | (12.7) | (2.4) | 3.5 | 0.9 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||
(Cdn$ millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
REVENUE AND OTHER INCOME | ||||||||||||||||||||||||||
Oil and gas sales | — | 158.0 | — | 309.6 | ||||||||||||||||||||||
Royalties | — | (40.2) | — | (78.7) | ||||||||||||||||||||||
Oil and gas revenue | — | 117.8 | — | 230.9 | ||||||||||||||||||||||
Other income (loss) | 0.1 | 6.3 | (12.7) | 6.3 | ||||||||||||||||||||||
0.1 | 124.1 | (12.7) | 237.2 | |||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||
Operating | — | 20.4 | — | 43.8 | ||||||||||||||||||||||
Transportation | — | 4.0 | — | 6.7 | ||||||||||||||||||||||
General and administrative | — | 0.4 | — | 1.1 | ||||||||||||||||||||||
Share-based compensation | — | 0.1 | — | 0.1 | ||||||||||||||||||||||
Depletion, depreciation and amortization | — | 53.0 | — | 98.3 | ||||||||||||||||||||||
Accretion and financing | — | 0.2 | — | 0.3 | ||||||||||||||||||||||
— | 78.1 | — | 150.3 | |||||||||||||||||||||||
Net income (loss) before tax from discontinued operations | 0.1 | 46.0 | (12.7) | 86.9 | ||||||||||||||||||||||
Tax expense | ||||||||||||||||||||||||||
Current | — | — | — | — | ||||||||||||||||||||||
Deferred | — | 12.1 | — | 21.1 | ||||||||||||||||||||||
Net income (loss) from discontinued operations | 0.1 | 33.9 | (12.7) | 65.8 | ||||||||||||||||||||||
VEREN INC. | 7 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||
(Cdn$ millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Cash provided by (used in) discontinued operations | ||||||||||||||||||||||||||
Operating activities | — | 96.2 | — | 199.8 | ||||||||||||||||||||||
Investing activities | 0.1 | (127.1) | (12.7) | (246.7) | ||||||||||||||||||||||
Increase (decrease) in cash from discontinued operations | 0.1 | (30.9) | (12.7) | (46.9) |
VEREN INC. | 8 |
($ millions) |
June 30, 2024 | December 31, 2023 (1) |
||||||||||||
Development and production assets |
21,616.3 | 24,580.6 | ||||||||||||
Corporate assets |
134.7 | 132.1 | ||||||||||||
Property, plant and equipment at cost |
21,751.0 | 24,712.7 | ||||||||||||
Accumulated depletion, depreciation and impairment |
(11,972.6) | (13,994.4) | ||||||||||||
Net carrying amount |
9,778.4 | 10,718.3 | ||||||||||||
Reconciliation of movements during the period |
||||||||||||||
Development and production assets |
||||||||||||||
Cost, beginning of period |
24,580.6 | 22,340.0 | ||||||||||||
Accumulated depletion and impairment, beginning of period |
(13,901.4) | (14,651.8) | ||||||||||||
Net carrying amount, beginning of period |
10,679.2 | 7,688.2 | ||||||||||||
Net carrying amount, beginning of period |
10,679.2 | 7,688.2 | ||||||||||||
Acquisitions through business combinations |
— | 4,348.6 | ||||||||||||
Additions |
713.7 | 1,025.8 | ||||||||||||
Dispositions |
(0.7) | (26.9) | ||||||||||||
Transfers from exploration and evaluation assets |
58.7 | 204.3 | ||||||||||||
Reclassified as assets held for sale |
(637.0) | (729.5) | ||||||||||||
Depletion |
(586.3) | (1,009.3) | ||||||||||||
Impairment |
(486.8) | (822.2) | ||||||||||||
Foreign exchange |
— | 0.2 | ||||||||||||
Net carrying amount, end of period |
9,740.8 | 10,679.2 | ||||||||||||
Cost, end of period |
21,616.3 | 24,580.6 | ||||||||||||
Accumulated depletion and impairment, end of period |
(11,875.5) | (13,901.4) | ||||||||||||
Net carrying amount, end of period |
9,740.8 | 10,679.2 | ||||||||||||
Corporate assets |
||||||||||||||
Cost, beginning of period |
132.1 | 126.2 | ||||||||||||
Accumulated depreciation, beginning of period |
(93.0) | (85.0) | ||||||||||||
Net carrying amount, beginning of period |
39.1 | 41.2 | ||||||||||||
Net carrying amount, beginning of period |
39.1 | 41.2 | ||||||||||||
Additions |
2.6 | 5.9 | ||||||||||||
Depreciation |
(4.1) | (8.0) | ||||||||||||
Net carrying amount, end of period |
37.6 | 39.1 | ||||||||||||
Cost, end of period |
134.7 | 132.1 | ||||||||||||
Accumulated depreciation, end of period |
(97.1) | (93.0) | ||||||||||||
Net carrying amount, end of period |
37.6 | 39.1 |
VEREN INC. | 9 |
($ millions) |
June 30, 2024 | December 31, 2023 | ||||||||||||
Goodwill, beginning of period | 275.9 | 203.9 | ||||||||||||
Hammerhead acquisition | — | 72.6 | ||||||||||||
Impairment | (25.5) | — | ||||||||||||
Southern Alberta disposition | (3.7) | — | ||||||||||||
Swan Hills disposition | (2.9) | — | ||||||||||||
Other dispositions | — | (0.6) | ||||||||||||
Goodwill, end of period | 243.8 | 275.9 |
($ millions) |
June 30, 2024 | December 31, 2023 | ||||||||||||
Long-term compensation liability |
19.9 | 37.5 | ||||||||||||
Lease liability |
37.5 | 40.5 | ||||||||||||
Decommissioning liability | 45.4 | 40.0 | ||||||||||||
Other current liabilities |
102.8 | 118.0 |
($ millions) | June 30, 2024 | December 31, 2023 | ||||||||||||
Revolving bank debt | 1,325.5 | 1,932.9 | ||||||||||||
Bank term loan | — | 750.0 | ||||||||||||
Public senior notes | 1,000.0 | — | ||||||||||||
Private senior notes | 519.4 | 883.4 | ||||||||||||
Long-term debt | 2,844.9 | 3,566.3 | ||||||||||||
Long-term debt due within one year |
492.0 | 380.0 | ||||||||||||
Long-term debt due beyond one year | 2,352.9 | 3,186.3 |
VEREN INC. | 10 |
Principal
($ millions)
|
Coupon Rate |
Hedged
Principal (1)
(Cdn$ millions)
|
Unhedged
Principal (2)
(Cdn$ millions)
|
Interest Payment Dates | Maturity Date | Financial statement carrying value | |||||||||||||||||||||||
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||
Cdn$40.0 | 3.850 | % | — | — | December 20 and June 20 | June 20, 2024 | — | 40.0 | |||||||||||||||||||||
US$257.5 | 3.750 | % | — | — | December 20 and June 20 | June 20, 2024 | — | 340.0 | |||||||||||||||||||||
US$82.0 | 4.300 | % | 67.9 | 41.1 | October 11 and April 11 | April 11, 2025 | 112.2 | 108.3 | |||||||||||||||||||||
Cdn$65.0 | 3.940 | % | 65.0 | — | October 22 and April 22 | April 22, 2025 | 65.0 | 65.0 | |||||||||||||||||||||
US$230.0 | 4.080 | % | 262.6 | 30.8 | October 22 and April 22 | April 22, 2025 | 314.8 | 303.7 | |||||||||||||||||||||
US$20.0 | 4.180 | % | — | 27.4 | October 22 and April 22 | April 22, 2027 | 27.4 | 26.4 | |||||||||||||||||||||
Cdn$550.0 | 4.968 | % | 550.0 | — | December 21 and June 21 | June 21, 2029 | 550.0 | — | |||||||||||||||||||||
Cdn$450.0 | 5.503 | % | 450.0 | — | December 21 and June 21 | June 21, 2034 | 450.0 | — | |||||||||||||||||||||
Senior notes | 1,395.5 | 99.3 | 1,519.4 | 883.4 | |||||||||||||||||||||||||
Due within one year | 395.5 | 71.9 | 492.0 | 380.0 | |||||||||||||||||||||||||
Due beyond one year | 1,000.0 | 27.4 | 1,027.4 | 503.4 |
($ millions) | Office (1) |
Fleet Vehicles | Equipment | Total | ||||||||||||||||||||||
Right-of-use asset at cost | 124.8 | 37.2 | 38.6 | 200.6 | ||||||||||||||||||||||
Accumulated depreciation | (70.3) | (26.3) | (17.6) | (114.2) | ||||||||||||||||||||||
Net carrying amount | 54.5 | 10.9 | 21.0 | 86.4 | ||||||||||||||||||||||
Reconciliation of movements during the period |
||||||||||||||||||||||||||
Cost, beginning of period | 124.8 | 37.2 | 38.6 | 200.6 | ||||||||||||||||||||||
Accumulated depreciation, beginning of period | (65.1) | (23.0) | (9.7) | (97.8) | ||||||||||||||||||||||
Net carrying amount, beginning of period | 59.7 | 14.2 | 28.9 | 102.8 | ||||||||||||||||||||||
Net carrying amount, beginning of period | 59.7 | 14.2 | 28.9 | 102.8 | ||||||||||||||||||||||
Additions | — | — | 0.3 | 0.3 | ||||||||||||||||||||||
Dispositions | — | — | (0.3) | (0.3) | ||||||||||||||||||||||
Depreciation | (5.2) | (3.3) | (7.9) | (16.4) | ||||||||||||||||||||||
Net carrying amount, end of period | 54.5 | 10.9 | 21.0 | 86.4 |
VEREN INC. | 11 |
($ millions) | June 30, 2024 | December 31, 2023 | ||||||||||||
Lease liability, beginning of period |
144.7 | 124.1 | ||||||||||||
Acquisitions through business combinations | — | 4.3 | ||||||||||||
Additions | 0.3 | 38.2 | ||||||||||||
Dispositions | (0.3) | — | ||||||||||||
Reclassified as liabilities associated with assets held for sale | — | (1.1) | ||||||||||||
Financing | 3.7 | 5.2 | ||||||||||||
Payments on lease liability |
(21.1) | (26.0) | ||||||||||||
Lease liability, end of period | 127.3 | 144.7 | ||||||||||||
Expected to be incurred within one year | 37.5 | 40.5 | ||||||||||||
Expected to be incurred beyond one year | 89.8 | 104.2 |
($ millions) | June 30, 2024 | |||||||
1 year |
42.6 | |||||||
2 to 3 years | 47.1 | |||||||
4 to 5 years | 34.8 | |||||||
More than 5 years |
16.6 | |||||||
Total (1) |
141.1 |
($ millions) |
June 30, 2024 | December 31, 2023 (1) |
||||||||||||
Decommissioning liability, beginning of period |
606.4 | 675.5 | ||||||||||||
Liabilities incurred |
5.5 | 19.8 | ||||||||||||
Liabilities acquired through capital acquisitions |
— | 40.1 | ||||||||||||
Liabilities disposed through capital dispositions |
0.5 | (4.1) | ||||||||||||
Liabilities settled (2) |
(14.6) | (45.4) | ||||||||||||
Revaluation of acquired decommissioning liabilities (3) |
— | 38.5 | ||||||||||||
Change in estimates |
— | (3.0) | ||||||||||||
Change in discount and inflation rate estimates |
(18.1) | (19.6) | ||||||||||||
Accretion |
9.0 | 22.7 | ||||||||||||
Reclassified as liabilities associated with assets held for sale |
(98.5) | (118.1) | ||||||||||||
Decommissioning liability, end of period |
490.2 | 606.4 | ||||||||||||
Expected to be incurred within one year |
45.4 | 40.0 | ||||||||||||
Expected to be incurred beyond one year |
444.8 | 566.4 |
VEREN INC. | 12 |
June 30, 2024 | December 31, 2023 | |||||||||||||||||||||||||
|
Number of
shares
|
Amount
($ millions)
|
Number of
shares
|
Amount
($ millions)
|
||||||||||||||||||||||
Common shares, beginning of period |
619,929,490 | 17,324.6 | 550,888,983 | 16,675.8 | ||||||||||||||||||||||
Issued on capital acquisition |
— | — | 53,202,339 | 493.0 | ||||||||||||||||||||||
Issued for cash | — | — | 48,550,000 | 500.1 | ||||||||||||||||||||||
Issued on redemption of restricted shares |
716,551 | 5.5 | 1,436,017 | 4.9 | ||||||||||||||||||||||
Issued on exercise of stock options | 1,447,476 | 3.1 | 464,051 | 0.7 | ||||||||||||||||||||||
Common shares repurchased for cancellation |
(4,523,900) | (52.4) | (34,611,900) | (349.9) | ||||||||||||||||||||||
Common shares, end of period |
617,569,617 | 17,280.8 | 619,929,490 | 17,324.6 | ||||||||||||||||||||||
Cumulative share issue costs, net of tax |
— | (272.1) | — | (271.9) | ||||||||||||||||||||||
Total shareholders’ capital, end of period |
617,569,617 | 17,008.7 | 619,929,490 | 17,052.7 |
($ millions) | June 30, 2024 | December 31, 2023 | ||||||||||||
Accumulated earnings (deficit) |
(2,281.0) | (2,130.3) | ||||||||||||
Accumulated gain on shares issued pursuant to DRIP (1) and SDP (2) |
8.4 | 8.4 | ||||||||||||
Accumulated tax effect on redemption of restricted shares |
18.8 | 18.2 | ||||||||||||
Accumulated dividends |
(8,241.8) | (8,098.8) | ||||||||||||
Deficit | (10,495.6) | (10,202.5) |
($ millions) | June 30, 2024 | December 31, 2023 | ||||||||||||
Long-term debt (1) |
2,844.9 | 3,566.3 | ||||||||||||
Adjusted working capital deficiency (2) |
140.4 | 196.3 | ||||||||||||
Unrealized foreign exchange on translation of hedged US dollar long-term debt | (22.6) | (24.5) | ||||||||||||
Net debt | 2,962.7 | 3,738.1 | ||||||||||||
Shareholders’ equity | 6,524.9 | 6,867.5 | ||||||||||||
Total capitalization | 9,487.6 | 10,605.6 |
VEREN INC. | 13 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||
($ millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Cash flow from operating activities | 625.8 | 462.1 | 1,037.0 | 935.5 | ||||||||||||||||||||||
Changes in non-cash working capital |
(34.3) | 70.0 | 114.1 | 109.8 | ||||||||||||||||||||||
Transaction costs | 12.9 | 14.6 | 14.2 | 16.4 | ||||||||||||||||||||||
Decommissioning expenditures | 7.3 | 5.9 | 14.6 | 15.8 | ||||||||||||||||||||||
Adjusted funds flow from operations | 611.7 | 552.6 | 1,179.9 | 1,077.5 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||
($ millions) |
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Realized gains (losses) |
(3.4) | 25.3 | 1.1 | 17.9 | ||||||||||||||||||||||
Unrealized gains (losses) |
65.7 | 11.4 | (152.1) | 32.0 | ||||||||||||||||||||||
Commodity derivative gains (losses) |
62.3 | 36.7 | (151.0) | 49.9 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||
($ millions) |
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Interest expense on long-term debt |
56.2 | 29.8 | 117.5 | 45.9 | ||||||||||||||||||||||
Unrealized loss on interest derivative contracts | 0.7 | 1.7 | 0.2 | 1.6 | ||||||||||||||||||||||
Interest expense |
56.9 | 31.5 | 117.7 | 47.5 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||
($ millions) |
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Realized gain on CCS - principal | 91.1 | 89.4 | 88.7 | 89.1 | ||||||||||||||||||||||
Translation of US dollar long-term debt | (24.5) | 39.1 | (90.3) | 40.0 | ||||||||||||||||||||||
Unrealized loss on CCS - principal and foreign exchange swaps | (69.1) | (123.4) | (4.8) | (120.5) | ||||||||||||||||||||||
Other | 1.7 | (0.9) | 7.4 | (1.4) | ||||||||||||||||||||||
Foreign exchange gain (loss) | (0.8) | 4.2 | 1.0 | 7.2 |
VEREN INC. | 14 |
Restricted Shares |
ESVP | PSUs (1) |
DSUs |
|||||||||||||||||||||||
Balance, beginning of period |
1,380,685 | 2,660,066 | 1,623,248 | 1,728,423 | ||||||||||||||||||||||
Granted |
452,620 | 1,795,908 | 1,242,273 | 100,637 | ||||||||||||||||||||||
Redeemed |
(716,551) | (1,323,383) | — | — | ||||||||||||||||||||||
Forfeited |
— | (196,884) | — | — | ||||||||||||||||||||||
Balance, end of period |
1,116,754 | 2,935,707 | 2,865,521 | 1,829,060 |
Stock options
(number of units)
|
Weighted average exercise price ($) | |||||||||||||
Balance, beginning of period |
3,224,260 | 4.74 | ||||||||||||
Exercised |
(2,312,688) | 4.53 | ||||||||||||
Balance, end of period |
911,572 | 5.27 |
Range of exercise prices ($) | Number of stock options outstanding | Weighted average remaining term for stock options outstanding (years) | Weighted average exercise price per share for stock options outstanding ($) | Number of stock options exercisable | Weighted average exercise price per share for stock options exercisable ($) | ||||||||||||||||||||||||||||||
1.09 - 1.65 | 304,653 | 2.75 | 1.09 | 304,653 | 1.09 | ||||||||||||||||||||||||||||||
1.66 - 4.61 | 84,278 | 1.85 | 3.78 | 75,610 | 3.95 | ||||||||||||||||||||||||||||||
4.62 - 7.65 | 228,410 | 3.75 | 5.24 | 59,552 | 5.24 | ||||||||||||||||||||||||||||||
7.66 - 10.06 | 294,231 | 0.53 | 10.06 | 294,231 | 10.06 | ||||||||||||||||||||||||||||||
911,572 | 2.20 | 5.27 | 734,046 | 5.32 | |||||||||||||||||||||||||||||||
VEREN INC. | 15 |
($ millions) | Commodity (1) |
Interest (2) |
Foreign exchange (3) |
Equity | Total | |||||||||||||||||||||||||||
Derivative assets, beginning of period | 173.5 | 3.3 | 21.4 | 1.6 | 199.8 | |||||||||||||||||||||||||||
Dispositions | 3.5 | — | — | — | 3.5 | |||||||||||||||||||||||||||
Unrealized change in fair value | (152.1) | (0.2) | (4.8) | (0.6) | (157.7) | |||||||||||||||||||||||||||
Foreign exchange |
1.3 | — | — | — | 1.3 | |||||||||||||||||||||||||||
Derivative assets, end of period | 26.2 | 3.1 | 16.6 | 1.0 | 46.9 | |||||||||||||||||||||||||||
Derivative assets, end of period | 78.0 | 3.1 | 19.5 | 1.0 | 101.6 | |||||||||||||||||||||||||||
Derivative liabilities, end of period | (51.8) | — | (2.9) | — | (54.7) |
($ millions) | June 30, 2024 | June 30, 2023 | ||||||||||||||||||||||||
Increase 10% | Decrease 10% | Increase 10% | Decrease 10% | |||||||||||||||||||||||
Commodity price | ||||||||||||||||||||||||||
Crude oil | (140.1) | 115.9 | (27.4) | 33.4 | ||||||||||||||||||||||
Natural gas | (36.9) | 37.5 | (4.1) | 4.1 | ||||||||||||||||||||||
Differential | ||||||||||||||||||||||||||
Crude oil | 0.1 | (0.1) | 0.8 | (0.8) | ||||||||||||||||||||||
Natural gas | 23.9 | (23.9) | 3.7 | (3.7) |
($ millions) |
Exchange Rate |
June 30, 2024 | June 30, 2023 | ||||||||||||||||||||||||||
Cdn$ relative to US$ |
Increase 10% | Decrease 10% | Increase 10% | Decrease 10% | |||||||||||||||||||||||||
US dollar long-term debt |
Period End |
171.0 | (171.0) | 273.2 | (273.2) | ||||||||||||||||||||||||
Cross currency swaps |
Forward |
(161.0) | 161.0 | (261.7) | 261.7 | ||||||||||||||||||||||||
Foreign exchange swaps | Forward |
10.7 | (10.7) | 1.1 | (1.1) |
VEREN INC. | 16 |
($ millions) |
June 30, 2024 | June 30, 2023 (1) |
||||||||||||||||||||||||
Share price |
Increase 25% | Decrease 25% | Increase 25% | Decrease 25% | ||||||||||||||||||||||
Total return swaps |
6.8 | (6.8) | 6.1 | (6.1) |
Financial WTI Crude Oil Derivative Contracts – Canadian Dollar (1) | ||||||||||||||||||||||||||||||||
Swap | Collar | |||||||||||||||||||||||||||||||
Term |
Volume
(bbls/d)
|
Average Price
($/bbl)
|
Volumes (bbls/d) |
Average Sold Call Price ($/bbl) |
Average Bought Put Price ($/bbl) |
|||||||||||||||||||||||||||
July 2024 - December 2024 (2) |
25,750 | 102.33 | 26,250 | 113.86 | 97.91 | |||||||||||||||||||||||||||
January 2025 - September 2025 | 10,282 | 101.33 | 8,958 | 105.98 | 95.98 |
Financial WTI Crude Oil Differential Derivative Contracts – Canadian Dollar (1) | ||||||||||||||||||||||||||
Term |
Volume
(bbls/d)
|
Contract | Basis |
Fixed Differential
($/bbl)
|
||||||||||||||||||||||
October 2024 - December 2024 | 1,500 | Basis Swap | MSW (2) |
(3.58) |
Financial AECO Natural Gas Derivative Contracts – Canadian Dollar (1) |
||||||||||||||
Swap | ||||||||||||||
Volume
(GJ/d)
|
Average Price
($/GJ)
|
|||||||||||||
Term | ||||||||||||||
July 2024 - October 2024 | 32,000 | 3.12 | ||||||||||||
VEREN INC. | 17 |
Financial NYMEX Natural Gas Derivative Contracts – US Dollar (1) |
||||||||||||||||||||||||||||||||
Swap | Collar | |||||||||||||||||||||||||||||||
Term | Volume (mmbtu/d) |
Average Price (US$/mmbtu) |
Volume (mmbtu/d) |
Average Sold Call Price (US$/mmbtu) |
Average Bought Put Price (US$/mmbtu) |
|||||||||||||||||||||||||||
July 2024 - December 2024 | 36,000 | 3.45 | 60,000 | 4.21 | 3.14 | |||||||||||||||||||||||||||
January 2025 - December 2025 | 69,836 | 3.49 | 65,000 | 3.92 | 3.32 | |||||||||||||||||||||||||||
January 2026 - December 2026 | 31,164 | 3.80 | 30,000 | 4.07 | 3.67 |
Financial NYMEX Natural Gas Differential Derivative Contracts – US Dollar (1) | ||||||||||||||||||||||||||
Term | Volume (mmbtu/d) |
Contract | Basis | Fixed Differential (US$/mmbtu) |
||||||||||||||||||||||
July 2024 - December 2024 | 193,000 | Basis Swap | AECO | (1.11) | ||||||||||||||||||||||
January 2025 - December 2025 | 193,000 | Basis Swap | AECO | (1.11) | ||||||||||||||||||||||
January 2026 - December 2026 | 55,000 | Basis Swap | AECO | (1.35) | ||||||||||||||||||||||
Financial Cross Currency Derivative Contracts | |||||||||||||||||||||||||||||
Term | Contract |
Receive Notional Principal
(US$ millions)
|
Fixed Rate (US%) |
Pay Notional Principal
(Cdn$ millions)
|
Fixed Rate (Cdn%) | ||||||||||||||||||||||||
July 2024 | Swap | 278.0 | 7.12 | 381.4 | 6.64 | ||||||||||||||||||||||||
July 2024 - August 2024 | Swap | 524.0 | 7.13 | 717.6 | 6.55 | ||||||||||||||||||||||||
July 2024 - September 2024 | Swap | 115.0 | 7.14 | 157.7 | 6.39 | ||||||||||||||||||||||||
July 2024 - April 2025 | Swap | 52.0 | 4.30 | 67.9 | 3.98 | ||||||||||||||||||||||||
July 2024 - April 2025 | Swap | 207.5 | 4.08 | 262.6 | 4.13 | ||||||||||||||||||||||||
Financial Foreign Exchange Forward Derivative Contracts | |||||||||||||||||||||||||||||
Settlement Date | Contract | Receive Currency | Receive Notional Principal ($ millions) |
Pay Currency |
Pay Notional Principal
($ millions)
|
||||||||||||||||||||||||
July 2024 | Swap (1) |
Cdn$ | 67.1 | US$ | 49.0 | ||||||||||||||||||||||||
December 2024 | Swap | Cdn$ | 40.5 | US$ | 30.0 |
Financial Equity Derivative Contracts |
Notional Principal
($ millions)
|
Number of shares |
||||||||||||||||||
Term |
Contract |
|||||||||||||||||||
July 2024 - March 2025 | Swap | 17.1 | 1,676,910 | |||||||||||||||||
July 2024 - March 2026 | Swap | 9.3 | 855,519 |
VEREN INC. | 18 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||
($ millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Operating activities | ||||||||||||||||||||||||||
Changes in non-cash working capital: |
||||||||||||||||||||||||||
Accounts receivable |
30.8 | (7.4) | (3.1) | (47.2) | ||||||||||||||||||||||
Prepaids and deposits |
— | (4.6) | (2.8) | (0.6) | ||||||||||||||||||||||
Accounts payable and accrued liabilities |
11.4 | (23.1) | (92.0) | (25.4) | ||||||||||||||||||||||
Other current liabilities |
(7.2) | (27.8) | (17.5) | (19.3) | ||||||||||||||||||||||
Other long-term liabilities |
(0.7) | (7.1) | 1.3 | (17.3) | ||||||||||||||||||||||
34.3 | (70.0) | (114.1) | (109.8) | |||||||||||||||||||||||
Investing activities |
||||||||||||||||||||||||||
Changes in non-cash working capital: |
||||||||||||||||||||||||||
Accounts receivable |
(1.4) | (2.2) | 1.2 | (0.6) | ||||||||||||||||||||||
Other current assets | 40.2 | 68.0 | 29.2 | 18.7 | ||||||||||||||||||||||
Accounts payable and accrued liabilities |
(31.5) | 10.4 | 27.4 | 17.5 | ||||||||||||||||||||||
7.3 | 76.2 | 57.8 | 35.6 | |||||||||||||||||||||||
Financing activities | ||||||||||||||||||||||||||
Changes in non-cash working capital: |
||||||||||||||||||||||||||
Prepaids and deposits | 0.1 | 0.6 | (14.4) | (9.9) | ||||||||||||||||||||||
Accounts payable and accrued liabilities | (2.1) | (5.4) | 0.9 | 2.6 | ||||||||||||||||||||||
Dividends payable | (0.1) | (0.5) | 14.4 | (45.2) | ||||||||||||||||||||||
(2.1) | (5.3) | 0.9 | (52.5) |
VEREN INC. | 19 |
($ millions) |
Dividends payable |
Long-term debt (1) |
Lease liability (2) |
||||||||||||||||||||
December 31, 2022 | 99.4 | 1,441.5 | 124.1 | ||||||||||||||||||||
Changes from cash flow from financing activities: | |||||||||||||||||||||||
Increase in bank debt, net | 2,114.2 | ||||||||||||||||||||||
Repayment of senior notes | (534.1) | ||||||||||||||||||||||
Realized gain on cross currency swap maturity | 85.0 | ||||||||||||||||||||||
Dividends paid | (117.1) | ||||||||||||||||||||||
Payments on principal portion of lease liability |
(10.6) | ||||||||||||||||||||||
Non-cash changes: |
|||||||||||||||||||||||
Dividends declared | 71.9 | ||||||||||||||||||||||
Additions |
2.8 | ||||||||||||||||||||||
Foreign exchange |
(124.7) | ||||||||||||||||||||||
June 30, 2023 | 54.2 | 2,981.9 | 116.3 | ||||||||||||||||||||
December 31, 2023 | 56.8 | 3,566.3 | 144.7 | ||||||||||||||||||||
Changes from cash flow from financing activities: |
|||||||||||||||||||||||
Decrease in bank debt, net | (1,418.6) | ||||||||||||||||||||||
Issuance of senior notes | 1,000.0 | ||||||||||||||||||||||
Repayment of senior notes | (392.9) | ||||||||||||||||||||||
Realized gain on cross currency swap maturity | 88.7 | ||||||||||||||||||||||
Dividends paid | (128.6) | ||||||||||||||||||||||
Payments on principal portion of lease liability |
(17.4) | ||||||||||||||||||||||
Non-cash changes: |
|||||||||||||||||||||||
Dividends declared | 143.0 | ||||||||||||||||||||||
Additions |
0.3 | ||||||||||||||||||||||
Dispositions | (0.3) | ||||||||||||||||||||||
Foreign exchange |
1.4 | ||||||||||||||||||||||
June 30, 2024 | 71.2 | 2,844.9 | 127.3 |
VEREN INC. | 20 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||
($ millions) (1) |
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
Canada | ||||||||||||||||||||||||||
Crude oil and condensate sales | 1,022.7 | 704.0 | 1,955.4 | 1,356.0 | ||||||||||||||||||||||
NGL sales | 55.5 | 38.7 | 120.4 | 89.5 | ||||||||||||||||||||||
Natural gas sales | 58.2 | 48.9 | 168.5 | 108.1 | ||||||||||||||||||||||
Total Canada | 1,136.4 | 791.6 | 2,244.3 | 1,553.6 | ||||||||||||||||||||||
U.S. | ||||||||||||||||||||||||||
Crude oil and condensate sales | — | 146.8 | — | 280.8 | ||||||||||||||||||||||
NGL sales | — | 6.8 | — | 17.8 | ||||||||||||||||||||||
Natural gas sales | — | 4.4 | — | 11.0 | ||||||||||||||||||||||
Total U.S. (2) |
— | 158.0 | — | 309.6 | ||||||||||||||||||||||
Total oil and gas sales | 1,136.4 | 949.6 | 2,244.3 | 1,863.2 |
VEREN INC. | 21 |
Directors
Barbara Munroe, Chair (6)
James Craddock (2) (3) (5)
John Dielwart (3) (4)
Mike Jackson (1) (5)
Jennifer Koury (2) (5)
Francois Langlois (1) (3) (4)
Myron Stadnyk (1) (2) (4)
Mindy Wight (1) (2)
Craig Bryksa (4)
(1) Member of the Audit Committee of the Board of Directors
(2) Member of the Human Resources and Compensation Committee of the Board of Directors
(3) Member of the Reserves Committee of the Board of Directors
(4) Member of the Environment, Safety and Sustainability Committee of the Board of Directors
(5) Member of the Corporate Governance and Nominating Committee
(6) Chair of the Board serves in an ex officio capacity on each Committee
Officers
Craig Bryksa
President and Chief Executive Officer
Ken Lamont
Chief Financial Officer
Ryan Gritzfeldt
Chief Operating Officer
Mark Eade
Senior Vice President, General Counsel and Corporate Secretary
Garret Holt
Senior Vice President, Strategy and Planning
Michael Politeski
Senior Vice President, Finance and Treasurer
Shelly Witwer
Senior Vice President, Business Development
Justin Foraie
Vice President, Operations and Marketing
Head Office
Suite 2000, 585 - 8th Avenue S.W.
Calgary, Alberta T2P 1G1
Tel: (403) 693-0020
Fax: (403) 693-0070
Toll Free: (888) 693-0020
Banker
The Bank of Nova Scotia
Calgary, Alberta
|
Auditor
PricewaterhouseCoopers LLP
Calgary, Alberta
Legal Counsel
Norton Rose Fulbright Canada LLP
Calgary, Alberta
Evaluation Engineers
McDaniel & Associates Consultants Ltd.
Calgary, Alberta
Registrar and Transfer Agent
Investors are encouraged to contact Veren's Registrar and Transfer Agent for information regarding their security holdings:
Computershare Trust Company of Canada
600, 530 - 8th Avenue S.W.
Calgary, Alberta T2P 3S8
Tel: (403) 267-6800
Stock Exchanges
Toronto Stock Exchange - TSX
New York Stock Exchange - NYSE
Stock Symbol
VRN
Investor Contacts
Sarfraz Somani
Manager, Investor Relations
(403) 693-0020
|
|||||||
VEREN INC. | 22 |
VEREN INC. | 1 |
Three months ended June 30, 2024 | Three months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||
($ millions) | Continuing | Discontinued | Total | Continuing (1) |
Discontinued (1) |
Total | |||||||||||||||||||||||||||||||||||
REVENUE AND OTHER INCOME | |||||||||||||||||||||||||||||||||||||||||
Oil and gas sales |
1,136.4 | — | 1,136.4 | 791.6 | 158.0 | 949.6 | |||||||||||||||||||||||||||||||||||
Purchased product sales |
27.7 | — | 27.7 | 16.2 | — | 16.2 | |||||||||||||||||||||||||||||||||||
Royalties |
(115.9) | — | (115.9) | (83.8) | (40.2) | (124.0) | |||||||||||||||||||||||||||||||||||
Oil and gas revenue | 1,048.2 | — | 1,048.2 | 724.0 | 117.8 | 841.8 | |||||||||||||||||||||||||||||||||||
Commodity derivative gains | 62.3 | — | 62.3 | 36.7 | — | 36.7 | |||||||||||||||||||||||||||||||||||
Other income | 2.4 | 0.1 | 2.5 | 2.9 | 6.3 | 9.2 | |||||||||||||||||||||||||||||||||||
1,112.9 | 0.1 | 1,113.0 | 763.6 | 124.1 | 887.7 | ||||||||||||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||||||||
Operating | 239.5 | — | 239.5 | 182.8 | 20.4 | 203.2 | |||||||||||||||||||||||||||||||||||
Purchased product | 27.3 | — | 27.3 | 17.6 | — | 17.6 | |||||||||||||||||||||||||||||||||||
Transportation | 79.7 | — | 79.7 | 39.7 | 4.0 | 43.7 | |||||||||||||||||||||||||||||||||||
General and administrative | 37.9 | — | 37.9 | 36.7 | 0.4 | 37.1 | |||||||||||||||||||||||||||||||||||
Interest | 56.9 | — | 56.9 | 31.5 | — | 31.5 | |||||||||||||||||||||||||||||||||||
Foreign exchange (gain) loss | 0.8 | — | 0.8 | (4.2) | — | (4.2) | |||||||||||||||||||||||||||||||||||
Share-based compensation | 8.4 | — | 8.4 | 6.5 | 0.1 | 6.6 | |||||||||||||||||||||||||||||||||||
Depletion, depreciation and amortization | 322.1 | — | 322.1 | 211.5 | 53.0 | 264.5 | |||||||||||||||||||||||||||||||||||
Accretion and financing | 5.9 | — | 5.9 | 6.4 | 0.2 | 6.6 | |||||||||||||||||||||||||||||||||||
778.5 | — | 778.5 | 528.5 | 78.1 | 606.6 | ||||||||||||||||||||||||||||||||||||
Net income before tax | 334.4 | 0.1 | 334.5 | 235.1 | 46.0 | 281.1 | |||||||||||||||||||||||||||||||||||
Tax expense | |||||||||||||||||||||||||||||||||||||||||
Current |
— | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Deferred |
73.5 | — | 73.5 | 56.7 | 12.1 | 68.8 | |||||||||||||||||||||||||||||||||||
Net income | 260.9 | 0.1 | 261.0 | 178.4 | 33.9 | 212.3 |
VEREN INC. | 2 |
Six months ended June 30, 2024 | Six months ended June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||
($ millions) | Continuing | Discontinued | Total | Continuing (1) |
Discontinued (1) |
Total | |||||||||||||||||||||||||||||||||||
REVENUE AND OTHER INCOME | |||||||||||||||||||||||||||||||||||||||||
Oil and gas sales |
2,244.3 | — | 2,244.3 | 1,553.6 | 309.6 | 1,863.2 | |||||||||||||||||||||||||||||||||||
Purchased product sales |
56.0 | — | 56.0 | 36.0 | — | 36.0 | |||||||||||||||||||||||||||||||||||
Royalties |
(229.8) | — | (229.8) | (169.8) | (78.7) | (248.5) | |||||||||||||||||||||||||||||||||||
Oil and gas revenue | 2,070.5 | — | 2,070.5 | 1,419.8 | 230.9 | 1,650.7 | |||||||||||||||||||||||||||||||||||
Commodity derivative gains (losses) | (151.0) | — | (151.0) | 49.9 | — | 49.9 | |||||||||||||||||||||||||||||||||||
Other income (loss) | 3.9 | (12.7) | (8.8) | 11.4 | 6.3 | 17.7 | |||||||||||||||||||||||||||||||||||
1,923.4 | (12.7) | 1,910.7 | 1,481.1 | 237.2 | 1,718.3 | ||||||||||||||||||||||||||||||||||||
EXPENSES | |||||||||||||||||||||||||||||||||||||||||
Operating | 490.5 | — | 490.5 | 351.8 | 43.8 | 395.6 | |||||||||||||||||||||||||||||||||||
Purchased product | 57.1 | — | 57.1 | 38.1 | — | 38.1 | |||||||||||||||||||||||||||||||||||
Transportation | 161.5 | — | 161.5 | 72.5 | 6.7 | 79.2 | |||||||||||||||||||||||||||||||||||
General and administrative | 66.5 | — | 66.5 | 60.7 | 1.1 | 61.8 | |||||||||||||||||||||||||||||||||||
Interest | 117.7 | — | 117.7 | 47.5 | — | 47.5 | |||||||||||||||||||||||||||||||||||
Foreign exchange gain | (1.0) | — | (1.0) | (7.2) | — | (7.2) | |||||||||||||||||||||||||||||||||||
Share-based compensation | 20.6 | — | 20.6 | 24.0 | 0.1 | 24.1 | |||||||||||||||||||||||||||||||||||
Depletion, depreciation and amortization | 666.2 | — | 666.2 | 397.9 | 98.3 | 496.2 | |||||||||||||||||||||||||||||||||||
Impairment | 512.3 | — | 512.3 | — | — | — | |||||||||||||||||||||||||||||||||||
Accretion and financing | 12.7 | — | 12.7 | 13.4 | 0.3 | 13.7 | |||||||||||||||||||||||||||||||||||
2,104.1 | — | 2,104.1 | 998.7 | 150.3 | 1,149.0 | ||||||||||||||||||||||||||||||||||||
Net income (loss) before tax | (180.7) | (12.7) | (193.4) | 482.4 | 86.9 | 569.3 | |||||||||||||||||||||||||||||||||||
Tax expense (recovery) | |||||||||||||||||||||||||||||||||||||||||
Current |
— | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Deferred |
(42.7) | — | (42.7) | 119.2 | 21.1 | 140.3 | |||||||||||||||||||||||||||||||||||
Net income (loss) | (138.0) | (12.7) | (150.7) | 363.2 | 65.8 | 429.0 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
2024 | 2023 | % Change |
2024 | 2023 | % Change | |||||||||||||||||||||||||||||||||
Crude oil and condensate (bbls/d) | 110,399 | 84,944 | 30 | 112,003 | 81,586 | 37 | ||||||||||||||||||||||||||||||||
NGLs (bbls/d) | 17,041 | 14,360 | 19 | 18,059 | 13,963 | 29 | ||||||||||||||||||||||||||||||||
Natural gas (mcf/d) |
391,249 | 192,964 | 103 | 393,228 | 175,425 | 124 | ||||||||||||||||||||||||||||||||
Production from continuing operations (boe/d) | 192,648 | 131,465 | 47 | 195,600 | 124,787 | 57 | ||||||||||||||||||||||||||||||||
Production from discontinued operations (boe/d) | — | 23,566 | (100) | — | 22,412 | (100) | ||||||||||||||||||||||||||||||||
Total average daily production (boe/d) | 192,648 | 155,031 | 24 | 195,600 | 147,199 | 33 | ||||||||||||||||||||||||||||||||
Crude oil and liquids - continuing operations (%) | 66 | 76 | (10) | 66 | 77 | (11) | ||||||||||||||||||||||||||||||||
Natural gas - continuing operations (%) | 34 | 24 | 10 | 34 | 23 | 11 | ||||||||||||||||||||||||||||||||
Total (%) |
100 | 100 | — | 100 | 100 | — |
VEREN INC. | 3 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
Production By Area (boe/d) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Alberta | 137,078 | 68,078 | 101 | 136,945 | 60,931 | 125 | ||||||||||||||||||||||||||||||||
Saskatchewan | 55,570 | 63,387 | (12) | 58,655 | 63,856 | (8) | ||||||||||||||||||||||||||||||||
Production from continuing operations | 192,648 | 131,465 | 47 | 195,600 | 124,787 | 57 | ||||||||||||||||||||||||||||||||
Production from discontinued operations - North Dakota | — | 23,566 | (100) | — | 22,412 | (100) | ||||||||||||||||||||||||||||||||
Total average daily production | 192,648 | 155,031 | 24 | 195,600 | 147,199 | 33 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
Average Selling Prices (1) |
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Crude oil and condensate ($/bbl) | 101.81 | 91.08 | 12 | 95.93 | 91.83 | 4 | ||||||||||||||||||||||||||||||||
NGLs ($/bbl) |
35.78 | 29.64 | 21 | 36.62 | 35.43 | 3 | ||||||||||||||||||||||||||||||||
Natural gas ($/mcf) |
1.64 | 2.78 | (41) | 2.35 | 3.40 | (31) | ||||||||||||||||||||||||||||||||
Total ($/boe) |
64.82 | 66.17 | (2) | 63.04 | 68.78 | (8) |
VEREN INC. | 4 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
Benchmark Pricing | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Crude Oil Prices |
||||||||||||||||||||||||||||||||||||||
WTI crude oil (US$/bbl) (1) |
80.55 | 73.75 | 9 | 78.76 | 74.92 | 5 | ||||||||||||||||||||||||||||||||
WTI crude oil (Cdn$/bbl) |
110.19 | 98.99 | 11 | 107.01 | 100.97 | 6 | ||||||||||||||||||||||||||||||||
Crude Oil and Condensate Differentials | ||||||||||||||||||||||||||||||||||||||
LSB crude oil (Cdn$/bbl) (2) |
(5.96) | (5.25) | 14 | (10.12) | (6.98) | 45 | ||||||||||||||||||||||||||||||||
FOS crude oil (Cdn$/bbl) (3) |
(17.56) | (18.54) | (5) | (20.23) | (24.81) | (18) | ||||||||||||||||||||||||||||||||
MSW crude oil (Cdn$/bbl) (4) |
(4.97) | (4.16) | 19 | (8.34) | (4.02) | 107 | ||||||||||||||||||||||||||||||||
C5+ condensate (Cdn$/bbl) (5) |
(4.71) | (1.97) | 139 | (5.16) | 1.50 | (444) | ||||||||||||||||||||||||||||||||
Natural Gas Prices |
||||||||||||||||||||||||||||||||||||||
AECO daily spot natural gas (Cdn$/mcf) (6) |
1.18 | 2.45 | (52) | 1.84 | 2.84 | (35) | ||||||||||||||||||||||||||||||||
AECO monthly index natural gas (Cdn$/mcf) |
1.43 | 2.34 | (39) | 1.74 | 3.34 | (48) | ||||||||||||||||||||||||||||||||
NYMEX natural gas (US$/mmbtu) (7) |
1.89 | 2.10 | (10) | 2.06 | 2.76 | (25) | ||||||||||||||||||||||||||||||||
Foreign Exchange Rate |
||||||||||||||||||||||||||||||||||||||
Exchange rate (US$/Cdn$) |
0.731 | 0.745 | (2) | 0.736 | 0.742 | (1) |
VEREN INC. | 5 |
VEREN INC. | 6 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except volume amounts) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Average crude oil volumes hedged (bbls/d) | 57,000 | 30,852 | 85 | 57,430 | 25,953 | 121 | ||||||||||||||||||||||||||||||||
Crude oil realized derivative gain (loss) | (21.4) | 20.9 | (202) | (19.2) | 11.1 | (273) | ||||||||||||||||||||||||||||||||
per bbl - continuing operations | (2.13) | 2.70 | (179) | (0.94) | 0.75 | (225) | ||||||||||||||||||||||||||||||||
Average natural gas volumes hedged (GJ/d) (1) (2) |
122,735 | 34,000 | 261 | 121,735 | 32,011 | 280 | ||||||||||||||||||||||||||||||||
Natural gas realized derivative gain (2) |
18.0 | 4.4 | 309 | 20.3 | 6.8 | 199 | ||||||||||||||||||||||||||||||||
per GJ - continuing operations | 0.51 | 0.25 | 104 | 0.28 | 0.21 | 33 | ||||||||||||||||||||||||||||||||
Average barrels of oil equivalent hedged (boe/d) (2) |
76,388 | 36,223 | 111 | 76,661 | 31,010 | 147 | ||||||||||||||||||||||||||||||||
Total realized commodity derivative gains (losses) (2) |
(3.4) | 25.3 | (113) | 1.1 | 17.9 | (94) | ||||||||||||||||||||||||||||||||
per boe - continuing operations | (0.19) | 2.11 | (109) | 0.03 | 0.79 | (96) | ||||||||||||||||||||||||||||||||
per boe - total average daily production | (0.19) | 1.79 | (111) | 0.03 | 0.67 | (96) |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) |
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Crude oil | 13.4 | 7.2 | 86 | (180.4) | 35.2 | (613) | ||||||||||||||||||||||||||||||||
Natural gas |
52.3 | 4.2 | 1,145 | 28.3 | (3.2) | (984) | ||||||||||||||||||||||||||||||||
Total unrealized commodity derivative gains (losses) | 65.7 | 11.4 | 476 | (152.1) | 32.0 | (575) |
VEREN INC. | 7 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) (1) |
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Crude oil and condensate sales | 1,022.7 | 704.0 | 45 | 1,955.4 | 1,356.0 | 44 | ||||||||||||||||||||||||||||||||
NGL sales |
55.5 | 38.7 | 43 | 120.4 | 89.5 | 35 | ||||||||||||||||||||||||||||||||
Natural gas sales |
58.2 | 48.9 | 19 | 168.5 | 108.1 | 56 | ||||||||||||||||||||||||||||||||
Total oil and gas sales |
1,136.4 | 791.6 | 44 | 2,244.3 | 1,553.6 | 44 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except % and per boe amounts) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Royalties | 115.9 | 83.8 | 38 | 229.8 | 169.8 | 35 | ||||||||||||||||||||||||||||||||
As a % of oil and gas sales | 10.2 | 10.6 | (0.4) | 10.2 | 10.9 | (0.7) | ||||||||||||||||||||||||||||||||
Per boe | 6.61 | 7.00 | (6) | 6.46 | 7.52 | (14) |
VEREN INC. | 8 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except per boe amounts) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Operating expenses |
239.5 | 182.8 | 31 | 490.5 | 351.8 | 39 | ||||||||||||||||||||||||||||||||
Per boe |
13.66 | 15.28 | (11) | 13.78 | 15.58 | (12) |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except per boe amounts) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Transportation expenses | 79.7 | 39.7 | 101 | 161.5 | 72.5 | 123 | ||||||||||||||||||||||||||||||||
Per boe | 4.55 | 3.32 | 37 | 4.54 | 3.21 | 41 |
VEREN INC. | 9 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($/boe) (1) |
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Oil and gas sales | 64.82 | 66.17 | (2) | 63.04 | 68.78 | (8) | ||||||||||||||||||||||||||||||||
Royalties |
(6.61) | (7.00) | (6) | (6.46) | (7.52) | (14) | ||||||||||||||||||||||||||||||||
Operating expenses |
(13.66) | (15.28) | (11) | (13.78) | (15.58) | (12) | ||||||||||||||||||||||||||||||||
Transportation expenses |
(4.55) | (3.32) | 37 | (4.54) | (3.21) | 41 | ||||||||||||||||||||||||||||||||
Operating netback (2) |
40.00 | 40.57 | (1) | 38.26 | 42.47 | (10) | ||||||||||||||||||||||||||||||||
Realized gain (loss) on commodity derivatives | (0.19) | 2.11 | (109) | 0.03 | 0.79 | (96) | ||||||||||||||||||||||||||||||||
Netback (2) |
39.81 | 42.68 | (7) | 38.29 | 43.26 | (11) |
VEREN INC. | 10 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except per boe amounts) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Gross general and administrative expenses | 54.2 | 48.6 | 12 | 98.4 | 85.9 | 15 | ||||||||||||||||||||||||||||||||
Overhead recoveries | (6.2) | (3.5) | 77 | (11.4) | (7.9) | 44 | ||||||||||||||||||||||||||||||||
Capitalized |
(10.1) | (8.4) | 20 | (20.5) | (17.3) | 18 | ||||||||||||||||||||||||||||||||
Total general and administrative expenses |
37.9 | 36.7 | 3 | 66.5 | 60.7 | 10 | ||||||||||||||||||||||||||||||||
Transaction costs | (12.9) | (14.6) | (12) | (14.2) | (16.4) | (13) | ||||||||||||||||||||||||||||||||
General and administrative expenses | 25.0 | 22.1 | 13 | 52.3 | 44.3 | 18 | ||||||||||||||||||||||||||||||||
Per boe |
1.43 | 1.85 | (23) | 1.47 | 1.96 | (25) |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except per boe amounts) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Interest expense on long-term debt |
56.2 | 29.8 | 89 | 117.5 | 45.9 | 156 | ||||||||||||||||||||||||||||||||
Unrealized loss on interest derivative contracts | 0.7 | 1.7 | (59) | 0.2 | 1.6 | (88) | ||||||||||||||||||||||||||||||||
Interest expense | 56.9 | 31.5 | 81 | 117.7 | 47.5 | 148 | ||||||||||||||||||||||||||||||||
Per boe - continuing operations | 3.25 | 2.63 | 24 | 3.31 | 2.10 | 58 | ||||||||||||||||||||||||||||||||
Per boe - total average daily production | 3.25 | 2.23 | 46 | 3.31 | 1.78 | 86 |
VEREN INC. | 11 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Realized gain on CCS - principal | 91.1 | 89.4 | 2 | 88.7 | 89.1 | — | ||||||||||||||||||||||||||||||||
Translation of US dollar long-term debt | (24.5) | 39.1 | (163) | (90.3) | 40.0 | (326) | ||||||||||||||||||||||||||||||||
Unrealized loss on CCS - principal and foreign exchange swaps | (69.1) | (123.4) | (44) | (4.8) | (120.5) | (96) | ||||||||||||||||||||||||||||||||
Other |
1.7 | (0.9) | (289) | 7.4 | (1.4) | (629) | ||||||||||||||||||||||||||||||||
Foreign exchange gain (loss) | (0.8) | 4.2 | (119) | 1.0 | 7.2 | (86) |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except per boe amounts) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Share-based compensation costs | 9.0 | 4.9 | 84 | 29.3 | 22.4 | 31 | ||||||||||||||||||||||||||||||||
Realized gain on equity derivative contracts | — | — | — | (4.8) | (25.8) | (81) | ||||||||||||||||||||||||||||||||
Unrealized loss on equity derivative contracts | 0.7 | 2.5 | (72) | 0.6 | 30.0 | (98) | ||||||||||||||||||||||||||||||||
Capitalized | (1.3) | (0.9) | 44 | (4.5) | (2.6) | 73 | ||||||||||||||||||||||||||||||||
Share-based compensation expense | 8.4 | 6.5 | 29 | 20.6 | 24.0 | (14) | ||||||||||||||||||||||||||||||||
Per boe | 0.48 | 0.54 | (11) | 0.58 | 1.06 | (45) |
VEREN INC. | 12 |
June 30, 2024 | December 31, 2023 | |||||||||||||
Restricted Share Bonus Plan (1) |
1,116,754 | 1,380,685 | ||||||||||||
Employee Share Value Plan | 2,935,707 | 2,660,066 | ||||||||||||
Performance Share Unit Plan (2) |
2,865,521 | 1,623,248 | ||||||||||||
Deferred Share Unit Plan | 1,829,060 | 1,728,423 | ||||||||||||
Stock Option Plan (3) |
911,572 | 3,224,260 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except per boe amounts) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Depletion and depreciation |
292.3 | 206.2 | 42 | 606.8 | 390.0 | 56 | ||||||||||||||||||||||||||||||||
Amortization of exploration and evaluation undeveloped land | 29.8 | 5.3 | 462 | 59.4 | 7.9 | 652 | ||||||||||||||||||||||||||||||||
Depletion, depreciation and amortization | 322.1 | 211.5 | 52 | 666.2 | 397.9 | 67 | ||||||||||||||||||||||||||||||||
Per boe | 18.37 | 17.68 | 4 | 18.71 | 17.62 | 6 |
VEREN INC. | 13 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except per boe amounts) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Impairment | — | — | — | 512.3 | — | 100 | ||||||||||||||||||||||||||||||||
Per boe | — | — | — | 14.39 | — | 100 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Current tax expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Deferred tax expense (recovery) | 73.5 | 56.7 | 30 | (42.7) | 119.2 | (136) |
VEREN INC. | 14 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except per share amounts) |
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Cash flow from operating activities from continuing operations | 625.8 | 365.9 | 71 | 1,037.0 | 735.7 | 41 | ||||||||||||||||||||||||||||||||
Adjusted funds flow from continuing operations (1) |
611.7 | 453.4 | 35 | 1,179.9 | 892.0 | 32 | ||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | 260.9 | 178.4 | 46 | (138.0) | 363.2 | (138) | ||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations per share - diluted | 0.42 | 0.33 | 27 | (0.22) | 0.66 | (133) | ||||||||||||||||||||||||||||||||
Adjusted net earnings from continuing operations (1) |
237.8 | 171.6 | 39 | 424.8 | 359.3 | 18 | ||||||||||||||||||||||||||||||||
Adjusted net earnings from continuing operations per share - diluted (1) |
0.38 | 0.32 | 19 | 0.68 | 0.65 | 5 |
VEREN INC. | 15 |
VEREN INC. | 16 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except per share amounts) |
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Cash flow from operating activities from discontinued operations | — | 96.2 | (100) | — | 199.8 | (100) | ||||||||||||||||||||||||||||||||
Adjusted funds flow from discontinued operations (1) |
— | 99.2 | (100) | — | 185.5 | (100) | ||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | 0.1 | 33.9 | (100) | (12.7) | 65.8 | (119) | ||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations per share - diluted | — | 0.06 | (100) | (0.02) | 0.12 | (117) | ||||||||||||||||||||||||||||||||
Adjusted net earnings from discontinued operations (1) |
— | 33.8 | (100) | — | 65.0 | (100) | ||||||||||||||||||||||||||||||||
Adjusted net earnings from discontinued operations per share - diluted (1) |
— | 0.06 | (100) | — | 0.12 | (100) |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions, except per share amounts) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Dividends declared | 71.7 | 54.8 | 31 | 143.0 | 71.9 | 99 | ||||||||||||||||||||||||||||||||
Dividends declared per share | 0.115 | 0.100 | 15 | 0.230 | 0.132 | 74 | ||||||||||||||||||||||||||||||||
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Development capital expenditures (1) |
350.6 | 230.1 | 52 | 749.2 | 544.3 | 38 | ||||||||||||||||||||||||||||||||
Land expenditures |
27.4 | 7.1 | 286 | 35.1 | 8.4 | 318 | ||||||||||||||||||||||||||||||||
Capitalized administration (2) |
11.4 | 10.1 | 13 | 25.0 | 21.5 | 16 | ||||||||||||||||||||||||||||||||
Corporate assets | 1.5 | 1.8 | (17) | 2.6 | 2.3 | 13 | ||||||||||||||||||||||||||||||||
Capital acquisitions | — | 1,702.7 | (100) | — | 2,074.7 | (100) | ||||||||||||||||||||||||||||||||
Capital dispositions (3) |
(541.1) | (8.4) | 6,342 | (646.9) | (11.0) | 5,781 | ||||||||||||||||||||||||||||||||
Total (4) |
(150.2) | 1,943.4 | (108) | 165.0 | 2,640.2 | (94) |
VEREN INC. | 17 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Development capital expenditures from continuing operations (1) |
350.6 | 123.5 | 184 | 749.2 | 308.5 | 143 | ||||||||||||||||||||||||||||||||
Development capital expenditures from discontinued
operations (1)
|
— | 106.6 | (100) | — | 235.8 | (100) | ||||||||||||||||||||||||||||||||
Development capital expenditures | 350.6 | 230.1 | 52 | 749.2 | 544.3 | 38 |
VEREN INC. | 18 |
Capitalization Table
($ millions, except share, per share, ratio and percent amounts)
|
June 30, 2024 | December 31, 2023 | ||||||||||||
Net debt (1) |
2,962.7 | 3,738.1 | ||||||||||||
Shares outstanding |
617,569,617 | 619,929,490 | ||||||||||||
Market price at end of period (per share) | 10.79 | 9.19 | ||||||||||||
Market capitalization | 6,663.6 | 5,697.2 | ||||||||||||
Enterprise value (1) |
9,626.3 | 9,435.3 | ||||||||||||
Net debt as a percentage of enterprise value (1) |
31 | 40 | ||||||||||||
Adjusted funds flow from operations (1) (2) |
2,441.5 | 2,339.1 | ||||||||||||
Net debt to adjusted funds flow from operations (1) (3) |
1.2 | 1.6 |
VEREN INC. | 19 |
Covenant Description |
Maximum Ratio |
June 30, 2024 | ||||||||||||
Senior debt to adjusted EBITDA (1) (2) |
3.50 | 0.98 | ||||||||||||
Total debt to adjusted EBITDA (1) (3) |
4.00 | 0.98 | ||||||||||||
Senior debt to capital (2) (4) |
0.55 | 0.31 |
VEREN INC. | 20 |
VEREN INC. | 21 |
2024 | 2023 | 2022 | ||||||||||||||||||||||||||||||
($ millions, except per share amounts) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | ||||||||||||||||||||||||
Oil and gas sales from continuing operations | 1,136.4 | 1,107.9 | 946.7 | 998.7 | 791.6 | 762.0 | 864.2 | 930.3 | ||||||||||||||||||||||||
Total oil and gas sales | 1,136.4 | 1,107.9 | 1,012.4 | 1,236.3 | 949.6 | 913.6 | 1,016.6 | 1,097.3 | ||||||||||||||||||||||||
Average daily production from continuing operations | ||||||||||||||||||||||||||||||||
Crude oil and condensate (bbls/d) | 110,399 | 113,607 | 96,144 | 92,824 | 84,944 | 78,191 | 78,051 | 79,077 | ||||||||||||||||||||||||
NGLs (bbls/d) | 17,041 | 19,077 | 16,023 | 16,119 | 14,360 | 13,562 | 13,427 | 13,070 | ||||||||||||||||||||||||
Natural gas (mcf/d) | 391,249 | 395,204 | 248,306 | 244,777 | 192,964 | 157,690 | 139,206 | 131,377 | ||||||||||||||||||||||||
Production from continuing operations (boe/d) | 192,648 | 198,551 | 153,551 | 149,739 | 131,465 | 118,035 | 114,679 | 114,043 | ||||||||||||||||||||||||
Total average daily production (boe/d) | 192,648 | 198,551 | 162,269 | 180,581 | 155,031 | 139,280 | 134,124 | 133,019 | ||||||||||||||||||||||||
Net income (loss) from continuing operations | 260.9 | (398.9) | 302.6 | 133.6 | 178.4 | 184.8 | (577.8) | 415.1 | ||||||||||||||||||||||||
Net income (loss) per share from continuing operations - diluted | 0.42 | (0.64) | 0.54 | 0.25 | 0.33 | 0.33 | (1.04) | 0.73 | ||||||||||||||||||||||||
Net income (loss) |
261.0 | (411.7) | 951.2 | (809.9) | 212.3 | 216.7 | (498.1) | 466.4 | ||||||||||||||||||||||||
Net income (loss) per share – diluted | 0.42 | (0.66) | 1.70 | (1.52) | 0.39 | 0.39 | (0.90) | 0.82 | ||||||||||||||||||||||||
Adjusted net earnings from continuing operations (1) |
237.8 | 187.0 | 210.0 | 226.6 | 171.6 | 187.7 | 165.5 | 195.7 | ||||||||||||||||||||||||
Adjusted net earnings from continuing operations
per share – diluted (1)
|
0.38 | 0.30 | 0.37 | 0.42 | 0.32 | 0.34 | 0.30 | 0.35 | ||||||||||||||||||||||||
Adjusted net earnings from operations (1) |
237.8 | 187.0 | 192.8 | 315.5 | 205.4 | 218.9 | 209.8 | 242.9 | ||||||||||||||||||||||||
Adjusted net earnings from operations
per share – diluted (1)
|
0.38 | 0.30 | 0.34 | 0.59 | 0.38 | 0.40 | 0.38 | 0.43 | ||||||||||||||||||||||||
Cash flow from operating activities from continuing operations | 625.8 | 411.2 | 524.0 | 537.1 | 365.9 | 369.8 | 507.5 | 530.5 | ||||||||||||||||||||||||
Cash flow from operating activities | 625.8 | 411.2 | 611.3 | 648.9 | 462.1 | 473.4 | 589.5 | 647.0 | ||||||||||||||||||||||||
Adjusted funds flow from continuing operations (1) |
611.7 | 568.2 | 535.1 | 548.6 | 453.4 | 438.6 | 430.9 | 479.1 | ||||||||||||||||||||||||
Adjusted funds flow from operations (1) |
611.7 | 568.2 | 574.5 | 687.1 | 552.6 | 524.9 | 522.8 | 576.5 | ||||||||||||||||||||||||
Adjusted working capital surplus (deficiency) (1) |
(140.4) | (82.0) | (196.3) | (45.7) | (82.5) | (79.9) | 95.1 | 47.9 | ||||||||||||||||||||||||
Total assets | 11,336.4 | 12,035.5 | 12,775.7 | 10,371.0 | 11,277.2 | 9,759.6 | 9,486.4 | 10,437.6 | ||||||||||||||||||||||||
Total liabilities | 4,811.5 | 5,659.6 | 5,908.2 | 4,660.6 | 4,597.5 | 3,113.8 | 2,993.0 | 3,224.6 | ||||||||||||||||||||||||
Net debt (1) |
2,962.7 | 3,582.9 | 3,738.1 | 2,876.2 | 3,000.7 | 1,436.3 | 1,154.7 | 1,198.3 | ||||||||||||||||||||||||
Weighted average shares – diluted (millions) | 620.3 | 622.6 | 559.1 | 536.9 | 545.3 | 552.7 | 559.2 | 567.4 | ||||||||||||||||||||||||
Total capital acquisitions | — | — | 2,513.9 | 1.1 | 1,702.7 | 372.0 | 1.3 | 88.2 | ||||||||||||||||||||||||
Total capital dispositions | (541.1) | (105.8) | (602.4) | (0.2) | (8.4) | (2.6) | 1.2 | (244.1) | ||||||||||||||||||||||||
Development capital expenditures from continuing operations | 350.6 | 398.6 | 276.0 | 260.4 | 123.5 | 185.0 | 160.5 | 224.3 | ||||||||||||||||||||||||
Development capital expenditures (1) |
350.6 | 398.6 | 278.9 | 315.5 | 230.1 | 314.2 | 246.4 | 308.5 | ||||||||||||||||||||||||
Dividends declared | 71.7 | 71.3 | 68.3 | 71.7 | 54.8 | 17.1 | 118.8 | 44.9 | ||||||||||||||||||||||||
Dividends declared per share | 0.115 | 0.115 | 0.120 | 0.135 | 0.100 | 0.032 | 0.215 | 0.080 |
VEREN INC. | 22 |
VEREN INC. | 23 |
Total Annual Average Production (boe/d) (1) |
191,000 - 199,000 | ||||||||||
Capital Expenditures | |||||||||||
Development capital expenditures ($ millions) (2) |
$1,400 - $1,500 | ||||||||||
Capitalized administration ($ millions) | $40 | ||||||||||
Total ($ millions) (3) |
$1,440 - $1,540 | ||||||||||
Other Information | |||||||||||
Reclamation activities ($ millions) (4) |
$40 | ||||||||||
Capital lease payments ($ millions) | $20 | ||||||||||
Annual operating expenses ($/boe) | $12.50 - $13.50 | ||||||||||
Royalties | 10.00% - 11.00% | ||||||||||
Base Dividend |
||||||||||||||
Current quarterly base dividend per share | $0.115 | |||||||||||||
Total Return of Capital | ||||||||||||||
% of excess cash flow (1) |
60% |
VEREN INC. | 24 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) |
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Oil and gas sales | 1,136.4 | 791.6 | 44 | 2,244.3 | 1,553.6 | 44 | ||||||||||||||||||||||||||||||||
Royalties | (115.9) | (83.8) | 38 | (229.8) | (169.8) | 35 | ||||||||||||||||||||||||||||||||
Operating expenses | (239.5) | (182.8) | 31 | (490.5) | (351.8) | 39 | ||||||||||||||||||||||||||||||||
Transportation expenses | (79.7) | (39.7) | 101 | (161.5) | (72.5) | 123 | ||||||||||||||||||||||||||||||||
Total operating netback | 701.3 | 485.3 | 45 | 1,362.5 | 959.5 | 42 | ||||||||||||||||||||||||||||||||
Realized gain (loss) on commodity derivatives | (3.4) | 25.3 | (113) | 1.1 | 17.9 | (94) | ||||||||||||||||||||||||||||||||
Total netback | 697.9 | 510.6 | 37 | 1,363.6 | 977.4 | 40 |
VEREN INC. | 25 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) | 2024 | 2023 (1) |
% Change | 2024 | 2023 (1) |
% Change | ||||||||||||||||||||||||||||||||
Cash flow from operating activities |
625.8 | 462.1 | 35 | 1,037.0 | 935.5 | 11 | ||||||||||||||||||||||||||||||||
Changes in non-cash working capital |
(34.3) | 70.0 | (149) | 114.1 | 109.8 | 4 | ||||||||||||||||||||||||||||||||
Transaction costs |
12.9 | 14.6 | (12) | 14.2 | 16.4 | (13) | ||||||||||||||||||||||||||||||||
Decommissioning expenditures (2) |
7.3 | 5.9 | 24 | 14.6 | 15.8 | (8) | ||||||||||||||||||||||||||||||||
Adjusted funds flow from operations |
611.7 | 552.6 | 11 | 1,179.9 | 1,077.5 | 10 | ||||||||||||||||||||||||||||||||
Development capital and other expenditures | (387.7) | (249.1) | 56 | (805.6) | (576.5) | 40 | ||||||||||||||||||||||||||||||||
Payments on lease liability | (8.8) | (5.3) | 66 | (17.4) | (10.6) | 64 | ||||||||||||||||||||||||||||||||
Decommissioning expenditures | (7.3) | (5.9) | 24 | (14.6) | (15.8) | (8) | ||||||||||||||||||||||||||||||||
Unrealized loss on equity derivative contracts | (0.7) | (2.5) | (72) | (0.6) | (30.0) | (98) | ||||||||||||||||||||||||||||||||
Transaction costs | (12.9) | (14.6) | (12) | (14.2) | (16.4) | (13) | ||||||||||||||||||||||||||||||||
Other items (3) |
(0.9) | 2.6 | (135) | (3.3) | 3.0 | (210) | ||||||||||||||||||||||||||||||||
Excess cash flow | 193.4 | 277.8 | (30) | 324.2 | 431.2 | (25) |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Cash flow from operating activities from discontinued operations | — | 96.2 | (100) | — | 199.8 | (100) | ||||||||||||||||||||||||||||||||
Changes in non-cash working capital |
— | 3.0 | (100) | — | (14.3) | (100) | ||||||||||||||||||||||||||||||||
Adjusted funds flow from discontinued operations | — | 99.2 | (100) | — | 185.5 | (100) |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Cash flow from operating activities from continuing operations | 625.8 | 365.9 | 71 | 1,037.0 | 735.7 | 41 | ||||||||||||||||||||||||||||||||
Cash flow from operating activities from discontinued operations | — | 96.2 | (100) | — | 199.8 | (100) | ||||||||||||||||||||||||||||||||
Cash flow from operating activities | 625.8 | 462.1 | 35 | 1,037.0 | 935.5 | 11 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Adjusted funds flow from continuing operations | 611.7 | 453.4 | 35 | 1,179.9 | 892.0 | 32 | ||||||||||||||||||||||||||||||||
Adjusted funds flow from discontinued operations | — | 99.2 | (100) | — | 185.5 | (100) | ||||||||||||||||||||||||||||||||
Adjusted funds flow from operations | 611.7 | 552.6 | 11 | 1,179.9 | 1,077.5 | 10 |
VEREN INC. | 26 |
($ millions) | June 30, 2024 | December 31, 2023 | % Change | |||||||||||||||||
Accounts payable and accrued liabilities | 571.4 | 634.9 | (10) | |||||||||||||||||
Dividends payable |
71.2 | 56.8 | 25 | |||||||||||||||||
Long-term compensation liability (1) |
51.2 | 66.8 | (23) | |||||||||||||||||
Cash |
(5.8) | (17.3) | (66) | |||||||||||||||||
Accounts receivable |
(379.5) | (377.9) | — | |||||||||||||||||
Prepaids and deposits | (105.0) | (87.8) | 20 | |||||||||||||||||
Deferred consideration receivable (2) |
(63.1) | (79.2) | (20) | |||||||||||||||||
Adjusted working capital deficiency | 140.4 | 196.3 | (28) |
($ millions) |
June 30, 2024 | December 31, 2023 | % Change |
|||||||||||||||||
Long-term debt (1) |
2,844.9 | 3,566.3 | (20) | |||||||||||||||||
Adjusted working capital deficiency | 140.4 | 196.3 | (28) | |||||||||||||||||
Unrealized foreign exchange on translation of hedged US dollar long-term debt | (22.6) | (24.5) | (8) | |||||||||||||||||
Net debt |
2,962.7 | 3,738.1 | (21) |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) |
2024 | 2023 | % Change |
2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Net income (loss) | 261.0 | 212.3 | 23 | (150.7) | 429.0 | (135) | ||||||||||||||||||||||||||||||||
Amortization of E&E undeveloped land |
29.8 | 5.3 | 462 | 59.4 | 7.9 | 652 | ||||||||||||||||||||||||||||||||
Impairment | — | — | — | 512.3 | — | 100 | ||||||||||||||||||||||||||||||||
Unrealized derivative losses | 4.8 | 116.2 | (96) | 157.7 | 120.1 | 31 | ||||||||||||||||||||||||||||||||
Unrealized foreign exchange (gain) loss on translation of hedged US dollar long-term debt | (66.6) | (128.5) | (48) | 1.6 | (129.1) | (101) | ||||||||||||||||||||||||||||||||
Net (gain) loss on capital dispositions | (1.3) | (2.1) | (38) | 10.7 | (4.1) | (361) | ||||||||||||||||||||||||||||||||
Deferred tax adjustments | 10.1 | 2.2 | 359 | (166.2) | 0.5 | (33,340) | ||||||||||||||||||||||||||||||||
Adjusted net earnings from operations | 237.8 | 205.4 | 16 | 424.8 | 424.3 | — |
VEREN INC. | 27 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) |
2024 | 2023 | % Change |
2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Net income (loss) from discontinued operations | 0.1 | 33.9 | (100) | (12.7) | 65.8 | (119) | ||||||||||||||||||||||||||||||||
Net (gain) loss on capital dispositions | (0.1) | — | (100) | 12.7 | — | 100 | ||||||||||||||||||||||||||||||||
Deferred tax adjustments | — | (0.1) | (100) | — | (0.8) | (100) | ||||||||||||||||||||||||||||||||
Adjusted net earnings from discontinued operations | — | 33.8 | (100) | — | 65.0 | (100) |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) |
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||||||||||||||||||
Adjusted net earnings from continuing operations | 237.8 | 171.6 | 39 | 424.8 | 359.3 | 18 | ||||||||||||||||||||||||||||||||
Adjusted net earnings from discontinued operations | — | 33.8 | (100) | — | 65.0 | (100) | ||||||||||||||||||||||||||||||||
Adjusted net earnings from operations | 237.8 | 205.4 | 16 | 424.8 | 424.3 | — |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||||||||||||
($ millions) |
2024 | 2023 | % Change |
2024 | 2023 | % Change |
||||||||||||||||||||||||||||||||
Development capital and other expenditures | 387.7 | 249.1 | 56 | 805.6 | 576.5 | 40 | ||||||||||||||||||||||||||||||||
Payments on drilling rig lease liabilities | 3.2 | — | 100 | 6.3 | — | 100 | ||||||||||||||||||||||||||||||||
Land expenditures | (27.4) | (7.1) | 286 | (35.1) | (8.4) | 318 | ||||||||||||||||||||||||||||||||
Capitalized administration (1) |
(11.4) | (10.1) | 13 | (25.0) | (21.5) | 16 | ||||||||||||||||||||||||||||||||
Corporate assets | (1.5) | (1.8) | (17) | (2.6) | (2.3) | 13 | ||||||||||||||||||||||||||||||||
Development capital expenditures |
350.6 | 230.1 | 52 | 749.2 | 544.3 | 38 |
VEREN INC. | 28 |
l Veren's approach to proactively manage the risk exposure inherent in movements in the price of crude oil, natural gas, the Company's share price, the US/Cdn dollar exchange rate and interest rates through the use of derivatives with investment-grade counterparties;
l Veren's use of derivatives to reduce the volatility of the selling price of its crude oil, NGLs and natural gas production and provide some upside participation during rising prices and how these derivatives provide a measure of stability to cash flow;
l Veren's 2024 production and capital expenditures guidance, and other information forming part of the 2024 guidance;
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l The extent and effectiveness of hedges;
l Veren's return of capital outlook including dividend expectations and additional return of capital target as a percentage of excess cash flow;
l The Company's liquidity and financial flexibility;
l The method by which the Company's ongoing working capital requirements are financed;
l NCIB expectations; and
l Estimated undiscounted and uninflated cash flows to settle decommissioning liability.
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VEREN INC. | 29 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Light & Medium Crude Oil (bbl/d) | 9,653 | 13,188 | 10,543 | 13,034 | ||||||||||||||||||||||
Heavy Crude Oil (bbl/d) | 2,866 | 3,857 | 3,243 | 3,933 | ||||||||||||||||||||||
Tight Oil (bbl/d) | 72,546 | 48,151 | 72,698 | 43,831 | ||||||||||||||||||||||
Total Crude Oil (bbl/d) | 85,065 | 65,196 | 86,484 | 60,798 | ||||||||||||||||||||||
NGLs (bbl/d) | 42,375 | 34,108 | 43,578 | 34,751 | ||||||||||||||||||||||
Shale Gas (mcf/d) | 387,893 | 184,105 | 388,162 | 165,883 | ||||||||||||||||||||||
Conventional Natural Gas (mcf/d) | 3,357 | 8,859 | 5,066 | 9,542 | ||||||||||||||||||||||
Total Natural Gas (mcf/d) | 391,250 | 192,964 | 393,228 | 175,425 | ||||||||||||||||||||||
Total production from continuing operations (boe/d) | 192,648 | 131,465 | 195,600 | 124,787 |
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Light & Medium Crude Oil (bbl/d) | 9,653 | 13,190 | 10,543 | 13,035 | ||||||||||||||||||||||
Heavy Crude Oil (bbl/d) | 2,866 | 3,857 | 3,243 | 3,933 | ||||||||||||||||||||||
Tight Oil (bbl/d) | 72,546 | 63,812 | 72,698 | 58,528 | ||||||||||||||||||||||
Total Crude Oil (bbl/d) | 85,065 | 80,859 | 86,484 | 75,496 | ||||||||||||||||||||||
NGLs (bbl/d) | 42,375 | 39,399 | 43,578 | 39,992 | ||||||||||||||||||||||
Shale Gas (mcf/d) | 387,893 | 199,781 | 388,162 | 180,726 | ||||||||||||||||||||||
Conventional Natural Gas (mcf/d) | 3,357 | 8,859 | 5,066 | 9,542 | ||||||||||||||||||||||
Total Natural Gas (mcf/d) | 391,250 | 208,640 | 393,228 | 190,268 | ||||||||||||||||||||||
Total average daily production (boe/d) | 192,648 | 155,031 | 195,600 | 147,199 |
VEREN INC. | 30 |
2024 | 2023 | 2022 | ||||||||||||||||||||||||
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |||||||||||||||||||
Light & Medium Crude Oil (bbl/d) | 9,653 | 11,434 | 12,198 | 12,405 | 13,188 | 12,879 | 13,671 | 12,347 | ||||||||||||||||||
Heavy Crude Oil (bbl/d) | 2,866 | 3,620 | 3,795 | 3,617 | 3,857 | 4,010 | 3,870 | 4,102 | ||||||||||||||||||
Tight Oil (bbl/d) | 72,546 | 72,849 | 56,657 | 54,605 | 48,151 | 39,464 | 40,068 | 42,030 | ||||||||||||||||||
Total Crude Oil (bbl/d) | 85,065 | 87,903 | 72,650 | 70,627 | 65,196 | 56,353 | 57,609 | 58,479 | ||||||||||||||||||
NGLs (bbl/d) | 42,375 | 44,780 | 39,517 | 38,316 | 34,108 | 35,401 | 33,871 | 33,668 | ||||||||||||||||||
Shale Gas (mcf/d) | 387,893 | 388,432 | 236,926 | 232,235 | 184,105 | 147,458 | 128,437 | 121,070 | ||||||||||||||||||
Conventional Natural Gas (mcf/d) | 3,357 | 6,773 | 11,380 | 12,542 | 8,859 | 10,233 | 10,769 | 10,307 | ||||||||||||||||||
Total Natural Gas (mcf/d) | 391,250 | 395,205 | 248,306 | 244,777 | 192,964 | 157,691 | 139,206 | 131,377 | ||||||||||||||||||
Total production from continuing operations (boe/d) | 192,648 | 198,551 | 153,551 | 149,739 | 131,465 | 118,036 | 114,681 | 114,043 |
2024 | 2023 | 2022 | ||||||||||||||||||||||||
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |||||||||||||||||||
Light & Medium Crude Oil (bbl/d) | 9,653 | 11,434 | 12,198 | 12,408 | 13,190 | 12,879 | 13,671 | 12,347 | ||||||||||||||||||
Heavy Crude Oil (bbl/d) | 2,866 | 3,620 | 3,795 | 3,617 | 3,857 | 4,010 | 3,870 | 4,102 | ||||||||||||||||||
Tight Oil (bbl/d) | 72,546 | 72,849 | 62,512 | 75,879 | 63,812 | 53,184 | 52,095 | 54,030 | ||||||||||||||||||
Total Crude Oil (bbl/d) | 85,065 | 87,903 | 78,505 | 91,904 | 80,859 | 70,073 | 69,636 | 70,479 | ||||||||||||||||||
NGLs (bbl/d) | 42,375 | 44,780 | 41,373 | 44,728 | 39,399 | 40,592 | 38,893 | 38,481 | ||||||||||||||||||
Shale Gas (mcf/d) | 387,893 | 388,432 | 242,965 | 251,152 | 199,781 | 161,459 | 142,803 | 134,049 | ||||||||||||||||||
Conventional Natural Gas (mcf/d) | 3,357 | 6,773 | 11,380 | 12,542 | 8,859 | 10,233 | 10,769 | 10,307 | ||||||||||||||||||
Total Natural Gas (mcf/d) | 391,250 | 395,205 | 254,345 | 263,694 | 208,640 | 171,692 | 153,572 | 144,356 | ||||||||||||||||||
Total average daily production (boe/d) | 192,648 | 198,551 | 162,269 | 180,581 | 155,031 | 139,280 | 134,124 | 133,019 |
VEREN INC. | 31 |
Directors
Barbara Munroe, Chair (6)
James Craddock (2) (3) (5)
John Dielwart (3) (4)
Mike Jackson (1) (5)
Jennifer Koury (2) (5)
Francois Langlois (1) (3) (4)
Myron Stadnyk (1) (2) (4)
Mindy Wight (1) (2)
Craig Bryksa (4)
(1) Member of the Audit Committee of the Board of Directors
(2) Member of the Human Resources and Compensation Committee of the Board of Directors
(3) Member of the Reserves Committee of the Board of Directors
(4) Member of the Environment, Safety and Sustainability Committee of the Board of Directors
(5) Member of the Corporate Governance and Nominating Committee
(6) Chair of the Board serves in an ex officio capacity on each Committee
Officers
Craig Bryksa
President and Chief Executive Officer
Ken Lamont
Chief Financial Officer
Ryan Gritzfeldt
Chief Operating Officer
Mark Eade
Senior Vice President, General Counsel and Corporate Secretary
Garret Holt
Senior Vice President, Strategy and Planning
Michael Politeski
Senior Vice President, Finance and Treasurer
Shelly Witwer
Senior Vice President, Business Development
Justin Foraie
Vice President, Operations and Marketing
Head Office
Suite 2000, 585 - 8th Avenue S.W.
Calgary, Alberta T2P 1G1
Tel: (403) 693-0020
Fax: (403) 693-0070
Toll Free: (888) 693-0020
Banker
The Bank of Nova Scotia
Calgary, Alberta
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Auditor
PricewaterhouseCoopers LLP
Calgary, Alberta
Legal Counsel
Norton Rose Fulbright Canada LLP
Calgary, Alberta
Evaluation Engineers
McDaniel & Associates Consultants Ltd.
Calgary, Alberta
Registrar and Transfer Agent
Investors are encouraged to contact Veren's Registrar and Transfer Agent for information regarding their security holdings:
Computershare Trust Company of Canada
600, 530 - 8th Avenue S.W.
Calgary, Alberta T2P 3S8
Tel: (403) 267-6800
Stock Exchanges
Toronto Stock Exchange - TSX
New York Stock Exchange - NYSE
Stock Symbol
VRN
Investor Contacts
Sarfraz Somani
Manager, Investor Relations
(403) 693-0020
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VEREN INC. | 32 |